Nigeria

D

Energy

In 2003, about 52 per cent of Nigeria’s electricity was produced each year in hydroelectric facilities; the rest was generated in thermal plants. The installed electricity-generating capacity was about 4.55 million kilowatts; in 2003 production was about 16 billion kilowatts.

E

Currency and Banking

The monetary unit of Nigeria is the naira of 100 kobo (120.26 naira equalled US$1; early 2008). Currency and banking are supervised by the Central Bank of Nigeria (1958). In the early 1990s some 120 banks were operating, including a number of European and American banks. After 1976 all banks operating in the country were required to have at least 60 per cent Nigerian ownership; this requirement was relaxed in 1995. The naira has depreciated steadily in recent years, its value dropping appreciably in January 1999 with the merger of the official exchange rate and the autonomous market rate.

F

Commerce and Trade

Much of the internal trade of Nigeria revolves around the sale of foodstuffs and domestically produced consumer goods. Open-air markets, often operated by women in the south, and small general stores are widespread. Modern department stores are found in the large cities. Lagos, Onitsha, Aba, Kano, and Ibadan are major commercial centres.

In 2003 Nigeria’s annual imports cost about US$14,892 million, and its exports earned about US$24,078 million. Major imports included motor vehicles and parts, machinery, basic manufactured goods, and foodstuffs. Nigeria’s principal trade partners are the United States, the United Kingdom, Germany, France, Spain, the Netherlands, Canada, Brazil, and Portugal.

Nigeria’s strongly positive balance of trade is offset by heavy outflows on the invisibles account of the balance of payments—that is, payments relating to non-merchandise items, notably interest and capital repayments on foreign debts, but also including the transfer abroad of dividends and profits. Although debt repayments push Nigeria into deficit on its balance of payments, the country is not meeting all its debt obligations—and has not done so for more than a decade. By the end of 1995 Nigeria’s foreign debts totalled US$35,600 million. Arrears on repayments comprise a significant proportion of the total and continue to mount.

Throughout the 1980s attempts were made to negotiate a rescheduling programme for debt repayments with Nigeria’s creditors. In the early 1990s Nigeria reached a rescheduling agreement with the London Club, an international grouping of banks with substantial debts in the developing world. In 2000, negotiations with the foreign governments and certain international bodies grouped in the so-called Paris Club finally made some progress. Agreement was reached during a World Bank meeting at the end of 2000 to restructure US$23.4 billion of debt. The stumbling block previously had been Nigeria’s failure to reach an agreement with the International Monetary Fund (IMF)—a prerequisite for Paris Club debt-reschedulings.

International aid has been greatly reduced because of the worsening of Nigeria’s human rights record, which included the execution of the human rights activist Ken Saro-Wiwa in 1995 (see History below).

G

Labour

The Nigerian workforce (everyone aged over 10 years of age) totalled 52.7 million in 2006. More than 3.5 million workers belong to unions affiliated with the Nigerian Labour Congress.

H

Transport

Nigeria depends heavily on its nationwide network of roads. Approximately 15 per cent of Nigeria’s 193,200 km (120,049 mi) of roads are paved. In the 1970s and 1980s motorways were built linking Lagos to Ibadan and Benin City and in other populated areas of the country. In 2004 there were 17 passenger cars per 1,000 people. Railways have declined in importance because of competition from Nigeria’s road system. The country has about 3,528 km (2,192 mi) of operated railway track. The main seaports are at Lagos, Port Harcourt, Warri, Calabar, Bonny, and Burutu. International airports are sited at Lagos (Mutala Muhammad), Port Harcourt, and Kano, and smaller airfields serve other major cities. Nigeria Airways, the government-owned airline, offers international services.