Quick facts

Economy

Nigeria is classified as a mixed economy emerging market, and has already reached lower middle income status according to the World Bank, with its abundant supply of natural resources, well-developed financial, legal, communications, transport sectors and stock exchange (the Nigerian Stock Exchange), which is the second largest in Africa.

Nigeria was ranked 30th in the world in terms of GDP (PPP) in 2012. Nigeria is the United States' largest trading partner in sub-Saharan Africa and supplies a fifth of its oil (11% of oil imports). It has the seventh-largest trade surplus with the US of any country worldwide. Nigeria is the 50th-largest export market for US goods and the 14th-largest exporter of goods to the US. The United States is the country's largest foreign investor. The International Monetary Fund (IMF) projected economic growth of 9% in 2008 and 8.3% in 2009. The IMF further projects an 8% growth in the Nigerian economy in 2011.

I.       Agriculture

Nigeria ranks sixth worldwide and first in Africa in farm output.

Agriculture has suffered from years of mismanagement, inconsistent and poorly conceived government policies, neglect and the lack of basic infrastructure. Still, the sector accounts for over 26.8% of GDP and two-thirds of employment. Nigeria has 19 million head of cattle, the largest in Africa. Nigeria is no longer a major exporter of cocoa, groundnuts (peanuts), rubber, and palm oil. Cocoa production, mostly from obsolete varieties and overage trees, has nevertheless increased from around 180,000 tons annually to 350,000 tons.

A dramatic decline in groundnut and palm oil production also has taken place. Once the biggest poultry producer in Africa, corporate poultry output has been slashed from 40 million birds annually to about 18 million. Import constraints limit the availability of many agricultural and food processing inputs for poultry and other sectors. Fisheries are poorly managed. Most critical for the country's future, Nigeria's land tenure system does not encourage long-term investment in technology or modern production methods and does not inspire the availability of rural credit.

Agricultural products include cassava (tapioca), corn, cocoa, millet, palm oil, peanuts, rice, rubber, sorghum, and yams. In 2003 livestock production, in order of metric tonnage, featured eggs, milk, beef and veal, poultry, and pork, respectively. In the same year, the total fishing catch was 505.8 metric tons. Roundwood removals totaled slightly less than 70 million cubic meters, and sawnwood production was estimated at 2 million cubic meters. The agricultural sector suffers from extremely low productivity, reflecting reliance on antiquated methods. Although overall agricultural production rose by 28% during the 1990s, per capita output rose by only 8.5% during the same decade. Agriculture has failed to keep pace with Nigeria's rapid population growth, so that the country, which once exported food, now relies on imports to sustain itself.

II.     Manufacturing

Nigeria has a manufacturing industry which includes leather and textiles (centred Kano, Abeokuta, Onitsha, and Lagos), Nigeria currently has an indigenous auto manufacturing company; Innoson Vehicle Manufacturing located in Nnewi. It produces Buses and SUVs.car manufacturing (for the French car manufacturer Peugeot as well as for the English truck manufacturer Bedford, now a subsidiary of General Motors), t-shirts, plastics and processed food.

Nigeria in recent years has been embracing industrialisation. It currently has an indigenous vehicle manufacturing company, Innoson Motors, which manufactures Rapid Transit Buses, Trucks and SUVs with an upcoming introduction of Cars. Nigeria also has few Electronic manufacturers like Zinox, the first Branded Nigerian Computer and Electronic gadgets (like tablet PCs) manufacturers. In 2013, Nigeria introduced a policy regarding import duty on vehicles to encourage local manufacturing companies in the country. In this regard, some foreign vehicle manufacturing companies like Nissan have made known their plans to have manufacturing plants in Nigeria. Ogun is considered to be the current Nigeria's industrial hub, as most factories are located in Ogun and more companies are moving there, followed by Lagos.

III.   Oil

The oil boom of the 1970s led Nigeria to neglect its strong agricultural and light manufacturing bases in favor of an unhealthy dependence on crude oil. In 2000, oil and gas exports accounted for more than 98% of export earnings and about 83% of federal government revenue. New oil wealth, the concurrent decline of other economic sectors, and a lurch toward a statist economic model fueled massive migration to the cities and led to increasingly widespread poverty, especially in rural areas.

