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Geography

The Federal Republic of Nigeria lies on the Atlantic coast of central Africa and is bordered by Niger and Chad to the north, Benin to the west and Cameroon to the south. The country covers an area of 923,678 km². Nigeria's geography is diverse, with a wide range of climatic variations and corresponding variations in vegetation. The arid plains in the north give way to savannah in the central hills and plateaux, merging into tropical rain forests in the southern lowlands and mountains to the south-east.

With more than 130 million inhabitants, Nigeria is one of Africa's most populous countries. Nigerians constitute 47 per cent of West Africa's population. They are also extremely diverse in terms of ethnicity, culture and religion; the population is made up of more than 250 ethnic groups, speaking 500 indigenous languages. Three large and highly developed ethnic communities dominate these groups. The Muslim Hausa and Fulani live in the north of the country, and maintain ancient ties with the Arab world. The Yaruba are mainly from the west, and have an elaborate political and religious system with trading networks across the West African coast. The Ibo, an egalitarian people without chiefs, are the main ethnic group in the east and south. Nigeria's two main religions; Islam and Christianity, coexist somewhat uneasily. Tensions and outbreaks of conflict between the two are frequent. Islamic law has been introduced in several states, causing thousands of Christians to flee from these areas. Both religious and ethnic tensions jeopardize economic and social progress in Nigeria. These tensions are fuelled by the pressures of population, competition for land and resources, and rising unemployment and poverty.

Agriculture

Agriculture is the mainstay of the Nigerian economy, accounting for 45 per cent of gross domestic product (GDP) and providing employment to over 60 per cent of the labour force. The country has good agricultural land covering a wide range of agro-ecological zones and allowing for diverse crop and livestock production. The dry northern savannah is suitable for growing sorghum, millet, maize, groundnuts and cotton, and is also the principal livestock-raising area. In the middle belt and the south the main food crops are cassava, yam, plantain, maize and sorghum. Rice is grown in the low-lying and seasonally-flooded areas, and the main cash crops in the south are palm oil, cocoa and rubber. Despite years of neglect of the country's agricultural sector, Nigeria remains Africa 's largest producer of yam and cowpeas, and the world's leading producer of cassava. It is also a major fish-producing country with yields of 366,000 tonnes annually.

The largely subsistence agricultural sector has failed to keep up with rapid population growth. Once an important net exporter of food, Nigeria is now forced to import food. Spurred by the desire to reduce this import dependency, as well as by the need to relieve dependence on the oil sector for economic growth, the government has taken steps in recent years to promote agricultural development. Since 2002 agriculture has shown a modest growth of about 5 per cent annually.

Economy

Nigeria has plentiful good agricultural land and natural resources, in particular oil, gas and various minerals. It is one of the world's largest oil producers and ranks fifth internationally in natural gas reserves. The country experienced an oil boom in the 1970s and since that time has become highly dependent on the oil sector for revenue. At present oil provides about 20 per cent of GDP.

After gaining independence in 1960, Nigeria was governed by a succession of military dictatorships. In May 1999 the first democratically elected government took office and the country began moving gradually towards political and economic liberalization. In recent years financial sector reforms have begun to improve macroeconomic stability. The economy is becoming more diversified, with robust growth registering in non-oil sectors such as agriculture and with increased government spending on infrastructure. GDP is estimated to have grown by 6.5 per cent in 2005.

With its wealth of resources, Nigeria has the potential to build a prosperous economy, reduce poverty significantly, and provide the health, education and infrastructure services its population needs. Yet poverty remains widespread and Nigeria ranks among the 20 poorest countries in the world. Weak governance, mismanagement of resources, political instability and inadequate infrastructure are all factors that have hindered its development. Ongoing conflicts in different locations across the country, particularly in the Delta region, are compromising oil production and discouraging domestic and foreign investments.

Source: IFAD