Economy of Nigeria
When we talk Nigeria, the first thing that comes to mind is Oil. But by this article, we portray Nigeria as a giant in many aspects. Nigeria is a middle income, mixed economy and emerging market, with expanding financial, service, communications, technology and entertainment sectors. It is ranked 21st in the world in terms of GDP (nominal: 30th in 2013 before rebasing, 40th in 2005, 52nd in 2000), and is the largest economy in Africa (based on rebased figures announced in April 2014). It is also on track to become one of the 20 largest economies in the world by 2020. Its re-emergent manufacturing sector is the third-largest on the continent, and produces a large proportion of goods and services for the West African region. Nigeria is currently witnessing rapidly growing GDP, through contributors such as telecommunications, banking, and its film industry. As a result Nigeria has added 89% to its GDP, making it the largest African economy.
Although much has been made of its status as a major exporter of oil, Nigeria produces only about 2.7% of the world's supply (Saudi Arabia: 12.9%, Russia: 12.7%, USA:8.6%). Although the petroleum sector is important, it remains in fact a small part of the country's overall vibrant and diversified economy.
Nigeria ranks sixth worldwide and first in Africa in farm output. Still, the sector accounts for over 26.8% of GDP and two-thirds of employment. Nigeria has 19 million head of cattle, the largest in Africa. Nigeria is no longer a major exporter of cocoa, groundnuts (peanuts), rubber, and palm oil. Cocoa production, mostly from obsolete varieties and overage trees, has nevertheless increased from around 180,000 tons annually to 350,000 tons.
Agricultural products include cassava (tapioca), corn, cocoa, millet, palm oil, peanuts, rice, rubber, sorghum, and yams. In 2003 livestock production featured eggs, milk, beef and veal, poultry, and pork, respectively. In the same year, the total fishing catch was 505.8 metric tons. Round wood removals totaled slightly less than 70 million cubic meters, and sawn wood production was estimated at 2 million cubic meters.
The oil boom of the 1970s led Nigeria to neglect its strong agricultural and light manufacturing bases in favor of an unhealthy dependence on crude oil. In 2000, oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue. Nigeria's proven oil reserves are estimated to be 35 billion barrels (5.6×109 m3); natural gas reserves are well over 100 trillion cubic feet (2,800 km3). Nigeria is a member of the Organization of Petroleum Exporting Countries (OPEC). The types of crude oil exported by Nigeria are Bonny light oil, Forcados crude oil, Qua Ibo crude oil and Brass River crude oil.
The United Kingdom is Nigeria's largest trading partner followed by the United States. The trade balance overwhelmingly favors Nigeria, thanks to oil exports.
Outside of petrol dollars, the second biggest source of foreign exchange earnings for Nigeria is remittances sent home by Nigerians living abroad. In 2014, 17.5 million Nigerians lived in foreign countries, with the UK and the USA having more than 2 million Nigerians each. According to the International Organization for Migration, Nigeria witnessed a dramatic increase in remittances sent home from overseas Nigerians, going from USD 2.3 billion in 2004 to 17.9 billion in 2007, representing 6.7% of GDP
The mining of minerals in Nigeria accounts for only 0.3% of its GDP, due to the influence of its vast oil resources. As a result, Nigeria has to import minerals that it could produce domestically. These include salt and iron ore. Rights to ownership of mineral resources is held by the Nigerian government, which grants titles to organizations to explore, mine, and sell mineral resources. Mining regulation is handled by the Ministry of Solid Minerals Development, which oversees the management of all mineral resources.