Economy

 

 Nigeria is classified as a mixed economyemerging market, and has already reached middle income status according to the Worldbank,[58] with its abundant supply of natural resources, well-developed financial, legal, communications, transport sectors and stock exchange (the Nigerian Stock Exchange), which is the second largest in Africa.

 

Nigeria is ranked 37th in the world in terms of GDP (PPP) as of 2007. Nigeria is the United States' largest trading partner in sub-Saharan Africa and supplies a fifth of its oil (11% of oil imports). It has the seventh-largest trade surplus with the U.S. of any country worldwide. Nigeria is currently the 50th-largest export market for U.S. goods and the 14th-largest exporter of goods to the U.S. The United States is the country's largest foreign investor.[59] The International Monetary Fund (IMF) projected economic growth of 9% in 2008 and 8.3% in 2009.[60][61][62] The IMF further projects a 8% growth in the Nigerian economy in 2011.[63]

 

According to Citigroup, Nigeria will get the highest average GDP growth in the world between 2010–2050. Nigeria is one of two countries from Africa among 11 Global Growth Generators countries.[64]

 

Previously, economic development had been hindered by years of military rule, corruption, and mismanagement. The restoration of democracy and subsequent economic reforms have successfully put Nigeria back on track towards achieving its full economic potential. It is now the second largest economy in Africa (following South Africa), and the largest economy in the West Africa Region.[65]

Nigeria made history in April 2006 by becoming the first African Country to completely pay off its debt (estimated $30 billion) owed to the Paris Club.

 

Key sectors

 

Petroleum

Nigeria is the 12th largest producer of petroleum in the world and the 8th largest exporter, and has the 10th largest proven reserves. (The country joined OPEC in 1971). Petroleum plays a large role in the Nigerian economy, accounting for 40% of GDP and 80% of Government earnings. However, agitation for better resource control in the Niger Delta, its main oil producing region, has led to disruptions in oil production and currently prevents the country from exporting at 100% capacity.[66]

 

Telecommunications

Nigeria has one of the fastest growing telecommunications markets in the world, major emerging market operators (like MTN, Etisalat, Zain and Globacom) basing their largest and most profitable centres in the country.[67] The government has recently begun expanding this infrastructure to space based communications. Nigeria has a space satellite which is monitored at the Nigerian National Space Research and Development Agency Headquarters in Abuja.

 

Banking and Finance

The country has a highly developed financial services sector, with a mix of local and international banks, asset management companies, brokerage houses, insurance companies and brokers, private equity funds and investment banks.  Following the consolidation exercise of 2004, the number of banks reduced from  120 to just 25. And following mergers and acquisitions the number currently stands at 24 with indications for further reduction to about 22. Some  of the leading financial institutions include Diamond Bank, Fidelity Bank, UBA, UBN, Zenith, Stanbic IBTC Bank, Express Discount House.

 

Solid Minerals

Nigeria also has a wide array of underexploited mineral resources which include natural gas, coal, bauxite, tantalite, gold, tin, iron ore, limestone, niobium, lead and zinc.[69] Despite huge deposits of these natural resources, the mining industry in Nigeria is still in its infancy.

 

Agriculture

Agriculture used to be the principal foreign exchange earner of Nigeria. At one time, Nigeria was the world's largest exporter of groundnuts, cocoa, and palm oil and a significant producer of coconuts, citrus fruits, maize, pearl millet, cassava, yams and sugar cane. About 60% of Nigerians work in the agricultural sector, and Nigeria has vast areas of underutilized arable land.

Manufacturing

It also has a manufacturing industry which includes leather and textiles (centred Kano, Abeokuta, Onitsha, and Lagos), car manufacturing (for the French car manufacturer Peugeot as well as for the English truck manufacturer Bedford, now a subsidiary of General Motors), t-shirts, plastics and processed food.

Commerce

Nigeria boasts of a huge commercial market. The country has being described as a consuming nation, a nation fostered by the huge trading and buying populace. Major commercial centers include Aba, Onitsha, Lagos, Ibadan, Kano, Kaduna and Maiduguri.

Entertainment

The country has recently made considerable amount of revenue from home made Nigerian Movies which are sold locally and Internationally. These movies are popular in other African countries and among African immigrants in Europe.

