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Nigeria loses title 'Africa's Biggest Economy'

Nigeria

Nigeria has lost the position of 'Biggest Economy in Africa' to South Africa just 15-months after taking over from the aforementioned country and unfortunately the number one position as an oil producer. Certain factors have been identified as the reasons why this has happened. These are - oil rate plunge, lack of security and humanitarian crisis in the north and chronic power deficiency.

A re-calculation has but South Africa back on top as the rand has strengthened against the dollar while the Naira depreciates. During a press briefing in Abuja, President Buhari admitted that suddenly Nigeria has become a poor country. Furthermore, Nigeria's economy is 70% dependent on oil revenue

According to a report published by the International Monetary Fund- IMF, the gross domestic product at the end of 2015 for South Africa is $301 billion at the rand's current exchange rate while Nigeria's GDP is $296 billion.

Interestingly, Nigeria became the largest economy in Africa on April 2014 when authorities overhauled their GDP data for the first time in 20 years which showed that Nigeria's economy in 2013 expanded by three-quarter to an estimated 80 trillion Naira.

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