The Economy of Nigeria

[Source of Information: CIA World Factbook ]

Overview

The oil-rich Nigerian economy continues to be hobbled by political instability and poor macroeconomic management. Nigeria's unpopular military rulers show no sign of wanting to restore democratic civilian rule in the near future and appear divided on how to redress fundamental economic imbalances that cause troublesome inflation and the steady depreciation of the naira. The government's domestic and international arrears continue to limit economic growth -- even in the oil sector - and prevent an agreement with the IMF and bilateral creditors on debt relief. The inefficient (largely subsistence) agricultural sector has failed to keep up with rapid population growth, and Nigeria, once a large net exporter of food, now must import food.

National product

GDP purchasing power parity $122.6 billion (1994 est.)
National product real growth rate: -0.8% (1994 est.)
National product per capita: $1,250 (1994 est.)

Inflation rate (consumer prices): 53% (1993 est.)

Unemployment rate: 28% (1992 est.)

Budget:

revenues: $9 billion
expenditures: $10.8 billion, including capital expenditures of $NA (1992 est.)

Exports: $11.9 billion (f.o.b., 1992)

commodities: oil 95%, cocoa, rubber
partners: US 54%, EC 23%

Imports: $8.3 billion (c.i.f., 1992) commodities: machinery and equipment, manufactured goods, food and animals partners: EC 64%, US 10%, Japan 7%

External debt: $29.5 billion (1992)

Industrial production: growth rate 7.7% (1991); accounts for 43% of GDP, including petroleum

Electricity:

capacity: 4,570,000 kW
production: 11.3 billion kWh
consumption per capita: 109 kWh (1993)

Infrastructure

Industries: crude oil and mining -- coal, tin, columbite; primary processing industries - palm oil, peanut, cotton, rubber, wood, hides and skins; manufacturing industries - textiles, cement, building materials, food products, footwear, chemical, printing, ceramics, steel

Agriculture: accounts for 35% of GDP and half of labor force; cash crops -- cocoa, peanuts, palm oil, rubber; food crops -- corn, rice, sorghum, millet, cassava, yams; livestock - cattle, sheep, goats, pigs; fishing and forestry resources extensively exploited; see also Foods and Foodstuff in Nigeria

Illicit drugs: passenger and cargo air hub for West Africa; facilitates movement of heroin en route from Southeast and Southwest Asia to Western Europe and North America; increasingly a transit route for cocaine from South America intended for West European, East Asian, and North American markets

Economic aid: recipient: US commitments, including Ex-Im (FY70-89), $705 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $3 billion; Communist countries (1970-89), $2.2 billion

Currency: 1 naira (N) = 100 kobo

Exchange rates: naira (N) per US$1 - 21.996 (January 1995), 21.996 (1994), 22.065 (1993), 17.298 (1992), 9.909 (1991), 8.038 (1990)

Fiscal year: calendar year