Development Economics

Assignment
Syed Ali Hasan
0911133

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Price Graph
120.00

100.00

80.00

60.00

40.00

20.00

0.00

Price Graph

Production Graph
1908
1906
1905
1904
1902
1901

1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

1900

Production Graph

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Years

Production Daily

Pro. Annually

Price

Revenue

1990

1817

663205

663205000

21.2

14059946000

1991

1989

725985

725985000

27.8

20182383000

1992

1951

712115

712115000

18.2

12960493000

1993

1967

717955

717955000

18.5

13282167500

1994

1936

706640

706640000

13.5

9539640000

1995

1998

729270

729270000

16.15

11777710500

1996

2007

732555

732555000

19.7

14431333500

1997

2140

781100

781100000

24.65

19254115000

1998

2160

788400

788400000

16.5

13008600000

1999

2130

777450

777450000

10.6

8240970000

2000

2165

790225

790225000

25.55

20190248750

2001

2256

823440

823440000

22

18115680000

REVENUE
25,000,000,000
20,000,000,000
15,000,000,000
10,000,000,000
5,000,000,000
0
1990

1991

1992

1993

1994

1995
REVENUE

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1996

1997

1998

1999

2000

2001

The oil prices were highest in the year of 2000 and lowest in the year of 1999. Figures
were $20,182,383,000 and $8,240,970,000 respectively.
The problem which the Nigerian Government was primarily facing was the significant
changes in the revenue generation for the Government. In effect these massive
fluctuations would hinder government policies which would mean for instance the
government decided that in 1999 the government would spend 5% of the amount on
Infrastructure building, though the next since the revenue would rise or fall so much the
5% of year 2000s revenue would not either maintain government policy or it would over
capacitate old Government Policy. Therefore with such fluctuation in Government
Revenue generation, the annual budget would vary extensively which would hinder the
work of long term governmental projects such as infrastructure development. The
monetary policy would also be greatly hindered by these massive changes. Since the
Nigerian economy relies mostly on its crude oil therefore changes in the price of crude
in Dollar value hinders the countrys own currency that is Naira which means that
suppose one year the dollar value of crude oil rises therefore in effect naira value would
appreciate in the short run therefore causing hypes and recession in the economy
based on the changes of the price of international crude oil prices. The state bank would
regularly have to alter their policies as per the trends of the international crude oil prices
to ensure the safety of the naira and the Nigerian economy.

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