Nigeria: Africa's largest economy?

Source: Economist, April 2014.

Nigeria, not South Africa, is Africa's number one economy. 

Nigeria has boosted its GDP figures by 89%. This not to say that it economy has grown by this colossal amount. This mega increase reflects a change in the way the oil producing giant calculates its GDP. 

Famous for its corruption, one might be sceptical of such an unbelievable increase in Nigeria's wealth. However, The Economist lends its support to Nigeria by stating that "the GDP revision is not mere trickery. It provides a truer picture of Nigeria’s size by giving due weight to the bits of the economy, such as telecoms, banking and the Nollywood film industry, that have been growing fast in recent years."

---

Nigeria's reputation in the world as a place to invest and do business has been marred by its poor image of corruption, mismanagement and crime.

Yet this may change. The Economist presents a new picture of the African giant.  Its economy has been growing by around 7% each year for the past ten. Lagos, it suggests, may now be the place to invest. Its the most populous nation in Africa and growing fast.

Key facts about Nigeria

• Population: 166.6 million (UN, 2012)
• Capital: Abuja
• Largest city: Lagos
• Life expectancy: 52 years (men), 53 years (women) (UN)
• Main exports: Petroleum, petroleum products, cocoa, rubber
• GNI per capita: US $1,280 (World Bank, 2011)

Source: BBC News

Nigeria answering your call? Could Nigeria overtake India as the outsourcing capital of the world?

Nigeria's new found fame as Africa's number one economy is in line with British economist, Jim O'Neill, casting Nigeria as one of the MINT economies (Mexico, Indonesia, Nigeria and Turkey). 

After the BRIC economies, the MINTS are the four economies that are expected by Goldman Sachs and the World Bank to do especially well. By 2050, GDP in Nigeria could be close that of Germany.

If its large, youthful, population continues to grow, Nigeria will compete with the USA to become the world's third largest nation in 2050.

Nigeria's demographic advantage could enable it to compete with both India and China as the world's low-cost labour location.

Whilst the future for Nigeria may look promising, it faces challenges. Within the country the poor and those in marginal groups will need to struggle to share in their nation's growing prosperity.