tries to address this issue by creating economic crime organisations. The country has lived up to its promise of trying to reach its four main Millennium Development Goals and these are, achieving primary education for all, promoting gender equality, reducing extreme poverty and hunger and lowering child mortality rates. As a result of slowed oil production and a battered global economy, Nigeria’s GDP has not grown at heights that are expected of it, with the nation dropping from 6.63% to 5.89% growth rate in 2014-15. Agriculture is a big player in Nigeria’s economy accounting for roughly 40% of the country’s GDP. With low tax rates, oil and gas account for about 80% of tax received and about 25% of the country’s GDP. Whilst all other sectors only accounting for 20% of tax and 65% of GDP. Such over reliance on the oil and gas sector makes it difficult to plan and grow due to fluctuating oil prices. Hence, Nigeria is currently trying to diversify their economy to help relieve the strain that the oil and gas sector has on it.
Applying the Rostow Model to Africapitalism
Source: IB economics course companion (self drawn)
The Rostow model shows economic growth of a nation in five steps. Currently Nigeria is in the pre-conditions for take off stage, however with a fast growing economy and cleansing of internal problems, Nigeria is fast approaching the take off stage. Investments and savings are growing in the West African nation which is one of the characteristics of a nation that is in the take off stage. As Africapitalism promotes long term investments and creation of social wealth, Nigeria is well on track to reaching the take off stage as Africapitalism becomes more widespread. The economic theory of Africapitalism is sustainable to help Nigeria reach the level of mass consumption of which most Western nations have reached or are on the brink of reaching. Nigeria, applying Africapitalism to help propel economic growth, should set a good example for fellow African nations to also adopt the economic theory given the success it is proving in Nigeria at the moment.
Nigeria and the regional competitors
When compared to other Africapitalist nations, Nigeria thrives and struggles in some areas. Nigeria has outgrown all African nations to claim the highest GDP at 521.8 billion USD. This has been made possible by the flourishing private sector and the involvement of public sectors such oil and gas sectors, agriculture and others. Nigeria’s has had a rapidly increasing human development index when compared to the likes of its West African competitors such as Cameroon and Togo. However, Nigeria is still very far behind when compared to other countries on the continent. Having a literate nation is a basic component to reaching economic development however, this is one area where Nigeria struggles. Literacy rates in Nigeria clock at 59.6% of the whole population which makes the nation inferior when com
