fbpx

Behind South Africa? Nigeria’s Amazing Economic Growth

Behind South Africa? Nigeria’s Amazing Economic Growth

What’s behind the phenomenal growth of Nigeria’s gross domestic product? Final numbers are expected to be tallied by the end of the month, but according to an All Africa report, experts agree that Nigeria is on a path to come within striking distance of South Africa’s GDP, possibly even overtaking it within two years.

Nigeria’s economy has grown faster than anticipated, prompting the current retallying — called rebasing — efforts, according to a report written by Douglas Imaralu.

The previous latest data put Nigeria’s GDP at $273 billion in 2012, while South Africa’s 2012 GDP was estimated at $420 billion, said Razia Khan, head of Africa Research at Standard Chartered Bank.

Rebasing may put Nigeria’s GDP at $382 billion, “…only 10 percent smaller than South Africa,” said Khan.

Nigeria has achieved its growth by focusing on telecoms, e-commerce, agriculture and other areas, reducing its previous dependence on oil trade. However, the country has done so by partnering more and more with foreign countries — the UK, U.S., Canada, China — rather than within Africa, which some experts say is of concern.

The Visa Africa Integration Index, which measures trade between sub-Saharan countries, indicated that Nigeria is one of the least regionally integrated countries in Africa, scoring significantly behind its rival, South Africa.

“…as a country Nigeria has overlooked the benefits of economic integration, even as its growing market matures and modernizes, and the movement of goods and services, capital, information and people increases,”  All Africa reported.

Nigeria has made some inroads with other African countries in recent years — Nollywood movies, banking interests in Ghana, financial investments in Uganda and small retail interests in Zimbabwe — but the results have been minimal economically, according to the report.

Meanwhile, South Africa has made inroads in most African countries, and on a larger scale — with large retailers, big banks and finance, and giant telecom — examples which Nigeria needs to follow in order to become both a global and African leader, according to the  All Africa report.