————- is NOT the cause of balance of payments (BOP) …

JAMB Economics 2023 216 views
Source: JAMB · 2023

————- is NOT the cause of balance of payments (BOP) deficits in Nigeria

  1. Poor performance of non-oil sector
  2. No import substitution strategies
  3. High servicing of debt
  4. Export promotion ✓
Explanation

A balance of payments deficit happens when a country spends more abroad than it earns. Poor non-oil exports, heavy imports and high debt payments all widen the gap.

Export promotion does the opposite. It earns more foreign exchange, so it helps reduce a deficit and is not a cause.

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