Economic change

• Nigeria has the largest economy in Africa and one of the fastest-growing economies in the world
• Despite its rapid growth in GDP, Nigeria has a significant inequality gap
• Wealth is typically found in the south, in and around Lagos, but the north is exceptionally poor
• Almost half of Nigeria's population lives on less than US$1 per day
• The combined wealth of Nigeria's five richest men – $29.9 billion – could end extreme poverty at a national level, yet 5 million face hunger
• More than 112 million people live in poverty in Nigeria, yet the country's richest man would have to spend $1 million a day for 42 years to exhaust his fortune
• The structure of Nigeria's economy has changed significantly, transforming from one mainly based on agriculture to manufacturing and services
• Around 52% of Nigeria's GDP now comes from manufacturing and services
• Mechanisation and rural-urban migration have led to a decline in the number of people employed in agriculture
• Manufacturing and services have grown due to Nigeria's increased political stability
• Countries such as China, the USA and South Africa have heavily invested in Nigeria
• There has been considerable growth in the service sector, mainly IT services
• The oil and gas industry has been very important to the Nigerian economy
• The discovery of oil in the Niger Delta in the 1950s significantly changed Nigeria's economy
• Despite the country having the 11th largest oil reserves in the world and accounting for 90% of Nigeria's international currency coming from oil, inefficiencies at refineries, the large domestic demand for energy and fluctuating prices have created an economic challenge
• As a result, oil and gas only contribute around 9% to Nigeria's GDP
• At today's rate of production and current consumption rates, Nigeria has over 200 years of oil supply left
• The fastest-growing sector in Nigeria is manufacturing
• A combination of the cheap and plentiful labour force and its vast market, both within and beyond the country, has led to rapid economic growth in manufacturing
• Since 1991, there have been significant changes to Nigeria's industrial structure
• Employment in agriculture has steadily declined due to mechanisation and competition from other forms of employment, offering better working conditions and pay
• Today, agriculture contributes 22 per cent of Nigeria's GDP
• The industrial sector now accounts for about 27 per cent of GDP
• Nigeria has the fastest-growing industrial sector in Africa, overtaking South Africa
• The service sector now employs 53 per cent of workers and accounts for 50 per cent of the country's GDP
• Although Nigeria has a wide-ranging and largely developed economy, with oil accounting for over 90% of its exports, it cannot be said the country has a balanced economy
• In 2020 Manufacturing accounted for around 27 per cent of Nigeria's GDP
• The manufacturing sector is growing faster than the oil, gas, telecommunications and agricultural sectors
• Goods manufactured in Nigeria

  • textiles
  • leather items
  • soaps and detergents
  • processed food
• With its rapidly growing home market, cheap labour force and improving infrastructure, the manufacturing sector is expected to grow and become more diverse
• Economic development has been stimulated by the growth of manufacturing

  • People have a more secure income through regular paid work, increasing the home market for purchasing products
  • The growth in manufacturing leads to the multiplier effect, which means other industries develop to supply parts
  • Tax revenue increases, and more people are in formal employment
  • Foreign investment is attracted by a thriving industrial sector, leading to further economic growth
  • Chemical by-products from oil processing have led to the growth of chemical industries