South Africa is once again the biggest economy on the African continent, a position it reclaims from Nigeria, South Arica regained its 2nd spot in July after Egypt devalued their currency. Using the gross domestic product at the end of 2015 published by the International Monetary Fund, Bloomberg reported that the size of South Africa’s economy is $301 billion at the rand’s current exchange rate, while Nigeria’s GDP is $296 billion. Bloomberg noted that the rand has gained more than 16% against the US currency since the start of 2016, while in contrast, Nigeria’s naira has lost more than a third of its value.
The three largest Africa economy 1. South Africa = $301 billion; 2. Nigeria = $294 billion on official rate and $232 billion for black market rate and third Egypt = $270 billion on official rate and $196 billion for black market calculated rate.
This is not a good news for Nigeria even though the country is faced with a lot economic downturn since the beginning of the year 2016.
ENCOMIUM Weekly spoke with Nigerians on sudden overtake of our economy. In the chat, many reveal it’s not a news but what we should expect since the country is having a lot of challenges.
I have never seen Nigeria running the biggest economy in Africa right from time. What is the definition of economy where you import virtually everything, biggest economy that has lenders it’s teaming youths jobless. Vibrant economy is where your GDP is greater than imported goods. Biggest economy with no impact on the average man makes no sense. Closed down factories are being replaced with religious houses as a result of corruption
and wrong policies from the unpatriotic politicians. Let something happen to the only oil economy
and Nigeria will be brought to its knees. The need to resuscitate our economy by having and consuming our own products is the way out.
I think Nigeria is improving with the present administration’s strategies, India is the 5th largest economy in the world? Are there not more poor people in India than in Thailand or UK that have a smaller-economy? do you think becoming the largest economy in Africa automatically means we would have enough money to start giving the poor average people free hand-outs? No is doesn’t work like that.
There is no poverty in Qatar. No Qatari citizen is poor. They are only 800,000 citizens and expatriates are 1m+. With all the money they get from mostly oil, there are not many mouths to feed. People go to university and have jobs waiting for them.
Go to China, the largest economy in Asia and the second largest economy in the world. The suicide rate is through the roof, despite all their economic prowess. But we have two times more rich Chinese than we had just 20 years ago.
People were making lots of money when the economy was kicking. Nigeria’s trade balance per month stands at $50 billion. What we need is prayer. This country is blessed.
As usual, people will blame the present administration, APC and anyone else except themselves for their problems. We import Paper, Toothpicks, Clothes, Shoes, Jewelry, Pencils, Palm oil, Apples, Almond oil, Fish and Meat, the list goes on.
Meanwhile, oil exports are our main business and corruption has given it to few wealthy people. If we continue like this, we’re going to be a big economy made up of 20 percent wealthy and 80 percent poor. And it’s already showing: Education standards keep dropping (no-one accepts your local degrees internationally without backup from a foreign degree, public or private university), we are losing our Healthcare business to foreigners, just like telecomms was lost.
So Nigerians are getting poorer, but you can’t see it until you change your salary to any foreign currency and realize you’re too poor to relocate on your current income. You’re also losing jobs, so that Employment you’ve been crying and praying for, it’s not coming soon.
Instead of stoning every single politician in this country, so that they fear the masses and do the right thing, you are fighting for them, as if they will give you a job after (story!). Continue! Foreigners are happy to profit off Africa’s foolishness, as usual.
Nobody is pulling us down. We are doing it to ourselves. Nigeria amid all political, structural, religious, ethnic and social crises is bound to have a shaky economy. But the worst of it all is that our economic policies which is meant to revamp and resuscitate the crisis are not helping matters.
We import everything and we expect to do better. We centred our economy so much on oil hence we go down. Even the oil no longer have competitive power because corruption has crippled it. Most of the oil exports are done through private individual owned oil blocks n illegal exports.
So these are not recorded as a yardstick of ranking the country. Because the are traded off records. So many reasons pull us down but most are “human induced”. Nigeria should wake up.
Well, we can rise in global competitive rankings by spending more on education and industrial support infrastructure. In spending more on education, focus should be given to technical education. We need more technical support staff.
Finally, we must get rid of our dependency on oil. Oil money is not enough. Nigeria needs to become a producing state.
- OLUWAFEMI SOEWU