Nigeria Insights
Economic Overview
GDP Growth
Nigeria's GDP grew by 2.51% year-on-year in the second quarter of 2023, a decrease from the 3.54% growth in 2022. The country's economy experienced a recovery after the Covid-19 pandemic, with a 3.6% growth in 2021 and 3.3% in 2022, following a contraction of 1.8% in 2020.
Poverty
Around 37% of Nigerians are expected to live below the poverty line in 2023, which translates to about 84 million people. This makes Nigeria home to the world's second-largest poor population after India.
Inflation
Nigeria faced a 17-year high inflation rate of 25.8% in August 2023, weakening economic fundamentals and contributing to widespread poverty.
Economic Sectors
The country is working on diversifying its economy, reducing reliance on energy exports, and promoting growth in other sectors. This includes a growing non-oil private sector and potential in areas like mining, agriculture, ICT, and retail.
Political Landscape
Governance
Nigeria is a federation of 36 autonomous states and the Federal Capital Territory, with the political landscape partly dominated by the ruling All Progressives Congress party (APC). President Bola Ahmed Tinubu was sworn into office in May 2023.
Elections
The country held general elections on 25 February 2023, electing a president, vice president, and members of the Senate and House of Representatives. The president is elected using a modified two-round system, and the legislative members are elected via first-past-the-post voting.
Social Dynamics
Population
Nigeria's population is projected to reach 377 million by 2050, potentially becoming the world’s third-most populous country. It has a diverse social structure with over 250 ethnic groups and various faiths.
Education and Health
Despite having the largest economy and population in Africa, Nigeria offers limited opportunities for its citizens. A Nigerian born in 2020 was expected to be only 36% as productive as they could have been with full access to education and health. The country also faces challenges in job creation and the absorption of the 3.5 million Nigerians entering the labor force each year.
Infrastructure
Nigeria has wide infrastructure gaps, particularly in electricity, which hinder economic integration and leverage of its large market size.
Strategic Importance
Nigeria's global strategic importance is underpinned by its status as Africa's largest population and economy, combined with the entrepreneurial drive of its young population.
In summary, Nigeria in 2023 is a country with significant economic potential and strategic importance, grappling with challenges such as poverty, inflation, and political complexities, while striving for economic diversification and dealing with social issues like education and healthcare.