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. Policy moves over the past two decades have enabled young Nigerian companies to acquire and develop oil and gas blocks, build pipelines and distribution networks, and soon, based on the current project pipeline,…
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. Policy moves over the past two decades have enabled young Nigerian companies to acquire and develop oil and gas blocks, build pipelines and distribution networks, and soon, based on the current project pipeline,…
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 – require…
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. In 2016…
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 in a foreign…
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 in non-performing…
Nigeria is the 14th-largest country in Africa, and with a population of 189m people and home to more than 250 ethnic groups, the country is rightly famed for its cultural diversity. A successful presidential election in 1999 ushered in a period of relative stability, with nearly 18 years of democratic polls. This greatly improved political situation has brought economic dividends, particularly between…
Nigeria is moving forward with strategies to improve the business and investment environment in the country following the launch of a new package of reforms designed to support small businesses and clear hurdles to growth. On October 3 the federal government unveiled its second 60-day national action plan (NAP 2.0) – which forms part of the broader Economic Recovery and Growth Plan 2017-20 –…
On mergers and acquisitions, project financing, and financial technology in Nigeria Where do you see the biggest opportunities for mergers and acquisitions (M&As) in Nigeria? ABUBAKAR JIMOH: In recent years, a significant level of M&As have been recorded in the Nigerian economy. In terms of deal size, the sectors with the most M&A activity are oil and gas, and financial services.…
On improving tax collection What measures have had the greatest impact on boosting tax revenues in Lagos? AYODELE SUBAIR: There have been two major laws introduced which turned things around: the Lagos State Revenue Administration Law of 2006, and the Hotel Occupancy and Restaurant Consumption Law (HORCL). The first granted Lagos tax administration autonomy, so to speak, as before it used to fall…
