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Years of military rule, corruption, and mismanagement have hobbled economic activity and output in Nigeria and continue to do so, despite the restoration of democracy and subsequent economic reform. According to the Economist Intelligence Unit and the World Bank, Nigerian GDP at purchasing power parity was only at $170.7 billion as of FY 2005. The GDP per head is at $692. Nigeria is a leading petroleum producer and exporter. It is the 12th largest producer of petroleum in the world and the 8th largest exporter. Nigeria also has one of the world's largest proven natural gas and petroleum reserves and is a founding member of OPEC. However, due to crumbling infrastructure, ongoing civil strife in the Niger Delta- its main oil producing region- and corruption, oil production and export is not at 100% capacity. More mineral resources that are present in Nigeria but not yet fully exploited are coal and tin. Other natural resources in the country include iron ore, limestone, niobium, lead, zinc, and arable land. Agricultural products include groundnuts, palm oil, cocoa, coconut, citrus fruits, maize, millet, cassava, yams and sugar cane. It also has a booming leather and textile industry, with industries located in Kano, Abeokuta, Onitsha, and Lagos. Like many third world nations, Nigeria has accumulated a significant foreign debt. However many of the projects financed by these debts were inefficient, bedeviled by corruption or failed to live up to expectations. Nigeria defaulted on its debt as arrears and penalty interest accumulated and increased the size of the debt. However, after a long campaign by the Nigeria authorities, in October 2005 Nigeria and its Paris Club creditors reached an agreement that will see Nigeria's debt reduced by approximately 60%. Nigeria will use part of its oil windfall to pay the residual 40%. This deal will free up at least $1.15 billion annually for poverty reduction programs. As of April 2006, Nigeria became the first African Country to fully pay off her debt (estimated $30billion) owed to the Paris Club. The currency unit of Nigeria is the Nigerian Naira. Nigeria also has significant production and manufacturing facilities such as factories for Peugeot the French car marker, Bedford the English truck manufacturer, now a subsidiary of General Motors, and also manufactures t-shirts and processed food. |
Nigeria Information: Inside
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