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War of GDP Size: Nigeria Vs South Africa

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By Vincent Nwani

“The size of a country’s GDP has always tended to influence international investment flows, regional economic recognition and sometimes can weigh into political equations” … Dr Vincent Nwani

The GDP War

In April 2014, Nigeria emerged as the largest economy in Africa after a rebasing exercise nearly doubled its Gross Domestic Product. Prior to this, South Africa had held the baton for a long time as having the largest economy in Africa including all of the recognitions that come with it.

However, through a rebasing exercise Nigeria’s economy was put at about 30% larger than South Africa’s with the 2013 Nigerian GDP valued at $509.9 billion while that of South Africa was valued at $372 billion.

The large increase in Nigeria’s GDP was attributed to the inclusion of sectors such as telecommunications, e-commerce and the film industry which did not exist during the previous rebasing exercise carried out in 1990.

According to Richard Dowden of Royal African Society, “Nigeria had always had immense ambition to be the leader of Africa in economic size”. Thus, it is not surprising that this ambition passed through and materialized, largely on the back of a clever paper works.

… And The War Rages

As expected, the 2015 GDP figures recently published by the IMF show that South Africa’s economy has again surpassed Nigeria’s, thus, regaining its former rank as the largest economy in the continent. The figures put South Africa’s 2015 GDP at $301 billion at the rand’s current exchange rate, with Nigeria’s standing at $296 billion at the Naira’s current exchange rate.

According to Preston Consult Policy Paper of August 2016, “countries’ economies are measured using their nominal GDP figures at their current exchange rate with a common international currency, such as the dollar, in order to provide a common base for comparison. Therefore, although the relative sizes of their actual nominal GDPs may remain the same when measured in their domestic currencies, the exchange rate of the dollar plays a major role in determining the estimated size of a country’s economy and, thus, its ranking”.

Bloomberg noted that the rand has gained more than 16% against the US dollar since the start of 2016, with the recent vote for a Brexit attracting foreign investors in search of emerging economies with liquid capital markets to invest in.

In contrast, Nigeria’s Naira has lost more than a third of its value after the Central Bank removed the 197-199 Naira per dollar currency peg in June 2016”.

These exchange rate movements have, thus, led to a relative increase in the US dollar value of the South African GDP, while Nigeria remains at the receiving end.

Do Investors Really Care about GDP Size?

Although higher-ranked economies will attract more foreign investors, these rankings do not mean much and are not really useful for economic policy and investment decisions. This is because the rankings are heavily dependent on exchange rate fluctuations, which can be very volatile and uncertain as well. Thus, international investors pay less attention to the relative size of economies than they do to growth prospects and Ease of Doing Business. For instance, investors want to know if there will be economic growth propelled by reforms in the pipeline towards incentivizing private investment. They want to see policy regulations that open up opportunities in the sectoral, increases the yield on their investment in an economy and guarantees ease of profit repatriation.

Unfortunately, the current economic growth prospects of both South Africa and Nigeria are “hanging on the balance”, with both countries facing the risk of a recession after their economies contracted in the first quarter of 2016. While Nigeria’s contracted by 0.4%, South Africa’s contracted by 0.2%. The South African Reserve Bank has forecast that there would be no economic growth in the country in 2016, and that the economy would grow at a rate lower than the population growth rate in 2017 and 2018. In the same line, Nigeria’s economic prospects also remain bleak due to the country’s over-dependence on oil whose price in the international market has remained under intense pressure couples with significant supply disruption on the home front. As it stands, Nigeria is yet to get “a handle” on its prevailing economic crisis.

It is a bit unrealistic to compare the Nigerian GDP produced by a population of about 187 million people with that of South Africa generated by just about 54.9 million people. While Nigeria’s larger potential workforce and consumer base increases its attractiveness as an investment destination, with the likelihood of producing a larger GDP, it also means that the country has a long way to go in order to reach the standard of living that obtains in South Africa.

According to the World Bank, Nigeria’s GDP per capita in 2015 was $2,640.3 while South Africa’s was $5,691.7. The former’s GDP would therefore need to be substantially larger before the average citizen can be as prosperous as the average South African, even if Nigeria was ranked as the largest economy in Africa.

