Economy of Nigeria

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The economy of Nigeria is the second largest in Africa . The economy of Nigeria is characterized by a strong North-South divide.

While the south of the country is economically well developed, this is less the case in central and northern Nigeria. After its independence , the Nigerian state concentrated almost exclusively on developing large-scale industry based on the Western model. The Bureau of Public Enterprises (BPE) has had the task of privatizing and commercializing state-owned companies and reforming economic sectors on a broad basis since 1999 . As a result, unemployment rose because the use of technical equipment saved a large number of workers. Furthermore, the state had to use most of the foreign currency to import other goods, such as machines or tools , that were not manufactured in the country itself.

Due to the strong promotion of large farms, agriculture was neglected, so that the state made itself dependent on oil . The situation of the farmers was made more difficult by the producer prices set by the state, which were so low that the sale of the cultivated products was no longer worthwhile. However, the government is increasingly promoting agriculture again after oil prices fell sharply in the 1980s . Since then, food production has increased again , but food has to be imported because the demand can still not be met. In 2013, according to the Atlas method, the gross national income per capita was 2,760 US dollars, which, according to the World Bank , puts Nigeria in the group of lower middle-income countries. In 2010, 46% of the population lived below the national poverty line . The economic growth in 2013 was 7%, while inflation in 2012 was 12.2%. In addition, Nigeria maintained its currency in recent years to up to 52 billion US dollars increase. Nigeria's external debt is $ 3.3 billion.

Economy at a glance

Nigeria, endowed with natural resources , u. a. large deposits of oil and gas , bitumen and other mineral resources , has developed despite the unpleasant experience of political instability, corruption and poor macroeconomic governance and has remained a leading country, especially south of the Sahara .

The country recognizes the inadequacies in basic social and economic infrastructure and the challenge to the economic and social life of the population it faces. This challenge arose as a result of the neglect and mismanagement of past governments. The current administration believes in the need for a drastic departure from the “business-as-usual” syndrome in the nation's polity. Important steps have been taken to ensure that the environment for investing and doing business in the economy is predictable over a sustainable period of time. The government also adopted a strategic program that will remove the economy's reliance on the capital-intensive oil sector, which comprises around 20% of GDP, 95% of foreign exchange revenues and 65% of budget revenues. The largely demand-oriented agriculture is supported in achieving a rapid conversion to mechanized agriculture, permanent export and local consumption.

The government has shown great efforts to develop a market-oriented economy; the private sector is empowered to run the economy. All former monopoly areas were completely deregulated to allow private investment. The banking sector has been revamped and reactivated to create modern and large institutions for permanent long-term investment. In the electricity and energy sectors, the government remains committed to deregulating fuel prices and privatizing four of the country's oil refineries. A private sector law, The Mineral Oil Industry Bill, was passed to ensure greater transparency.

The government has also completed the unbundling of the former monopoly , the Power Holding Company of Nigeria, and the process of completing the privatization of the 18 successor companies. A number of Independent Power Projects (IPP) have also been institutionalized and private power generators have been licensed to ensure sufficient uninterrupted power supply in the country.

All of these acts of government and business are geared towards job creation , growth and prosperity and through transparent financial and money management.

Nigeria's rating by the major international rating agencies has remained unchanged at BB- in recent years.

