The economic analysts disclose their concern that South Africa’s ranking as the number one African economy is coming to an end. Oil King Nigeria is super close to being the biggest African economy.
LET’S BREAK IT DOWN SHALL WE…
Regardless of Nigeria’s endemic corruption, grinding poverty, and sectarian violence, Nigeria is said to have most likely passed to the number one ranking, just not according to the books.
So why is Nigeria’s champion ranking not official? Not in the books?
Population size – the mere fact the Nigeria has a much bigger population is one reason why. Nigeria is 169 million, compared to a slim 51 million for South Africa. We all know that South Africa is comprised of good infrastructure and banks, and a diverse and sophisticated economy hence the country is far more developed than Nigeria. This is why South Africa has a much higher average GDP per capita compared to Nigeria. Furthering this, if we strictly look at sheer economic weight, there’s just no competing with the most populous country on the continent
‘Rebasing’ – According to International Monetary Fund figures, Nigeria’s gross domestic product was $292 billion last year, compared with $354 billion for South Africa. But Nigeria’s statistics office is about to change the way various sectors of the economy are weighted when it comes to determining the estimated GDP.
Presently, Nigeria’s GDP figure is based on a weighting from 1990 AKA It is hugely underestimated. Sectors such as IT and telecoms have grown significantly in recent years, and this hasn’t been taken into account. Analysts say that Nigeria’s GDP figure could jump by anywhere between 20 and 65% when the new calculations are released.