Nigeria’s new GDP status: Lagos maintains position as the nation’s commercial nerve center
Nigeria is now Africa’s largest economy, a position previously held by South Africa. Nigeria recorded a 89.22% growth in her Gross Domestic Product (GDP) which amounted to $509.9bn (80.22 trillion Naira), automatically emerging as the largest economy in Africa and 26th in the world.
Calculations took into account, rapidly developing sectors such as the telecoms and mobile phone market- Africa’s largest, the vibrant music industry, e-commerce and the hugely populated local film industry (Nollywood) which was calculated as 853.9 billion Naira ($5.1 billion, 3.7 billion euros) or 1.2 percent of GDP.
Financial analysts have described the Nigeria economy as having a huge “significant opportunity for growth and wealth creation”. In recent years, Nigeria has witnessed high rates of growth, making it an increasingly attractive investment destination for overseas firms owing to the size of its consumer market and growing capital markets. The annual growth rate averaged 6.8% from 2005 to 7.4% in 2013.
According to Roelof Horne, Portfolio Manager at Investec Asset Management, “South Africa was historically the ‘go-to’ country for investment into Africa. However, the reality is that other regions are increasingly asserting their economic voice and this has resulted in several multinational corporations opting to have their African base in countries such as Kenya or Nigeria”.
Nigeria is Africa’s most populous country with a population of over 170 million people with Lagos state maintaining the enviable position as the nation’s commercial nerve center. Lagos State is arguably the most economically important state in the country. Research have proved that Lagos State is set to become the continent’s 13th biggest economy, similar to the size of Ghana, with a per capital income set at about $2,900 which is currently double the amount of the national average of $1,700.
According to research, Lagos State produced about 12% of Nigeria’s GDP estimated at $32 billion as at 2013 with a 40% upward revision equivalent to $45 billion expected this year. With this, Lagos State is said to be at par with countries such as Morocco and Sri Lanka, of which outdoor advertising plays a fundamental role by contributing an estimated excess of N50billion to the Lagos State economy annually.