Nigeria is the most populous country in Africa with an official population figure of 115 million growing at an average annual rate of 2.3%. A GDP of US$35 billion, makes Nigeria the second largest economy in Africa recording an annual growth rate of 1.8% in 1999. Oil revenues account for 60% of Nigeria's GDP and over 90% of its foreign exchange earnings. It is the 10th largest oil producer in the world with proven reserves of 30 million barrels and has the 3rd largest gas reserves in the world with over 3 trillion standard cubic feet of natural gas.
Since 1996, the Central Bank's monetary policy has effectively curbed inflation from over 70% per annum to less than 10%. Between 1996 and 1998, the local currency also maintained relative stability, compared with the first half of the 1990s. The curency depreciated in 1999 as the new democratic government took over power and are yet to implement their policies while simultaneously coping with depleted foreign exchange reserves and reeling from the economic mismanagment of the military.
The new civilian government has already put measures in place to curb these outflows and recoup some of the lost reserves. The poor state of the country's economy and its infrastructure has pushed up inflationary pressures and driven down the value of the currency. The recovery in oil prices in the second half of 1999 is expected to impact favourably on the economy in 2000.
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