Science and technology

Three satellites have been launched by the Nigerian government into space. The Nigeriasat-1 was the first satellite to be built under the Nigerian government sponsorship. The satellite was launched from Russia on 27 September 2003. Nigeriasat-1 was part of the world-wide Disaster Monitoring Constellation System. The primary objectives of the Nigeriasat-1 were: to give early warning signals of environmental disaster; to help detect and control desertification in the northern part of Nigeria; to assist in demographic planning; to establish the relationship between malaria vectors and the environment that breeds malaria and to give early warning signals on future outbreaks of meningitis using remote sensing technology; to provide the technology needed to bring education to all parts of the country through distant learning; and to aid in conflict resolution and border disputes by mapping out state and International borders.

NigeriaSat-2, Nigeria's second satellite, was built as a high-resolution earth satellite by Surrey Space Technology Limited, a United Kingdom-based satellite technology company. It has 2.5-metre resolution panchromatic (very high resolution), 5-metre multispectral (high resolution, NIR red, green and red bands), and 32-metre multispectral (medium resolution, NIR red, green and red bands) antennas, with a ground receiving station in Abuja. The NigeriaSat-2 spacecraft alone was built at a cost of over £35 million. This satellite was launched into orbit from a military base in China.

NigComSat-1, a Nigerian satellite built in 2004, was Nigeria's third satellite and Africa's first communication satellite. It was launched on 13 May 2007, aboard a ChineseLong March 3Bcarrier rocket, from the Xichang Satellite Launch Centre in China. The spacecraft was operated by NigComSat and the Nigerian Space Agency, NASRDA.  

wikipedia.org

 

Summary of Nigeria’s economic Data

GDP: purchasing power parity – $459.4 billion (2009 est.)

GDP – real growth rate: 7% (July 2006 est.)

GDP – per capita: purchasing power parity – $3460 (2009 est.)

GDP – composition by sector:
                                            Agriculture: 26.8%
                                           Industry: 48.8%
                                          Services: 24.4% (2005 est.)

Population below poverty line: 78.98%(2000 est.)

Household income or consumption by percentage share:r
lowest 10%: 2.6%
highest 10%: 35.8% (1996–97)

Inflation rate (consumer prices): 7% (2006 est.)

Labor force: 57.21 million

Labor force – by occupation: agriculture 70%, industry 10%, services 20% (1999 est.)

Unemployment rate: 2.9% NA (2005 est.)

Budget:
revenues: $17 billion
expenditures: $13.54 billion including capital expenditures of $NA (2005 est.)

Industries: crude oil, coal, tin, columbite, palm oil, peanuts, cotton, rubber, wood, hides and skins, textiles, cement and other construction materials, food products, footwear, chemicals, fertilizer, printing, ceramics, steel, small commercial ship construction and repair

Industrial production growth rate: 2.4% (2005 est.)

Electricity – production: 15.59 billion kWh (2003)

Electricity – production by source:
fossil fuel: 61.69%
hydro: 38.31%
nuclear: 0%
other: <.1% (1998)

Electricity - consumption: 14.46 billion kWh (2003)

Electricity - exports: 40 million kWh (2003)

Electricity - imports: 0 kWh (1998)

Oil - production: 2.35 million barrels per day (374×103 m3/d) (July 2006 est.)

Oil - consumption: 310,000 bbl/d (49,000 m3/d) (2003 est.)

Agriculture – products: cocoa, peanuts, palm oil, maize, rice, sorghum, millet, cassava (tapioca), yams, rubber; cattle, sheep, goats, pigs; timber; fish

Exports: $72.16 billion f.o.b. (2005 est.)

Exports – commodities: petroleum and petroleum products 95%, cocoa, rubber

Exports – partners: United States 47.4%, Brazil 10.7%, Spain 7.1%(2004)

Imports: $45.95 billion f.o.b. (2005 est.)

Imports – commodities: machinery, chemicals, transport equipment, manufactured goods, food and live animals

Imports – partners: the People's Republic of China 9.4%, United States 8.4%, United Kingdom 7.8%, Netherlands 5.9%, France 5.4%, Germany 4.8%, Italy 4% (2004)

Debt – external: $3.3 billion with London Club(2006 est.)

Economic aid – recipient: IMF $250 million (1998)

Currency: 1 Naira (NGN) = 100 kobo

Exchange rates: Naira (NGN) per US$1 – 149.5 (2009), 120 (2006), 128 (2005), 132.89 (2004), 129.22 (2003), 120.58 (2002), 111.23 (2001)

External Reserves: $59 billion ( 2008)

Fiscal year: calendar year 2009

wikipedia.org