Nigeria’s annual inflation rate reduced slightly to 17.75% in June 2021 from 17.93% in May. According to the National Bureau of Statistics (NBS), Nigeria recorded a slight GDP growth of 0.51% (year-on-year) in the first quarter of 2021, slower than the 1.87% growth recorded in Q1 2020 and higher than 0.11% recorded in Q4 of 2020. The rural inflation rose to 12.28% in July 2020, up from 11.99% in June 2020. In July 2020, Nigeria’s annual urban inflation rate rose to 13.40%, up from 13.18% in June of the same year. However, major impediments to development and trade include: inadequate power supply, deficient transportation infrastructure, a slow and ineffective judicial system, endemic public sector corruption, pervasive insecurity, non-inclusive growth, poverty, poor maternal and infant mortality indices, underachieving education services, underperforming healthcare sector, and poor distribution of wealth amongst its citizens. Nigeria also has an abundance of natural resources including oil, commercial minerals, and precious stones. Nigeria has an abundance of labor at rates well below high-income and some middle-income countries. See Also The Best VPN Server Countries to Connect Through "Unfair and irresponsible" claim? Pinoy vlogger sa South Korea, inimbestigahan ang "Hermes snub" kay Sharon Cuneta Hocus Pocus 2 Ver Películas Online Gratis Castellano 20 mejores campañas en redes sociales Several issues impacted the growth of the services sector, slowing the projected growth trajectory of these sectors and reducing their contributions to GDP. Agriculture accounted for 21.96% of GDP in the same period, while industries (oil and non-oil) accounted for 23.65% with oil sector accounting for 5.87%, while the non-oil sector accounted for 94.13% of the GDP in the Q4 of 2020. The services sector - consisting of telecommunications, financial, and other services - is the largest sector in Nigeria, although it saw a slight decline, accounting for about 54.39% of GDP in Q4 2020. Nigeria’s formal sector economic activities are conducted across several sectors including the agricultural, services, and industrial sectors. Business analysts estimate that the informal sector accounts for as much as 65% of the total economy, although the sector is not included in GDP calculations due to lack of credible data on the mostly cash-based activities. The Nigerian economy is broadly classified into formal and informal sectors. The slowdown in economic activity was compounded by inadequate supply of foreign exchange and worsening inflation (peaking at 18.7% in March 2021 from 11.37% in January 2019) The Governor of the Central Bank of Nigeria recently declared that the country would require about 35 trillion naira ($85 billion) investment in infrastructure to attain double digit economic growth. As a result of dwindling revenue, GON has increased borrowings from several international lenders to offset its revenue shortfalls. Some believe these measures will gradually get the economy out of recession. The impact of several measures intended to mitigate the spread of the disease adversely impacted business activities and supply chains. GON rolled out several fiscal and macroeconomic policies aimed at promoting the economic growth of the country to mitigate the recession brought on by the COVID-19 pandemic. The country is facing severe challenges ranging from rising inflation, increasing food prices, currency devaluation, high unemployment, and widespread insecurity. An additional supplementary budget of $2.39 billion (982.7 billion naira) was passed in July 2021, ostensibly to fight rising insecurity in the country and fund COVID-19 vaccine procurements. In December 2020, the government of Nigeria (GON) passed a $4.829 trillion (13.5 trillion naira) 2021 budget premised on a crude oil production levels of $40, exchange rate of 379 naira to the dollar, and GDP growth rate of 3%. Nigeria’s economy and commercial activities were severely affected by the COVID-19 pandemic and associated declining oil prices due to the country’s heavy reliance on oil.
In the first quarter of 2021, oil accounted for about 9.25% of Nigeria’s gross domestic product (GDP), up from 5.8% recorded in the fourth quarter 2020, and contributing approximately 85% of export earnings and around 50% of total government revenues. It is one of Africa’s key oil producers, producing high-value, low-sulfur crude oil. Nigeria has the largest market in Africa with a population of over 200 million.
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