About Nigeria Demographics

The country has some, but not all, the ingredients needed for a demographic dividend.

A few days ago, President Trump posted the following in defense of Nigerian Christians:

They’re killing record numbers of Christians in Nigeria. They’re killing the Christians and killing them in very large numbers. We’re not going to allow that to happen… If we attack, it will be fast, vicious, and sweet, just like the terrorist thugs attack our CHERISHED Christians!

While it is true that Christians have been targeted by Jihadis in Nigeria, Muslims have also been targeted in large numbers. Groups like Boko Haram, ISWAP (Islamic State West Africa Province) and others oppose all forms of secularism, westernization, democracy and modernity. They seek to “purify” Nigeria by eliminating Christianity and non-Islamic practices, and by installing an Islamic regime. Boko is from the English word book, and Haram means forbidden in Arabic. So, Boko Haram means “western education is forbidden”, in particular as it applies to girls.

As shown on the map, Nigeria is both Christian and Muslim over a land area that is the size of California, Nevada and Utah combined. Approximately 46% of the population are Christian, including catholics and protestants, who tend to live in southern and coastal provinces. The other 54% are mostly Sunni Muslims who tend to live in the center and north, including in the provinces that are closest to Niger and Chad, two Muslim countries.

Trump’s implied idea that the US can be the protector of Christians in other countries is unprecedented for a US president. It is unlikely to sit comfortably with the other priorities of US foreign policy. It is also unlikely that Congress would approve military interventions or punitive missions of this kind. Christians are persecuted or face severe restrictions in a large number of countries, including most Muslim countries, North Korea and China. Here is a map of Islamist groups in Africa as of 2022, from the Italian Institute for International Political Studies (ISPI). It would be impossible to subdue all of them by force of arms.

That said, it is good that the President is paying some attention to Africa, because Africa will be the continent with the highest population growth for decades to come. Here is a chart showing Nigeria’s total population and its population aged 15 to 64. Nigeria’s population is the largest in Africa and it will surpass that of the US by 2040. Most critical is the fact that its working-age population (aged 15-64) will double by 2075.

The total fertility rate (TFR) of Nigeria is today 4.3 children per woman. This chart derived from the UN’s medium variant assumes that the TFR will fall to 2.1 by 2075. Should it instead remain at a higher level, the population growth will be even faster than is shown here.

If the TFR declines as envisioned by the UN, there will be in theory a historic opportunity for Nigeria to realize a demographic dividend and to improve its economic conditions. A demographic dividend occurs when the number of dependents to workers, the dependency ratio (DR), declines in a given country. The DRs of Nigeria and of sub-Saharan Africa are shown in the chart below. The UN medium variant expects them to fall from the high 70s (a ratio of 0.7) to about 0.5. I have argued elsewhere that China’s boom in 1990-2010 was greatly assisted by the fact that its dependency ratio fell by half. See How China Realized a Demographic Dividend. But I have also argued that many African countries will not be ready when the window of opportunity for a demographic dividend opens up. See Demographic Dividend: Which Countries are Next?

In Demographics, The Global Emergency, I identified the emergency as demographics that were too weak in rich countries and too strong in poor countries. I speculated that both rich and poor could solve their problems by working together.

The opportunity, the solution to the global emergency, is to help these younger countries improve their economies by providing them with capital and helping them strengthen their institutions. To the symbiotic solution, developed nations bring technology, capital and institutional expertise. Emerging nations bring strong demographics and a growing labor force. Working together would over time:

  • create large new demand markets for Western products at a time when domestic demand is weakening.
  • provide food, shelter, health care and jobs to growing populations in sub-Saharan Africa and other countries.
  • strengthen institutions, facilitate capital formation and investments, and increase transparency in governance in emerging markets.
  • mitigate disorganized migration, and lower the risk of instability.

This was written in 2015. The world has moved in another direction in the past ten years, with more confrontation than cooperation.

Future Hubs of Africa and Asia

On UN projections between 2015 and 2050, the world population will grow by nearly 2.38 billion people, from 7.35 billion to 9.73 billion. Although this 32% growth is a big increase, it marks a slowdown from the 66% growth rate recorded in the preceding 35 years (1980-2015). Total Fertility Rates (TFRs) have come down all over the world and are expected to continue falling.
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About half of the 2.38 billion increase will take place in sub-Saharan Africa and nearly 40% in Asia. India is the biggest contributor with a net addition of 394 million, followed by Nigeria (216m), Pakistan (120m), DR Congo (118m) and Ethiopia (89m). By 2050, all of these countries will feature in the top 10 populations by size, a list that will include the United States (expected to rank fourth) but not one European country. Outside of Africa and Asia ex-China, regional populations will be growing slowly (the Americas), stagnating (China, Europe), or receding (Japan, Eastern Europe). Read more

Notes from the Wharton Africa Business Forum

The Wharton Africa Business Forum took place in Philadelphia on November 3-5, 2017. Present were the Finance Minister of Nigeria, the CEO of Ethiopian Airlines and other business leaders (notably from lead sponsors McKinsey & Company and the Boston Consulting Group) and educators. The event was attended by hundreds of participants including Wharton faculty, students and alumni, African investors and entrepreneurs, members of the African diaspora and many others who have an interest in Africa.

