- GDP (PPP):
- $1.2 trillion
- 1.4% 5-year compound annual growth
- $5,459 per capita
- Inflation (CPI):
- Public Debt:
Nigeria’s economic freedom score is 53.9, making its economy the 124th freest in the 2023 Index. Its score is 0.5 point lower than last year. Nigeria is ranked 22nd out of 46 countries in the Sub-Saharan Africa region, and its overall score is below the world average.
The structural changes that are needed to develop a more vibrant private sector or achieve more broad-based growth have not emerged. Oil continues to dominate the economy, and institutional problems negatively affect other economic activity. The judicial system is susceptible to political interference, corruption is prevalent, and the rule of law is weak.
Nigeria is Africa’s most populous country. President Muhammadu Buhari won reelection in 2019 despite long absences and rumored ill health. The Islamist terrorist group Boko Haram has been expelled from many of its strongholds in northeast Nigeria, but attacks by the increasingly powerful Islamic State West Africa Province continue. There also have been lethal outbreaks of violence in the Middle Belt, Niger Delta, and northwestern regions. The petroleum-based economy’s fortunes depend on the fluctuating price of oil. Agriculture, telecommunications, and services contribute to modest economic growth, but more than 60 percent of Nigeria’s 170 million people still live in extreme poverty.
Rule of Law
The overall rule of law is weak in Nigeria. The country’s property rights score is below the world average; its judicial effectiveness score is below the world average; and its government integrity score is below the world average.
The top individual and corporate tax rates are, respectively, 24 percent and 30 percent. The tax burden equals 6.0 percent of GDP. Three-year government spending and budget balance averages are, respectively, 12.6 percent and –5.4 percent of GDP. Public debt equals 36.6 percent of GDP.
The business environment has improved only marginally. The entrepreneurial environment remains burdened by time-consuming and costly regulatory procedures. Much of the formal labor force is employed in the public or energy sectors. The most recent available inflation rate is 17.0 percent.
The trade-weighted average tariff rate is 8.5 percent. Persistent bureaucratic delays continue to serve as barriers to trade and investment. The financial sector is dominated by banking and growing unevenly across the country. Nonperforming loans remain a problem.