Nigeria, officially known as the federal republic of Nigeria, is a former British colony. Nigeria has been home to a number of kingdoms and tribal states over the millennia. The modern state originated from British colonial rule beginning in the 19th century, and took its present territorial shape with the merging of the Southern Nigeria Protectorate and Northern Nigeria Protectorate in 1914. The administrative and legal structures were set up when the British were practicing indirect rule through traditional chiefdoms. Nigeria became a formally independent federation in 1960. It experienced a civil war from 1967 to 1970. It thereafter alternated between democratically elected civilian governments and military dictatorships until it achieved a stable democracy in 1999, with the 2011 presidential election considered the first to be reasonably free and fair. In 2015, power transferred peacefully from one party to another for the first time when former military ruler Muhammadu Buhari defeated incumbent President Goodluck Jonathan.

1. Descriptive Report
about Nigeria
Prof. Liu Xinjiang
(Instructor)
OKOYE, DAVID IKECHUKWU
(Reporter)
MANAGERIAL ECONOMICS

2. School of Business and Economics
Managerial Economics
Descriptive Report about Nigeria
Prof. LIU XINJIANG
（ Supervisor）
OKOYE, DAVID IKECHUKWU(孔大为)
S17125100504
Program International MBA
Semester Spring, 2018

3. TABLE OF CONTENT
1. Introduction…………………………………….…………………………………..….....1
1.1 The country Nigeria……………………………………………………………….......1
1.2 Facts of Nigeria…………………………………………………………………….….1
1.2.1 Political system……………………………………………………………..........1
1.2.2 Location………..…………………………………………………………….......1
1.2.3 Land area...……………………………………………..…….…………………..2
1.2.4 Natural resources and power……………..…….……….……………..………....4
.
1.2.5 Population…………….………………………………….…………….………...4
2. Economy…….………..…………………………………………….…………….….……4
2.1 Economic system………………………………………………..………………...…..5
2.2 International trade ………………………………………………..…………………...5
2.3 Gross Domestic Product level ………………………………….…..………….……...6
2.4 Purchasing Power Parity……………………………………..….……………..……...6
2.5 Nigeria-China bilateral relation……………………….………..…….………..……...6
3. Industry…………………………………………………..…………..…………...………7
3.1 Companies and Industries…………………………………..…….……………..……..7
3.1.1 Some famous Industries…………………………………….…………..………..7
3.3.3 Some famous companies……………………………………..…………..………7
3.1.4 Some Chinese joint ventures and wholly owned companies…….……..…..……8
4. Summary……………………………………………………………….……...…...……9

4. 1. INTRODUCTION
1.1 The country Nigeria
Nigeria, officially known as the federal republic of Nigeria, is a former British colony. Nigeria has
been home to a number of kingdoms and tribal states over the millennia. The modern state
originated from British colonial rule beginning in the 19th century, and took its present territorial
shape with the merging of the Southern Nigeria Protectorate and Northern Nigeria
Protectorate in 1914. The administrative and legal structures were set up when the British were
practicing indirect rule through traditional chiefdoms. Nigeria became a formally independent
federation in 1960. It experienced a civil war from 1967 to 1970. It thereafter alternated between
democratically elected civilian governments and military dictatorships until it achieved a stable
democracy in 1999, with the 2011 presidential election considered the first to be reasonably free
and fair. In 2015, power transferred peacefully from one party to another for the first time when
former military ruler Muhammadu Buhari defeated incumbent President Goodluck Jonathan.
1.2 Facts of Nigeria
1.2.1 Political system
Nigeria is a federal republic, with executive power exercised by the president. The president is
the head of state, the head of government, and the head of a multi-party system. Nigerian politics
takes place within a framework of a federal, presidential, representative democratic republic, in
which executive power is exercised by the government. Legislative power is held by the real
government and the two chambers of the legislature: the House of Representatives and the Senate.
Together, the two chambers make up the law-making body in Nigeria, called the National
Assembly, which serves as a check on the executive arm of government. The highest judiciary arm
of government in Nigeria is the Supreme Court of Nigeria which was created after independence
and also practices Baron de Montesquieu's theory of the separation of powers based on the United
States system and also practices checks and balances
1.2.2 Location
Nigeria is in West Africa, bordering Benin in the west, Chad and Cameroon in the east,
and Niger in the north. Its coast in the south lies on the Gulf of Guinea in the Atlantic Ocean. It
comprises 36 states and the Federal Capital Territory, where the capital, Abuja is located.
Nigeria`s geographic coordinates are 10 00 N, 8 00 E, by climate the country varies; equatorial in
south, tropical in center, arid in north.

