The dwindling and market falls in oil prices are prime indicators for Nigeria politico-economic consideration for________

Step 1: Analyze the question The question says oil prices are falling and the market is shrinking. Nigeria depends heavily on crude oil for government revenue and foreign exchange. So what should Nigeria's political and economic planners consider in response?

Step 2: Explain the concept Nigeria is a mono-product (mono-cultural) economy. Crude oil provides most of its export earnings and government revenue. When oil prices fall, revenue falls, the naira comes under pressure, and budgets suffer. The standard remedy is economic diversification: developing other sectors such as agriculture, solid minerals, manufacturing, and services, so the economy does not depend on one commodity.

Step 3: Evaluate the options

• A. Indigenization policy: This transfers ownership of foreign firms to Nigerians (e.g., the 1972 and 1977 Indigenization Decrees). It has nothing to do with falling oil prices.
• B. Diversification: This directly addresses over-dependence on oil. ✔
• C. The adoption of the UN's Vision 2030: This is a global development agenda. It is not a direct response to oil price shocks. (Nigeria's own plan was Vision 20:2020.)
• D. Nationalisation policy: This is government takeover of privately owned businesses. It does not solve falling oil revenue.

Step 4: Answer The falling oil price signals the need to diversify the economy, so the correct option is B. diversification.

Tip: In Government and Economics questions, when you see "falling oil prices," "mono-product economy," or "over-dependence on oil," think diversification. Words like "indigenization" and "nationalisation" are about ownership, not about reducing dependence on one product.