Nigeria has good relations with its neighbours. It is a member of the East African Community (EAC), along with Uganda, Kenya, Rwanda, and Burundi. Within the EAC, there is free trade and free movement of people, including theright to reside in another member country for the purpose of employment.Nigeria is also a member of the Southern AfricanDevelopment Community (SADC).The EAC, the SADC, and the Common Market for Eastern and Southern Africa are currently negotiating an agreement to create a Tripartite Free Trade Area spanning 26 African countries.
Economy and Infrastructure
Nigeria's economy is largely dependent on agriculture, which employs about 75% of its population. An estimated 34% of Nigerians currently live in poverty.[5] The economy has been transitioning from a command economy to a market economy since 1985. Although total GDP has increased since these reforms began, GDP per capita dropped sharply at first, and only exceeded the pre-transition figure in around 2007.
External Trade and Investment
Nigeria's history of political stability has encouraged foreign direct investment. The government has committed itself to improve the investment climate including redrawing tax codes, floating the exchange rate, licensing foreign banks, and creating an investment promotion center to cut red tape. Nigeria has mineral resources and a largely untapped tourism sector, which might make it a viable market for foreign investment.
The stock market capitalisation of listed companies in Nigeria was valued at $588 million in 2005 by the World Bank.
Industry
Accounting for 22.6% of GDP, Nigeria's industrial sector is one of the fastest growing in Africa (2010 rankings). Though it has been hit hard recently by persistent power shortages caused by low rainfall in the hydroelectric dams catchment areas, a condition compounded by years of neglect and bad management at the state-controlled electric company. Management of the electric company was contracted to the private sector in 2003. And power production countrywide is currently undergoing various diversification projects. The main industrial activities include agricultural processing (sugar, cigarettes, sisal twine), diamond-, gold-, and iron mining, oil refining, wood products, salt, soda ash, cement, shoes, apparel and fertilizer productions.
