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Chad vs. Nigeria

Economy

ChadNigeria
Economy - overview

Chad's landlocked location results in high transportation costs for imported goods and dependence on neighboring countries. Oil and agriculture are mainstays of Chad's economy. Oil provides about 60% of export revenues, while cotton, cattle, livestock, and gum arabic provide the bulk of Chad's non-oil export earnings. The services sector contributes less than one-third of GDP and has attracted foreign investment mostly through telecommunications and banking.

Nearly all of Chad's fuel is provided by one domestic refinery, and unanticipated shutdowns occasionally result in shortages. The country regulates the price of domestic fuel, providing an incentive for black market sales.

Although high oil prices and strong local harvests supported the economy in the past, low oil prices now stress Chad's fiscal position and have resulted in significant government cutbacks. Chad relies on foreign assistance and foreign capital for most of its public and private sector investment. Investment in Chad is difficult due to its limited infrastructure, lack of trained workers, extensive government bureaucracy, and corruption. Chad obtained a three-year extended credit facility from the IMF in 2014 and was granted debt relief under the Heavily Indebted Poor Countries Initiative in April 2015.

In 2018, economic policy will be driven by efforts that started in 2016 to reverse the recession and to repair damage to public finances and exports. The government is implementing an emergency action plan to counterbalance the drop in oil revenue and to diversify the economy. Chad's national development plan (NDP) cost just over $9 billion with a financing gap of $6.7 billion. The NDP emphasized the importance of private sector participation in Chad's development, as well as the need to improve the business environment, particularly in priority sectors such as mining and agriculture.

The Government of Chad reached a deal with Glencore and four other banks on the restructuring of a $1.45 billion oil-backed loan in February 2018, after a long negotiation. The new terms include an extension of the maturity to 2030 from 2022, a two-year grace period on principal repayments, and a lower interest rate of the London Inter-bank Offer Rate (Libor) plus 2% - down from Libor plus 7.5%. The original Glencore loan was to be repaid with crude oil assets, however, Chad's oil sales were hit by the downturn in the price of oil. Chad had secured a $312 million credit from the IMF in June 2017, but release of those funds hinged on restructuring the Glencore debt. Chad had already cut public spending to try to meet the terms of the IMF program, but that prompted strikes and protests in a country where nearly 40% of the population lives below the poverty line. Multinational partners, such as the African Development Bank, the EU, and the World Bank are likely to continue budget support in 2018, but Chad will remain at high debt risk, given its dependence on oil revenue and pressure to spend on subsidies and security.

Nigeria is Sub Saharan Africa's largest economy and relies heavily on oil as its main source of foreign exchange earnings and government revenues. Following the 2008-09 global financial crises, the banking sector was effectively recapitalized and regulation enhanced. Since then, Nigeria's economic growth has been driven by growth in agriculture, telecommunications, and services. Economic diversification and strong growth have not translated into a significant decline in poverty levels; over 62% of Nigeria's over 180 million people still live in extreme poverty.

Despite its strong fundamentals, oil-rich Nigeria has been hobbled by inadequate power supply, lack of infrastructure, delays in the passage of legislative reforms, an inefficient property registration system, restrictive trade policies, an inconsistent regulatory environment, a slow and ineffective judicial system, unreliable dispute resolution mechanisms, insecurity, and pervasive corruption. Regulatory constraints and security risks have limited new investment in oil and natural gas, and Nigeria's oil production had been contracting every year since 2012 until a slight rebound in 2017.

President BUHARI, elected in March 2015, has established a cabinet of economic ministers that includes several technocrats, and he has announced plans to increase transparency, diversify the economy away from oil, and improve fiscal management, but has taken a primarily protectionist approach that favors domestic producers at the expense of consumers. President BUHARI ran on an anti-corruption platform, and has made some headway in alleviating corruption, such as implementation of a Treasury Single Account that allows the government to better manage its resources and a more transparent government payroll and personnel system that eliminated duplicate and "ghost workers." The government also is working to develop stronger public-private partnerships for roads, agriculture, and power.

Nigeria entered recession in 2016 as a result of lower oil prices and production, exacerbated by militant attacks on oil and gas infrastructure in the Niger Delta region, coupled with detrimental economic policies, including foreign exchange restrictions. GDP growth turned positive in 2017 as oil prices recovered and output stabilized.

GDP (purchasing power parity)$25.19 billion (2019 est.)

$24.397 billion (2018 est.)

$23.832 billion (2017 est.)

note: data are in 2010 dollars
$1,032,048,000,000 (2019 est.)

$1,009,748,000,000 (2018 est.)

$990.7 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate-3.1% (2017 est.)

-6.4% (2016 est.)

1.8% (2015 est.)
0.8% (2017 est.)

-1.6% (2016 est.)

2.7% (2015 est.)
GDP - per capita (PPP)$1,580 (2019 est.)

$1,576 (2018 est.)

$1,587 (2017 est.)

note: data are in 2010 dollars
$5,136 (2019 est.)

$5,155 (2018 est.)

$5,190 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 52.3% (2017 est.)

industry: 14.7% (2017 est.)

services: 33.1% (2017 est.)
agriculture: 21.1% (2016 est.)

industry: 22.5% (2016 est.)

services: 56.4% (2017 est.)
Population below poverty line42.3% (2018 est.)40.1% (2018 est.)
Household income or consumption by percentage sharelowest 10%: 2.6%

highest 10%: 30.8% (2003)
lowest 10%: 1.8%

highest 10%: 38.2% (2010 est.)
Inflation rate (consumer prices)-0.9% (2019 est.)

