Nigeria Drops to 4th Position Among Africa’s Largest Economies

According to the latest rankings of Africa’s largest economies, Nigeria, once hailed as the “Giant of Africa,” has seen a significant decline, now occupying the fourth spot. Nigeria, which for many years was the continent’s largest economy, has been overtaken by South Africa, Egypt, and Algeria.

This marks a shift in the regional economic balance, signaling both challenges and opportunities for Nigeria in its quest to reclaim its former position. Despite being the most populous country in Africa and a major oil producer, Nigeria’s economy has faced a series of difficulties, including fluctuating oil prices, political instability, and a rising debt burden, which have contributed to its fall in the rankings.

The country now trails behind South Africa, which holds the top position with a gross domestic product (GDP) of $403 billion, followed closely by Egypt with a GDP of $380 billion.

South Africa’s economy has been bolstered by a diverse industrial base, strong financial services sector, and robust infrastructure, while Egypt’s economic growth has been driven by sectors such as energy, tourism, and agriculture. Algeria, ranked third with a GDP of $260.13 billion, also benefits from significant oil and natural gas exports, though its reliance on hydrocarbons presents a challenge in terms of economic diversification.

Nigeria’s economy, in comparison, is currently valued at $199.72 billion, a stark reminder of the country’s struggles with economic diversification and the volatility of the global oil market. The country’s reliance on oil exports, which account for a substantial portion of government revenues and foreign exchange earnings, has left it vulnerable to external shocks.

Additionally, issues such as infrastructure deficits, security concerns, and governance challenges have hampered Nigeria’s economic performance in recent years. Despite these challenges, Nigeria still remains a key player in the African economy due to its size, human capital, and vast natural resources.

Other African economies are showing signs of growth and resilience, with Morocco, Ethiopia, and Kenya rounding out the top seven economies on the continent. Morocco’s GDP of $157 billion, driven by a diverse economy including manufacturing, agriculture, and mining, reflects the country’s increasing economic stature.

Similarly, Ethiopia and Kenya have experienced impressive growth rates, especially in sectors like agriculture, telecommunications, and services. As these economies continue to expand, the competition for top rankings among African nations will only intensify, and Nigeria will need to focus on addressing its structural issues in order to regain its standing as Africa’s economic powerhouse.

List of the top 10 largest economies in Africa

Here is the updated list of the top 10 largest economies in Africa:

1. South Africa – $403 billion

2. Egypt – $380 billion

3. Algeria – $260.13 billion

4. Nigeria – $199.72 billion

5. Morocco – $157 billion

6. Ethiopia – $145 billion

7. Kenya – $116.32 billion

8. Angola – $113.286 billion

9. Cote d’Ivoire – $86.99 billion

10. Tanzania – $79.867 billion