# Economy of Nigeria
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Who / What
The **Economy of Nigeria** refers to the country’s economic system—a lower-middle-income mixed economy encompassing expanding sectors like manufacturing, finance, services, technology, and entertainment. It is a key emerging market in Africa, driven by diverse industries that contribute significantly to regional trade.
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Background & History
Nigeria’s economy has evolved from its colonial-era reliance on oil (discovered in the 1950s) to a diversified mix of agriculture, manufacturing, and services. Post-independence in **1960**, the economy grew rapidly but faced instability due to political conflicts, including the Biafran War (1967–1970). The 20th century saw oil dominance peak in the 1970s before declining due to geopolitical shifts and price volatility. Since the early 2000s, efforts have focused on industrialization, with manufacturing expanding as Nigeria’s largest African producer of goods.
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Why Notable
Nigeria’s economy is Africa’s largest by GDP (nominal) and second-largest by PPP, underpinning regional stability and trade. Its re-emergent manufacturing sector—now the continent’s largest—supports local production and exports, while financial and tech sectors drive innovation. The country’s economic influence extends to West Africa, shaping regional integration efforts.
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In the News
Recent developments highlight Nigeria’s resilience amid global challenges: its manufacturing boom (e.g., textile and automotive industries) attracts foreign investment, while digital finance and entertainment (e.g., Nollywood) expand beyond traditional sectors. Despite oil revenue fluctuations and security concerns, economic diversification remains a priority for sustained growth.
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Key Facts
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