Economy
Nigeria, Africa's largest market economy, is a dynamic and multifaceted landscape with unique characteristics and challenges. As a predominantly lower-middle-income labor force, Nigeria has established itself as a major player in several sectors, notably oil exports, telecommunications, and finance. However, the economy faces vulnerabilities, particularly due to its susceptibility to energy price fluctuations and its reliance on primarily agrarian employment.
Economic Overview
GDP and Growth
The Real GDP (PPP) stood at $1.05 trillion in 2021, with a growth rate of 3.65% in the same year, reflecting a recovery from -1.79% in 2020.
GDP Per Capita
At an estimated $4,900 in 2021, it indicates the economic output per individual.
Inflation and Credit Ratings
With an inflation rate of 16.95% in 2021, Nigeria faces economic pressure. Credit ratings by Fitch (B in 2020), Moody's (B2 in 2017), and S&P (B- in 2020) reflect this scenario.
Economic Sectors
Agriculture
Accounting for 21.1% of GDP, key products include cassava, yams, and maize.
Industry
Comprising 22.5% of GDP, it spans oil, coal, textiles, and cement.
Services
The largest sector at 56.4% of GDP, with significant contributions from finance and telecommunications.
Labor Force and Unemployment
Labor Force
Estimated at 65.116 million in 2021, predominantly in agriculture (70%).
Unemployment Rate
Stood at 9.79% in 2021, with youth unemployment higher at 19.6%.
Poverty and Income Distribution
Population Below Poverty Line
40.1% as of 2018.
Gini Index
At 35.1 (2018 est.), it indicates moderate income inequality.
Budget and Public Debt
Budget
Revenue was $37.298 billion against Expenditure of $59.868 billion (2019 est.).
Public Debt
At 21.8% of GDP (2017 est.), Nigeria's debt is relatively low compared to global standards.
Trade and Current Account
Exports
Valued at $50.856 billion in 2021, primarily crude petroleum and natural gas.
Import Partners
Include China, the Netherlands, and the US.
Current Account Balance
Stood at -$1.849 billion in 2021.
Foreign Exchange and Reserves
Reserves
Totaled $36.73 billion in 2020.
Exchange Rate
The Naira has been fluctuating against the US dollar.
This economic overview underscores Nigeria's status as a crucial player in the African economy. The nation's focus on oil exports and agriculture has driven growth, yet it grapples with challenges like high inflation, unemployment, and a significant portion of the population living below the poverty line. The economy's diversification across agriculture, industry, and services, coupled with its notable presence in global trade, sets the stage for future growth and development opportunities.