These are our notes from the event. They are not intended to be comprehensive.

First, there was a tremendous amount of energy and optimism surrounding Africa developments. There were a palpable sense that Africa’s moment is coming and an urgency that it should not be squandered. These sentiments are validated by our analysis of African demographics that show a coming decline in the dependency ratio and an accompanying increase in the odds of realizing some demographic dividend. However, fertility rates remain too elevated and are not falling fast enough to deliver the massive dividend that was seen in China, the US and Europe in recent decades. Read more

Rise of the Rest: A Vision Deferred

Changing demographics and the commodities crash have slowed down the development of poorer countries.

Perhaps it all started with a turn in China’s demographics. Demand growth for commodities has declined sharply from recent years and has resulted in a crash of global prices. Copper is down 54% from its post 2008 peak and down 25% this year alone. Crude oil is down 67% and 39% in the same time spans. In addition to softer demand, prices were negatively impacted by jumps in supply, most notably from shale energy producers in the United States. Read more

In One Chart: Achieving the Demographic Dividend

The experience of China provides a useful policy template for countries with booming populations in south and southeast Asia and in sub-Saharan Africa. The Chinese boom showed that a growing working-age population combined with a declining fertility ratio can result in a large demographic dividend if certain conditions are met. As noted in this recent post, two important drivers of lower fertility are an increase in female literacy and a decline in child mortality. Read more

How Many People Will Live in Africa in 2050 and 2100?

Large declines in fertility will depend on raising female literacy above 80%.

Every few years, the United Nations Population Division releases demographic projections for the entire world and for every country, region and continent. Although the UN’s database is the most used source on demographics, the data is not equally reliable for all countries.

Countries in the developed world conduct regular censuses and produce detailed numbers that are considered reliable. Less developed countries conduct censuses on an irregular basis or are completely unable to conduct them and have instead to rely on demographic sampling. In the poorest countries of the world, most of which are in sub-Saharan Africa, censuses are infrequent or nonexistent and even sampling can be irregular and unreliable. Read more

Report: Africa’s Demographic Transition, Dividend or Disaster?

Screen Shot 2015-10-28 at 1.53.28 PMA recent report published jointly by the World Bank and by Agence Française de Développement highlights the challenge of realizing Africa’s promised demographic dividend. The title Africa’s Demographic Transition: Dividend or Disaster? (see footnote 1) sums up the authors’ thesis that the dividend is not an automatic result of falling fertility ratios (TFR).

Instead, falling TFRs open a window of opportunity which can lead to a demographic dividend when governments and the public sector implement the requisite steps to capitalize on this opportunity. Lower child mortality usually leads to falling fertility ratios and improvements in women’s health. But most important among concurrent or subsequent initiatives are investments in education, and the provision of sufficient jobs to a booming working-age population. Read more

Now a Trade Partnership with Africa?

A few days ago, the United States reached agreement on the Trans-Pacific Partnership (TPP) with eleven other nations (see list in tables below). Here is how the Office of the US Trade Representative (USTR) describes the TPP on its web page:

President Obama’s trade agenda is dedicated to expanding economic opportunity for American workers, farmers, ranchers, and businesses. That’s why we are negotiating the Trans-Pacific Partnership, a 21st century trade agreement that will boost U.S. economic growth, support American jobs, and grow Made-in-America exports to some of the most dynamic and fastest growing countries in the world.

Read more

Providing Electricity to Africa by 2050

How many Africans will have access to electricity by 2050?

According to the World Bank’s latest figures, 64.6% of the population of sub-Saharan Africa lacked access to electricity in 2012, or a total of 572 million people. Across the world, 1.09 billion have no access to electricity. So, sub-Saharan Africa accounts for more than half the total.

Given the expected boom in the African population and the likely increase in access, the demand for electricity infrastructure is going to explode between now and 2050. On UN estimates (medium variant), the sub-Saharan population will jump from 886 million in 2012 to 2.1 billion in 2050. Assuming that each country’s current access rate remains the same, 381 million additional people will have access to electricity and 855 million additional people will not. Read more

The Candidates’ Other Demographic Challenge

It is massively larger than 11 million illegals.

Hans Rosling, co-founder of Gapminder, calls it “the biggest change of our time”. It is Africa’s population growth from 1 billion people today to 2.5 billion by 2050 and 4 billion by 2100.

You could say that a close “second biggest change of our time” is the aging and stagnation of the population in rich countries. The combined population of North America, Europe, Japan and Australia/New Zealand is now at 1.3 billion and it will remain at 1.3 billion by 2050 and 2100 with small gains in North America and Oceania offset by declines in Europe and Japan. Read more