Over the years, it has been said that Nigeria’s economy was largest in Africa after re-basing was carried out in 2010 by the last administration which boosted the nation’s Gross Domestic Product over that of South Africa, making it to become the continent’s largest. But the boosted GDP may not be the only indices to justify the best of economy in developing nations.
The major contributor to the Nigeria’s economy is the crude oil, and some natural resources. Another contributor is the human resources which cuts across various industries including financial, entertainment, telecommunications, among others. There’s no contribution from manufacturing industry as activities they are lame.
On the side of South Africa, there are major manufacturing/assembling plants of automobiles like Mercedes Benz, Volkswagen, Toyota, Nissan, Fiat, Ford, Chrysler among others. Also, Nigeria’s telecommunications giant, MTN is domiciled and owed by a South African company. The textile industry there is classified as one of the best in the world, production of military hardwares and aircraft also contributes to its GDP.
Also, South Africa make boast of production of finest of wines and spirits, refurbishing and repairs of ships, have league of universities which are way too standard and invite students from far and wide.
A former Deputy Governor of Central Bank of Nigeria, Mr Obadiah Mailafia and Gabriel Idahosa, an Economist gave their insights to the difference between both economies during a flagship program, This Morning on TVC.
They attributed the boost of Nigeria’s economy in 2010 to the oil boom and introduction of some key resources which increased the nation’s earning as at that time but said the limitations of the country’s revenue to oil only have over the years caused it to drop when compared to that of South Africa.
Mr Mailafia spotted the revenue been made from the entertainment industry, he said while the government is satisfied with little it is currently getting, he said more of the revenue goes out to countries which manufactures the gadgets, locations, and expertise been engaged in by the players of the industry. He said emphasis should be placed more on making the nation more friendly and hospitable so movie makers don’t have to travel to places like US, UK, Canada and even the South Africa which most of them go to for shooting of movies.
He also said if only the nation can have the like of Universal Studio currently in California which draws visitors from all over the world on daily basis, then the movie industry will have a major boost and contribute more to the nation’s economy.
Nigeria economy is a middle income market economy and emerging market with expanding financial, service, communication, technology and entertainment sectors. It is ranked as the twenty-first largest economy in the world in terms of nominal GDP and twentieth largest in terms of Purchasing Power Parity. While that of South Africa is ranked as an upper-middle income economy (one of four in Africa; Bostwana, Gabon and Mauritius) and it accounts for twenty-our percent of Africa’s GDP.