Nigeria ‘could be top 20 global economy by 2030’

25 July 2014

With the right reforms and investment, Nigeria had the potential to raise its gross domestic product (GDP) by 7.1% a year through to 2030, to more than $1.6-trillion, which could make the country a top 20 global economy, a new report by the McKinsey Global Institute (MGI) has shown.

The MGI said new data showed that the African country’s economy was far more diverse than initially understood.

While the nation’s rich oil reserves remained a critical source of government income and exports, the resources sector made up only 14% of Nigeria’s GDP, with the agriculture and trade sectors being larger and faster growing.

The MGI based its future scenario for Nigeria on an analysis of the five major sectors of the country’s economy – trade, agriculture, infrastructure, manufacturing and oil and gas.

Based on an expanding consumer class in Nigeria, MGI projected that consumption could more than triple, rising from $388-billion a year presently to $1.4-trillion a year in 2030, a yearly increase of about 8%.

It also had a young and rapidly growing population and an advantageous geographic location in West Africa, which enabled trade within the continent and with Europe and North and South America, the institute said. 

By: Leandi Kolver
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