Nigeria: An Investment Destination of Choice
The economy is endowed with great economic potentials and is expected to be one of the world’s top economies by 2050. A member of the MINT countries, and one of the next four largest emerging and developing economies after the BRIC countries. All these are clear attestation to the potentials inherent in the economy.
The economy possesses one of the largest internal markets in the world. With a growing population of over 193 million, the economy presents huge opportunity for market seeking investments. According to Global Retail Development Index, Nigeria’s retail sector made a national sale of over US$125 billion in 2016. This was made possible by a middle-class population that has grown by over 600% in the last few years, and now represents over 38% of the population of the country.
The Economic Recovery and Growth Plan (ERGP); the national medium term economic plan for 2017 – 2020 has a vision for sustained inclusive growth that is anchored on:
i. a stable macroeconomic environment
ii. agriculture and food security
iii. energy sufficiency (power and petroleum products)
iv. improved transportation infrastructure
v. industrialization focusing on small and medium scale enterprises
Overall, the Plan projects to grow the economy at an annual average of 4.62%. This is to be achieved by focusing on growth sectors – sectors that have consistently contributed significantly to the GDP and attracted investors interests, both domestic and foreign.
The commitment to improve the enabling environment has seen an improved ranking of the economy by the World Bank in the 2018 Doing Business Report. The economy achieved a 24 places upward movement to being ranked 145 out of 190 countries in the process recording positive change in seven out of the ten indicators. Efforts are on to ensure this trend is sustained to ensure the country makes top 100 ease of doing business ranking by 2020.
Please be assured that Nigeria is not just open for business, Nigeria is ready for business!
Why Invest in Nigeria?
Nigeria has been rated one of the top 10 improved economies by the World Bank for advancing 24 places in the Doing Business Index 2018. Through its Presidential Enabling Business Environment Committee (PEBEC), the country is actively improving its business environment to attract investors.So far, Nigeria has streamlined the business incorporation, tax payment and Visa-on-Arrival processes, improved access to credit, fast-tracked export procedures and eliminated manual baggage searches at its airports. The most populous nation in Africa is open for business, offering the following to investors:
Compelling Reasons to Invest in Nigeria
|Young and Skilled Workforce||Young and skilled workforce with 43% of the population under 15 years, improved labour productivity and over 1.8million new graduates every year|
|High urbanization rate & growing middle class||High urbanization rate with 48% of the population in urban areas and 168mn people forecasted to live in big cities by 2030. Rising consumer spend projected to increase by $94bn in 2025|
|Vibrant financial systems||Robust financial markets with 7 of the top 25 banks in Africa and the second largest Stock Exchange on the continent|
|Improving business conditions||Implementation of a strategic plan to tackle short term macro-economic challenges. Active anti-corruption campaign and decline in casualties from security incidents.|
|Abundant land & natural resources||84million hectares of arable land, 9th largest gas reserves and 44 exploitable minerals in proven commercial quantities|
|Largest market in Africa||Largest market in Africa with proximity to other west African markets. Land borders with Benin, Cameroon, Chad & Niger & 5 international airports|
|2nd biggest cluster of large companies||56 companies with revenues over $500mn and 2nd largest cluster of large companies in Africa|
|56 companies with revenues over $500mn and 2nd largest cluster of large companies in Africa||Investor friendly climate with strong appetite to encourage private sector investments. Generous statutory incentives with 14 Free Trade Zones|
|Official name||Federal Republic of Nigeria|
|Country area||923,768 square kilometres|
|Population||193 million||2016 estimate|
|Administrative structure||36 States and 1 Federal Capital Territory|
|Other national language(s)||Hausa, Igbo, Yoruba|
|GDP (USD)||457.13 billion||2016|
|GDP per capita (USD)||2,457.80||2016|
|Exchange rate (USD)||305.74||March 2018|