Nigeria Economy — GDP, Growth & Key Data

Nigeria Economic Overview

Nigeria is Africa's most populous country with over 230 million people — projected to become the world's third most populous by 2050 — and its third-largest economy by nominal GDP, behind South Africa and Egypt. The economy is dominated by oil and gas, which account for over 90% of export earnings and roughly 50% of government revenue, despite contributing only about 10% of GDP. The non-oil economy — agriculture, services, telecommunications, and a vibrant informal sector — employs the vast majority of Nigerians.

Nigeria's tech ecosystem, centered in Lagos ("Silicon Lagoon"), has emerged as Africa's most dynamic. Fintech companies like Flutterwave and Paystack (acquired by Stripe) have attracted significant venture capital, and Nigeria leads Africa in startup funding. Lagos, with a metro population exceeding 20 million, is Africa's commercial capital. The creative industries — Nollywood (the world's second-largest film industry by volume), Afrobeats music, and fashion — have become significant cultural and economic exports.

Nigeria faces formidable challenges. Inflation has been persistently high, driven by naira depreciation, fuel subsidy removal, and food supply disruptions from insecurity in agricultural regions. GDP per capita at $1,556 (reference year 2026) is among the lowest of major economies, reflecting both rapid population growth and inadequate economic diversification. Youth unemployment exceeds 40% — a critical concern given Nigeria's extremely young population (median age ~18). Power infrastructure is severely inadequate, with most businesses relying on private generators.

In 2026, Nigeria's reform story is among the most significant in emerging markets. President Tinubu's shock-therapy programme — fuel subsidy removal and the naira float initiated in May 2023 — produced exactly the painful short-term dislocation that economists predicted, followed by the stabilization now materializing. Real GDP growth of 4.1% is among Nigeria's strongest of the past decade. Inflation has fallen from a 34% peak to 16.0%, enabling the Central Bank of Nigeria to cut its benchmark Monetary Policy Rate from 27.5% to 26.5% in May 2026. FTSE Russell restored Nigeria to its Frontier Market index, effective September 2026, triggering ₦1.36 trillion in market cap gains within 72 hours of the announcement. The full analysis of Nigeria's 2026 turnaround covers the reform mechanics, Dangote Refinery at 650,000 bpd (with IPO plans of $40–50B), banking recapitalization (₦4.65T mobilized), and the risks ahead — 133M in multidimensional poverty, 2.4% population growth, and a 2027 election cycle.