Nigeria's Integration Into The Global Economy Is Below Its Potential
By Temitope W. Oshikoya
Temitope W. Oshikoya is chief economist, Africa Finance Corporation (AFC). He was previously at the African Development Bank (AfDB). Formerly, he was country operations manager for several east, south and north African countries. He has also worked at the World Bank, the University of New Brunswick, Canada, and in the private and public sectors in Nigeria. Also, he has served on the editorial board of the Journal of African Economies, African Development Review, and African Finance Journal. He has served on the board of directors of the East African Development Bank and African Capacity Building Foundation. A Commonwealth Scholar, he holds Ph.D. and M.A. degrees in economics from McMaster University in Hamilton, Ontario and a B.Sc. (first Class honors) degree in economics from Ahmadu Bello University in Nigeria. He is a fellow of the Chartered Institute of Bankers, England and Nigeria.
This paper provides a perspective on Nigeria’s global economic position and integration into the world economy. While other emerging market economies have benefited from globalization, there is concern that African countries continue to be marginalized. Among African countries, Nigeria is one of two major countries with strong potential to harness the opportunities and meet the challenges that the global economy could provide. Nigeria has the largest population in the continent and has been growing rapidly, due in part to gains from economic reforms and rising prices of oil. However, Nigeria’s integration into the global economy has been below potential. While it has improved its global rankings on indicators of competitiveness, business climate, and productivity in the past five years, it still ranks below most of its peer group on these indicators. It is among the poorest countries in the world in terms of social indicators despite oil wealth. Further integration into the global economy would require sustained policy reforms, improved governance, and public-private investments in social, human, and physical infrastructure.