5. 1.2.3 Land area
The total area of Nigeria is 923,768 sq. km, with land covering 910,768 sq. km, and water
covering 13,000 sq. km. From the entry above it is clear it includes three subfields. Total area is
the sum of all land and water areas delimited by international boundaries and/or coastlines. Land
area is the aggregate of all surfaces delimited by international boundaries and/or coastlines,
excluding inland water bodies (lakes, reservoirs, rivers). Water area is the sum of the surfaces of
all inland water bodies, such as lakes, reservoirs, or rivers, as delimited by international boundaries
and/or coastlines.
Below is a list of Nigeria states by area. My state, Anambra, is the second smallest state by area;
the 35th
state on the list.
Rank State km²
1 Niger State 76,363
2 Borno State 70,898
3 Taraba State 54,473
4 Kaduna State 46,053
5 Bauchi State 45,837
6 Yobe State 45,502
7 Zamfara State 39,762
8 Adamawa State 36,917
9 Kwara State 36,825
Rank State km²
10 Kebbi State 36,800
11 Benue State 34,059
12 Plateau State 30,913
13 Kogi State 29,833
14 Oyo State 28,454
15 Nasarawa State 27,117
16 Sokoto State 25,973
17 Katsina State 24,192
18 Jigawa State 23,154

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Rank State km²
19 Cross River State 20,156
20 Kano State 20,131
21 Gombe State 18,768
22 Edo State 17,802
23 Delta State 17,698
Rank State km²
24 Ogun State 16,762
25 Ondo State 15,500
26 Rivers State 11,077
27 Bayelsa State 10,773
28 Osun State 9,251
- Federal Capital Territory 7,315
29 Enugu State 7,161
30 Akwa Ibom State 7,081
31 Ekiti State 6,353
32 Abia State 6,320
33 Ebonyi State 5,670
34 Imo State 5,530 km
35 Anambra State 4,844
36 Lagos State
3,345

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1.2.4 Natural resources and power
Nigeria has a variety of both renewable and nonrenewable resources, some of which have not yet
been effectively tapped. Solar energy, probably the most extensive of the underutilized renewable
resources, is likely to remain untapped for some time, and the vast reserves of natural gas
produced with crude oil have yet to be fully exploited.
Resource extraction is the most important and the fastest-growing sector of the economy, reflecting
the rise to prominence of crude oil output. Nigeria has been a member of OPEC since 1971. There
are oil refineries at Port Harcourt, Warri, and Kaduna. The petroleum industry remains
dominant, and crude petroleum continues to account for virtually all export earnings. The most
economically valuable minerals are crude oil, natural gas, coal, tin, and columbite (an iron-bearing
mineral that accompanies tin). Petroleum, first discovered in 1956, is the most important source of
government revenue and foreign exchange—its share of the gross domestic product rose from
virtually nothing in the 1950s to about two-fifths in the late 1990s. Most of the oil output comes
from onshore fields in the Niger delta, although an increasing proportion of the crude is produced
at offshore locations. There are vast reserves of natural gas, but most of the gas produced is a by-
product of crude oil; in the past this was burned off, as there was no market for it, but efforts have
been made to utilize more of this commodity. Since 1984, oil companies have been required to
reinject into the ground some of the natural gas produced in the course of pumping crude oil.
Production has often been interrupted by protests, as the inhabitants of the oil-producing regions
have demanded a larger share of the revenues.
1.2.5 Population
The current population of Nigeria is 195,541,467 as of Monday, June 11, 2018, based on the latest
United Nations estimates. Nigeria population is equivalent to 2.57% of the total world population.
The country ranks number 7 in the list of countries (and dependencies) by population. The
population density in Nigeria is 215 per Km2
(557 people per mi2
. 51.0 % of the population
is urban (99,967,871 people in 2018). The median age in Nigeria is 17.9 years.
2. ECONOMY
The Nigerian economy is one of the largest in Africa. Since the late 1960s it has been based
primarily on the petroleum industry. A series of world oil price increases from 1973 produced
rapid economic growth in transportation, construction, manufacturing, and government services.
Because this led to a great influx of rural people into the larger urban centres, agricultural
production stagnated to such an extent that cash crops such as palm oil, peanuts (groundnuts), and
cotton were no longer significant export commodities. In addition, from 1975 Nigeria was forced
to import such basic commodities as rice and cassava for domestic consumption. This system
worked well as long as revenues from petroleum remained constant, but since the late 1970s the
agricultural sector has been in continuing crisis because of the fluctuating world oil market and

