Sectors of the Nigerian economy
Do you know what are the major sectors of the Nigerian economy? See the structure of the Nigerian economy below.
Structure of the Nigerian economy
Sectors of Nigerian economy are divided into 3 types:
– Primary (agriculture, oil/gas, mining, forestry);
– Secondary (light and heavy industry);
– Tertiary (services).
Nigeria is the most populous country in Africa, which now can boost continent’s largest economy (ahead of South Africa).
Below are the most important sectors of the Nigerian economy:
Oil extracting industry
Oil industry acts as a basis of Nigeria economy. Oil provides 90 percent of export earnings of the country. Nigeria is the first country in Africa and the eighth country in the world in terms of oil export. Nigeria’s first oil was drilled in 1958. A large part of the oil reserves is concentrated in the Niger Delta. In order to increase revenues, Nigeria has continued to increase oil production, but in the 90s oil prices were quite low. Nigeria produced 2.1 million barrels of oil daily. The oil industry main player is Nigerian national oil company (75% of revenues from the sale of oil) and Royal Dutch Shell.
Since 1970, oil became the basis of the raw material base of the mining industry in Nigeria. Oil deposits were discovered in offshore, near the Niger River delta and in Anambra River basin. Main oil production areas are located around Port Harcourt in the Niger Delta and in Ughelli. In 1979 Nigerians achieved a record level of oil extraction – 114 million tons.