- September 7, 2016
Lions are the kings of the jungle because of their raw power and strong point. Having rich reserves of natural resources, and well-developed financial and communications sectors, Nigeria is the Giant of Africa due to its large population and economy. Perhaps this is why Nigeria can be deliberated as the King of Africa. Ins and outs are indefinite to label the bravery of this lion that impelled it to be the King of the Jungle.
Nigeria is situated in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in the north. Its coast in the south lies on the Gulf of Guinea in the Atlantic Ocean.
Nigeria is categorized as a mixed economy developing market, and has by now touched lower middle income status according to the World Bank, with its plentiful supply of natural resources, well-developed financial, legal, communications, transport sectors and stock exchange (the Nigerian Stock Exchange), which is the second largest in Africa. Nigeria was ranked 30th in the world in terms of GDP (PPP) in 2012. Nigeria is the United States’ major trading partner in sub-Sahara supplies a fifth of its oil (11% of oil imports).
In 2014 its economy (GDP) became the largest in Africa, worth more than $500 billion, and overtook South Africa to become the world’s 26th-largest economy. Furthermore, the debt-to-GDP ratio is only 11 percent (8 percent below the 2012 ratio). Nigeria’s economy grew in 2013 due to high oil prices and a healthy domestic market.
On the Move
Nigeria offers mammoth business prospects to all the savers in diverse sectors like agriculture, oil and gas, textiles and mining amongst others, and interestingly, reflected to be a lucrative investment destination. This country has a stable political environment and the government policies shaped fully embolden for both domestic and foreign investment. Investors can do well and earn prospects from its thriving and prosperous sectors.
Proud of its Roots
Agriculture in Nigeria accounts for around one – third of the country’s GDP and two-thirds of employment. Nigeria’s foremost crops embrace palm, peanut oil, rubber, and cotton. These crops are exported and are also sold locally.
Other agricultural products include sorghum, millet, maize (corn), yams and cassava. All of these are previously used as subsistence foods by farmers but are now widely sold for cash.
The country ranks twenty fifth worldwide and first in Africa in farm output. Majority of Nigeria’s food production comes from small scale farmers using basic agricultural equipment. The government has recently put considerable amounts of money into refining farming through investment into rural infrastructure and irrigation projects and by presenting modern agricultural chemicals.
Nigeria is opulent in natural resources, particularly in case of hydrocarbons. In international ranking Nigeria holds the 10th oil producer and the 3rd largest oil producer in Africa. The Nigerian economy is mainly reliant on its oil sector which supplies 95% of its foreign exchange earnings.
The upstream segment of the oil industry is the most important segment of the Nigerian economy. According to the 2008 BP Statistical Energy Survey, Nigeria had proved oil reserves of 36.22 billion barrels at the end of 2008 or 2.7 % of the world’s reserves. The government plans to enlarge its proven reserves to 40 billion barrels by 2010. Regardless of the problems allied with the ethnic uneasiness and the border disputes and government funding problems, the resource Nigeria has in the oil sector makes it into one of the most attractive destination for many oil-multinationals. Nigeria produced an average of 2353.07 thousand barrels of crude oil per day in 2007, 2.7% of the world total and a change of -4.8 % compared to 2006.
The petroleum industry of Nigeria is controlled by the Ministry of Petroleum Resources. The government retains close control over the industry and in the activities of the NNPC, whose senior executives are appointed by the ruling government.
The Latest Entry
Textiles have been shaped in Nigeria by the traditional methods now for several years, but the industrial action used in the production of textile is reasonably much more recent. The sector has now established to incorporate carpet production, dyeing, embroidery makings, fiber production, lace, spinning, weaving, knitting, printing and finishing. The sector produces a variety of fabrics ranging from African prints, shirting, embroideries, etc. to Guinea brocades, wax prints, jute and other products.
The textile sector of Nigeria largely includes of the Cotton Textile and Synthetic Fabrics and remains to account for a significant proportion of the overall growth of manufacturing production. The synthetic fiber section of the textile industry has documented substantial amount of growth over the past years.
Around 60% to 70% of the raw materials essential in the industry are indigenously sourced, the main exceptions being high quality of cotton and synthetic materials.
The textile industry of Nigeria is labor intensive, it is projected that the sector affords employment to around 150,000 Nigerians, excluding the thousands who are directly employed in the cottage sector of the industry.
Currently there is no restriction in ownership of the textile industry but international ownership is still limited. Through privatization, most of the equity investments previously held by government now have been shifted to private hands. The performance of the industry has amended largely by privatization.
Keeping the Faith
The mining of minerals scores for only 0.3% of its GDP. The mining industry is unfledged thus Nigeria needs to import minerals which it could mine locally. The ownership privileges for the exploring, mining and selling of mineral resources are held by the Nigerian government.
The mineral resources of Nigeria embrace coal, iron, gold, uranium and tantalum.
The coal resources are disseminated over fifteen states. The Nigerian Coal Corporation is one accountable for most of the coalmines present in the region. The coal section of the Nigerian economy is slowly being privatized.
Iron ore is largely mined at the Itakpe which has an annual capacity of 5.5Mt per year. The state owned National Iron Ore Company functions in this region.
Western region of Nigeria is well-known for the gold deposits, the sites for mining are Maru, Anka, Malele, Tsohon Birnin Gwari-Kwaga, Gurmana, Bin Yauri, Okolom-Dogondaji, and Iperindo in Kwara State. Uranium is found in 6 of the 36 states in Nigeria.
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