Nigeria: the Path of the Largest African Economy towards Globalization

At the beginning of April 2014, Nigeria has “declared itself” the biggest African economy overtaking South Africa, which was the dominant economic power in the continent since decades. It seems quite unbelievable that Nigeria has become the largest African economy in just one night, but it is actually not impossible. According to Demi Kale, the Statistician General of the National Bureau of Statistics of Nigeria, the national GDP grew 89% overnight, being worth 510 billion dollars.

The exercise reveals a more diversified economy than previously thought. Nigeria has maintained its impressive GDP growth over the past years, well above of sub-Saharan Africa level. Services, agriculture and manufacture are the main drivers of non-oil sector growth, while the oil sector performance itself was not such impressive because it was hampered by pipeline vandalism, oil robbery and social disorders.

This negative growth of the oil sector might continue to drag down the overall growth until a lasting solution is found and new investment will boost the sector. Other risks, to Nigeria’s economic improvement, are the lethargic recovery of the global economy, security challenges in the Niger Delta and in the northeaster part of the country, prominent poverty and unemployment.
Nonetheless, there are forward prospects of strong economic growth.