Economic data

Historical and forecast GDP (in million naira)
year 2011 2012 2013 2014 2015 2016 (p) 2017 (p) 2018 (p) 2019 (p)
real GDP 57,511,041.77 59,929,893.04 63,218,721.73 67,152,785.84 69,144,885.84 71,758,121.29 75,369,068.74 79,596,971.23 84,064,363.50
nominal GDP 62,980,397.22 71,713,935.06 80,092,563.38 89,043,615.26 94,268,428.58 104,203,951.07 114,054,967.67 124,332,323.63 134,950,445.87
trade 29,333,001.12 28,071,190.67 21,261,086.29 23,459,656.50 17,759,239.59 18,186,765.55 23,844,677.11 27,973,242.33 31,228,982.25
Annual growth rates of GDP, inflation and absolute trade in%
year 2011 2012 2013 2014 2015 2016 2017 (p) 2018 (p) 2019 (p)
real GDP growth 5.31 4.21 5.49 6.22 2.97 3.78 5.03 5.61 5.61
inflation 10.83 12.22 8.5 7.98 9.55 10.16 9.49 8.67 8.54
absolute trade 48.75 −4.30 −24.26 10.34 −24.30 2.41 31.11 17.31 11.64
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  • GDP - US $ 522 billion (2013)
  • GDP - real growth rate: 6.2% (2013)
  • GDP - composition by sector:
  • Agriculture: 17%
  • Industry: 20%
  • Manufacturing: 5%
  • Services: 38%
  • Oil and gas: 12%
  • ICT: 7%
  • Entertainment: 1% (2013)
  • Below the poverty line: 67.1% (2013)
  • Inflation rate (December to December): 8.2% (2013)
  • Labor force: 67.256 million (2013)
  • Employees: 51.181 million (2013)
  • Unemployed: 16,074 million (2013)
  • Workforce - by occupation: agriculture: 70%, industry: 10%, services: 20%

Agricultural products: cocoa, peanuts, palm oil , corn, rice, sorghum, millet, cassava (tapioca), yams, rubber, cattle, sheep, goats, pigs, wood, fish

Industries: crude oil, coal, tin, columbite, palm oil, peanuts, cotton, rubber, wood, hides and skins, textiles, cement and other building materials, food, shoes, chemicals, fertilizers, printing, ceramics, steel, retail ship construction and repair.

Main industrial complexes

  • Refineries and Petrochemicals: Kaduna, Warri, Port Harcourt, Eleme,
  • Iron and steel: Ajaokuta, Aladja, Oshogbo, Katshina, Jos,
  • Fertilizer: Onne-Port Harcourt, Kaduna, Minna, Kano,
  • Liquefied Natural Gas: Bonny
  • Aluminum smelter: Ikot Abasi, Port Harcourt
  • Machine tools: Oshogbo

Production capacity utilization: 52.7% (2013)

The currency is the naira , currency code NGN. Exchange rates: Naira per dollar 149.50 (2009), 148.56 (2010), 156.2 (2011), 157.34 (2012), 155.27 (2013). The fiscal year is the calendar year .

Agriculture

Private agriculture is a very important industry . 70% of the population work in it, while agriculture contributes 35% to the gross domestic product. However, agriculture is largely used for their own food. Most farmers only have between one and five hectares of land available. The plantations on which the export products are grown are owned by the state or by foreign corporations.

Cassava , sweet potatoes and millet are grown for personal use . The millet cultivation learned in recent years, an increase of 13% in 1998 to 16% in 2005. In Hackbaufeldern are also beans , melons , peppers and vegetables grown. Cocoa , cassava , yam , peanuts , oil palms and rubber are also grown for export . These are so-called cash crops , which are grown in large quantities and partially processed in order to then sell them in other countries. This procedure is very dependent on demand. Nigeria is the largest black-eyed peas - and Yamproduzent Africa and the world's largest Maniokproduzent. The country is also the fourth largest cocoa producer. Other important agricultural products are citrus fruits , bananas , rice and corn .

Nigeria's soil in the north is already showing damage from desertification , although the possibilities for combating it are given as very low. The livestock is mainly based on keeping cattle. A total of around 15 million pieces are held. In addition, around five million pigs are kept. Small animals such as sheep, goats and chickens are kept mainly for personal use .

Mining and industry

Nigeria's most important mineral resource is oil. It accounts for 90% of all export products, although only 7% of the workforce is in this sector. In addition, this economic sector contributes 35% to the gross domestic product. In 2007 the production rate was 2.2 million barrels per day. Other important mineral resources are natural gas and hard coal .

