Nigeria Finally Overtakes South Africa As Largest Economy In Africa

 

 Nigeria was at the weekend ranked the largest economy on the African continent and 26th largest in the world with new Gross Domestic Products (GDP) of $453,966.81 billion as against the 1990 GDP of  $258,555.58  billion.

With the new ranking, it is expected that Nigeria may emerge  the first African country to   meet the 2015 Millennium  Development Goal (MDG)

The GDP was rebased from 1990 to 2010. But according to the National Bureau of Statistics (NBS), which carried out the exercise with assistance of respected Nigerian economists including Professor Olu Ajakaiye, President of the Nigerian Economic Society, Professor Akpan Ekpo, Dr Ayo Teriba and others; the International Monetary Fund, the World Bank, the African Development Bank and other partners, the rebased estimates indicate the forecast for the nominal GDP for Nigeria in 2013 is N80,222,128.32 ($509.9 billion)

Comparatively, nominal GDP for the previous three years were: 2010: N54,204, 795.12m ($360.6 billion) 2011: N63,258,579.01m ($408.8 billion) 2012: N71,186,534.89m ($449.9 billion) The changes between the old and new rates represent growth of 59.5 per cent  in 2010, 69.13 per cent  in 2011, 75.58  per cent  in 2012 and 89.22 per cent in 2013

The rebased GDP numbers imply that the level of economic activity is much higher than previously reported, indicating a clearer picture of Nigeria’s economic landscape, and the significant opportunity for growth and wealth creation in the Nigerian economy.

In her remarks, the  Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala said:

“We did not set out to become the biggest economy in Africa. We set out to measure how much the economy has changed. And that is the outcome. Becoming the largest economy on the continent is a positive development, but it is not destination. The knowledge derived will help us make better policies to grow the economy and create jobs for young Nigerians. Nigerians have worked hard to make our economy the largest in Africa and they should be proud of the feat. But it is also a challenge and an opportunity. The results of the rebasing  will not make the challenges of poverty and unemployment disappear overnight but the better understanding of the structure and changes of the economy will give us better tools to grow the economy and tackle poverty and unemployment.” she said

Also, speaking, the Supervising Minister of the Ministry of National Planning, Ambassador Bashir Yuguda,  underscored the credibility of the rebasing exercise which he said,  was rigorously and professionally executed by a team of local and international experts.

“It is a thorough job and we are pleased with the results. The results will empower government to do more for the Nigerian people.” he said.

However, one of key changes identified is the noticeable shift in the share of key sectors to the country’s overall GDP.

Such changes  is the decline in the share of the agricultural sector to the overall GDP and a rise in the share of services. In the 1990 nominal series, agriculture contributed 30 per cent  to the GDP, while industry contributed 46.1 per cent and services contributed 23.6 per cent.