Despite facing major challenges, including terrorism and extreme poverty, Nigeria has the potential to become a major economic force in the coming decades, a recent report shows.
The McKinsey Global Institute (MGI) report, Nigeria’s renewal: Delivering inclusive growth in Africa’s largest economy, says this West African nation of 180 million people has the potential to expand its economy by roughly 7.1% per year through 2030, raising its Gross Domestic Product (GDP) to more than US$1.6 trillion.
This could make Nigeria a top-20 global economy—with higher GDP than the Netherlands, Thailand, or Malaysia in 2030, the report pointed out.
The report cited the following five sectors it said hold the key to terrorism-hit Nigeria’s future economic glory: trade, agriculture, infrastructure, manufacturing, and oil and gas.
The McKinsey Global Institute report said it had showcased ‘another side’ to the Nigeria story that has been overshadowed both by the recent headlines and the persistence of outdated beliefs and assumptions about Nigeria’s economy.
“What people overlook is Nigeria’s extraordinary advantages for future growth, including a large consumer market, a strategic geographic location, and a young and highly entrepreneurial population,” Reinaldo Fiorini, director and location manager of McKinsey’s Lagos office, said in a statement.
The results of Nigeria’s progress, however, have not been spread evenly across its economy, the MGI report said, adding that more than 40% of Nigerians live below the poverty line and 130 million (74%of the population) live below the MGI Empowerment Line.
The MGI Empowerment Line is a level of income and access to vital services that provides a decent standard of living.