report released by international accounting firm, PricewaterhouseCoopers (PwC) has revealed.
The PwC 2013 report disclosed that with the oil rich West African nation’s projected rise in Purchasing Power Parity (PPP), in terms of Gross Domestic Product (GDP), from $2.6 billion to $3.9 billion by 2050, Nigeria is on its way to become one of the top 20 leading economies by the projected year.
The report, “World in 2050 The BRICs and Beyond: Prospects, Challenges and Opportunities” reveals a yearly average real GDP growth rate of around six per cent, as well as a youthful and growing working population will help the country achieve this feat.
“Nigeria could be the fastest growing country in our sample due to its youthful and growing working population, but this does rely on using its oil wealth to develop a broader based economy with better infrastructure and institutions as regards rule of law and political governance and hence support long term productivity growth – the potential is there, but it remains to be realised in practice,” PwC said.
The report also identified that come 2050, Nigeria will have the fastest growing economy followed by Vietnam, India, Indonesia and Malaysia among others.
The accounting firm pointed out that aside the G20 projection, Nigeria has strong long-term growth potential if it can continue to pursue growth-friendly economic policies.
The growth and placement of the projections are however based on Nigeria’s judicious use of oil and energy resources to develop and improve on its derelict infrastructure.
The country should apply its oil wealth to develop a broader-based economy with better infrastructure and institutions, which will support long term productivity growth, the report said.
Andrew S. Nevin, a partner with PwC Nigeria, said: “Nigeria’s projections for population, education levels and technological progress are very strong. Nigeria lags behind with regard to its investment rate. Productivity is lower in Nigeria due to weaker infrastructure and institutions, as well as an over-reliance on oil revenues. By investing in these areas and diversifying its economy, Nigeria can realise its potential by 2050.
He added that “Over the past decade, the private sector has played an enormously positive role in sectors like telecoms, retail, and financial services in Nigeria and throughout Africa. For Nigeria to realise its potential, it is going to require governments at the state and federal levels to play their role in fostering the right type of environment, including improvements in the rule of law, greater transparency and strengthening of the health and education systems, and enabling the development of key sectors, with power being the most important. Many strides have been made in this regard and they need to keep coming.”