Nigeria Economy 2008

Economy - overview:
Oil-rich Nigeria, long hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, is undertaking some reforms under a new reform-minded administration. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 20% of GDP, 95% of foreign exchange earnings, and about 80% of budgetary revenues. The largely subsistence agricultural sector has failed to keep up with rapid population growth - Nigeria is Africa's most populous country - and the country, once a large net exporter of food, now must import food. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club. In the last year the government has begun showing the political will to implement the market-oriented reforms urged by the IMF, such as to modernize the banking system, to curb inflation by blocking excessive wage demands, and to resolve regional disputes over the distribution of earnings from the oil industry. In 2003, the government began deregulating fuel prices, announced the privatization of the country's four oil refineries, and instituted the National Economic Empowerment Development Strategy, a domestically designed and run program modeled on the IMF's Poverty Reduction and Growth Facility for fiscal and monetary management. In November 2005, Abuja won Paris Club approval for a debt - relief deal that eliminated $18 billion of debt in exchange for $12 billion in payments - a total package worth $30 billion of Nigeria's total $37 billion external debt. The deal requires Nigeria to be subject to stringent IMF reviews. GDP rose strongly in 2007, based largely on increased oil exports and high global crude prices. Newly-elected President YAR'ADUA has pledged to continue the economic reforms of his successor and the proposed budget for 2008 reflects the administrations emphasis on infrastructure improvements.

GDP (purchasing power parity):
$294.8 billion (2007 est.)

GDP (official exchange rate):
$90.52 billion (2007 est.)

GDP - real growth rate:
6.1% (2007 est.)

GDP - per capita (PPP):
$2,200 (2007 est.)

GDP - composition by sector:
agriculture: 17.6%
industry: 53.1%
services: 29.3% (2007 est.)

Labor force:
50.13 million (2007 est.)

Labor force - by occupation:
agriculture: 70%
industry: 10%
services: 20% (1999 est.)

Unemployment rate:
5.8% (2006 est.)

Population below poverty line:
60% (2000 est.)

Household income or consumption by percentage share:
lowest 10%: 1.9%
highest 10%: 33.2% (2003)

Distribution of family income - Gini index:
43.7 (2003)

Inflation rate (consumer prices):
6.5% (2007 est.)

Investment (gross fixed):
24.3% of GDP (2007 est.)

Budget:
revenues: $20.5 billion
expenditures: $21.82 billion (2007 est.)

Public debt:
14.8% of GDP (2007 est.)

Agriculture - products:
cocoa, peanuts, palm oil, corn, rice, sorghum, millet, cassava (tapioca), yams, rubber; cattle, sheep, goats, pigs; timber; fish

Industries:
crude oil, coal, tin, columbite; palm oil, peanuts, cotton, rubber, wood; hides and skins, textiles, cement and other construction materials, food products, footwear, chemicals, fertilizer, printing, ceramics, steel, small commercial ship construction and repair

Industrial production growth rate:
3.1% (2007 est.)

Electricity - production:
22.53 billion kWh (2005)

Electricity - consumption:
16.88 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
2.63 million bbl/day (2005 est.)

Oil - consumption:
300,000 bbl/day (2005 est.)

Oil - exports:
2.203 million bbl/day (2004)

Oil - imports:
167,900 bbl/day (2004)

Oil - proved reserves:
35.88 billion bbl (1 January 2006 est.)

natural gas - production:
21.48 billion cu m (2005 est.)

natural gas - consumption:
9.936 billion cu m (2005 est.)

natural gas - exports:
11.55 billion cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
5.015 trillion cu m (1 January 2006 est.)

Current account balance:
$14.61 billion (2007 est.)

Exports:
$61.81 billion f.o.b. (2007 est.)

Exports - commodities:
petroleum and petroleum products 95%, cocoa, rubber

Exports - partners:
US 48.9%, Spain 8%, Brazil 7.3%, France 4.2% (2006)

Imports:
$30.35 billion f.o.b. (2007 est.)

Imports - partners:
China 10.7%, US 8.4%, Netherlands 6.2%, UK 5.8%, France 5.6%, Brazil 5.1%, Germany 4.5% (2006)

Economic aid - recipient:
$6.437 billion (2005)

Reserves of foreign exchange and gold:
$50.33 billion (31 December 2007 est.)

Debt - external:
$5.815 billion (31 December 2007 est.)

Stock of direct foreign investment - at home:
$31.66 billion (2006 est.)

Stock of direct foreign investment - abroad:
$12.44 billion (2006 est.)

Market value of publicly traded shares:
$32.82 billion (2006)

Currency (code):
naira (NGN)

Exchange rates:
nairas per US dollar - 127.46 (2007), 127.38 (2006), 132.59 (2005), 132.89 (2004), 129.22 (2003)