Nigeria Economy, A Concern

INTRODUCTION

Nigeria is a West African economy with a long coastline along the
Atlantic Ocean. The country shares international borders with Benin,
Chad, Cameroon and Niger. Nigeria ranks 32 in the world in terms of
total area. The terrain of the country consists of southern lowlands and
plateaus in the central region. The south east region has a mountainous
surface, while the north consists of plains. According to the 2009
estimates, the country has a total population in excess of 154 million,
of which almost 70% live below the international poverty line. Nigeria’s
economy is overly dependent on the petroleum sector.

The Nigerian economy is one of the most developed economies in Africa.
According to the UN classification, Nigeria is a middle-income nation
with developed financial, communication and transport sectors. It has
the second largest stock exchange in the continent.

The petroleum industry is central to the Nigerian economic profile. It
is the 12th largest producer of petroleum products in the world. The
industry accounts for almost 80% of the GDP share and above 90% of the
total exports. Outside the petroleum sector, the Nigerian economy is
highly amorphous and lacks basic infrastructure. Several failed efforts
have been made after 1990 to develop other industrial sectors.

Owing to the surge in international oil prices during 2007-08, Nigeria
managed an annual GDP of US$352.3 billion. The nation ranks 33 in the
world in terms of GDP. The GDP per capita is US $2,400. Widespread
poverty and lack of industrial resources are the biggest challenges for
Nigeria. The country ranks 151 out of 177 on the UN Development Index.
During 2003-07, the government initiated strategic economic reforms to
eradicate poverty and bring economic equality. However, corruption has
been the main impediment to the success of any such effort. Following
years of economic stagnation, Nigeria embarked on a comprehensive
reform.