Top Nigerian economic resources. What are they? How can country develop its economy? Find out everything you wanted to know about modern Nigerian economic condition here right now!
Nigeria is rich in oil. For a long time, the country suffered from political instability, corruption, poor infrastructure and poor economic management. Former Nigerian military rulers failed to diversify the economy, economic resources, to save the country from total dependence on the oil sector, which provides 95% of foreign exchange earnings and provides 80% of the state budget.
In recent years, the government began to implement market reforms, the privatization of the largest oil refineries and abolished price controls on oil products. The government is encouraging the private sector in infrastructure development.
Nigeria is one of the few African countries that can boast achievements in the field of cinematography. Issued in recent years Nigerian films have brought considerable income. They are sold at the local and international level. These movies are popular in other African countries and among African immigrants in Europe.
GDP per capita is 3173 dollars (2014, UNCTAD).
GDP is US $ 566.5 billion (in 2014, UNCTAD).
Exports (in general goods and services) - 86.4 billion dollars (2014, UNCTAD).
Imports (in general goods and services) - 81 billion dollars (2014, UNCTAD).
Rating Nigeria Doing Business for 2012 to 185 countries:
Payment of taxes - 155,
International Trade - 154,
Protecting investors - 70.
The main exports: oil and oil products (95%), cocoa and rubber.
The main imports: industrial products, chemical products, motor vehicles, consumer goods, food.
The main sectors of the economy. Economic resources and systems
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The basis of the Nigerian economy is mining, lower part - agriculture, although before the civil war 1967-70 years the export of agricultural products dominated in Nigeria.
Nowadays the oil industry is the basis of the Nigerian economy. This is first in Africa and 8th oil exporter in the world. Oil provides more than 90% of the export revenue. Daily produces 2.1 million barrels of oil (in 2008 - about 2.17 million barrels per day). Nigeria's quota in OPEC is 2.224 million barrels per day. Nigeria daily produces about 572 thousand barrels of oil, of which export is about 67 thousand barrels. Proved oil reserves, according to various estimates, estimated from 25 billion to 36 billion barrels. 65% of oil - it is light varieties with low sulfur content. The main export varieties - Bonny Light and Forcados.
In Nigeria, oil was discovered in 1901, the industrial mining began in 1956, and the first oil well was drilled in 1958. Since 1970, oil became the basis of the raw material of mining industry in Nigeria. Since 1971, Nigeria is a member of OPEC. In the early 1990s, Nigeria had at its disposal three fully automated oil terminal - in Bonn, Warri and Bracy.
Oil deposits are discovered offshore in Niger Delta river region and Anambry river pool. The main oil production areas are located near Port Harcourt in the delta and in rivers Niger and Ugelli, but in the long run the development of offshore fields in the mouth of river Kros will benefit too.
Nigeria is one of the main suppliers of oil to Western Europe and ranks fifth in US supplies of crude oil. In June 2004, Nigerian oil shipments to the United States reached 1.2 million barrels per day, accounting for 9.3% of US crude oil imports
Since the beginning of the XXI century the activities of foreign companies prevent non-state military alliances (Mende, Bakassi Boys, African guys Egbesu, People's volunteer corps in Niger Delta, Boko Haram, etc), carrying the explosions and the seizure of foreign workers’ hostage. In 2009, amid the global recession, it was reported that Nigerian militants attack oil production facilities and it had a significant impact on the world oil market prices
In Nigeria coal, tin, cassiterite and columbite are also mined. Cassiterite mining and related mineral columbite (niobium ore) are produced by open way. In 1962 after commissioning tin melting plant most of the tin was exported in the form of ingots. After 1960, in connection with the transition of the railway diesel fuel and the advent of cheaper and more environmentally friendly petroleum products the finishing of coal mining began.
Other economic resources in Nigeria
Nigeria, 65% of the population is employed in agriculture. The main food crops are yams, sweet potatoes and corn. A lot of the land territory is irrigated. Also people grow cocoa beans (340 million tons), natural rubber (112 million tons) and cotton (0.4 million tons.). The animal husbandry and fisheries are developing.
