Nigeria’s Economic Outline
An overview of Nigeria’s economy, trade performance, and investment opportunities.
Nigeria is a large, diversified, reforming economy offering scale, strong demand fundamentals, and regional market access. Ongoing macroeconomic and structural reforms are strengthening transparency, competitiveness, and private-sector participation, thereby making the economy more resilient and productive, boosting innovation and investment.
Key Economic Indicators
Groups | Indicator | Current figure | Period | Trend Chart |
| Total GDP | $252.26 billion | 2024 | Down |
Annual GDP Growth | 3.4% | 2024 | Up | |
GDP per capita (current) | $1,084.2 | 2024 | Down | |
Sovereign Ratings | S&P | B- (Positive outlook) | November 2025 | Up |
Moody’s | B3 (Stable outlook) | May 2025 | ||
Fitch | B (Stable) | October 2025 | ||
| Inflation, consumer prices (annual) | 33.2% | 2024 | Up |
| Gross FX Reserves | $40.9 billion | 2024 | Up |
Net FX Reserves | $23.11 billion | 2024 | Up | |
| Balance of payments | $6.83 billion | 2024 | Up |
Personal remittances, received (% of GDP) | 8.9% ($20.93 billion) | 2024 | Up | |
| FDI inflows | $1.08 billion | 2024 | Up |
| Fiscal Deficit | 3% of GDP | 2024 | Down |
| Monetary Policy Rate (MPR) | 27 % | November 2025 | Stable |
| Exchange rate (₦ to USD) | 1,478.97 | 2024 | Up |
| Population | 232.7 million | 2024 | Up |
Population growth (annual %) | 2.1% | 2024 | Stable | |
Median Age | 17.4 |
| Stable | |
Human Development Index (HDI) (scale 0-1) | 0.56 | 2023 | Up | |
Unemployment rate | 3.0% | 2024 |
|
Main Sectors of the Economy
Nigeria is Africa’s fourth-largest economy by GDP, with a diverse economic structure. While non-oil and gas sectors drive growth and employment, oil and Gas remain the main sources of government revenue and foreign exchange. By the end of 2024, the economy was valued at $252.26 billion, growing at 3.4% annually (Nigeria Development Update - Building Momentum for Inclusive Growth, 2025). Nigeria benefits from a large domestic market, a young, internet-connected population, abundant natural resources, and a growing services sector. The economic outlook is positive, supported by ongoing reforms and stable ratings from major global rating agencies. In 2024, Nigeria attracted $1.15 billion in FDI, mainly from European and South African companies, into banking, finance, technology, and manufacturing, reflecting investor confidence.
Oil and Gas remain central to Nigeria’s economy, generating most export earnings and a significant share of government revenue, despite representing only 5.5% of real GDP in 2024.
Services are the largest contributor to GDP, accounting for 53% of the total. Key sectors include telecommunications, financial services, trade, ICT, and a rapidly expanding digital and creative economy. Fintech and e-commerce are growing quickly, with companies like Paystack and Flutterwave gaining international recognition and reinforcing Nigeria’s status as a fintech hub. E-commerce leaders such as Jumia and Jiji are driving competitiveness and innovation. These sectors attract significant investment, supported by a young population and increasing internet penetration, and offer strong growth opportunities for investors.
Agriculture is Nigeria’s largest employer and a key contributor to GDP, primarily driven by smallholder farmers producing grains, roots and tubers, cocoa, and livestock. There is significant potential for agro-processing and value addition. The National Agricultural Technology and Innovation Policy (NATIP) prioritises mechanised farming and increased investment in agro-industrialisation to enhance efficiency and promote sustainability. Investors can explore opportunities in contract farming, processing plants, and agri-tech startups focused on supply chain and crop management.
Industry and manufacturing remain underdeveloped relative to the economy’s size, limited by power supply, logistics, and import dependence. Policy support for local manufacturing and industrial parks is increasing, as seen in the Nigerian Industrial Revolution Plan (NIRP) and the Lekki Free Trade Zone in Lagos, which offer favourable conditions for investment and job creation. Foreign investors benefit from incentives such as tax breaks, customs duty exemptions, and legal protections. These measures help mitigate risks and support a stable business environment.
Legend:
Blue | Services – telecoms, banking, trade, entertainment (Nollywood, music), etc. |
Orange | Agriculture – key crops such as cocoa, cassava, yams, rice, etc. |
Grey | Manufacturing & Industry – industries like cement, food processing, pharmaceuticals, etc. |
Yellow | Oil & Gas – oil & gas exports and refining |
Investment Climate
Nigeria’s economy offers investors opportunities rooted in a large market, growing sectors, and policy reforms. The current administration’s “Renewed Hope” agenda has pivoted the economy towards a market-driven economy. Key macro-economic polices made include:
- Currency liberalisation: The Naira now operates on a “Willing Buyer, Willing Seller” model. While the 2024 currency devaluation was painful, it has essentially eliminated parallel-market arbitrage, allowing foreign investors to enter and exit the local market at transparent exchange rates.
- Monetary policy: The Central Bank of Nigeria (CBN) maintains a hawkish stance (Monetary Policy Rate (MPR) at 27.00%) to curb inflation. The MPR has made Nigerian debt instruments (Treasury bills and Bonds) some of the highest-yielding in emerging markets.
- Fiscal incentives: The government has expanded Pioneer Status Incentives (PSI), offering 3–to 5-year tax holidays to companies in the renewable energy, technology, and gas-processing sectors.
Key investment drivers and opportunities include:
Sector | Sector Attractiveness |
Oil & Gas |
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Fintech & Digital Economy |
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Agriculture |
|
Infrastructure |
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Ease of Doing Business | Digitalisation of business registration (CAC), Single Window implementation, and port modernisation have reduced “time-to-market” |
Investment Incentives & Protections
Incentive | Benefit to Investor |
Pioneer Status (PSI) | 3 to 5-year Income Tax Holiday for eligible industries. |
Capital Allowances | Accelerated depreciation on plant and equipment. |
Repatriation Guarantee | 100% repatriation of profits and dividends (net of taxes) through authorised dealers. |
Free Trade Zones (FTZs) | Complete exemption from all federal, state, and local government taxes and levies within the zone. |
Challenges & Opportunities
- Challenges: infrastructure gaps, power supply, and regulatory overlaps.
- Opportunities: Africa Continental Free Trade Area (AfCFTA), large consumer market, digital economy, port modernisation (Lekki, Apapa).
Disclaimer: “Figures provided are for reference and should be confirmed with official sources (CBN, NBS, and the FMF)