In her essay, first published anonymously in The Times of London on January 8 1897, Flora Shaw coined “Nigeria” as a shorter alternative to the widely named “Royal Niger Company Territories” – deeming it “inconvenient” and to an extent a “misleading” name for the then-British protectorate. Today, in contrast, “Nigeria” is too small a word to encompass its 164.75m (estimate…
With its large and growing population – estimated by IMF to reach around 165m in 2012 – and extensive hydrocarbons resources, Nigeria holds significant political power in the region and on the international stage. However, maintaining stability within this diverse country of around 250 ethnic groups remains an enormous challenge for the country’s leaders. POLITICS & HISTORY: On May…
Although depressed growth in developed economies has added a level of uncertainty to Nigeria’s macroeconomic outlook, it has also contributed to its attractiveness. As one of the fastest-growing economies in the world, according to the Federal Ministry of Finance (FMF), the country is certainly appealing to foreign investors in large part due to its vast potential. In 2005 US investment bank…
Its demographics, low banking penetration and rapid economic growth relative to developed markets should make Nigeria fertile ground for financial services. Yet although the continent’s most populous nation also boasts some of its largest banks by assets, just 21% of its population of about 165m is banked, according to a 2011 study by the Central Bank of Nigeria (CBN). Some 93% of Nigerians cannot…
With impressive economic growth rates in recent years, Nigeria is in need of transport infrastructure befitting an emerging powerhouse. Despite heavy congestion in its urban areas and seaports, the GDP of West Africa’s largest economy – and the continent’s most populous country – grew by an annual average of 7.6% from 2003 to 2011. That this was done with such a heavily used system and…
While demographics alone should mean there is plenty of room for growth, the industry’s recent performance has not been sufficient for it to reach the critical mass necessary to improve its image with clients and enhance its capacity to underwrite large risks. According to the Nigerian Insurance Association (NIA), insurance penetration (total premiums to GDP) in the West African giant reached…
Aspiring to join the ranks of the world’s top-20 economies by 2020, Nigeria’s growth trajectory is currently being impeded by one thing above all others: its small and dated electric power system. Government officials are aware of this, however, and solutions are high on the national “to-do” list, with some remedies already well in progress. POWER VACUUM: According to figures from a…
Recent years have been full of swings for investors in Nigeria’s stock market, the continent’s third largest by capitalisation (after Johannesburg and Cairo). While investors welcomed what they saw in 2010 as a fleeting recovery in markets, 2011 was more challenging, on the back of sustained volatility in global markets and fallout from the 2008 margin lending crisis. A search for yields has…
An undeniable giant in the energy world, Nigeria faces some challenges in terms of performance and progress of its hydrocarbons sector. These include broad issues like politics and insurgency, in addition to the specifics of regulating a large energy sector. Its natural gas is even more abundant than its oil, but Nigeria has so far failed to realise more than a fraction of its gas potential. However,…
In the 1960s Nigeria was an agricultural powerhouse. Its warm tropical climate, fertile land and ample water resources provided by the Niger and Benue rivers made it an ideal location to grow a range of crops. By 1961 the country controlled 42% of the global trade in groundnut oil, 27% of the world’s palm oil industry and 18% of its cocoa trade, according to data from the UN Food and Agriculture…