A collapse of basic infrastructure and social services since the early 1980s accompanied this trend. By 2000, Nigeria's per capita income had plunged to about one-quarter of its mid-1970s high, below the level at independence. Along with the endemic malaise of Nigeria's non-oil sectors, the economy continues to witness massive growth of "informal sector" economic activities, estimated by some to be as high as 75% of the total economy.

Nigeria's proven oil reserves are estimated to be 35 billion barrels (5.6×109 m3); natural gas reserves are well over 100 trillion cubic feet (2,800 km3). Nigeria is a member of the Organization of Petroleum Exporting Countries (OPEC). The types of crude oil exported by Nigeria are Bonny light oil, Forcados crude oil, Qua Ibo crude oil and Brass River crude oil. Poor corporate relations with indigenous communities, vandalism of oil infrastructure, severe ecological damage, and personal security problems throughout the Niger Delta oil-producing region continue to plague Nigeria's oil sector.

Efforts are underway to reverse these troubles. In the absence of government programs, the major multinational oil companies have launched their own community development programs. A new entity, the Niger Delta Development Commission (NDDC), has been created to help catalyze economic and social development in the region. Although it has yet to launch its programs, hopes are high that the NDDC can reverse the impoverishment of local communities. The U.S. remains Nigeria's largest customer for crude oil, accounting for 40% of the country's total oil exports; Nigeria provides about 10% of overall U.S. oil imports and ranks as the fifth-largest source for U.S. imported oil.

The United Kingdom is Nigeria's largest trading partner followed by the United States. Although the trade balance overwhelmingly favors Nigeria, thanks to oil exports, a large portion of U.S. exports to Nigeria is believed to enter the country outside of the Nigerian government's official statistics, due to importers seeking to avoid Nigeria's excessive tariffs. To counter smuggling and under-invoicing by importers, in May 2001, the Nigerian government instituted a full inspection program for all imports, and enforcement has been sustained.

On the whole, Nigerian high tariffs and non-tariff barriers are gradually being reduced, but much progress remains to be made. The government also has been encouraging the expansion of foreign investment, although the country's investment climate remains daunting to all but the most determined. The stock of U.S. investment is nearly $7 billion, mostly in the energy sector. Exxon Mobil and Chevron are the two largest U.S. corporations in offshore oil and gas production. Significant exports of liquefied natural gas started in late 1999 and are slated to expand as Nigeria seeks to eliminate gas flaring by 2008.

Oil dependency, and the allure it generated of great wealth through government contracts, spawned other economic distortions. The country's high propensity to import means roughly 80% of government expenditures is recycled into foreign exchange. Cheap consumer imports, resulting from a chronically overvalued Naira, coupled with excessively high domestic production costs due in part to erratic electricity and fuel supply, pushed down utilization of industrial capacity to less than 30%. Many more Nigerian factories would have closed except for relatively low labor costs (10%–15%). Domestic manufacturers, especially pharmaceuticals and textiles, have lost their ability to compete in traditional regional markets. However, there are signs that some manufacturers have begun to improve competitiveness.

The pump price of P.M.S. in Nigeria currently stands at 87 naira, but some fueling stations in Nigeria, especially in towns far from the state capitals, tend to sell the product at a much higher price, ranging from 110 naira to 140 naira. An initial increase in the price of Petrol (Premium Motor Spirit) triggered by the removal of fuel subsidies on January 1 2012 triggered a total strike and massive protests across the country. Then President Goodluck Ebele Jonathan later reached an agreement with the Nigerian Labour Congress and reduced the pump price to 97 naira. The pump price was further reduced by 10 naira to 87 naira in the runup to the 2015 general elections. The government cited a drop in costs due to the global fall in the crude oil price.

IV.   Foreign aid

As of October 2005, World Bank assistance to Nigeria involved 19 active projects with a total commitment value of about US$1.87 billion. Since Nigeria joined the World Bank in 1961, the World Bank has assisted it on 120 projects. In October 2005, the International Monetary Fund approved a two-year “policy support instrument” designed to promote the growth of the non-oil sector and to reduce poverty.

