Recovering from challenging times

D3

SENSITIVE RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in December 2021.

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GDP USD432.29bn (World Ranking 25, World Bank 2020)
Population 206.14mn (World Ranking 7, World Bank 2020)
Form of state Federal Republic
Head of government President Muhammadu Buhari
Next elections 2023, General elections
  • Dominant economy in West Africa in terms of population and GDP and now the continent’s largest economy.
  • Hydrocarbons resource base, with 2.2% of global oil reserves (11th in global rankings and 43 years of additional extraction at current rates) and 2.7% of natural gas reserves (9th and over 100 years).
  • High oil prices in 2011-2014 boosted export earnings, provided current account surpluses and accumulation of international reserves (import cover markedly in excess of the international comfort benchmark of three months).
  • External debt ratios are again deteriorating but remain comfortable.
  • With oil and gas accounting for over 90% of export revenues, the economy is susceptible to volatility in global markets and to large swings in energy prices.
  • The federal government is hampered by the strength of state and tribal authorities. Deep ethnic, religious and regional divisions provide risks to systemic stability.
  • Personal and corporate security is high risk.
  • Long history of economic mismanagement and corruption continue to affect perceptions of doing business in the country.
  • Data provision remains poor for a country of such size and strategic importance.
  • Weak investment level.

Trade structure by destination/origin

(% of total, 2020)

Exports Rank Imports
India 20.7%
1
30.5% China
Spain 8.4%
2
11.4% United States
China 7.8%
3
5.7% Belgium
Indonesia 7.0%
4
5.4% India
Netherlands 6.0%
5
4.9% Netherlands

Trade structure by product

(% of total, 2020)

Exports Rank Imports
Petroleum, petroleum products and related materials 76.0%
1
14.8% Petroleum, petroleum products and related materials
Gas, natural and manufactured 13.6%
2
9.4% Road vehicles
Coffee, tea, cocoa, spices, and manufactures thereof 1.5%
3
6.9% Other industrial machinery and parts
Metalliferous ores and metal scrap 1.1%
4
5.0% Cereals and cereal preparations
Oil seeds and oleaginous fruits 1.0%
5
4.5% Specialised machinery
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