A significant effect of the growth of the oil sector in Nigeria has been to?
Answer Details
The significant effect of the growth of the oil sector in Nigeria has been to diminish the percentage contribution of the agricultural sector to GNP. This is because the oil sector became the dominant sector in the Nigerian economy and attracted more investment, resources and attention than the agricultural sector. As a result, there was less emphasis on agricultural development and less investment in the sector, leading to a decline in its contribution to Gross National Product (GNP). This phenomenon is known as the "Dutch Disease," where the abundance of natural resources, particularly oil, leads to the neglect of other sectors of the economy.