The COVID-19 pandemic has had an unimaginable effect on the finances of the country, but the Gross Domestic Product (GDP) still makes for grim reading.
Nigeria is languishing in the GDP stakes compared to other African countries
Nigeria may be displaying the green shoots of economic recovery as the country emerges from one of its worst recessions in over 30 years.
Although GDP grew by 2.7% in 2021 compared to a -2.18% contraction in 2020 in the first few months of 2020, if we look at it quarter by quarter, Nigeria’s economy slowed by nearly 1%.
The trade sector, of course, can take a lot of credit for the economic recovery, but Nigeria isn’t out of the woods yet. Indeed, the real GDP figure shows they are still quite a way off meeting future GDP targets.
Inevitably, there will be a note of caution sounded over GDP figures. There has been a catalogue of poor business errors made over the past few years, which has stunted economic growth.
Among these included a border closure that stymied cross-border trade between Nigeria and their West African neighbours. Also, there is an increased fear among business owners will be double taxed, as the government seeks to recoup VAT in what is still a challenging economic climate.
Indeed, the city of Lagos currently accounts for a third of Nigeria’s GDP, and it is currently home to all the biggest banks and Nigerian companies. However, Nigeria is still languishing compared to other countries, including South Africa.
Recent statistics show South Africa’s economy grew 1.2% in Q2 of 2021, surpassing previous estimates. Although Q3 may not be as healthy due to political unrest in the country caused by the jailing of former president Jacob Zuma, as well as another wave of debilitating COVID-19 affections, the country is still trending in the right direction.
Yet in all aspects of life in South Africa, there is a real impetus. Not just structurally, but also technologically, as the country has become more digitally savvy. Perhaps one of the biggest economic drivers is the online casino industry, which has been a godsend to people, and they can tap into a range of tasty offers. Many online casinos will have mobile apps, and among the best online casinos in South Africa, includes Mansion Casino and Rich Casino, which provide good customer support.
South Africa has become in recent years an attractive proposition for investors, and there is even a space programme in the throes of being organised to leverage socio-economic growth. Although there is still some uncertainty in the region, Nigeria could learn a thing or two from how South Africa has repositioned itself.
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