Forestry. About 90% of harvested wood in Nigeria is used as fuel for cooking, although established forest enterprises that specialize in the production of sawn timber, pulpwood and poles for power lines. In arid areas (arid climate - dry climate with high air temperatures, with large daily fluctuations, and a small amount of precipitation (100-150 mm / year) or complete lack thereof) states Kanu, Sokoto and Borno established plantations belt to stop offensive Sahara and to ensure favorable conditions for cattle grazing. In treeless areas of meadows and pastures there are conducted reforestations to protect the area and to combat soil erosion. Logging for export and for domestic consumption is carried out in the tropical forests, their area is 133.7 thousand sq. M. km, including 21 thousand sq. m. km - part of the state parks.
In Nigeria, the traditional crafts are developing: weaving, pottery, wood carving (carved calabashes of Oyo, Beninese figurines of bronze and ebony, braided raffia products from Ikot-Ekpene and embroidered fabrics from Akvete and iseyin). In the ancient city of Benin craft guilds hitherto control the carving ivory and manufacturing iron objects. Across Nigeria the ornamented leather and embroidered textiles are sold, thanks to which the center of the slave trade in their manufacture city Kano became known in Western Sudan and the Mediterranean.
The manufacturing industry is represented by enterprises of heavy and light industry. The latter is represented by enterprises for the production of T-shirts, plastics and processed foods. Processing enterprises in the leather and textiles are concentrated in the cities of Kano, Abeokuta, Onitsha and Lagos.
Big industrial production is concentrated around Lagos. Other industrial centers are Port Harcourt, Aba, Enugu, Kano and Kaduna. In Lagos, Kaduna, Ibadan and Enugu often assembly plants of vehicles from imported parts operate.
As for industrial enterprises, in which the government holds a majority stake, there are steel mill Ajaokuta near Lokoja, metallurgical plant in Aladja near Warri, steel mills in Oshogbo, Jos and Katsina, pulp and paper mills in the Blue Ibblu near Calabar, and in Ivopine, near Ijebu-Odie. In 1988, on the basis of oil refinery in Katsina and Ekpane, near Warri, the petrochemical production was created and not far from Port Harcourt, a large plant for the production of nitrogen fertilizers, partially subsidized by Eksportno-Import Bank of the United States, began working.
In Nigeria there is rapidly developing telecommunications market. Recently, the government began to expand its infrastructure. Nigeria has a space satellite, the operation of which is controlled by the National Space Agency of Research and Development, headquartered in Abuja. Also in Nigeria, the automobile production was established - for the French manufacturer Peugeot cars, for the English manufacturer of Bedford trucks, which is now a wholly owned subsidiary of General Motors.
In September 2003, Nigeria became the third African country (after South Africa and Algeria), which got its own spacecraft - Nigerian satellite ‘Nigeria Sat-1’ launched from the Plesetsk cosmodrome (Russian spaceport, located 180 kilometers on south from Arkhangelsk) to participate in the international monitoring of the Earth system, ‘Disaster monitoring Constellation’.
About 60% of the used energy in Nigeria is produced by wood charcoal, 30% - of the oil and 11% - from natural gas, coal and part of hydropower is negligible. There is a trend of increasing consumption of natural gas and wood.
The energy sector of Nigeria is significantly worse than its intended capacity, there may be power outages. In the event of a power outage commercial and industrial companies are using diesel generators, which are managed privately.
In domestic markets, Nigeria actively trade food products, handicrafts, industry, foreign and domestic goods. Delivery of goods is carried out by roads, rail, river transport - boats and ships. The largest center of wholesale and retail trade of food and consumer goods (imports and local production facilities) is a huge modern market in Onitsha (rebuilt after the Civil War).
Other important centers of trade are Abba, Kano and Ibadan. The largest cities have department stores and large open-air markets, and in the centers of the rural areas and along highways in urban areas there are often small retail shops. In rural areas, there are a lot of seasonal markets where buyers-wholesalers come to buy from the villagers their products (food export crops) for the purpose of resale. According to the World Bank among 155 countries in the Index of the logistics performance Nigeria is on the 121 place, (on a scale from 1 - the lowest rate, 5 - the highest figure) Nigerian LPI is 2.45 (2012).