Highlight the causes of Balance of payments deficits in your country.
Explanation
Causes of balance of payments deficit in Nigeria are:
(i) There is low level of agricultural production. This makes Nigeria dependent on food imports and imported inputs for our agro-allied industries.
(ii) Low level of technological development that makes the country a greater importer of advanced technology.
(iii) Inadequacies in export promotion strategies.
(iv) Policy instability / political instability.
(v) Excessive government expenditure.
(vi) Servicing of huge external debts.
(vii) Industries that make us import dependent, both in the demand for machines and in the demand for raw materials, are the ones scattered across the country.
(viii) Poor social and economic infrastructure that contribute greatly to low capacity utilization in the industrial sector; bad roads, irregular supply of electricity, water, poor telecommunications, etc.