Analysis

Building blocks: Investing in materials production to meet growing local demand
OBG
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The construction materials segment in Nigeria has expanded dramatically in recent years, primarily as a result of local manufacturers ramping up production in an effort to supply rising construction demand. Large investments have flowed into the cement, steel, aluminium, paint and equipment industries, among other segments. Despite steadily increasing supply, prices for most materials remain high,…

Analysis

Come together: Public-private partnerships are the preferred solution to address transport needs
OBG
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Infrastructure deficits are a problem that has become increasingly common in frontier and emerging markets, and addressing the issue through public-private partnership (PPP) investment deals is a common prescription. Indeed, infrastructure drives based on PPPs are increasingly the preferred method for governments looking to minimise the fiscal burden of capital-intensive projects. Although PPPs…

Analysis

Incubating for success: Tracking efforts to improve prospects for ICT start-ups
OBG
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One key challenge to the development of a vibrant local IT sector in any emerging market is the difficulty small and medium-sized enterprises (SMEs) face in attracting capital, hiring staff and accessing research, and Nigeria is no different in this regard. As in most West African economies, interest rates for commercial loans are well into double digits and SMEs often lack the paperwork to meet…

Analysis

On the block: The government has laid out bidding rounds to release additional spectrum bands
OBG
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As technological advances drive up demand for wireless telecoms services, including television, satellite and mobile data, the growth of these services is constrained by the amount of radio frequency spectrum available. According to the GSM Association (GSMA), mobile internet accounts for 58% of all web traffic in Nigeria, well above the 10% global average, and as a result of low fixed-line penetration,…

Analysis

Calling all consumers: Retail space seems primed for growth
OBG
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Driven by rising incomes and steadily increasing consumer sophistication, Nigeria’s retail real estate market is poised for considerable expansion over the course of the coming decade. While the country’s formal retail sector is still in its infancy, the potential for future growth is clear, given the large size of its 170m-strong consumer market along with the steady expansion in headline…

Analysis

Infrastructure upgrades: Port facilities will be given a boost to expand transit shipment, increase volumes and limit evasion
OBG
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Given the expansion plans at both Abidjan and Tema ports in nearby Côte d’Ivoire and Ghana, the rollout of several new public-private partnership (PPP) facilities offers vital potential to significantly improve operations at Nigeria’s ports. Indeed, the picture in recent years is one of improving infrastructure and port capacity. “Soft infrastructure at Nigeria’s ports is no longer the…

Analysis

On the road: Developing an integrated passenger transport system will be to tackling congestion
OBG
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It is perhaps unsurprising that Nigeria’s transportation problem is most acute in Lagos, the country’s largest city with a population that is estimated to range from anywhere between 10m and 17m people. The transportation challenge is one of the top priorities for the city and for the state of Lagos, which governs an area that includes the city proper and its environs, due to the inchoate urban…

Analysis

Rail revival: Planned infrastructure upgrades are set to give new life to a hitherto declining mode of transport
OBG
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Rehabilitating Nigeria’s railways is a key element in the country’s overall vision to turn its transportation infrastructure from an obstacle into an opportunity. Whilst railroad services never completely disappeared in the country, the more than five decades since independence have been mostly characterised by a slow decline in capacity, as underfunded agencies grappled with deteriorating…

Analysis

The sky’s the limit: New terminals and a growing number of aircraft are set to boost aviation
OBG
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The current infrastructure drive under way in Nigeria includes both upgrades and expansions to the country’s existing airports. Beyond the need to keep up with demand for passenger travel and cargo services, Nigeria has several specific goals in mind for its aviation sector: boosting government revenue from its facilities, providing easier access to export markets for those currently situated…

Analysis

To your doorstep: Rising internet penetration is making online shopping a viable option
OBG
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The overwhelming success of the few large malls opened so far testifies to pent-up demand for modern, formal shopping in Nigeria. With 33% of Nigerians having regular internet access according to the World Bank, the potential for e-commerce is significant. Yet Lagos has only three malls of more than 20,000 sq metres compared to 74 in South Africa’s largest city, primarily due to challenges in…