Wednesday, June 4, 2014

Roubini on Nigeria vs. South Africa

This was your first trip to Nigeria. What were your impressions?

Nouriel Roubini : I had low expectations because usually what you read in the US press about Nigeria is only bad news, violence, terrorism, lots of other bad stuff. I was actually positively surprised. You have a country that has one tenth of the power capacity of South Africa, one quarter or one fifth of the infrastructure of South Africa, and while South Africa is growing barely at 2%-2.5%, Nigeria is growing at around 7% or so.

Of course it’s an unfair comparison because South Africa is a middle-income country while Nigeria has a low per capita income, so usually low per capita income countries grow faster because there is a catch-up of growth. Nigeria has oil and gas and a lot of energy that helps its growth. Since they are doing so well with such little power and infrastructure, some people say that Nigeria could grow by 10% by making the right investment in infrastructure. - in africanbusinessmagazine

 Nouriel Roubini is an American professor of Economics at New York University`s Stern School of Business and chairman of RGE Roubini Global Economics
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