In April 2014, Nigeria emerged Africa’s Largest economy. Africa’s biggest crude oil exporter attained the status over night by simply updating previously excluded value of its GDP components since 90’s. That gave Nigeria total GDP worth $500 billion surprising the continents leader whose GDP stood at $370 billion by 2013.
But in practical terms, Nothing had really changed in Nigeria’s economy-the country simply added the value of good and services provided by emerging sectors like telecom, Banking, airlines, music, online sales and movie production.
All of that plus crude oil exports and traditional industries gave it’s GDP 89% jump from the 1990s. Its economy has been growing at an average rate of around 7% a year over the past decade but it has been taking a relentless battering from the falling crude oil prices.
Crude oil accounts for 90% of Nigeria’s exports and 70% for its revenue. But crude oil prices have been falling for more than a year and a recovery is not in sight. Its has been hovering around $30 per barrel and the country’s GDP growth rate has now fallen to 3%. And that has left many asking if Nigeria is still the largest economy in Africa? how much longer can it keep that status?
“We are actually not, and I’m not even sure we are even second because other nations like South Africa which is our major competitor which as a matter of fact there was actually this school of thought saying the reports was actually biased putting Nigeria ahead in terms of economical flamboyancy to South Africa. I think it’s just high time to get serious and get things done” Ayotunde Olushuyi, Economic analyst
When Nigeria was announced the largest economy in Africa soaring past the long time title holder SA, many economist treated it as a vanity exercise.The colossal value of the economy had little or non existent benefit to a huge lot of Nigeria;s 170 million people-Nigeria ranks 153rd out of 187 countries in the UN’s Human Development Index. Its GDP per capita is still $2700-in fact South Africans a twice as rich with GDP per capita at $6600
So what does Nigeria stand to loose if it slips from the position of Africa’s biggest economy?
“think we have loads to lose if eventually we skid off from that standing as bring the giant of Africa. In a such as we know the strength, we know the respects we have been able to gain, not just from the neighboring countries or probably the fellow African-American nations but also as regards the global picture where Nigeria is been seen as not just the giant of Africa but is seen as a big brother and if we happen to loose that stand, than political, economical wise”Ayotunde Olushuyi, Economic analyst
Nigeria economic troubles is not just limited to the dropping crude oil prices. Endemic corruption and wide spread oil spillage and theft has been costing the economy billions of dollars. Bokoharam insurgency in the north east too has cast an image of a risky destination for investment for Nigeria. But President Muhammadu Buhari has been trying to reverse that perception. He has made defeating Bokoharam a central pillar in administration. That Besides fighting corruption, diversifying the economy and his maiden budget proposal has allocated a huge chunk in fixing the country’s ailing infrastructure.