4.2% (2018 est.)

-1.5% (2017 est.)
11.3% (2019 est.)

12.1% (2018 est.)

16.5% (2017 est.)
Labor force5.654 million (2017 est.)60.08 million (2017 est.)
Labor force - by occupationagriculture: 80%

industry: 20% (2006 est.)
agriculture: 70%

industry: 10%

services: 20% (1999 est.)
Unemployment rate

NA

16.5% (2017 est.)

13.9% (2016 est.)
Distribution of family income - Gini index43.3 (2011 est.)35.1 (2018 est.)

50.6 (1997)
Budgetrevenues: 1.337 billion (2017 est.)

expenditures: 1.481 billion (2017 est.)
revenues: 12.92 billion (2017 est.)

expenditures: 19.54 billion (2017 est.)
Industriesoil, cotton textiles, brewing, natron (sodium carbonate), soap, cigarettes, construction materialscrude oil, coal, tin, columbite; rubber products, wood; hides and skins, textiles, cement and other construction materials, food products, footwear, chemicals, fertilizer, printing, ceramics, steel
Industrial production growth rate-4% (2017 est.)2.2% (2017 est.)
Agriculture - productssorghum, groundnuts, millet, yams, cereals, sugar cane, beef, maize, cotton, cassavacassava, yams, maize, oil palm fruit, rice, vegetables, sorghum, groundnuts, fruit, sweet potatoes
Exports$2.464 billion (2017 est.)

$2.187 billion (2016 est.)
$34.545 billion (2020 est.)

$62.531 billion (2019 est.)

$60.547 billion (2018 est.)
Exports - commoditiescrude petroleum, gold, livestock, sesame seeds, gum arabic, insect resins (2019)crude petroleum, natural gas, scrap vessels, flexible metal tubing, cocoa beans (2019)
Exports - partnersChina 32%, United Arab Emirates 21%, India 19%, United States 10%, France 6%, Germany 5% (2019)India 16%, Spain 10%, United States 7%, France 7%, Netherlands 6% (2019)
Imports$2.16 billion (2017 est.)

$1.997 billion (2016 est.)
$32.67 billion (2017 est.)

$35.24 billion (2016 est.)
Imports - commoditiesdelivery trucks, paints, packaged medicines, aircraft, broadcasting equipment (2019)refined petroleum, cars, wheat, laboratory glassware, packaged medicines (2019)
Imports - partnersChina 29%, United Arab Emirates 16%, France 10%, United States 8%, India 5% (2019)China 30%, Netherlands 11%, United States 6%, Belgium 5% (2019)
Debt - external$1.724 billion (31 December 2017 est.)

$1.281 billion (31 December 2016 est.)
$26.847 billion (2019 est.)

$22.755 billion (2018 est.)
Exchange ratesCooperation Financiere en Afrique Centrale francs (XAF) per US dollar -

605.3 (2017 est.)

593.01 (2016 est.)

593.01 (2015 est.)

591.45 (2014 est.)

494.42 (2013 est.)
nairas (NGN) per US dollar -

383.5 (2020 est.)

362.75 (2019 est.)

363 (2018 est.)

192.73 (2014 est.)

158.55 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt52.5% of GDP (2017 est.)

52.4% of GDP (2016 est.)
21.8% of GDP (2017 est.)

19.6% of GDP (2016 est.)
Reserves of foreign exchange and gold$22.9 million (31 December 2017 est.)

$20.92 million (31 December 2016 est.)
$38.77 billion (31 December 2017 est.)

$25.84 billion (31 December 2016 est.)
Current Account Balance-$558 million (2017 est.)

-$926 million (2016 est.)
$10.38 billion (2017 est.)

$2.714 billion (2016 est.)
GDP (official exchange rate)$10.912 billion (2019 est.)$475.062 billion (2019 est.)
Ease of Doing Business Index scoresOverall score: 36.9 (2020)

Starting a Business score: 52.5 (2020)

Trading score: 37 (2020)

Enforcement score: 45.5 (2020)
Overall score: 56.9 (2020)

Starting a Business score: 86.2 (2020)

Trading score: 29.2 (2020)

Enforcement score: 61.5 (2020)
Taxes and other revenues13.5% (of GDP) (2017 est.)3.4% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-1.5% (of GDP) (2017 est.)-1.8% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 1.5%

male: 2.4%

female: 0.7% (2018)
total: 18.3%

male: 18.4% NA

female: 18.2% NA (2019 est.)
GDP - composition, by end usehousehold consumption: 75.1% (2017 est.)

government consumption: 4.4% (2017 est.)

investment in fixed capital: 24.1% (2017 est.)

investment in inventories: 0.7% (2017 est.)

exports of goods and services: 35.1% (2017 est.)

imports of goods and services: -39.4% (2017 est.)
household consumption: 80% (2017 est.)

government consumption: 5.8% (2017 est.)

investment in fixed capital: 14.8% (2017 est.)

investment in inventories: 0.7% (2017 est.)

exports of goods and services: 11.9% (2017 est.)

imports of goods and services: -13.2% (2017 est.)
Gross national saving15.5% of GDP (2017 est.)

7.5% of GDP (2016 est.)

13.3% of GDP (2015 est.)
23.2% of GDP (2019 est.)

19.3% of GDP (2018 est.)

18.3% of GDP (2017 est.)

Source: CIA Factbook