One of world's top oil producers at 1.9 million b/d. Vast reserves of natural gas, still only partly exploited. Almost self-sufficient in food. Strong entrepreneurial class. Large domestic market of 90 million people.
Weaknesses
Over-dependence since the 1970s on oil, which accounts for 90% of export earnings and 80% of government revenue, and encourages massive state inefficiency. Advantages of a large domestic market mitigated by low per capita purchasing power and high unit transport costs. Entrepreneurs focus on trade rather than production. Only cocoa remains of Nigeria's traditional agricultural exports; it was once a major producer of tropical vegetables and fruit.
Profile
The economy has been characterized by massive government spending and the running up of debts which could not be serviced after the 1981 oil price fall. Led by the IMF, creditors want major cuts in spending û especially on loss-making public sector companies û and subsidies. Fuel subsidies alone are estimated to have cost $2.4 billion a year. Such changes are politically fraught, however. When gasoline prices were raised 400% in November 1993, there were nationwide strikes.
