(MENAFN- QNA) Nigeria’s economy presents major opportunities for foreign investors. A July 2014 McKinsey report projected that GDP could triple to USD1.6trn by 2030, supported by rapid infrastructure expansion through investment of up to USD1.5trn.
As the largest and most populous economy in Sub-Saharan Africa (SSA), it has grown rapidly since 2010 on a continued expansion of its manufacturing and services sector. Real GDP growth accelerated to 6.54% in Q2 2014, compared with 6.21% the previous quarter. Looking ahead, we expect the economy to continue in the 6%-7% range, making it one of the fastest economies in the region, a QNB press release said.
Nigerian GDP was rebased in April 2014, doubling it overnight from USD273bn to USD523bn and thus making it the largest economy in Africa, surpassing Egypt and South Africa (22nd largest in the world).
The economic fundamentals suggest that the potential for growth is high. The population is large (169m) and expanding quickly (2.7% per year).
McKinsey expects 70m people to move out of poverty by 2030. Real GDP growth is rapid at 6.2% from 2010-13 (CAGR), which has helped lift GDP per capita from USD2,347 to USD3,087 over the same period.
Although the primary sector (mainly agriculture as well as the petroleum sector), services sectors have driven growth in 2010-13, all expanding by over 7% with the exception of government services.
The rebasing of GDP increased the value of the service sectors by 3.4 times and it now accounts for 45.7% of GDP. Private consumption now accounts for 71.7% of GDP. The fast-growing population and rising wealth underpins this growth in services sectors.
Of particular note is the financial services sector, which grew at a CAGR of 18.6% in 2010-13 as it recovered rapidly from the global financial crisis when non-performing loans rose sharply. (MORE)
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