News July 06, 2011 at 12:00 am

Nigeria may overtake South Africa as Africa’s largest economy by 2025

Adanna Uwazurike July 06, 2011 at 12:00 am

July 06, 2011 at 12:00 am | News

According to a recent Morgan Stanley report, Nigeria may overtake South Africa as Africa’s largest economy. The country may also become one of the most important players in the global economy.

The Morgan Stanley report suggests that Nigeria's GDP will grow by 8.4% this year, and by 2012 it will have grown by another 8.5%.

Although 80% of Nigeria's revenue comes from oil, Morgan Stanley points out that there are other sources such as retail trade, broadening financial markets, and account surpluses that show signs of getting stronger.

However, critics brush off the survey claiming that Morgan Stanley projections are based on economic models that depend on certain factors, which may or may not impact the nation's economy.

Critics in South Africa also state that they are not worried about losing their standing as the largest economy on the continent.

It is not clear how things may play out by 2025, but one thing is for sure: Nigeria holds an immense amount of economic power, and the use of revenue toward infrastructure and education is key towards providing satisfying economic outcomes.

 

Source: Businessday

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