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Nigeria

Beyond oil score(out of 100 points) 36.0
Index ranking(out of 26 countries ranked) 20
Overall status*  
General Economic Framework  
Political Framework  
Society and Future Skills  
(Beyond) oil related factors  


Nigeria is Africa’s major oil producer. In early 2003 when the oil prince was at 28 USD/barrel, income from oil only contributed some 20% to the Nigerian GDP. Today, however, income from oil constitutes close to 50% of the country’s gross national product.

Significant efforts – with (still) modest results

Unfortunately, it is too often the unfavourable, sometimes bizarre news from Nigeria that get through to the Western press: kidnapping of Western engineers working on oil projects, environmental damage in the Niger delta due to intensive oil exploitation and sabotage. Moreover, Lagos, by far the country’s biggest city, seems to be the world’s major source for fraudulent e-mails and dangerous spam, creating a whole black market industry with an estimated annual turnover of more than a billion US$.

On the other hand, Nigeria has re-established democratic rule after more than a decade of military dictatorship. President Obasanjo is undertaking significant efforts to cut down corruption, to reduce the country’s dept burden and to take over a leadership role in the process of Inter-African cooperation. Recently, the country’s recent GDP growth rates rose strongly (8.2% in 2005 after 10.2% in 2003).

However, if it comes to our beyond oil index many of these efforts can hardly be noted in the figures. Nigeria’s scores for good governance and economic framework, awarded by international organisations, remain very low. Prevailing ethnic conflicts and an estimated HIV/AIDS prevalence rate of more than 5% pose serious threads to the future development of the country.

Beyond Oil Summary

Currently, Nigeria is relatively dependent on income from oil. However, with a relatively diversified economy and its enormous domestic market Nigeria might accelerate its economic growth provided that the political framework remains stable.

  Indicates high preparedness   Indicates deficits but potential for development   Indicates unfavourable preconditions.
 
     
   
 
 
Beyond oil © 2007.