Nigeria's Economy
Lessons from Nigeria
What Nigeria teaches about resource wealth, subsidies, governance and the potential of a young population, and a recap of the module.
Nigeria offers important lessons.
Lessons
- Oil wealth can undermine other sectors and governance.
- Subsidies and multiple exchange rates create costly distortions.
- Insecurity hurts farming and investment.
- Private enterprise, like Nollywood and fintech, can thrive despite challenges.
- A young population can be an asset if jobs and education follow.
Module recap
- Oil makes up around 90 percent of Nigeria’s exports.
- The oil boom caused Dutch disease.
- War and military rule centralised power and enabled corruption.
- The 2023 reforms removed fuel subsidies and floated the naira.
- The Niger Delta suffered pollution and conflict.
- Nollywood is a prolific film industry.
- Lagos is a megacity with big challenges.
- Fintech boomed.
- The Dangote Refinery began production in 2024.
- Food inflation exceeded 40 percent in 2024.
- The japa wave drew skilled emigrants abroad.
The young entrepreneurs
In Lagos, a group of young founders builds a payments app, a film studio and a logistics startup, showing Nigeria's entrepreneurial energy.
Thinking Nigeria's future is only about oil
Its young people, cities and entrepreneurs are key assets.
Key takeaways
- Oil wealth brought Dutch disease and governance problems.
- Subsidy and exchange rate reforms were painful but needed.
- Insecurity hurts farming.
- Entrepreneurship and youth offer promise.
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