Nigeria is emerging to be one of the major African cities in terms of per capita income, wealth, and level of urbanization. Nigeria's economy will most likely continue on the rise as long as there are stable businesses to exploit the raw materials that are found in the country. The key factors affecting economic growth in Nigeria are largely due to the state of development of the respective nation. As a matter of fact, the government is currently focusing on how to improve the nation's economy by leaps and bounds.
The government has made it a point to work closely with private players to help them participate and contribute in the progress of the country. In addition, the government has also worked on boosting the capital formation capabilities of businesses in Nigeria. These efforts are aimed at ensuring that the country possesses enough capital to sustain itself in the long run. With this effort, investors will feel more secure in investing in Nigeria.
The political stability in Nigeria is also another factor that contributes to the factors affecting economic growth in Nigeria. Ever since the ODM ruling party was dissolved, there have been reports of abuses against opposition members. These incidents have caused tension between the people and authorities in the country. The tension has spilled over to the commercial sector with businessmen feeling the pinch of the instability in the country. The Lagos Stock Exchange and the New York Stock Exchange suspended operations in Nigeria due to the tension that the political turmoil in the country has caused. Some other companies such as Shell Petroleum have also decided to move their head offices out of Lagos and into safer locations in order to avoid political turmoil in Nigeria.
Nigeria's growth potential is definitely one of the things that business people in the country should look out for. However, the country's economy needs to overcome some hurdles in order to achieve its full potential. For example, the lack of a stable education system in the country may hinder the level of development of businesses in the long run. Lagos is known to be Africa's business hub but it needs more investment and support from the government if it is to achieve the level of success hoped for by business owners. The country's economy will only grow when the government secures the future of its people and develops businesses that would provide jobs for the Nigerian people.
Another factor that affects economic growth in Nigeria is the climate of the country. There are seasons in Nigeria, where the weather is perfect for business. But then there are also harsh winters that make the weather unfavorable for business. This is one of the reasons why the capital investments in Nigeria are expected to grow in the coming years.
Other factors affecting economic growth in Nigeria include the quality of the infrastructure of the country, its economy and its people. There are some regions in the country that face threats from terrorism such as the state of Nigeria's northeast region. But overall, the country has shown positive signs and . . . . . . potentials in improving its economy.