Nigeria’s growing economy:
● BRIC economies = world’s fastest growing economies
○ Brazil, Russia, India, China
● MINT economies = countries following in the footsteps of the BRICs
○ Mexico, Indonesia, Nigeria, Turkey
● Nigeria is one of the fastest growing economies in the world and the largest economy in Africa
○ 2020 → predicted to become one of world’s top 20 economies
○ 2050 → predicted to be ahead of France/Canada
● Successful GDP growth since 2001
○ Higher growth rates than China from 2001 to 2005
○ Large increase in 2011 → GDP more than doubled
■ Many new industries had not been included in figures
● eg/ entertainment industry
■ Jobs in informal sector transferred to formal sector
■ New, more accurate way of measuring the economy
● Increase in contribution of manufacturing and service industries
● Main reason for economic growth is because of Nigeria’s youthful population
○ High proportion of educated, young people
○ They will start to work within the next 20 years
○ Will provide the country with plentiful supply of skilled labour
● There is still a growing inequality
○ Most people are still poor – living on less than $1.25 a day
○ Few very wealthy people and a minority of people working in cities with well-paid jobs
○ Regional inequalities –
■ Most wealth is concentrated in south, around Lagos
■ Greater poverty in north/south-east
Nigeria’s industrial structure:
● Nigeria is changing from an agricultural economy → industrial economy
○ Over half the country’s GDP now comes from manufacturing/service industries
○ Reflects change from mainly rural → urban population
■ Due to urbanisation
○ GDP by sector:
■ Services = 52%
■ Agriculture = 22%
■ Petroleum = 14%
■ Manufacturing = 7%
○ Employment by sector:
■ Agriculture = 30.5%
■ Manufacturing = 14.3%
■ Services –
● Accommodation, food and transport = 12.2%
● Education, health, science and technology = 6.3%
● Retail, repair and maintenance = 24.9%
● Finance and insurance = 4.2%
● Telecommunication, arts and entertainment = 1.8%
● Other = 5.8%
Examples of the fastest growing industries in Nigeria:
○ Telecommunications
■ 1990 → less than a million landline telephone customers
■ 2015 → over 115 million mobile phones users
○ Retail and wholesale
■ Many small businesses from the informal sector are now in the formal sector
■ Are included in calculation of GDP
○ Film industry in Nigeria
■ Nollywood – third largest film industry in the world
Importance of oil and manufacturing:
● Oil was discovered in Nigeria in 1950 → has become a vital part of country’s economy
○ Oil/gas count for 15% of Nigeria’s GDP and 95% of export earnings
● Income from oil has helped Nigeria make transition from an LIC to an NEE
● Country’s dependence on oil makes it vulnerable to changes in the world oil price
○ Oil prices fall = damages Nigerian economy
● Other large industries: Dangote Cement
○ Aliko Dangote = Africa’s richest person
■ Billionaire
■ Founder of Dangote Cement (one of Nigeria’s largest companies)
○ Company has 3 giant cement plants in Nigeria
○ Country is urbanising quickly , therefore is in high demand for cement
■ Dangote Cement has expanded into 13 other African countries
● New manufacturing industries are increasing pace of economic development in Nigeria
○ Improving standard of living by products of industries (eg/ cement)
■ Easier to travel
■ Improved infrastructure
○ Producing manufactured goods
■ Reduced need to import goods
■ Cheaper
○ New industries
■ Creates jobs
■ Gives people an income
■ Higher contribution to country’s wealth through taxes
○ Expansion of Nigerian companies into other countries
■ Increases Nigeria’s influence in the region