Retail
From The Report: Nigeria 2019
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Following a decade-long period of growth, in which formal retail supplies more than tripled, Nigeria’s retail sector faced several challenging years. Macroeconomic volatility, a recession in 2016 and the naira’s rapid depreciation impacted retailers and consumers alike. Likewise, both purchasing power and household incomes declined, while input costs and vacancy rates simultaneously increased. Despite these recent economic challenges, the country remains one of Africa’s most attractive retail investment destinations for local and foreign investors. As retailers move to capitalise on opportunities in the sector, stakeholders anticipate that developers will increasingly shift their strategy towards smaller, localised retail developments offering essential grocery, pharmaceutical and clothing items. In the longer term resurgent middle-class growth, supported by improving oil prices and strengthening macroeconomic fundamentals, should see a return to large-scale, high-end regional and mixed-use retail centres.

This chapter contains an interview with Olaide Agboola, Managing Partner, Purple Capital.

Articles from this Chapter

Overview

Long-term potential: Underlying fundamentals drive growth in the retail market
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Following a decade-long period of growth, in which formal retail supplies more than tripled, Nigeria’s retail sector faced several challenging years. Macroeconomic volatility, a recession in 2016 and the naira’s rapid depreciation impacted retailers and consumers alike. Likewise, both purchasing power and household incomes declined, while input costs and vacancy rates simultaneously increased. Despite these recent economic challenges, the country remains one of Africa’s most attractive…

Analysis

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Nigeria’s e-commerce sector holds considerable potential for future growth, with sales set to double between 2016 and 2020. In recent years major African e-retailers have established operations in the country, with Zinox Technologies’ recent acquisition of Konga highlighting the sector’s growth potential and attractiveness to foreign investors. However, these companies face considerable challenges, including cybersecurity concerns and difficulties with cash-on-delivery, which is a…

Interview

Unique engagement: Olaide Agboola, Managing Partner, Purple Capital, on attracting investment and developing the sector
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Interview:Olaide Agboola What potential do you see for developing the retail market post-recession? OLAIDE AGBOOLA: Since the economic recovery beginning in the second half of 2017, the retail and real estate sectors are attracting more interest from international investors again. The Nigeria Autonomous FX Window, launched in April of that year by the central bank, was also very much responsible for this recovery. However, the retail sector took a hit during the recession, with several players…