While the 2014 rebasing exercise gave some insight into the magnitude and increasing diversity of Nigeria’s economy, the country still has a long way to go to reach South Africa’s level of economic maturity.

This explains why South Africa has always attracted more FDI projects than Nigeria. According to the EY 2015 Africa Attractiveness Survey, in the last five years South Africa received twice as many FDI projects as any other African country as investors are attracted by a diverse economy, solid infrastructure, and ease of doing business. In addition, the World Economic Forum ranked South Africa and Nigeria 49th and 124th respectively out of 144 countries in the Competitiveness Index.

It is not hard to see why Nigeria’s economy lags behind that of South Africa when one considers the fact that the former is more reliant on commodity exports than the latter. Nigeria receives more than 90% of its foreign income from oil exports, while South Africa has only 65% of total exports as commodities, which is diversified over several different commodities. South Africa therefore generates much more through its manufacturing and service industries.

In addition, South Africa surpasses Nigeria in terms of the quality of regulation and supervision of the financial services sector, which enhances the ease of doing business in a country. Although there have been recent improvements in the regulation of the Nigeria banking sector, it is still very much a cash-based economy as less than 35% of Nigerians have a formal bank account compared to 70% in South Africa.

The fact that Nigeria is less developed than South Africa means that there are more growth prospects in it. Minor investments can lead to substantial economic gains and growth in Nigeria compared to South Africa that already has lots of economic infrastructure in place.

Similarly, Nigeria’s significantly higher population size can be harnessed to contribute positively to economic growth. While Nigeria is likely to regain its position as the largest economy in Africa due to its population advantage in the medium to long term, the ranking of African economies is likely to be determined by exchange rate movements in the short term.

Time to go to Work

Fact remains that Nigerian government received unearned glory for posting huge GDP numbers after it rebased its GDP exercise. But the country is not able to get away with the responsibilities and implications that ride on back of huge GDP size. Nigeria can take a clue from the Chinese model by refusing the “quick fix” syndrome (aspirin) and embark on hard long term permanent solution (vitamin). This will be achieved first, by decisively dealing with the scourging incidences of corruption, build firm institutions and embark on sectors specific reforms to open up long term investments. This should be complimented by aggressive investment (which should be driven by reforms) in infrastructure, especially electricity and transportation.

Dr Vincent Nwani is a leading macroeconomic, business and policy analyst. He holds Doctor of Philosophy (Ph.D) in Economics and currently the Director, Research and Advocacy at the Lagos Chamber of Commerce and Industry (LCCI).

http://vincentnwani.com/2016/09/war-gdp-size-nigeria-vs-south-africa/

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How Christians Can Stay Connected to Their Faith During This Lenten Period

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Lenten Period

It’s that time of year again, when Christians come together in fasting and prayer. Whether observing the traditional Lent or entering a focused period of reflection, it’s a chance to connect more deeply with God, and for many, this season even sets the tone for the year ahead.

Of course, staying focused isn’t always easy. Life has a way of throwing distractions your way, a nosy neighbour, a bus driver who refuses to give you your change, or that colleague testing your patience. Keeping your peace takes intention, and turning off the noise and staying on course requires an act of devotion.

Fasting is meant to create a quiet space in your life, but if that space isn’t filled with something meaningful, old habits can creep back in. Sustaining that focus requires reinforcement beyond physical gatherings, and one way to do so is to tune in to faith-based programming to remain spiritually aligned throughout the period and beyond.

On GOtv, Christian channels such as Dove TV channel 113, Faith TV and Trace Gospel provide sermons, worship experiences and teachings that echo what is being practised in churches across the country.

From intentional conversations on Faith TV on GOtv channel 110 to true worship on Trace Gospel on channel 47, these channels provide nurturing content rooted in biblical teaching, worship, and life application. Viewers are met with inspiring sermons, reflections on scripture, and worship sessions that help form a rhythm of devotion. During fasting periods, this kind of consistent spiritual input becomes a source of encouragement, helping believers stay anchored in prayer and mindful of God’s presence throughout their daily routines.

To catch all these channels and more, simply subscribe, upgrade, or reconnect by downloading the MyGOtv App or dialling *288#. You can also stream anytime with the GOtv Stream App.

Plus, with the We Got You offer, available until 28th February 2026, subscribers automatically upgrade to the next package at no extra cost, giving you access to more channels this season.

