The NIGERIA Story.

NIGERIA is a regional power in Africa, a middle power in international affairs, and is an emerging global power. Well, should be. First off, Nigeria is a global power in terms of oil and natural gas, #14 and #7 in production, respectively. Abuja is also world’s #7th oil exporter and 10th natural gas exporter.

       Add major agricultural/fishery wealth of sesame seeds, cashew nuts, cocoa beans, ginger, frozen shrimp and cotton, and mining resources that include coal, lignite and coke, gold, iron ore, and uranium. However, Nigeria is the poorest nation on earth—40 percent or 87 million of the 206 million population live below the international poverty line of $1.90 per person per day.    

       Its GDP per capita of $2,175.67 is low compared with other developing countries. The country’s GDP growth rate is a measly 2.9 percent, from last year’s 1.5 percent.

       Why is that?

       Nigeria remains one of the most corrupt nations in the world. Since its independence from the British in 1960, it hasn’t really prospered. The civil war of 1967 to 1970 made things worse. Democratically elected civilian governments were punctuated by military dictatorships. Massive tribal animosities also stunt concerted efforts for development. More than 250 ethnic groups speaking 500 distinct languages, all identifying with a wide variety of cultures, make up Nigeria. 🇳🇬🇳🇬🇳🇬

ECONOMIC inequality among the population is mostly gleaned on disparity between GDP growth and people’s life. No matter how high the economic progress, if (economic) wealth isn’t equally shared with the people, we still see a poor nation. India is another case in point. High GDP (currently 8+ percent) but low human development index, although not the lowest in the world.

       In the case of Nigeria, its major wealth of crude oil and natural gas don’t translate to quantifiable national economic gain since these companies that drill/profit from these resources are foreign corporations, and of course, in partnership with the country’s few rich or what we call 1 Percent.

       Shell Petroleum is the largest oil and gas company in Nigeria. The other majors are also universal titans: Chevron, ExxonMobil, Total, Agip, Texaco. Yet despite petroleum industry as its top moneymaker (supposedly) since the sector collars 98 percent of export trade, unemployment is perennial high, currently 33 percent.

       Nigeria’s top trading partners are Brazil, China, India, Japan, the U.S. and the European Union—with China, expectedly, the most aggressive in recent years.

       Apparently, Nigeria has got to play smart on the geopolitical game board to be able to gain trade traction. After a $40 billion pledge in Chinese investments last year, the government adjusted its diplomatic relationship with Taiwan and ordered Taipei’s trade mission out of Abuja. 🇳🇬🇳🇬🇳🇬

NIGERIA isn’t the only African nation that thumbs up China (over Taiwan) as strategic political smarts vis a vis economic gain. In the U.N., 25 African countries backed Beijing during a recent vote about the Hong Kong national security law. Of course, China and Taiwan aren’t really fighting. In fact, Taipei’s top trading partner is Beijing. But you know geopolitics works, I guess.

       With the “Out you go!” call on Taiwan, Nigeria has since become an important source of oil and petroleum for China's rapidly growing economy. According to a 2019 report issued by the Chinese embassy, Nigeria hosts 70 construction, 40 investments and 30 trading Chinese companies.

       Meanwhile, U.S. foreign direct investment (FDI) in Nigeria was $5.5 billion in 2019, a 21.5 percent increase from 2018. Seemed like a token economic gesture? Yet Washington is the single largest donor for the humanitarian response in Nigeria, having provided nearly $505 million in Fiscal Years 2020 and 2021. But most of the aid go to funding the military pursuit of Boko Haram, an Islamic terrorist organization based in northeastern Nigeria, which is also active in Chad, Niger, and northern Cameroon.

       The United States is committed to supporting efforts by Nigeria and its neighbors to combat the threat of Boko Haram more effectively. From FY 2016-FY 2020, $1.8 million was obligated for Nigeria in Foreign Military Financing.

       Of course, Beijing doesn’t sink its foot on issues of this kind. The U.S. willingly takes care of terrorism and other political shudders; China hands over FDIs. 🇳🇬🇳🇬🇳🇬

Photo credits: Britannica. Medium.