The past few years have been difficult for Africa’s largest economy, with a fall in oil prices from more than $100 per barrel in 2014 to roughly $50 per barrel at the start of 2017 having damaging consequences for Nigeria. The fall in revenues from the country’s largest export-earner led to a slowdown in investment throughout the economy, a ballooning of federal government debt, a rise…
Despite the challenges to Nigeria’s economy, many of the country’s banks enjoyed healthy revenue and asset growth in 2016. Asset quality issues continue to hinder the sector, but banks have found avenues outside of lending activities to expand their balance sheets. One area of growth stemmed from the devaluation of the naira in 2016. According to the IMF, 45% of loans held by banks are…
Given the difficulties experienced by Nigeria’s economy in 2016, every sector grappled with challenges, and capital markets were no exception. From external pressures such as low oil prices and US interest rate shifts, to internal factors such as depreciation and slowing oil production, investors in Nigeria had to account for a range of risks. These factors had a clear impact on inflows.…
With many competing firms offering a robust suite of product offerings and related services, the insurance market in Nigeria is vibrant and growing. Like many sectors across Africa, however, domestic insurers often lack the capacity to underwrite the majority of risks stemming from the main drivers of the economy. Nigeria’s primary revenue generators – oil and gas, and the mining sector…
As Africa’s largest oil producer, Nigeria is a key member of the Organisation of the Petroleum Exporting Countries (OPEC) and the world’s fourth-largest exporter of liquefied natural gas (LNG). In addition to being a traditional heavyweight in terms of output, Nigeria’s energy sector is also notable for its early success in building local content in upstream activity. Policy moves over…
As Africa’s largest and most populous economy, with a vibrant private sector and vast natural resources, Nigeria has strong potential for growth. However, that potential is consistently hindered by an underdeveloped utilities sector. Providing utilities remains one of Nigeria’s greatest challenges, as a sizeable portion of the population is still without reliable access to power, clean…
Comprising major food and consumer staples producers, Africa’s largest cement manufacturers, and a handful of heavy industries and light manufacturing, Nigeria has a diversified industrial sector. According to data from the Nigerian Investment Promotion Commission (NIPC), the country is home to the largest manufacturing sector on the continent and, along with Egypt, South Africa and Morocco,…
Interview:CHIDI OKORO, THEO WILLIAMS AND GEORGE POLYMENAKOS What is the biggest bottleneck facing fast-moving consumer goods (FMCG) production in Nigeria? CHIDI OKORO: The biggest by far is access to shoppers. With a fragmented traditional trading channel structure, the cost of reaching retail outlets is high. This is exacerbated by the inadequate transportation system across roads and rivers.…
Mining is big business in Africa and a cornerstone of many national economies. It accounts for a quarter of GDP in the Democratic Republic of the Congo, and in Botswana the figure has been as high as 40%. Yet despite the huge potential for deposits of precious metals, base metals, coal and iron ore, the Nigerian mining sector contributed only 0.3% to GDP in 2015. Over the last 10 years, attempts…
As Nigeria’s economy contracted in 2016, the country’s agriculture sector took on even more importance. Long touted as a remedy to the West African nation’s dependence on oil, agriculture is now seen as a potential economic saviour. Before hydrocarbons became the main source of economic growth and export revenue, agriculture dominated the local economy. Although Abuja is also keen to…
