Nigeria Economic Growth Rate

Nevertheless there is no conclusive data on how big the Nigeria equity market depending on newspapers in nigeria, estimates for the entire of Africa use it over $6 billion in 2000; South Africa, the continent’s largest economy, making up half the share. High economic growth fuelled by an enthusiastic reforms programme has seen Nigeria’s growth scale to almost double the figure for developed markets in recent times. The country’s GDP growth rate in 2006 stood at 5.6%, significantly greater than the united states (3.2%) or the UK (2.8%)1.

The foregoing statements aptly connote two understandings of the condition of Nigerian economy. These understandings demonstrate that, the economy is probably the fastest growing economies in Africa and in the world. Although Nigeria has experienced hash economic history, it has undergone and still undergoing economic reforms, that happen to be directed at making Nigeria the Africa’s financial hub and one of several twenty largest economies on earth from the year 2020. Obviously that the country has experienced political instability, corruption, and poor macroeconomic management in the past, this was responsible for unpleasant and harsh economic situation. The federal government relentless efforts to reposition the economy have translated into a remarkable economic growth and development.

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Several mechanisms have been put in place to sustain this development and growth, effective at balancing the interests of stakeholders. Perhaps, this view should have influenced Gordon Smith submission. He described Nigeria as being the most dynamic market in Africa, that is under severe pressure from some countries in Africa to work as a cushion from the results of global turbulence. He also noted that some countries like Ghana, Malawi, Mauritius, and others were depending on her at the moment on account of global risk exposure and this the country’s economy, led with the consolidated banks, was far away from being affected by the worldwide credit crisis currently rocking the world’s financial giants. He stressed further that foreign investors, which will show patience enough to weigh the Nigerian financial system about the credit risk perspective relative to global events, will see the nation’s financial sector more interesting to pay and raise capital from.

The aforementioned statistic indicated that the greater number of developed a country may be the lower the contribution of agriculture to Gross Domestic Product. Economy diversification is surely an economic development strategy characterized by increasing the numbers of the revenue base of the economy. The Nigerian economy is a mono-cultural economy based on oil since the main source of her revenue, it is crucial that government should not continue believing that oil provides an endless way to obtain revenue.

This is when venture capitalism derives its significance in the context of Nigeria’s long term ambitions. Private equity investment continues to be in charge of many of the most notable economic success stories across the world. Entrepreneurs getting started with angel loans turned India around to the largest software exporter worldwide. In South Korea, booming small high-tech businesses bypassed larger firms to steer the country’s recovery from the Asian economic crisis. Equity funded enterprises have likewise recorded high growth figures in developing countries from Asia, across Europe as well as in Latin America. The international knowledge of venture capitalism throws up a number of important considerations regarding providing the right environment for rapid growth. The following are among the most critical challenges and considerations facing Nigerian policy makers in this connection:

Nigeria’s reforms process as explained on nigeria prompted an exclusive voluntary initiative with the turn in the last century if the Nigerian Bankers’ Committee launched the Small and Medium Enterprise Equity (SMEEIS) scheme. Billed as an make an effort to promote entrepreneurial expansion, the scheme required all locally operating commercial banks to earmark 10% of pre-tax profits for equity investment in small, and medium enterprises. Despite the fact that more than Naira 18 billion have been put aside by 2003, utilisation from the funds remained abysmally poor at under 25%. The Nigerian Central Bank owed it to not enough viable projects and general reluctance toward equity partnership. If poor managerial and business packaging skills are aspects of concern, the prevailing mindset against venture capitalism in existing and emerging enterprises is a lot more so.

Before the political crisis of 1967-1970, agriculture’s positive contributions for the economy were instrumental in sustaining economic growth and stability. The majority of food demand was satisfied from domestic output, thereby obviating the desire to utilize scarce forex resources on food importation.

Peter Osalor as seen on nigeria can be a multi-skilled director, chairman of trusts, proprietor and consultant. Peter Osalor is a successful entrepreneur since 1992 when he formed Peter Osalor & Co and which includes since grown into a substantial customer base by using a turnover of millions. He is currently a fellow of the Association of Chartered Certified Accountants (ACCA) along with the Institute of Chartered Accountants in Nigeria (ICAN). Peter is also a person in the Chartered Tax Advisors as well as the Chartered Institute of Taxation in Nigeria (CITN).

As Nigeria makes up about 57 per cent in the West Africa cellphones, the country is acknowledged because the leading as well as the fastest growing telecom market in Africa. With mobile phone users at 44,932,181 and 734,444 for GSM and mobile CDMA respectively, her contributions to West Africa and Africa’s telecommunication growth cannot be overemphasized. Whilst the overall economic growth rate stands at 7% yearly, the mobile telephony is around 35-50%. Assuming that each one of these connections was busy for any minute in a day, the nation telecoms market has the capacity to generate over USD 16 million every day (USD16, 666,667) and near to USD 6 billion annually (USD 5,833,333,300). That is why telecom companies including Visafone and Etisalat quickly joined the likes of MTN, Globacom, Celtel and also other telecoms companies in exploiting opportunities in the nation.