Nigeria’s Economy Sees Significant Structural Changes

Nigeria’s economy has undergone notable structural transformations, driven by policy reforms and investments in various sectors.

According to Tope Fasua, Special Adviser to the President on Economic Matters, the oil and gas sector now contributes only 3% to the country’s GDP, while non-oil sectors dominate the economy.

The weaker naira and reduced imports have led to higher volumes of local manufacturing, boosting economic growth.

Non-oil exports have risen by 30%, with cocoa exports generating N4 trillion in 2024. Incentives for non-oil exports like cocoa, cashew, and soybean have encouraged many to return to agriculture.

Nigeria has transformed into a net exporter of refined petroleum to countries like the US, Saudi Arabia, and the UAE, while becoming a net importer of crude oil. Value addition to raw materials is becoming a key driver of the economy, with exports of manufactured goods increasing along the West African region.

The country is also experiencing an explosion of hard infrastructure at state levels, including roads, bridges, and captive electricity like solar, complemented by federal government investment in infrastructure.

A stable naira supports better economic planning, and increasing foreign reserves, now at $42 billion and growing, further solidify economic stability.

Higher salaries for workers in the private and public sectors aim to mitigate inflationary effects, with more tax reliefs expected from January 1, 2026.

These structural changes signal a shift towards a more diversified and resilient economy, with potential for sustained growth and development.