Oil and fuel vendors in a village in the Niger delta

Economic situation High dependency on oil

Nigeria's economy is heavily dominated by the oil and gas sector. While the sector generates high levels of income for the country, it makes government revenue highly dependent on oil prices. Moreover, very few new jobs emerge in the sector.

The main export commodity is crude oil. There is a lack of refineries within the country, which is leading to regular fuel shortages.

In 2018 and 2019, the growth rate was about 2 per cent. In 2020, the economy came under pressure from the COVID-19 pandemic and lower oil prices in the global market, and gross domestic product fell by 1.8 per cent. The International Monetary Fund (IMF) expects economic growth of about 2.6 per cent for 2021 and the following years.

Fostering agriculture, improving the business climate

The economic development plans pursued by the government of President Buhari focus on economic diversification and an improved investment climate. Another important goal that the government has set itself is the modernisation and expansion of the agricultural sector in order to meet domestic demand for food and create additional jobs.

Recently, the country has invested extensively in infrastructure development, improving or modernising roads, railway lines, ports, airport terminals, power grids, pipelines and dams.

However, Buhari's economic policy has so far produced very few lasting results. In many parts of the country, the infrastructure is still in poor condition, educational attainment is low, there is a lack of legal certainty, people have poor access to financial services, corruption is pervasive and the security situation is unstable. All this is preventing the economy from developing more dynamically, and it deters investors from stepping up their involvement.