The Federal Republic of Nigeria is Africa’s most powerful economy, ranked above South Africa and Egypt on the continent. Nigeria was ranked 29th in the world in 2021 with Gross Domestic Product (GDP) of 484.4 billion US dollars according to the International Monetary Fund’s World Economic Outlook.
Revenue from oil and natural gas are the key elements of Nigeria’s finances. In 2022 the nation was placed seventh for crude oil production among members of the Organisation of Petroleum Exporting Countries (OPEC), with exploration both onshore in the Niger Delta and offshore. Oil is the most important source of revenue and foreign exchange, while Nigeria is also now globally-ranked for natural gas production and holds one of the world’s largest reserves. Other mineral deposits include coal and tin.
Another natural resource is Nigeria’s huge and low-cost workforce – around 67 million people out of the population of around 219 million. However, it is a labour pool that suffers significant disparity in earnings. Nigeria’s GDP per capita of just US$2,273 was only 145th in the world in 2021.