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

1. Analyze the question The question asks why Nigeria is called a "mono-economy". It wants the cause, completed by one of the options.

2. Explain the concept A mono-economy (or mono-product economy) depends on one main product or sector for most of its export earnings and government revenue. Nigeria is a classic example because crude oil and gas bring in about 80-90% of its foreign exchange earnings and a large share of government revenue. Sectors such as agriculture, manufacturing and solid minerals contribute far less to export earnings than they could.

3. Evaluate the options

• A. Huge volume of petroleum activities in the country: Correct. Heavy concentration on petroleum is exactly what makes the economy dependent on one product.
• B. Diversification system of economic activities: Wrong. Diversification is the opposite of a mono-economy. A diversified economy relies on many sectors.
• C. High demand for foreign commodities: This explains heavy imports, not dependence on a single product.
• D. High rate of unemployment: This is a problem in the economy, but it does not explain why one sector dominates.

4. Answer The huge volume of petroleum activities, and the reliance on oil, makes Nigeria a mono-economy.

5. Exam tip Remember "mono = one". If a question asks about a mono-economy, look for the option showing dependence on a single product (here, oil). Be wary of "diversification", because it is the cure, not the cause.