Nigeria Economy

By: EconomyWatch Content   Date: 29 March 2010

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Nigeria is a West African economy with a long coastline along the Atlantic Ocean. The country shares international borders with Benin, Chad, Cameroon and Niger. Nigeria ranks 32 in the world in terms of total area. The terrain of the country consists of southern lowlands and plateaus in the central region. The south east region has a mountainous surface, while the north consists of plains. According to the 2009 estimates, the country has a total population in excess of 154 million, of which almost 70% live below the international poverty line. Nigeria’s economy is overly dependent on the petroleum sector.

Nigeria Economy: Introduction

The Nigerian economy is one of the most developed economies in Africa. According to the UN classification, Nigeria is a middle-income nation with developed financial, communication and transport sectors. It has the second largest stock exchange in the continent.

The petroleum industry is central to the Nigerian economic profile. It is the 12th largest producer of petroleum products in the world. The industry accounts for almost 80% of the GDP share and above 90% of the total exports. Outside the petroleum sector, the Nigerian economy is highly amorphous and lacks basic infrastructure. Several failed efforts have been made after 1990 to develop other industrial sectors.

Owing to the surge in international oil prices during 2007-08, Nigeria managed an annual GDP of US$352.3 billion. The nation ranks 33 in the world in terms of GDP. The GDP per capita is US $2,400.

 

 

Nigeria's GDP Composition by Sectors 

 

Nigeria Economy: Statistical Snapshot

Here are some of the vital statistics related to the Nigerian economy:

 

Labor force

47.33 million (2009 est.)

Labor in agriculture

70%

Budget revenues

$10.49 billion

Budget expenditures

$18.08 billion (2009 est.)

Industrial production growth rate

-1.8% (2009 est.)

Current account balance

-$9.394 billion (2009 est.)

Exports

$45.43 billion (2009 est.)

Imports

 $42.1 billion (2009 est.)

Foreign exchange reserve

$46.54 billion (December 2009 est.)

External Debt

$9.689 billion (December 2009 est.)

 

                                                                                    (Source: CIA World Factbook)

 

Widespread poverty and lack of industrial resources are the biggest challenges for Nigeria. The country ranks 151 out of 177 on the UN Development Index. During 2003-07, the government initiated strategic economic reforms to eradicate poverty and bring economic equality. However, corruption has been the main impediment to the success of any such effort.



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