Analysis

All aboard: Liberalisation of the rail sector is gathering steam
OBG
plus

The resumption of traffic on initial lines in the southwest of Nigeria from 2011 was a sign of the efforts by an administration intent on liberalising the rail sector. After decades of false starts, the country is finally making progress on upgrading its narrow-gauge rail network and laying new standard-gauge lines. A necessary step on the way to concessioning to private sector operators, much…

Analysis

Cadbury Nigeria: Food and beverage
OBG
plus

THE COMPANY: Cadbury Nigeria manufactures and markets sugar confectionery, food drinks and food products. The company also processes cocoa and exports cocoa products via its subsidiary Stanmark Cocoa Processing. Cadbury Nigeria holds a 90% stake in Stanmark and obtains 100% of its cocoa requirement from the subsidiary. In February 2010 Cadbury Schweppes Overseas, a wholly owned subsidiary of Kraft…

Analysis

Continental divides: Africa’s gas market is becoming increasingly competitive
OBG
plus

Commodities have played a key role in Africa’s growth narrative for centuries, most notably at the Berlin Conference of 1884, when Europe’s imperial powers sought to divide up a continent based in part upon its abundance of natural resources. In the intervening years, African countries have churned out everything from platinum in South Africa to gold in Ghana to oil in Libya. However, over…

Analysis

Creative capitalisation: Private equity has become attractive as an alternative to more traditional funding methods
OBG
plus

Among many industry players, private equity (PE) has rapidly developed as an alternate source of funding for Nigeria’s corporations. Initially dominated by development finance institutions (DFIs), the sector is attracting a growing number of private funds both foreign and, increasingly, domestic, thanks to the rapid growth of pension assets. While channels for divesting remain somewhat constrained,…

Analysis

Delta blues: Violence has subsidided but challenges remain
OBG
plus

In June 2009, when Nigeria’s late President Umaru Yar’Adua offered an amnesty to the gun-toting militants of the country’s main oil producing region, the Niger Delta, many pundits were sceptical. Happily, they have been proved wrong, at least so far. PAST DISTURBANCES: The Niger Delta insurgency had raged since 2006 under the leadership of the Movement for the Emancipation of the Niger…

Analysis

First Bank: Banking
OBG
plus

THE COMPANY: First Bank of Nigeria has diverse operations in the Nigerian financial services industry, rendering it a top financial service provider. The First Bank Group has 717 branches and 1600 automatic teller machines nationwide. It maintains strong ratings across the board and received a BS 25999 certification in Business Continuity Management Systems from the British Standards Institute,…

Analysis

Guaranty Trust Bank: Banking
OBG
plus

THE COMPANY: Guaranty Trust Bank (GTB ank), with its business spanning Anglophone West Africa and the UK, is one of the most respected and service-focused banks in Nigeria. The bank currently has shares outstanding of over N29.4bn ($188.2m), translating to a market capitalisation of over N400bn ($2.56bn). Its assets base has grown to about N1.6trn ($10.2bn), with a shareholders fund of over N235bn…

Analysis

Julius Berger Nigeria: Construction
OBG
plus

THE COMPANY: Julius Berger Nigeria was first incorporated as a private limited company in 1970, but went public in1979 with shares quoted on the Nigeria Stock Exchange (NSE). The company’s principal activities cover planning, design and construction of civil engineering and building works. The company operates in the following sectors: residential and commercial construction, transport, energy…

Analysis

Coming and going: Border and regional infrastructure set for upgrades
OBG
plus

Reliable road connections will prove crucial to a regional ambition to further integrate the free movement of people and goods. Already accounting for some 90% of domestic trade, road transport also facilitates significant trade along Nigeria’s 4047 km of land borders. Ranked 146th of 189 by the World Bank’s Ease of Doing Business index in terms of cross-border trade and 100th of 155 countries…

Analysis

Waterfall of opportunities: A number of improvements in distribution infrastructure are expected in the coming years
OBG
plus

A large endowment of water has been both Nigeria’s blessing and its curse. A nationwide network of perennial and seasonal rivers, inland lakes, ponds and coastal lagoons allow for easy access to 267.3bn cu metres of surface water, complemented by over 51.9bn cu metres of groundwater resources, according to the Nigerian National Planning Commission. However, rapid urbanisation and population growth,…