Tuesday, May 13, 2008

Nigerian Economy

Summary of Nigeria's economy currently on wikipedia.
The currency unit of Nigeria is the Nigerian Naira.

Years of military rule, corruption, and mismanagement have hampered economic activity and output in Nigeria and continue to do so, despite the restoration of democracy and subsequent economic reform. According to the Economist Intelligence Unit and the World Bank, Nigerian GDP at purchasing power parity was only at $170.7 billion as of FY 2005. The GDP per head is at $692.

Petroleum plays a large role in the Nigerian economy, accounting for 40% of the GDP. It is the 12th largest producer of petroleum in the world and the 8th largest exporter, and has the 10th largest proven reserves and the country was also a founding member of OPEC. However, due to crumbling infrastructure, corruption, and ongoing civil strife in the Niger Delta, its main oil producing region, oil production and export is not at 100% capacity.

Mineral resources that are present in Nigeria but not yet fully exploited are coal and tin. Other natural resources in the country include iron ore, limestone, niobium, lead, zinc, and arable land.[35] Despite huge deposits of these natural resources, the mining industry in Nigeria is almost non-existent. About 60% of Nigerians are employed in the agricultural sector. Agriculture used to be the principal foreign exchange earner of Nigeria. Perhaps, one of the most daunting ramifications of the discovery of oil was the decline of agricultural sector. So tragic was this neglect that Nigeria, which in the 1960s grew 98% of his own food and was a net food exporter, now must import much of the same cash crops it was formerly famous for as the biggest exporter. Agricultural products include groundnuts, palm oil, cocoa, coconut, citrus fruits, maize, pearl millet, cassava, yams and sugar cane. It also has a booming leather and textile industry, with industries located in Kano, Abeokuta, Onitsha, and Lagos.

Like many Third World nations, Nigeria accumulated a significant foreign debt. Many of the projects financed by these debts were inefficient, bedeviled by corruption or failed to live up to expectations. Eventually, Nigeria defaulted on its principal debt repayments as arrears and penalty interest accumulated and increased the size of the debt. However, after a long campaign by the Nigeria authorities, in October 2005 Nigeria and its Paris Club creditors reached an agreement that reduced Nigeria's debt by approximately 60%. Nigeria used part of its oil windfall to pay the residual 40%, freeing up at least $1.15 billion annually for poverty reduction programmes. As of April 2006, Nigeria became the first African Country to fully pay off her debt (estimated $30billion) owed to the Paris Club.

Nigeria also has significant production and manufacturing facilities such as factories for the French car manufacturer Peugeot, the English truck manufacturer Bedford, now a subsidiary of General Motors. Nigeria also manufactures t-shirts and processed food.
Does this country need a gameplan? Does anybody still use the term "Third World?" Is this article crap?

2 comments:

SOLOMONSYDELLE said...

This is an excellent post. I want to send it to my econ junky friends before I even read it a 2nd time. The first time was a bit...

You should enable the email function, it would make forwarding your posts a little easier. ANyway, let me pass this along...

t said...

thanks for the tip. I checked, it turns out there's a bug in this template, the email function was on, but the icon for it was a blank space so it wasn't visible.
now i could replace it with a picture icon, e.g. of an envelope but that "may" take extra time to load everytime the page is opened, or maybe write "email," but instead just put these cheesy non-icons. From today the box and arrow means "email this" :)

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