Nigerian Economy: Macroeconomic Analysis
sisNigeria – Country Report
2012
61310039
Indian School of Business
7/6/2012
Contents Economic Overview 3 Gross Domestic Product (GDP) 3 GDP Composition 4 Inflation 4 Shadow Economy 5 Trade Overview 5 Foreign Debt 7 Labor Market & Human Capital 7 Population and Income Inequality 8 Unemployment 9 Currency 10 Money Supply and Monetary Control 10 Fiscal policy 12 Exchange rates 12 Interest Rates 13 Foreign Direct Investment 14 Globalization and Comparative Advantage 14 Conclusion 15 References 16
Economic Overview
Nigeria's economy is estimated to be worth about $262bn, making it one of the largest economies in Africa. The estimates and analysis of various indicators is discussed in the later sections. The country has fared better than many other countries during the global economic downturn, but systemic problems in infrastructure and the labor market mean that its position in the Economist Intelligence Unit's global rankings remains towards the bottom during the forecast period, at 75th out of 82 countries. Efforts to create a significantly more attractive business environment are likely to produce only modest results owing to the slow pace of more fundamental reforms.
Nigeria has taken steps to simplify trade by working on its tariff structure. However, there is still a protectionist sentiment in the country. Cross border smuggling is still a major concern and is liable to remain an important feature of the Nigerian economy.
The capacity and efficiency of Nigerian ports (Trade) have improved following the implementation of an ambitious concessioning program that transferred management of terminals to private operators. However, although the reforms have improved port operations and ship turnaround times, there remains the problem of corruption in the customs service, which can complicate and delay the clearance of goods.
Gross Domestic Product (GDP)
The latest GDP projection data as brought out by World
2012
61310039
Indian School of Business
7/6/2012
Contents Economic Overview 3 Gross Domestic Product (GDP) 3 GDP Composition 4 Inflation 4 Shadow Economy 5 Trade Overview 5 Foreign Debt 7 Labor Market & Human Capital 7 Population and Income Inequality 8 Unemployment 9 Currency 10 Money Supply and Monetary Control 10 Fiscal policy 12 Exchange rates 12 Interest Rates 13 Foreign Direct Investment 14 Globalization and Comparative Advantage 14 Conclusion 15 References 16
Economic Overview
Nigeria's economy is estimated to be worth about $262bn, making it one of the largest economies in Africa. The estimates and analysis of various indicators is discussed in the later sections. The country has fared better than many other countries during the global economic downturn, but systemic problems in infrastructure and the labor market mean that its position in the Economist Intelligence Unit's global rankings remains towards the bottom during the forecast period, at 75th out of 82 countries. Efforts to create a significantly more attractive business environment are likely to produce only modest results owing to the slow pace of more fundamental reforms.
Nigeria has taken steps to simplify trade by working on its tariff structure. However, there is still a protectionist sentiment in the country. Cross border smuggling is still a major concern and is liable to remain an important feature of the Nigerian economy.
The capacity and efficiency of Nigerian ports (Trade) have improved following the implementation of an ambitious concessioning program that transferred management of terminals to private operators. However, although the reforms have improved port operations and ship turnaround times, there remains the problem of corruption in the customs service, which can complicate and delay the clearance of goods.
Gross Domestic Product (GDP)
The latest GDP projection data as brought out by World
References: 1. Economic Intelligence Unit - (http://country.eiu.com/Nigeria) 2. CBN Monetary Survey 3. Exchange Rates – (http://www.exchangerates.org.uk/) 4. Shadow Economy Reference – (http://news.bbc.co.uk/) 5. Currency Reference – (http://www.cenbank.org/)