03 Oct DIVERSIFICATION OF THE NIGERIAN ECONOMY: Understanding the Service Sector

Did you find time to read through our first blog on the weight of the service sector’s contribution to the Nigerian economy? To follow up on that, we wanted to explain what the service sector entails.

The economy of a nation is usually comprised of three high-level sectors, which are then divided up into smaller sectors. Of the high-level sectors within an economy, the first is called the primary sector and involves companies that participate in the extraction or harvesting of natural products from the earth, such as agriculture, mining and forestry. The secondary sector consists of processing, manufacturing and construction companies. The tertiary sector is comprised of companies that provide services, such as retail sales, entertainment and financial organizations.

The service sector produces intangible goods and more precisely services instead of good. This includes the provision of services to businesses and end users alike. The service sector includes

• Transportation and shipping
• Tourism
• Accommodation and Hospitality
• Financial services
• Media, Information, communication services and advertisements
• Education
• Healthcare and Social Care
• Real estate and infrastructure
• Entertainment culture and sports
• Legal and consulting services
• Crafts and repairs
• Public Administration, etc.

This sector contributes massively to the nation’s GDP of the economy and does deserve some media buzz.

Photo credit: the internet

Ijeoma Okoli

Emc3 Nigeria