27 Sep DIVERSIFICATION OF THE NIGERIAN ECONOMY: THE SERVICE INDUSTRY

Distributive trade and service industries account for a substantial proportion of economic activities in every country, whether they are measured in terms of contributions to the GDP or share of total employment. The services sector is also the fastest growing sector of the global economy. There are no reliable estimates of the percentage of Nigerians employed in this sector, but casual observation suggests that it is remarkably high.

The structure of Nigeria’s economy has evolved significantly. There is much more diversity than people assume. The country’s economy which has traditionally been dominated by crude oil and natural gas production has also shown a major growth in the services sector, which now accounts for the greatest share of the country’s GDP output at well over 50%.

Paying calculated attention to and harnessing the full benefits of services sector will go a long way to reduce the nation’s dependence on traditional markets, provide a more diversified market, bring about new knowledge, experience and enhance domestic competitiveness. A virile services sector will also expand horizons, create new ideas, increase the use of new technology, new approaches and new market techniques drawn from exposure to the global market place.

This sector is vital to poverty alleviation and key to realising the Millennium Development Goals both directly in terms of enhancing the availability and affordability of education, health services, energy, ICT services as well as through entrepreneurial and employment creation opportunities in services enterprises.

As we clamour for diversification, it makes sense to highlight the weight of this sector in order to maximize it.

Photo credit: the internet

Ijeoma Okoli

Emc3 Nigeria