Since precolonial times, Borno state has been a major commercial hub and terminus, lying across the major trade routes between West Africa and the Central, East, and North Africa region.
The most recent state GDP data published by the National Bureau of Statistics (NBS) shows that Borno has a total GDP of $5.175 billion and ranks as the 19th state in Nigeria with the biggest GDP. Among the states in the North-East region, Borno has the largest GDP. It is, however, important to state that this data was published in 2012, and no recent subnational GDP data has been published by the NBS. In 2023, BudgIT released the 2022 State of States report, which put the current GDP of the state at N1.96 trillion.
A survey reports that the state has 67% of its residents above 25 years and are employed in the labour market. The same shows 61% for young adults between 18 and 24. And 40% for children between 12 and 17. This indicates an employed population at various ages.
A large volume of trade between West Africa and other African regions has been conducted through Borno, with massive volumes of goods flowing from, especially the markets of Kano and other northern Nigerian commercial centers, and the Gold Coast (Ghana), to the Congos, Chad, Sudan, Egypt, and Arabia. Even in modern times, the old Kanem Empire still retains its strategic importance, which the insurgency has affected. With Borno enjoying this enviable commercial status under the old trading system, large markets and warehouses flowered across Maiduguri, Bama, and other towns around Lake Chad.
The presence of the Lake has also had huge economic relevance to the region as industries processing agricultural products and numerous other raw materials mainly sourced from and around the Kake sprang up in Maiduguri. Through this, a population of millionaires and billionaires was bred by this trading system over the decades.
Borno State is the 5th largest non-oil and gas economy in Nigeria with an estimated Gross State Product of $5.175 billion. The most prominent feature of the economy is the dominance of agriculture and other informal sector activities including agricultural produce & livestock merchandise, small and micro business enterprises, wholesale and retail, and other artisanal trades.
According to official estimates, the agricultural sector contributes the bulk of GSP and engages directly and indirectly with more than 65% of the population. Crop production is the dominant agricultural activity and Borno State is Nigeria’s 3rd largest crop producer. Major rain-fed crops grown in Borno State include millet, sorghum, cowpea, groundnuts, sesame, rice, maize, sweet potatoes, Bambara nuts, watermelon, cassava, and cotton with a combined annual yield in excess of 2 million MT. Dry-season crops cultivated are tomatoes, pepper, onions, wheat, sugarcane, carrots, cabbage, lettuce, maize, and a host of other leafy vegetables.
Many farmers also engage in the rearing of livestock. Popular livestock species in the state include goats, sheep, poultry, and cattle with estimated populations of 2.3 million, and 1.8 million. 4.2 million and 1.1 million respectively. Out of the 2.24 million hectares’ total land area of the State, about 1.6 million hectares are estimated to be cultivatable during the rainy season while about 308,000 hectares of the land mass is cultivable during the dry season through irrigation. Based on this, over 80% of the State’s total sweet potatoes, Bambara nuts, watermelon, cassava, and cotton with a combined annual yield in excess of 2 million MT. Dry-season crops cultivated are tomatoes, pepper, onions, wheat, sugarcane, carrots, cabbage, lettuce, maize, and a host of other leafy vegetables.
Borno has a vibrant domestic trade sector which is predominantly informal, consisting of thousands of ‘subsistence enterprises’ but with huge contributions to the state economy. In addition to the hundreds of ‘regular markets spread across towns and villages in the state, Borno has a number of specialized markets dealing in large-scale agricultural commodities and livestock merchandising. Borno has links with The Republics of Niger, Chand, and Cameroun which provides opportunities for cross-border trade. The formal wholesale and retail trade sector remains largely untapped.
The State has an attractive Business and Investment Climate in terms, especially, of the requisite infrastructure for economic development such as roads, electricity, and information and communication technology. There are over 2000 km of tarred roads traversing all the nooks and crannies of the state. This improves firms’ access to neighboring states in the north of Nigeria. The construction of the Port Harcourt – Maiduguri rail line passing through Enugu and other several other states make Borno a key link to the Core Northern parts of Nigeria. There are Available GSM Service Providers, Public and Private Radio Stations, and Television Stations.