Nigeria, located in West Africa, is Africa’s most populous country with the recent estimate at 170 million. In spite of possessing huge human capital, fertile soils and being oil-rich, Nigeria can teach the mineral rich world a lesson or two about what not to do. Corruption, political instability, pollution and poor management are some of the reasons Nigeria has not been able to rise and gain the status it should have in the African continent.
• Gross Domestic Product (GDP)
A look at the real GDP growth of Nigeria shows that it has ranged between 6.4% and 7.8% from 2007-2013. It reached its peak of 7.8% in 2010 and is forecasted to be 6.4% in 2012 as compared to ...view middle of the document...
The real GDP performance for agriculture remains significant and promising, is major and consistent for telecommunications and is on a constant decline for crude petroleum and natural gas.
The unemployment rate in Nigeria, as can be seen below, has been increasing with a record high of 23.9% in December, 2011. High unemployment can be attributed to high fertility and low literacy rates. Unemployment rates continue to soar as the GDP grows in Nigeria which presents a paradox.
The inflation rate in Nigeria was recorded at 12.9% in April 2012.
• Exchange Rate
The USNGN reached a record high of 164.25 in October 2011.
• Gross National Income (GNI)
Many often consider GNI more relevant in analyses and comparisons of living standards between countries and over time. It is also more relevant for consumption and investment.
GNI = GDP + Net primary income from abroad
In 2010, for Nigeria GNI>GDP which indicates exports exceed imports. This also indicates low foreign investments. Also, a lot of the population is expected to leave Nigeria and earn money elsewhere.
• Human Capital and Total Factor Productivity