Nigeria still contemplating the implications of its rebased economy
09 May 2014 Nigeria is still contemplating the implications of its rebased economy especially as it has highlighted the various sectors of the economy and their effect on the GDP. 12 sectors have now been highlighted as the country’s fastest growing, with great potential for investments, job creation and poverty reduction.
They are electricity, motion pictures, financial institutions, arts, entertainment and recreation, plastic & rubber as well as coal mining. Alongside that information, agriculture, trade, crude petroleum and natural gas, telecoms and information services, real estate, food, beverage, tobacco have been discovered to be the largest contributors to the nation’s GDP.
Electricity now holds the highest growth rate of 44 percent and with the recent privatisationexercise is expected to lead to greater output. Nollywood, now the second largest film industry in the world, ahead of the United States and behind India is second.
A surprise feature on the list is plastic & rubber, estimated at $3 billion in revenue and with a rebased growth rate of 24% growth rate.
Agriculture is no longer the market’s biggest deal with a 20% donation to the national GDP. However, World Bank data indicates that although 87.3% of land is agricultural, only 3.5% of Nigeria has permanent crops. The implications of this are that this sector holds great potential to increase its contribution to the GDP.