Goldman Sachs has projected that Nigeria will emerge as the world’s fifth-largest economy by 2075, with a Gross Domestic Product (GDP) of approximately $13.1 trillion. This prediction places Nigeria ahead of global economic powerhouses such as Germany, the United Kingdom, and Japan in the coming decades. The report attributes this anticipated rise to Nigeria’s youthful population, natural resource endowments, and growth potential in agriculture, energy, and technology.However, while this forecast is promising, the realisation of this economic transformation is not guaranteed. Nigeria must address deep-seated structural challenges, governance issues, and economic inefficiencies to unlock its full potential. This article provides an in-depth analysis of the opportunities, challenges, and policy directions necessary to position Nigeria as a dominant player in the global economy.Nigeria’s key growth drivers Nigeria are :
1. Demographic advantage
Nigeria is home to Africa’s largest population, currently exceeding 220 million people, with a median age of 18.1 years. By 2050, the population is expected to surpass 400 million, making Nigeria the third most populous country in the world after India and China.A large working-age population provides the country with a demographic dividend—a period when the workforce outnumbers dependents, thereby boosting productivity and economic growth. If human capital investments in education, healthcare, and skills development are made, Nigeria could experience sustained economic expansion
Agriculture remains Nigeria’s largest
2. Agriculture and food securityAgriculture remains Nigeria’s largest employer, contributing about 25 percent of GDP. The sector holds immense potential, with over 84 million hectares of arable land, yet only 40 percent of it is cultivated.With strategic investment in mechanisation, irrigation, and agro-processing, Nigeria could become a global leader in food production, reducing its dependence on food imports while boosting exports of cocoa, cashew, sesame, and palm oil.
3. Energy and industrialisationNigeria’s abundant energy resources, including oil, gas, and renewable energy, provide a strong foundation for industrial growth. With proven crude oil reserves of 37 billion barrels and 200 trillion cubic feet of natural gas, the country has the potential to become an energy powerhouse.However, reforming the oil and gas sector, eliminating fuel subsidies, and investing in renewable energy will be critical to ensuring that energy becomes an enabler of economic transformation. A robust energy sector would also drive industrialisation by powering manufacturing, infrastructure development, and job creation.
4. Digital economy and technologyNigeria’s technology sector is one of the fastest-growing in Africa, with startups attracting over $1.2 billion in venture capital in 2022. The rise of fintech, e-commerce, and digital services has positioned Nigeria as a hub for technological innovation.
With proper regulatory frameworks, improved internet penetration, and increased investment in digital infrastructure, Nigeria can harness the power of the Fourth Industrial Revolution (4IR) to accelerate economic growth.
