Economy of Nigeria
Nigeria is Africa's second-largest economy by purchasing power parity.
Nigeria has a lower-middle-income, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology, and entertainment sectors. It is ranked as the 52nd-largest economy in the world in terms of nominal GDP, the second largest in Africa in terms of purchasing power parity, and the 19th-largest in terms of purchasing power parity.
- Economy type
- Lower-middle-income, mixed, emerging market
- Global GDP rank (nominal)
- 52nd
- Global GDP rank (PPP)
- 19th
- Debt-to-GDP ratio (2021)
- 36.63%
- Oil share of state revenues
- 2/3
- Oil share of GDP
- ~9%
- World oil supply share
- ~2.7%
Lore & Background
Nigeria's economy has deep historical roots. The Yoruba, with the Oyo Empire, formed a second centre of power, combining superior economic strength with military dominance.
Reader's Guide
Nigeria's economy is significant for its size and potential, but faces structural challenges. Although oil revenues contribute two-thirds of state revenues, oil only accounts for about 9% of GDP. The largely subsistence agricultural sector has not kept up with rapid population growth, and Nigeria, once a large net exporter of food, now imports some food products. Mechanization has led to a manufacturing resurgence and a move toward food sufficiency. In 2006, Nigeria bought back the bulk of its debts from the Paris Club for roughly US$12 billion.
Did You Know?
- In 2006, Nigeria agreed with the Paris Club to buy back the bulk of its debts for roughly US$12 billion.
- Two-thirds of Nigerians expect living conditions to improve in the coming decades.
Frequently Asked Questions
Who is Economy of Nigeria?
Economy of Nigeria is a lower-middle-income, mixed emerging-market economy with a broad base spanning manufacturing, finance, services, communications, technology, and entertainment. It currently holds the 52nd-largest nominal GDP worldwide and the 19th-largest when adjusted for purchasing power parity.
What is Economy of Nigeria's global rank?
By nominal GDP, Economy of Nigeria sits at 52nd in the world. When measured by purchasing power parity, it climbs to 19th globally and stands as Africa's second-largest economy.
What sectors define Economy of Nigeria?
Its profile is built on expanding manufacturing, financial services, communications, technology, and entertainment industries within a mixed-market structure. This diversification distinguishes it from purely resource-dependent neighbors on the continent.
How dependent is Economy of Nigeria on oil?
Roughly two-thirds of state revenues still flow from oil, even though the commodity contributes only about 9% of total GDP. This heavy fiscal reliance on a single export remains a key vulnerability in its otherwise broad economic base.
Why is Economy of Nigeria important?
As Africa's second-largest economy by PPP and a 19th-ranked global player, it serves as a continental anchor for trade, investment, and regional growth. Its expanding service and technology sectors also position it as a rising hub for innovation across the continent.
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