The Nigeria's National Bureau of Statistics (NBS) recently rebased Nigeria's Gross Domestic Product (GDP), propelling Nigeria's economy to become the largest economy in Africa and the 24th largest in the world. The economic exercise captured the booming economic activities like telecommunications and the entertainment industry like Nollywood and music.
The new GDP of Nigeria is about N803.3trillion, which is about S509.9bn. Since 1990 Nigerian GDP has not been revised.
This economic act expands the economic hopes of many Nigerians as they see that the economic space is vibrant and holds a lot of promise. It is very clear that sky-high investments are needed in the Nigerian economy with juicy returns, especially in the highly successful entertainment industry dominated by the giants: Nollywood and music industry.
Nigerian economy is most likely going to attract more foreign investors, although Nigeria is one of the highest choice destinations of Foreign Direct Investment in the world.
Many vibrant challenges are facing Nigerian economy. Nigerian economy has no strong root as it is predominately an oil economy which largely set the economic agenda, which is economically dangerous, as can be seen in the current global fall in oil price, and the devastating effects.
Furthermore, the heat of Nigerian negative politics tends to endanger Nigerian economy. The epidemic of the failure of many small and medium scale industries is an ever present diminishing factor. The banks in Nigeria brandish high interest rates on loans which scare away genuine entrepreneurs who may have world class business ideas.
In addition, there is a massive infrastructural deficit. The educational system is not highly poised to produce highly skilled people. There is also a dangerous level of unequal distribution of wealth. The high level of poverty is pointer to the fact that the future is not completely bright for the economy.
The economic exercise of rebasing Nigeria's economy should not be mere show of the economic strength of Nigeria which prides itself as the giant of Africa. The rebasing of Nigeria's economy should not be in vain.
To exceptionally keep Nigeria's economy on track to become a world class economy, the economic space needs to be made more conducive for doing business with competitive policies and business friendly governance, and need to be completely diversified. There is a very classic need to heighten the tone of local and foreign investments. It is also very expedient for an increasing number of Nigerian companies to learn to be better local players, and try to step up their expansion and presence across Nigeria and Africa, and beyond.
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