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Nigeria Economic Outlook 2019

Modern Africa is often seen as a territory conditionally divided into two regions: North Africa and sub-Saharan Africa. The continent's global economic role has serious prerequisites for enlargement. This is due to both resource potential and the demographic situation: according to the UN, the total population on the continent should reach 2.3 billion people by 2050 instead of 1.2 billion today.

Therefore, African countries are facing the challenge to accelerate economic development: the new infrastructure, job creation, food security, expanding trade, and investment ties. All these open up new prospects and creates opportunities for expanding economic cooperation with Nigeria.

The Main Source of Income

Energy exports today are one of Nigeria’s main incomes and the key source of foreign exchange earnings, according to Alpari Forex broker in Nigeria. In September 2019, the dynamics of crude oil production decreased compared to summer months and reached 1 870,00 BBL/D/1K.

This influenced the general decrease of major indicators related to business sphere, for instance:

1. The rate of business activity in the manufacturing sector decreased to 57.70.
2. The index of business activity in services decreased to 58.00.
3. The rate of Confidence in Business Circles is 25.90 p, etc.

However, the inflation rate at the point 11.02% shows the stabilization of the finance sector in general.

This is extremely important for maintaining the fragile economic situation in the country. The increased population growth rate, the low level of industrial development, and the absence of sufficient infrastructure, the Nigeria economy requires modernization and enlargement, which will require a stable and significant source of energy.

Providing it with internal economic needs in an amount sufficient for the necessary economic renewal is an extremely important task not only for Nigeria but also for most countries in Africa. It is likely that this factor will largely determine the energy policy of Nigeria and other African states in the coming years.

Corruption in Nigeria

Recalling the first report on domestic corruption in Nigeria in 2017, the positive dynamics is obvious. In 2017, the study determined the extent effect of corruption that people face when interacting with government officials. On average, every adult resident of the country gives a bribe about once a year - its average size is about a quarter of the average monthly salary and is paid in cash.

For now, the level of corruption started to decrease due to the efforts of the government. The Nigerian Commission on Corruption opened 1,500 anti-corruption clubs in schools across the country for International Children's Day. In the classrooms, pupils will be taught with values made to defeat corruption, such as honesty and responsibility.

Conclusion

Despite any negative factors, the country is fast developing. This is Africa's first economy - $594 bln of GDP today with the prospect of becoming a trillion by 2030, the 22nd economy in the world, the largest market in Africa with a population over 180 million, one of the largest countries with a young population of 18-35 y.o.

Nigeria’s geographic location in the Gulf of Guinea makes the country the best transit hub for connections to other landlocked African countries with direct access to North America, Europe, and Asia. Nigeria has already attracted billions of investments from China, Japan, Indonesia, and the EU countries. So, this African state can become a good investment partner.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.