Nigeria operates the mixed market economic system. In the mixed market economic system, the private ownership of resources is complemented with a substantial public sector ownership and participation in the production of economic activities.
In a mixed economy, the prices of public goods are not often market determined but statutorily fixed in some cases to allow for economic development. The degree of mix varies from one country to another; the capitalist ideology dominates in some instances while the socialist tendencies are more prominent in others.
Mixed economic system provides a form of compromise ground between capitalism and communism. The economy is planned in such a way as to guarantee stability and growth without unduly frustrating free enterprise.
Nigeria is a typical example of a mixed economy, a middle-income, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors.
Nigeria is ranked as the 21st-largest economy in the world in terms of nominal GDP, and the 20th-largest in terms of purchasing power parity. It is the largest economy in Africa; its re-emergent manufacturing sector became the largest on the continent in 2013, and it produces a large proportion of goods and services for the West African subcontinent.
Nigeria ranks sixth worldwide and first in Africa in farm output. The sector accounts for about 18% of GDP and almost one-third of employment. Nigeria has 19 million head of cattle, the largest in Africa.
Nigeria's proven oil reserves are estimated to be 35 billion barrels (5.6×109 m3); natural gas reserves are well over 100 trillion cubic feet (2,800 km3). Nigeria is a member of the Organization of Petroleum Exporting Countries (OPEC). The United Kingdom is Nigeria's largest trading partner followed by the United States.
Nigeria ranks 27th worldwide and first in Africa in services' output.