Most of the industry is concentrated in the south of the country. In the areas in which the oil deposits are located, i.e. the coastal areas, there are mainly oil refineries and the chemical industry. Other important industrial areas are large cities like Lagos . The food, textile and metal industries are located there. The cities of Kaduna and Enugu are also home to the vehicle industry, some of which is US-owned. The banking sector contributed 3.8% to the gross domestic product in 2007, which shows the success of the reform policy.

tourism

The tourism has little in Nigeria and contributes less than 1% to the revenue. Nevertheless, the number of visitors has been increasing for several years. In 2005, two million travelers visited the country, including 350,000 Europeans. Nigeria is hardly developed for tourism. Only the west of the country is used for tourism to a small extent. Expedition tourism predominates in this area.

Foreign trade

Export 2nd quarter 2016
rank Destination Country Value (naira) Crude oil (naira) Non-crude oil (naira)
1. India 402,653,481,722.5 362,906,374,304.8 39,747,107,417.7
2. United States 235,009,552,537.0 224,081,262,849.1 10,928,289,687.9
3. Spain 215,168,428,341.2 181,663,261,374.3 33,505,166,966.9
4th Netherlands 133,252,126,753.3 123,880,615,605.1 9,371,511,148.1
5. South Africa 119,856,935,008.2 98,233,307,932.6 21,623,627,075.6
6th Canada 86,186,723,278.1 85,813,404,080.0 373,319,198.1
7th Indonesia 83,674,818,692.4 83,658,253,042.7 16,565,649.7
8th. Germany 82,568,973,142.3 24,618,908,707.0 57,950,064,435.3
9. France 72,931,274,051.1 56,750,312,734.0 16,180,961,317.1
10. Italy 42,137,046,774.8 41,053,063,100.5 1,083,983,674.3
Import 2nd quarter 2016
rank Country of origin Value (naira)
1. China 493,544,059,729.6
2. Netherlands 285,722,981,973.5
3. United States 198,956,052,825.3
4th India 124,857,213,385.6
5. United Kingdom 119,300,859,772.3
6th Belgium 82,399,490,278.3
7th Germany 73,596,646,580.1
8th. Japan 60,652,220,891.1
9. France 57,773,675,542.7
10. United Arab Emirates 51,759,016,460.0

Nigeria's most important export product is crude oil, which together with crude oil products makes up 95% of export goods.

Since Nigeria almost exclusively exports oil, the country generates a surplus with correspondingly high oil prices. In 2007 this was $ 22.5 billion.

Imported goods are mainly machines, vehicles, chemical and electrotechnical products.

Individual evidence

  1. ^ S. Africa beats Nigeria to become Africa's biggest economy - Bloomberg. africanews.com from August 10, 2016, accessed August 13, 2016
  2. ↑ Bureau of Public Enterprises (BPE) Bureau of Public Enterprises (BPE) ( Memento of August 31, 2010 in the Internet Archive )
  3. ↑ http://data.worldbank.org/country/nigeria#cp_wdi
  4. ↑ http://data.worldbank.org/country/nigeria#cp_wdi
  5. ↑ Economic Statistics ( Memento from September 5, 2014 in the Internet Archive )
  6. ↑ a b National Bureau of Statistics | REPORT DETAILS. In: www.nigerianstat.gov.ng. Archived from the original on November 20, 2016 ; Retrieved November 20, 2016 .
  7. ↑ INVESTORS 'GUIDE TO NIGERIA, A Publication by the Nigerian Investment Promotion Commission
  8. ^ German Society for International Cooperation GmbH - [1] , accessed on February 24, 2015
  9. ↑ Federal Foreign Office: Nigeria - Economy , accessed on June 1, 2012
  10. ↑ a b National Bureau of Statistics | REPORT DETAILS. In: www.nigerianstat.gov.ng. Archived from the original on November 21, 2016 ; Retrieved November 20, 2016 .