Nigeria, with a population of 218,541,212, is ranked 6th globally, just behind Pakistan. Located in West Africa, Nigeria covers 923,770 sq. km, ranking 30th worldwide, just behind Tanzania.
Nigeria’s economic position in 2022 is notable, with a GDP of $472.62 billion, ranking it 30th globally. It follows Thailand, which has a GDP of $495.42 billion. Nigeria’s GDP per capita stands at $2162.63, placing it at the 146th position worldwide. It lags behind Ghana, whose GDP per capita is $2203.56.
Despite facing challenges, Nigeria’s economy shows potential for growth and development in various sectors, contributing significantly to the country’s overall economic landscape.
What are the economic activities of Nigeria?
- Primary activities: 21.1% of GDP.
- Secondary activities: 22.5% of GDP.
- Tertiary activities: 56.4% of GDP.
Primary Sector of Nigeria
The primary sector in Nigeria, with 75.37% of its land dedicated to agriculture, is vital for the economy. Main products include yams, cassava, maize, oil palm fruit, rice, taro, bananas, vegetables, sorghum, and groundnuts. Despite contributing 21.1% to the GDP, agriculture plays a crucial role in providing employment and food security.
The diverse range of crops and animal products highlights the sector’s significance in sustaining the country’s agricultural output and supporting livelihoods.
The country boasts diverse geology, leading to abundant natural resources. These include petroleum, natural gas, tin, iron ore, coal, limestone, niobium, lead, zinc, and arable land. These resources drive the economy through various industries, such as oil and gas, mining, and agriculture, contributing significantly to the nation’s GDP.
Nigeria’s gas production ranks 17th globally, with 45,900 million m³ in 2020, fueling industries and boosting the economy.
Secondary Sector of Nigeria
What is the secondary sector or what are secondary activities?
The secondary sector involves industries that transform raw materials from primary activities into finished products. In Nigeria, main industrial products include crude oil, coal, tin, columbite, rubber products, wood, hides and skins, textiles, cement, food products, footwear, chemicals, fertilizer, printing, ceramics, and steel.
Manufactures make up only 2.83% of Nigeria’s total exports in 2023, indicating their relatively minor significance in the country’s export sector.
Tertiary sector of Nigeria
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Nigeria encompasses services that enhance productivity and meet needs through intangible goods like expertise and advice. Key activities include healthcare, education, banking, communication, media, and tourism. These sectors contribute significantly to the country’s economy and development.
Among these, Nigeria’s tourism industry plays a crucial role in its economy. The country boasts diverse cultural heritage and natural attractions, drawing visitors worldwide. Lagos and Calabar are among the most popular destinations, offering vibrant city life and annual festivals that showcase Nigeria’s rich traditions. Efforts to promote sustainable tourism could further boost its economic impact.
Another example of tertiary economic activity is the mobile cellular sector, with over 222 million subscriptions, supporting technological growth. This connectivity fosters innovation, enhances communication, and drives digital services.
Military Activities and Economic Sectors of Nigeria
The military is a good example of how different economic activities work together. In the primary sector, Nigeria extracts resources for military use. The secondary sector involves making military equipment. The tertiary sector includes services provided by the military, like training and logistics. The quaternary sector focuses on military research and development, while the quinary sector deals with high-level decision-making and strategy.
In 2023, Nigeria’s military expenditure was about 3.19 billion US dollars, which is 0.64% of its GDP. The country has an active military force of 143,000 personnel. This means there are about 1.1 active military members for every 1,000 people in Nigeria.
International Trade of Nigeria
Import Activities of Nigeria
Nigeria’s import activities are of high importance, with total imports in 2023 amounting to $65,047,894,217.89, equivalent to 13.76% of the country’s GDP.
Nigeria’s main import activities include refined petroleum, wheat, garments, plastics, and cars. Its top import partners are China (32%), Belgium (11%), Netherlands (10%), India (8%), and the US (5%).
Exports Activities of Nigeria
In 2023, Nigeria’s total exports amounted to $65.1 billion, accounting for 13.78% of its GDP. This places the country’s export activities at a medium level of importance, contributing significantly to its economic growth and stability.
Nigeria’s export activities are diverse, with crude petroleum, natural gas, and fertilizers being the main commodities. The country’s top export partners are Spain, India, France, the US, and the Netherlands, with crude petroleum being the largest export product.
Nigeria economy challenges in 2024
In 2024, Nigeria faces economic challenges due to fluctuating energy prices and reliance on oil exports. The country’s large labor force is mostly lower middle income, impacting overall growth. Despite being a regional leader in infrastructure, Nigeria struggles with diversifying its economy beyond oil and agriculture. Strengthening other industries like telecommunications and finance is crucial for sustainable development.
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