The United States assisted with Nigeria's economic development from 1954 through June 1974, when concessional assistance was phased out because of a substantial increase in Nigeria's per capita income resulting from rising oil revenue. By 1974, the United States had provided Nigeria with approximately $360 million in assistance, which included grants for technical assistance, development assistance, relief and rehabilitation, and food aid. Disbursements continued into the late 1970s, bringing total bilateral economic assistance to roughly $445 million.

The sharp decline in oil prices, economic mismanagement, and continued military rule characterized Nigeria in the 1980s. In 1983, USAID began providing assistance to the Nigerian Federal and State Ministries of Health to develop and implement programs in family planning and child survival. In 1992, an HIV/AIDS prevention and control program was added to existing health activities. USAID committed $135 million to bilateral assistance programs for the period of 1986 to 1996 as Nigeria undertook an initially successful Structural Adjustment Program, but later abandoned it.

Plans to commit $150 million in assistance from 1993 to 2000 were interrupted by strains in U.S.-Nigerian relations over human rights abuses, the failed transition to democracy, and a lack of cooperation from the Nigerian Government on anti-narcotics trafficking issues. By the mid-1990s, these problems resulted in the curtailment of USAID activities that might benefit the military Government. Existing health programs were re-designed to focus on working through grassroots Nigerian non-governmental organizations and community groups. As a response to the Nigerian military government's plans for delayed transition to civilian rule, the Peace Corps closed its program in Nigeria in 1994.

In response to the increasingly repressive political situation, USAID established a Democracy and Governance (DG) program in 1996. This program integrates themes focusing on basic participatory democracy, human rights and civil rights, women's empowerment, accountability, and transparency with other health activities to reach Nigerians at the grassroots level in 14 of Nigeria's 36 states.

The sudden death of General Sani Abacha and the assumption of power by General Abdulsalami Abubakar in June 1998, marked a turning point in U.S.-Nigerian relations. USAID provided significant support to the electoral process by providing some $4 million in funding for international election observation, the training of Nigerian election observers and political party polling agents, as well as voter education activities. A Vital National Interest Certification was submitted to Congress in February 1999 by President Clinton to lift restrictions on U.S. Government interaction with and support to the Government of Nigeria.

Since that time, USAID has supported Nigeria to sustain democracy and to improve governance by providing training on the roles and responsibilities of elected officials in a representative democracy for newly elected officials at the federal, state, and local levels prior to their installation in May 1999 and assisting with conflict prevention and resolution in the Niger Delta, civil military relations, civil society, and political party development. In the economic area USAID supports programs in strengthening economic management and coordination, encouraging private sector development and economic reform, helping Nigeria reap the benefits of AGOA, improved agricultural technology and marketing and smallscale and microenterprise development. In addition, health assistance, focusing on HIV/AIDS, nutrition, and immunization, education, transportation and energy infrastructure, are priorities for bilateral assistance 

Politics

Nigeria is a federal republic modelled after the United States and greatly influenced by its former colonial ruler, Great Britain, with executive power exercised by the president. The government of Nigeria is also influenced by the Westminster System model in the composition and management of the upper and lower houses of a bicameral legislature. The president, however, is the head of state, the head of government, and the head of a multi-party system. Nigerian politics takes place within a framework of a federal, presidential, representative democratic republic, in which executive power is exercised by the government. Legislative power is held by the real government and the two chambers of the legislature: the House of Representatives and the Senate. Together, the two chambers make up the law-making body in Nigeria, called the National Assembly, which serves as a check on the executive arm of government. The highest judiciary arm of government in Nigeria is the Supreme Court of Nigeria which was created in after independence and also practices Baron de Montesquieu's theory of the separation of powers based on the United States system and also practises checks and balances.

I.       Executive branch

The president is elected through universal suffrage. He or she is both the chief of state and head of government, heading the Federal Executive Council, or cabinet.