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Turning Stolen Hardware into a Data Dead-End

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Apu Pavithran Turning Stolen Hardware

By Apu Pavithran

In Johannesburg, the “city of gold,” the most valuable resource being mined isn’t underground; it’s in the pockets of your employees.

With an average of 189 cellphones reported stolen daily in South Africa, Gauteng province has become the hub of a growing enterprise risk landscape.

For IT leaders across the continent, a “lost phone” is rarely a matter of a misplaced device. It is frequently the result of a coordinated “snatch and grab,” where the hardware is incidental, and corporate data is the true objective.

Industry reports show that 68% of company-owned device breaches stem from lost or stolen hardware. In this context, treating mobile security as a “nice-to-have” insurance policy is no longer an option. It must function as an operational control designed for inevitability.

In the City of Gold, Data Is the Real Prize

When a fintech agent’s device vanishes, the $300 handset cost is a rounding error. The real exposure lies in what that device represents: authorised access to enterprise systems, financial tools, customer data, and internal networks.

Attackers typically pursue one of two outcomes: a quick wipe for resale on the secondary market or, far more dangerously, a deep dive into corporate apps to extract liquid assets or sellable data.

Clearly, many organisations operate under the dangerous assumption that default manufacturer security is sufficient. In reality, a PIN or fingerprint is a flimsy barrier if a device is misconfigured or snatched while unlocked. Once an attacker gets in, they aren’t just holding a phone; they are holding the keys to copy data, reset passwords, or even access admin tools.

The risk intensifies when identity-verification systems are tied directly to the compromised device. Multi-Factor Authentication (MFA), widely regarded as a gold standard, can become a vulnerability if the authentication factor and the primary access point reside on the same compromised device. In such cases, the attacker may not just have a phone; they now have a valid digital identity.

The exposure does not end at authentication. It expands with the structure of the modern workforce.

65% of African SMEs and startups now operate distributed teams. The Bring Your Own Device (BYOD) culture has left many IT departments blind to the health of their fleet, as personal devices may be outdated or jailbroken without any easy way to know.

Device theft is not new in Africa. High-profile incidents, including stolen government hardware, reinforce a simple truth: physical loss is inevitable. The real measure of resilience is whether that loss has any residual value. You may not stop the theft. But you can eliminate the reward.

Theft Is Inevitable, Exposure is Not

If theft cannot always be prevented, systems must be designed so that stolen devices yield nothing of consequence. This shift requires structured, automated controls designed to contain risk the moment loss occurs.

Develop an Incident Response Plan (IRP)
The moment a device is reported missing, predefined actions should trigger automatically: access revocation, session termination, credential reset and remote lock or wipe.

However, such technical playbooks are only as fast as the people who trigger them. Employees must be trained as the first line of defence —not just in the use of strong PINs and biometrics, but in the critical culture of immediate reporting. In high-risk environments, containment windows are measured in minutes, not hours.

Audit and Monitor the Fleet Regularly

Control begins with visibility. Without a continuous, comprehensive audit, IT teams are left responding to incidents after damage has occurred.

Opting for tools like Endpoint Detection and Response (EDR) allows IT teams to spot subtle, suspicious activities or unusual access attempts that signal a compromised device.

Review Device Security Policies
Security controls must be enforced at the management layer, not left to user discretion. Encryption, patch updates and screen-lock policies should be mandatory across corporate devices.

In BYOD environments, ownership-aware policies are essential. Corporate data must remain governed by enterprise controls regardless of device ownership.

Decouple Identity from the Device
Legacy SMS-based authentication models introduce avoidable risk when the authentication channel resides on the compromised handset. Stronger identity models, including hardware tokens, reduce this dependency.

At the same time, native anti-theft features introduced by Apple and Google, such as behavioural theft detection and enforced security delays, add valuable defensive layers. These controls should be embedded into enterprise baselines rather than treated as optional enhancements.

When Stolen Hardware Becomes Worthless

With POPIA penalties now reaching up to R10 million or a decade of imprisonment for serious data loss offences, the Information Regulator has made one thing clear: liability is strict, and the financial fallout is absolute. Yet, a PwC survey reveals a staggering gap: only 28% of South African organisations are prioritising proactive security over reactive firefighting.

