LET'S KEEP THE “NEW” SIZE OF NIGERIA'S ECONOMY IN PERSPECTIVE
Any large and growing economy in Africa is always good news for the continent. But the overdue rebasing of the GDP calculations for the Nigerian economy just released simply confirms statistically the prevailing perception that it is much bigger in reality than originally thought, and that it has overtaken the SA economy as the biggest economy in Africa.
Previous unofficial reports had anticipated this development. While this latest statistical profile of the Nigerian economy sends a reminder to SA about its own michael kors outlet uk inadequate growth performance, the fact remains that, in terms of the most recent Global Competitiveness Index (GCI), SA was ranked 53rd, compared to Nigeria's 120th place out of 148 countries. Compared to the previous year, this was actually a drop of five places for Nigeria in the GCI, whereas SA fell by only one place, but with Mauritius displacing SA as the most competitive economy in sub-Saharan Africa. There are therefore no grounds for complacency here, and it confirms why SA needs to get on with its own development plans. But we need to retain perspective.
Despite relatively strong growth in recent years, Nigeria remains overly reliant on oil revenues, although its large market size (which ranks 32nd in the GCI) is seen to have considerable growth opportunity. Nigeria still falls in the factor-driven stage as a function of its relatively low level of economic development. Its large population is seen as having potential for significant economies of scale, and as an important factor in attracting investments. It is an economy with emerging business opportunities. On the other hand, factors such as insufficiently protected property rights, corruption, a poor security situation and a low rate of ICT penetration are regarded as michael kors outlet sale threats to Nigeria's global competitiveness by the GCI. Nigeria needs to build competitively on the positive but incomplete base of a large African economy. It is too early to say what impact the up-to-date statistics about the size of the Nigerian economy will have on the international community, though clearly decision-makers in Nigeria will want to exact the maximum leverage from the latest data in terms of its African economic ranking.