Nigeria Economy Profile 2008

Economy - overview

Oil-rich Nigeria, long hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, is undertaking some reforms under a new reform-minded administration. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 20% of GDP, 95% of foreign exchange earnings, and about 80% of budgetary revenues. The largely subsistence agricultural sector has failed to keep up with rapid population growth - Nigeria is Africa's most populous country - and the country, once a large net exporter of food, now must import food. 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. In the last year 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. GDP rose strongly in 2007, based largely on increased oil exports and high global crude prices. Newly-elected President YAR'ADUA has pledged to continue the economic reforms of his predecessor and the proposed budget for 2008 reflects the administrations 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 (purchasing power parity)

$294.8 billion (2007 est.)

GDP (official exchange rate)

$126.7 billion (2007 est.)

GDP - real growth rate

6.3% (2007 est.)

GDP - per capita (PPP)

$2,200 (2007 est.)

GDP - composition by sector

agriculture: 17.6%
industry: 53.1%
services: 29.3% (2007 est.)

Population below poverty line

70% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 1.9%
highest 10%: 33.2% (2003)

Inflation rate (consumer prices)

6.5% (2007 est.)

Investment (gross fixed)

24.3% of GDP (2007 est.)

Labor force

50.13 million (2007 est.)

Labor force - by occupation

agriculture: 70%
industry: 10%
services: 20% (1999 est.)

Unemployment rate

5.8% (2006 est.)

Distribution of family income - Gini index

43.7 (2003)

Budget

revenues: $20.5 billion
expenditures: $21.82 billion (2007 est.)

Public debt

14.8% of GDP (2007 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

3.1% (2007 est.)

Electricity - production

22.53 billion kWh (2005)

Electricity - consumption

16.88 billion kWh (2005)

Electricity - exports

0 kWh (2005)

Electricity - imports

0 kWh (2005)

Oil - production

2.44 million bbl/day (2006 est.)

Oil - consumption

302,000 bbl/day (2006 est.)

Oil - imports

167,900 bbl/day (2004)

Oil - exports

2.141 million bbl/day (2006)

Oil - proved reserves

35.88 billion bbl (1 January 2006 est.)

Natural gas - production

21.48 billion cu m (2005 est.)

Natural gas - consumption

9.936 billion cu m (2005 est.)

Natural gas - exports

11.55 billion cu m (2005 est.)

Natural gas - imports

0 cu m (2005)

Natural gas - proved reserves

5.015 trillion cu m (1 January 2006 est.)

Current Account Balance

$14.61 billion (2007 est.)

Agriculture - products

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

Exports

$61.81 billion f.o.b. (2007 est.)

Exports - commodities

petroleum and petroleum products 95%, cocoa, rubber

Exports - partners

US 48.9%, Spain 8%, Brazil 7.3%, France 4.2% (2006)

Imports

$30.35 billion f.o.b. (2007 est.)

Imports - commodities

machinery, chemicals, transport equipment, manufactured goods, food and live animals

Imports - partners

China 10.7%, US 8.3%, Netherlands 6.2%, UK 5.8%, France 5.6%, Brazil 5.1%, Germany 4.6% (2006)

Reserves of foreign exchange and gold

$50.33 billion (31 December 2007 est.)

Debt - external

$5.815 billion (31 December 2007 est.)

Stock of direct foreign investment - at home

$31.66 billion (2006 est.)

Stock of direct foreign investment - abroad

$12.44 billion (2006 est.)

Market value of publicly traded shares

$32.82 billion (2006)

Economic aid - recipient

$6.437 billion (2005)

Currency (code)

naira (NGN)

Exchange rates

nairas per US dollar - 127.46 (2007), 127.38 (2006), 132.59 (2005), 132.89 (2004), 129.22 (2003)

Fiscal year

calendar year