The Nigerian economy is one of the largest in Africa and mathematics as a distinct field of study has played a major role in facilitating the growth of the economy. Mathematics is of central importance to the socio-economic development of Nigeria.
The magnitude importance of Mathematics dates back to 3000BC from Babylonians and Egyptians. Over the years, it has extended into numerous branches of everyday human activities, it aided in their economic growth policies. Therefore, mathematics has always been part of every nation’s economic growth, resulting to abundance and wealth in the society. The relevance of mathematics to the Nigerian economic system is vast but clear as crystal.
Firstly, economists frequently use numerical approaches when reviewing specific information in an economy. This relates to mathematics as it is like the mother figure of numerical abilities. The country’s budget and other important information about the economy is listed and reviewed by the economists. This makes calculations easier, even for the layman. This method has been used severally by the economists to analyse the economy of Nigeria.
Secondly, mathematics helps economists to perform quantifiable experiments and create models for predicting future economic growth. In recent cases, economists have been called upon by the Nigerian government to predict the future growth of the nation. This task was carried out with the aid of mathematical tools and experiments were performed in order to arrive at the nation’s future economic growth, which helped the government to plan well for the future in order not to suffer financial setbacks.
Thirdly, mathematics has helped entrepreneurs in the business industry. Venturing into a new business requires a careful appraisal to measure the viability of such venture. Such appraisal requires mathematical techniques to make it a reality, and mathematics has made it easier for these entrepreneurs to handle related issues.
Nigeria practices a mixed economy system in which the economic activities in the country are carried out by both the government and private individuals, therefore entrepreneurs who are private individuals also contribute to the economic growth of the society and mathematics helps them to successfully achieve this.
Furthermore, while undergoing feasibility and viability appraisal, mathematics skills are required to put in place the projected cash flow, budget, projected statement of income and expenditure and so on. The planning process which involves deciding today what will be done in future requires a good deal of mathematics because,
for instance, if it is production venture, knowledge of the required quantity of production to be produce involves mathematics. Hence, the place of mathematics in shaping the economic system of Nigeria through entrepreneurship.
According to Adewunmi and Adu (cited in Mirowski, 1991):
“Mathematics involves reading and interpreting tables, charts and graphs, computing discounts and mark-ups; solving problems related with percentage, ratio and proportion; determining unit costs, total costs, scale costs for receipts; budgets; financing; credit; cost compared to cash; understanding income, payroll, taxes and deductions; studying Federal Income Tax Annual Reports; comparison of various methods of financial investments; understanding sales tax, utility tax, property tax and miscellaneous taxes; comparisons of insurance programmes; knowledge of cost of manufacturing and analyzing business performance.”
The summary of the above cited words is a clear indication that mathematics is very essential in every economic policy that is to be formulated by any government due to the fact that all data to be used in the policy rely on mathematics language and terminologies to be interpreted. If the data is raw, it may not possibly give meaning but when interpreted mathematically, it would give meaning and consequently be used in taking economic decisions to boost the system.
In addition, mathematics allows forming meaningful, testable propositions about wide-ranging and complex subjects which could less easily be expressed informally. A lot of economic theory is expressed and currently presented in terms of mathematical economic models in order to solve financial issues.
Formal economic modelling began in the 19th century with the use of differential calculus to represent and explain economic behaviour, such as utility maximization, an early approach to economic development.
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