What is the structure of the Nigeria economy

Structure of the Nigerian Economy

Oil and Gas Sector: Dominant But Declining

- Contributes over 9% of GDP and 70% of government revenue
- Crude oil is the primary export, accounting for 80% of exports
- Overdependence on oil has led to economic volatility

Agriculture: Subsistence and Small-Scale

- Contributes about 25% of GDP but mostly subsistence farming
- Main crops include cassava, yam, millet, sorghum, and rice
- High potential for growth and diversification

Services Sector: Growing But Fragmented

- Includes telecommunications, banking, finance, transportation, and tourism
- Contributed about 53% of GDP in 2022
- Still fragmented and underdeveloped, but has growth potential

Manufacturing Sector: Small and Import-Dependent

- Contributes less than 10% of GDP
- Dominated by small-scale businesses
- High reliance on imported raw materials

Other Sectors:

- Mining: Includes solid minerals such as coal, iron ore, and limestone
- Construction: Contributes about 3% of GDP
- Information and Communications Technology (ICT): Has potential for growth but underdeveloped

Challenges:

- Overdependence on oil
- Weak infrastructure
- Corruption and mismanagement
- Security concerns
- High unemployment and poverty

Government Initiatives:

- Diversify the economy away from oil
- Improve infrastructure
- Promote investment and entrepreneurship
- Reduce corruption and improve governance
- Invest in education and skills development