In Nigeria, people can open their own businesses, choose their careers and job paths, and can purchase a wide array of consumer goods. However, the national government institutes tariffs on imported goods, has a significant share in the oil industry, and regulates much of the country's industry. Still, Nigeria has a well-developed financial and communications sectors, a national stock exchange, and an abundance of natural resources, Where does this description put Nigeria on a continuum between pure market and pure command?

Question

In Nigeria, people can open their own businesses, choose their careers and job paths, and can purchase a wide array of consumer goods. However, the national government institutes tariffs on imported goods, has a significant share in the oil industry, and regulates much of the country's industry. Still, Nigeria has a well-developed financial and communications sectors, a national stock exchange, and an abundance of natural resources, Where does this description put Nigeria on a continuum between pure market and pure command?

Answer 1

Based on the information provided, Nigeria can be positioned somewhere between a pure market economy and a pure command economy, leaning more towards a mixed economy.

On one hand, Nigeria allows individuals to open businesses, choose careers, and purchase consumer goods, which indicates a market-oriented approach where individuals have some degree of freedom to make economic decisions. The well-developed financial and communications sectors, as well as the presence of a national stock exchange, further suggest a market-oriented system that has allowed for the development of private enterprises.

On the other hand, the government's imposition of tariffs on imported goods and its significant share in the oil industry demonstrate interventionist policies. Additionally, the regulation of much of the country's industry suggests some level of command or state intervention in the economy.

The presence of abundant natural resources, which are often subject to government regulations and controls, can also be seen as an indicator of some command economy elements. However, the extent to which the government controls and directs economic activities is not explicitly mentioned in the description.

Overall, the description suggests that Nigeria falls in the middle of the continuum, showcasing features of both market and command economies. It is crucial to note that economic systems are multifaceted and can evolve over time, so Nigeria's position on the continuum may vary based on different perspectives and the specific sectors being considered.