8. 1 | P a g e
the country’s rapid population growth. Although much of the population remained engaged in
farming, too little food was produced, requiring increasingly costly imports. The various
governments (most of them military-run) have dealt with this problem by banning agricultural
imports and by focusing, albeit briefly, on various agricultural and indigenization plans.
Nigeria’s economic freedom score is 58.5, making its economy the 104th freest in the 2018 Index.
Its overall score has increased by 1.4 points, with improvements in the labor freedom and judicial
effectiveness indicators outpacing declines in fiscal health and monetary freedom. Nigeria is
ranked 12th among 47 countries in the Sub-Saharan Africa region, and its overall score is above
the regional average but below the world average.
2.1 Economic system
Nigeria can be described, economically, as a middle-income state. It is a mixed economy with a
largely emerging market. Nigeria experiences an increasing expansion in manufacturing, financial,
service, communications, technology and entertainment sectors. It is the largest economy in Africa;
its re-emergent manufacturing sector became the largest on the continent in 2013, and it produces
a large proportion of goods and services for the West African subcontinent.
Although Nigerian governments since 1999 have paid lip service to free-market reforms, actual
implementation has been very slow. State management of scarce resources enables political elites
to favor their constituencies and sometimes to skim a little off the top for themselves. They fear
that reforms will push up consumer prices and stoke further political instability in addition to
annoying the middle classes who rely on government-subsidized goods and private-sector
companies that depend on state handouts and protectionist policies.
2.2 International trade
Nigeria exports primarily petroleum and other raw materials such as cocoa, rubber, palm kernels,
organic oils, and fats. It imports secondary products such as chemicals, machinery, transport
equipment, manufactured goods, food, and animals. The dependence on oil and a few other
commodities for export caused Nigeria to become especially vulnerable to world oil price
fluctuations.
During the colonial years, Britain was Nigeria's leading trading partner. After independence,
Nigeria diversified its trading partners. It now trades worldwide with about 100 countries. The
United States replaced Britain as the primary trading partner in the 1970s. However, Britain
remains Nigeria's leading vendor, selling the former colony more than 14 percent of its imports in
the 1990s. Other major trading partners are Germany, France, the Netherlands, Canada, Japan,
Italy, and Spain. Nigeria's meager trade with Eastern Europe and the former Soviet Union declined
even further after the collapse of Euro- Communism and the breakup of the Soviet Union in the
early 1990s. Nigeria's trade with sister African countries—mainly with other West African
members of the Economic Community of West Africa (ECOWAS).

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2.3 Gross domestic product level
Gross domestic product (GDP) is the market value of all final goods and services from a nation in
a given year. Countries are sorted by nominal GDP estimates from financial and statistical
institutions, which are calculated at market or government official exchange rates. Nominal GDP
does not take into account differences in the cost of living in different countries, and the results
can vary greatly from one year to another based on fluctuations in the exchange rates of the
country's currency. Such fluctuations may change a country's ranking from one year to the next,
even though they often make little or no difference in the standard of living of its population. The
Gross Domestic Product (GDP) in Nigeria was worth 405.10 billion US dollars in 2016. The GDP
value of Nigeria represents 0.65 percent of the world economy. GDP in Nigeria averaged 92.65
USD Billion from 1960 until 2016, reaching an all-time high of 568.50 USD Billion in 2014 and
a record low of 4.20 USD Billion in 1960. Today, Nigeria is ranked as the 30th-largest economy
in the world in terms of nominal GDP.
2.4 Purchasing power parity
The Gross Domestic Product per capita in Nigeria was last recorded at 5438.90 US dollars in 2016,
when adjusted by purchasing power parity (PPP). The GDP per Capita, in Nigeria, when
adjusted by Purchasing Power Parity is equivalent to 31 percent of the world's average.
2.5 Nigeria- China bilateral relation
The bilateral relations between the Federal Republic of Nigeria and the People's Republic of
China have expanded on growing bilateral trade and strategic cooperation. China is considered one
of Nigeria's closest allies and partners. China is also one of Nigeria's important trading and export
partners. According to a 2014 BBC World Service Poll, 80% of Nigerians view China's influence
positively, with only 10% expressing a negative view, making Nigeria the most pro-Chinese nation
in the world
Recently, Nigeria and China announced they will conduct a currency swap amounting to nearly
$2.4 billion, making trade between the two countries less reliant on the US dollar. In
a statement released by the People's Bank of China (PBoC), the deal was signed on agreement with
the Central Bank of Nigeria (CBN) on April 27 and aims to facilitate "bilateral trade and direct
investment, and safeguarding financial market stability in both countries."

