Nigeria, Facing Threats on Multiple Fronts
Nigeria, being Africa’s most populous country with the largest economy, is a key player in West Africa. However, since it has succumbed to some of the most ruthless militant groups, it faces high levels of banditry which are affecting the whole country.
Security
Despite Nigeria being Africa’s leading oil producer, as well as having Africa’s largest youth population, holding an abundance of natural resources, and being Africa’s largest oil exporter, it still manages to fail at providing the most basic needs to its people. Due to the growing banditry that has taken over the country and conflicts between the military and terrorist organizations (such as Boko Haram that have terrorized the country by killing tens of thousands and displacing millions causing a humanitarian crisis), the country seems to be increasingly helpless in containing the violence that has arisen. Hearing about school children being abducted by these militant groups has become a normal occurrence. Boko Haram claimed responsibility for abducting hundreds of boys in a school in one of the largest attacks in recent years.
Economic Overview
Nigeria holds massive oil reserves, including limitless potential in the service and agricultural sectors. That fact, in combination with a youthful population, could only mean that Nigeria is on the verge of becoming a leading economic powerhouse. However, it has not reached this status due to major drawbacks, insecurity, corruption, infrastructure gaps, and a high dependence on oil leading to a failure to diversify the economy. This dependence on petrol production leaves Nigeria playing a dangerous game, as it is setting itself up for failure. Amid a global oil price collapse this would leave Nigeria paralyzed since its economy is highly dependent on oil production. This lack of diversification led Nigeria to overtake India as the country holding the largest number of people living in extreme poverty (87 million Nigerians, constituting half of Nigeria’s population). To add to the outrageous numbers, Nigeria’s unemployment rate more than doubled during the years of January 2016 to July 2018, going from 10.4% to 23.1%, respectively. Nigeria is highly fragile to the economic disruption that Covid-19 has set upon the globe as it has negatively affected oil prices. The pandemic has caused an upsetting blow to the Nigerian economy that is highly dependent on oil, with oil accounting for over 80% of exports. Since the oil industry consequently affects other industries, there is further damage done to the economy. This leaves Nigeria as inferior in the eyes of foreign investors, leaving them to regard Nigeria as a risky investment, and leading to increasing pressure from foreign portfolio investors as they assess the risks.
Nigeria has the potential to transform itself into an economic powerhouse, but seems to be handicapped and at the mercy of militant groups who constantly terrorize the people of Nigeria, leading to instability that will never allow Nigeria to be as prosperous as it deserves to be.