At the same time, the continent is battling a massive cybersecurity skills shortage. Enterprises simply do not have the boots on the ground to manually patch every vulnerability or chase every “lost” terminal. In this climate, the only viable path is to automate the defence of your data.

Modern mobile device management (MDM) platforms provide this automation layer.

In field operations, “where” is the first indicator of “what.” If a tablet assigned to a Cape Town district suddenly pings on a highway heading out of the city, you don’t need a notification an hour later—you need an immediate response. An effective MDM system offers geofencing capabilities, automatically triggering a remote lock when devices breach predefined zones.

On Supervised iOS and Android Enterprise devices, enforced Factory Reset Protection (FRP) ensures that even after a forced wipe, the device cannot be reactivated without organisational credentials, eliminating resale value.

For BYOD environments, we cannot ignore the fear that corporate oversight equates to a digital invasion of personal lives. However, containerization through managed Work Profiles creates a secure boundary between corporate and personal data. This enables selective wipe capabilities, removing enterprise assets without intruding on personal privacy.

When integrated with identity providers, device posture and user identity can be evaluated together through multi-condition compliance rules. Access can then be granted, restricted, or revoked based on real-time risk signals.

Platforms built around unified endpoint management and identity integration enable this model of control. At Hexnode, this convergence of device governance and identity enforcement forms the foundation of a proactive security mandate. It transforms mobile fleets from distributed risk points into centrally controlled assets.

In high-risk environments, security cannot be passive. The goal is not recovery. It is irrelevant, ensuring that once a device leaves authorised hands, it holds no data, no identity leverage, and no operational value.

Apu Pavithran is the CEO and founder of Hexnode

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Daniel Koussou Highlights Self-Awareness as Key to Business Success

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Ambassador Daniel Kossouno

By Adedapo Adesanya

At a time when young entrepreneurs are reshaping global industries—including the traditionally capital-intensive oil and gas sector—Ambassador Daniel Koussou has emerged as a compelling example of how resilience, strategic foresight, and disciplined execution can transform modest beginnings into a thriving business conglomerate.

Koussou, who is the chairman of the Nigeria Chapter of the International Human Rights Observatory-Africa (IHRO-Africa), currently heads the Committee on Economic Diplomacy, Trade and Investment for the forum’s Nigeria chapter. He is one of the young entrepreneurs instilling a culture of nation-building and leadership dynamics that are key to the nation’s transformation in the new millennium.

The entrepreneurial landscape in Nigeria is rapidly evolving, with leaders like Koussou paving the way for innovation and growth, and changing the face of the global business climate. Being enthusiastic about entrepreneurship, Koussou notes that “the best thing that can happen to any entrepreneur is to start chasing their dreams as early as possible. One of the first things I realised in life is self-awareness. If you want to connect the dots, you must start early and know your purpose.”

Successful business people are passionate about their business and stubbornly driven to succeed. Koussou stresses the importance of persistence and resilience. He says he realised early that he had a ‘calling’ and pursued it with all his strength, “working long weekends and into the night, giving up all but necessary expenditures, and pressing on through severe setbacks.”

However, he clarifies that what accounted for an early success is not just tenacity but also the ability to adapt, to recognise and respond to rapidly changing markets and unexpected events.

Ambassador Koussou is the CEO of Dau-O GIK Oil and Gas Limited, an indigenous oil and natural gas company with a global outlook, delivering solutions that power industries, strengthen communities, and fuel progress. The firm’s operations span exploration, production, refining, and distribution.

Recognising the value of strategic alliances, Koussou partners with business like-minds, a move that significantly bolsters Dau-O GIK’s credibility and capacity in the oil industry. This partnership exemplifies the importance of building strong networks and collaborations.

The astute businessman, who was recently nominated by the African Union’s Agenda 2063 as AU Special Envoy on Oil and Gas (Continental), admonishes young entrepreneurs to be disciplined and firm in their decision-making, a quality he attributed to his success as a player in the oil and gas sector. By embracing opportunities, building strong partnerships, and maintaining a commitment to excellence, Koussou has not only achieved personal success but has also set a benchmark for future generations of African entrepreneurs.

His journey serves as a powerful reminder that with determination and vision, success is within reach.

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