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The Economy of Nigeria

Nigerian Economy

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Economy - overview: Oil-rich Nigeria, long hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, has undertaken several reforms over the past decade. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 95% of foreign exchange earnings and about 80% of budgetary revenues. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club. Since 2008 the government has begun showing the political will to implement the market-oriented reforms urged by the IMF, such as to modernize the banking system, to curb inflation by blocking excessive wage demands, and to resolve regional disputes over the distribution of earnings from the oil industry. In 2003, the government began deregulating fuel prices, announced the privatization of the country's four oil refineries, and instituted the National Economic Empowerment Development Strategy, a domestically designed and run program modeled on the IMF's Poverty Reduction and Growth Facility for fiscal and monetary management. In November 2005, Abuja won Paris Club approval for a debt-relief deal that eliminated $18 billion of debt in exchange for $12 billion in payments - a total package worth $30 billion of Nigeria's total $37 billion external debt. The deal requires Nigeria to be subject to stringent IMF reviews. Based largely on increased oil exports and high global crude prices, GDP rose strongly in 2007 and 2008. President YAR'ADUA has pledged to continue the economic reforms of his predecessor with emphasis on infrastructure improvements. Infrastructure is the main impediment to growth. The government is working toward developing stronger public-private partnerships for electricity and roads.

GDP:

GDP - real growth rate: 6.1% (2008 est.) 6.4% (2007 est.) 6.2% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 18% industry: 50.9% services: 31.1% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 1.9% highest 10%: 33.2% (2003)

Distribution of family income - Gini index: 43.7 (2003)

Inflation rate (consumer prices):

Labor force: 51.04 million (2008 est.)

Labor force - by occupation: agriculture: 70% industry: 10% services: 20% (1999 est.)

Unemployment rate: NA

Budget: revenues: $29.49 billion expenditures: $30.61 billion (2008 est.)

Industries: crude oil, coal, tin, columbite; palm oil, peanuts, cotton, rubber, wood; hides and skins, textiles, cement and other construction materials, food products, footwear, chemicals, fertilizer, printing, ceramics, steel, small commercial ship construction and repair

Industrial production growth rate: 2.8% (2008 est.)

Electricity - production: 22.11 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 15.85 billion kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 2.352 million bbl/day (2007 est.)

Oil - consumption: 312,000 bbl/day (2006 est.)

Oil - exports: 2.473 million bbl/day (2005)

Oil - imports: 154,300 bbl/day (2005)

Oil - proved reserves: 36.22 billion bbl (1 January 2008 est.)

Natural gas - production: 34.1 billion cu m (2007 est.)

Natural gas - consumption: 12.9 billion cu m (2007 est.)

Natural gas - exports: 21.2 billion cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 5.21 trillion cu m (1 January 2008 est.)

Agriculture - products: cocoa, peanuts, palm oil, corn, rice, sorghum, millet, cassava (tapioca), yams, rubber; cattle, sheep, goats, pigs; timber; fish

Exports: $83.09 billion f.o.b. (2008 est.)

Exports - commodities: petroleum and petroleum products 95%, cocoa, rubber

Exports - partners: US 51.6%, Brazil 8.9%, Spain 7.7% (2007)

Imports: $46.36 billion f.o.b. (2008 est.)

Imports - commodities: machinery, chemicals, transport equipment, manufactured goods, food and live animals

Imports - partners: China 10.6%, Netherlands 7.9%, US 7.8%, South Korea 6.6%, UK 5.7%, France 4.3%, Brazil 4.2%, Germany 4.1% (2007)

Debt - external: $9.132 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: nairas (NGN) per US dollar - 117.8 (2008 est.), 127.46 (2007), 127.38 (2006), 132.59 (2005), 132.89 (2004)

Fiscal year: