Nigeria is one of Africa's largest economies. Nigeria's economy is a mixed type, generally combining state-owned and private businesses. It is therefore classified as a blend. It is also defined as an emerging economy and belongs to countries with lower middle-incomes. In 2022,
was worth 252.7 billion U.S. dollars, while the
equalled 1,100 U.S. dollars. Nigeria has Africa’s largest population and is the 23rd African country with the highest GDP per capita. It is also fourth on the continent in terms of total GDP. Previously Africa’s largest economy, its descent to the fourth position was largely attributed to currency devaluations. Overall, GDP per capita is calculated by dividing a country’s GDP by its population. Therefore, a highly populated country with a low total GDP will have a low GDP per capita, while a small rich nation has a high GDP per capita.
Oil makes greater contributions to Nigeria’s economy
An important source of income to Nigeria is oil. Nearly 92 percent of
its total exports derives from the trading of mineral fuels, oils, and distillation products. Nigeria is one of the
largest exporters of crude oil in terms of value, and has one of the main
oil reserves in the world.
Oil production in Nigeria has generally decreased since the COVID-19 pandemic. Travel restrictions, bans, warnings as well as a restricted mobility which were imposed to limit the spread of the virus turned the oil sector into one of the most impacted industries.
Inflation surges
Nigeria records one of the highest
inflation rates worldwide. In August 2023, the inflation rate reached nearly 28 percent
in urban areas, whereas in rural areas, it was slightly lower.
Data on Consumer Price Index (CPI) show that inflation keeps rising in the country. As of August 2023, the index reached over 593 points. The CPI measures changes in the price level of the market basket of goods and services purchased by households. Therefore, an increasing CPI might indicate that the Nigerian purchasing power is decreasing. The
CPI of food, in particular, was even higher, peaking at more than 737 points.
Unemployment is of concern
Governmental data from Nigeria report high
unemployment rates in the country. According to the latest data available, the unemployment rate stood at 33.3 percent. The
south-eastern states register the highest unemployment rates nationwide. For instance, in Imo, Akwa Ibon, Rivers, and Delta, over 40 percent of the labour force was unemployed. However, Nigerian sources define unemployed labour force as those who did nothing or worked for less than 20 hours a week. According to the international methodology, the unemployment rate in Nigeria is around 12 percent. The international definition, on the other hand, include people aged 15 years to 64 years old who were available for work, actively seeking work, but were unable to find work. Figures on wages in Nigeria show that the
living wage for an individual in Nigeria amounts to roughly 113 U.S. dollars per month. In 2019, the minimum wage of 30,000 Nigerian naira (NGN) became law, after which it was increased to 70,000 NGN (about 44 U.S. dollars) in 2024.
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Due to varying update cycles, statistics can display more up-to-date
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