The executive branch is divided into Federal Ministries, each headed by a minister appointed by the president. The president must include at least one member from each of the 36 states in his cabinet. The President's appointments are confirmed by the Senate of Nigeria. In some cases, a federal minister is responsible for more than one ministry (for example, Environment and Housing may be combined), or a minister may be assisted by one or more ministers of State. Each ministry also has a Permanent Secretary, who is a senior civil servant.

The ministries are responsible for various parastatals (government-owned corporations), such as universities, the National Broadcasting Commission, and the Nigerian National Petroleum Corporation. However, some parastatals are the responsibility of the Office of the Presidency, such as the Independent National Electoral Commission, the Economic and Financial Crimes Commission and the Federal Civil Service Commission.

II.     Legislative branch

The National Assembly of Nigeria has two chambers: the House of Representatives and the Senate. The House of Representatives is presided over by the Speaker of the House of Representatives. It has 360 members, who are elected for four-year terms in single-seat constituencies. The Senate, which has 109 members, is presided over by the President of the Senate. 108 members are elected for four-year terms in 36 three-seat constituencies, which correspond to the country's 36 states. One member is selected in the single-seat constituency of the federal capital.

III.   Judicial branch

The judicial branch consists of the Supreme Court of Nigeria, the Court of Appeals, the High Courts, and other trial courts such as the Magistrates', Customary, Sharia and other specialised courts. The National Judicial Council serves as an independent executive body, insulating the judiciary from the executive arm of government. The Supreme Court is presided over by the Chief Justice of Nigeria and thirteen associate justices, who are appointed by the President of Nigeria on the recommendation of the National Judicial Council. These justices are subject to confirmation by the Senate.

IV.   Foreign relations

Nigeria currently has better foreign relations with its neighbors, due to its current state of democracy. It is a member of the African Union and sits on that organization's Peace and Security Council. In 1960, Nigeria joined both the United Nations and the Commonwealth of Nations; however, they were briefly suspended between 1995 and 1999.

Society

I.       Health

Health care delivery in Nigeria is a concurrent responsibility of the three tiers of government in the country, and the private sector. Nigeria has been reorganising its health system since the Bamako Initiative of 1987, which formally promoted community-based methods of increasing accessibility of drugs and health care services to the population, in part by implementing user fees. The new strategy dramatically increased accessibility through community-based healthcare reform, resulting in more efficient and equitable provision of services. A comprehensive approach strategy was extended to all areas of health care, with subsequent improvement in the health care indicators and improvement in health care efficiency and cost.

HIV/AIDS rate in Nigeria is much lower compared to the other African nations such as Kenya or South Africa whose prevalence (percentage) rates are in the double digits. As of 2012, the HIV prevalence rate among adults ages 15–49 was just 3.1 percent. As of 2014, Life expectancy in Nigeria is 52.62 years on average according to CIA, and just over half the population have access to potable water and appropriate sanitation; As of 2010, the Infant mortality is 8.4 deaths per 1000 live births.

Nigeria was the only country in Africa to have never eradicated polio, which it periodically exported to other African countries; Polio was cut 98% between 2009 and 2010. However, a major breakthrough came in December 2014, when it was reported that Nigeria hadn't recorded a polio case in 6 months, and on its way to be declared Polio free. In 2012, a new bone marrow donor program was launched by the University of Nigeria to help people with leukaemia, lymphoma, or sickle cell disease to find a compatible donor for a life-saving bone marrow transplant, which cures them of their conditions. Nigeria became the second African country to have successfully carried out this surgery. In the 2014 ebola outbreak, Nigeria was the first country to effectively contain and eliminate the Ebola threat that was ravaging three other countries in the West African region, the Nigerian unique method of contact tracing employed by Nigeria became an effective method later used by countries, such as the united States, when ebola threats were discovered.

The Nigerian health care system is continuously faced with a shortage of doctors known as 'brain drain', because of emigration by skilled Nigerian doctors to North America and Europe. In 1995, it was estimated that 21,000 Nigerian doctors were practising in the United States alone, which is about the same as the number of doctors working in the Nigerian public service. Retaining these expensively trained professionals has been identified as one of the goals of the government.