One of the reasons why Nigeria is a mono-economy is because of her _______?

A. huge volume of petroleum activities in the country
B. diversification system of economic activities
C. high demand for foreign commodities
D. high rate of unemployment

Correct Answer:

Option A – huge volume of petroleum activities in the country

Explanation

A mono-economy is an economy relying on one major export or natural resources to bring most of the currency into the country. Nigeria is dependent on crude oil. Before now, agriculture and mining were the primary drivers of Nigeria’s economy but these has been abandoned since the 70’s as a result of the discovery of oil. Nigeria is now a mono-economic country that is, now relies solely on crude oil as her major source of revenue.