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3. INDUSTRY
3.1 Companies and Industries
Nigeria being a developing country has many industries and companies which are growing
tremendously day by day.
3.1.1 Some famous industries
Amongst many other growing industries in Nigeria, the entertainment industries take the lead. The
music industry are producing world`s leading music artists, the movie industry called Nollywood
which has won countless awards both on world stage and in the Africa continent, also making
waves with many famous actors and actresses.
More outstandingly is the refinery which is under construction in lagos Nigeria. It is going to be
one of the world`s largest.
3.1.2 Some famous companies
Below are some of the companies in Nigeria doing greatly day by day.
Nigerian National
Petroleum
Corporation(NNPC)
Oil & gas
Exploration &
production
Abuja 1977 State-owned oil
Nigerian Television
Authority
Consumer
services
Broadcasting &
entertainment
Abuja 1977
State-owned
television
Oando Oil & gas
Exploration &
production
Lagos 1956
Petrochemical
and energy
Chanchangi Airlines
Consumer
services
Airlines Kaduna 1994 Airline
Dana Air
Consumer
services
Airlines Ikeja 2008 Regional airline
Dangote Group Conglomerates – Lagos 1981
Cement, food and
beverage, oil and
gas

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3.1.3 Some Chinese joint ventures and wholly owned companies
Owing to the good bilateral relationship between Nigeria and China, lots of Chinese businessmen
and entrepreneurs are flowing into Nigeria to invest. They build as joint venture with locals or as
wholly owned. Statistics shows that most of their investments are in the area of raw materials.
Chinese governed has succeeded in establishing two Confucius institutes in Nigeria and the
successes of these institutions have increased the number of Nigerian who can speak Chinese
language and understand basic Chinese culture. This has also helped the growing Chinese partly
or wholly owned businesses in Nigeria.
Below are some of Chinese jointly or wholly owned companies in Nigeria with some of their
specific characteristics.
Company Name Origin Nature of Business Nature of Investment Level of Investment Employment generation
Happy Chef Chinese & Foods and Restaurant Business JV N20million 35
Restaurant Ltd Nigerians
Plas Alliance Chinese Manufacturing of Rubber Bags & Shoes WFO N75million 170
Company Ltd.
Royal Motors Chinese Assembling of Motorcycles WFO N10 million 1000
Company Ltd
Sun Lung Chinese Manufacture, import, and distribution of WFO N20 Million 75
Industries (Nigeria) all types of telecommunication, electronic
Ltd goods, telecomm materials, instrument,
musical instruments,
ZTE Nigeria 1 Chinese Production, Sales, Services, Investment WFO N5 Million 136
Investment Ltd 1Australian related to Telecommunications

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4. Summary
Nigeria is a developing country, multi-cultural, multi-ethnic, multi-lingual and multi-religious.
The Nigerian people are nice, friendly and hospitable. This has been the major strong point of
Nigeria playing along with other nations in the global scheme of things.
Most of the poverty, terrorism and vices-oriented stories told about Nigeria are all false. They are
a politically thought out plans, propagated through the media, to mar the image of the country in
the comity of nations in other to score cheap goals against them in global political games. People
always have these bad notions until they visit. So I invite you to make out time to visit Nigeria.
Visit Nigeria today and see another heaven here on earth; a heaven that will thrive your business
and give you the best relaxation needed for your life`s rejuvenation and embellished prolongation.