Economy

The economy of Nigeria historically was based on agriculture, and more than half of the workforce is still engaged in farming (largely of a subsistence type). The chief crops are sorghum, millet, soybeans, peanuts, cotton, corn, yams, rice, palm products, cacao, and rubber. In addition, poultry, goats, sheep, and cattle are raised. Crop production has fallen in recent years and Nigeria must now import food.

Petroleum is the leading mineral produced in Nigeria; it is found in the Niger delta, in the bights of Benin and Biafra, and on the Bakassi peninsula along the Cameroon-Nigeria border, a disputed area where the two countries have been involved in clashes. (In 2002 the International Court of Justice awarded the peninsula to Cameroon, but the decision has yet to be implemented.) Petroleum production on an appreciable scale began in the late 1950s, and by the early 1970s it was by far the leading earner of foreign exchange. The growing oil industry attracted many to urban centers, to the detriment of the agricultural sector. In the 1980s a decline in world oil prices prompted the government to bolster the agricultural sector. Nonetheless, both refinery capacity and agriculture have not kept pace with population growth, forcing the nation to import refined petroleum products and food. Other minerals extracted include tin, limestone, columbite, coal, low-grade iron ore, and gold.

Industry in Nigeria includes the processing of agricultural goods and the manufacture of textiles, footware, soap, tobacco products, paper, cement, fertilizer, chemicals, and steel. Fishing and forestry are also important. In addition, traditional woven goods, pottery, metal objects, and carved wood and ivory are produced. Nigeria's road and rail systems are constructed basically along north-south lines; the country's chief seaports are Lagos, Warri, Port Harcourt, and Calabar.

Except when oil prices are low, Nigeria generally earns more from exports than it spends on imports. Other important exports include cocoa, rubber, and palm products. The main imports are machinery, chemicals and refined petroleum products, motor vehicles, manufactured consumer goods, and food. The leading trade partners are Great Britain, the United States, Japan, the Netherlands, and France.

The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2007, Columbia University Press. All rights reserved.

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