The Nigerian economy…

Nigeria has the largest economy in Africa ($376b GDP) and is widely acknowledged to have a large and growing absorptive capacity for trade and  investment as outlined across some sectors

  • $400m acquisition of Chi Foods by Coca Cola
  • $100m investment in Andela (Investors include – CZI, Al Gore, etc)
  • $80m investment in Belloxi by ACA and Deutsche Investitions (DEG)
  • $35m investment in Indorama fertilizers by Emerging Africa Infrastructure Fund (EAIF)
  • 25% stakeholding investment in Leadway Assurance by SwissRe

Several sectors of the economy are sizable and present attractive opportunities for investors including but not limited to agriculture , healthcare , real estate and construction , solid minerals , power, transportation , oil & gas, information communication & technology, arts & entertainment, alternative energy


Agriculture

  • Largest contributor to GDP at 23% and valued at $89,742 million
  • 84 million hectares of arable land, of which only 40% is cultivated – inefficiently
  • 13 national strategic export products and services to replace oil have been identified
  • Agriculture presents a US$7.76 billion opportunity in import substitution and the sector requires an investment of about US$2.4 billion annually

Healthcare

  • A rapidly increasing population with high demand for healthcare services but very limited supply.
  • $1 billion annually spent on medical tourism – 60% focused on cardiology, orthopedics, renal dialysis issues and cancer.
  • Opportunities in the health care sector include hospital, provision of health insurance services, drug manufacture, organised retailing and many others


Solid Minerals

  • Currently accounts for only 0.5 percent of Nigeria’s GDP – Potentially worth hundreds of trillions of dollars
  • Seven strategic minerals have been prioritized : Coal, Bitumen, Limestone, Iron Ore, Barites, Goldand Lead/Zinc.
  • Incentives have also been put in place for to companies interested in mining and processing operations

Real Estate & Construction

  • An estimated GDP contribution of $48,078 million.
  • Opportunities for investment include Real Estate Investment Trusts ('REITS'), the development of condominiums (also informal 'condos') for commercial and residential purposes, and the development of collaborative workspaces as opposed to traditional office space

Information Communication Technology

  • An estimated market potential of $43,439.2 million
  • Broadband penetration stands at 30.9 per cent  and set to rise – Facebook has announced a metro fibre infrastructure project in 2 states
  • Large and growing FINTECH ecosystem, which is receiving international interest.

Transportation

  • An estimated sector size of $7,633.9 million
  • Ongoing construction of strategic transport infrastructure -  Lagos-Ibadan Railway, Lagos-Abeokuta railway,
  • Concession of the Lagos & Abuja Airport
  • Opportunities for inland waterways alternatives

Power Sector

  • An estimated industry size of $2,857.55 million
  • Reforms in this sector have largely failed and significant investments required to tap the opportunity
  • ~30GW to 175GW of pawer required which will require ~$40-200 billion in investments to address

Oil & Gas

  • Estimated size of $44,097 million
  • Over 40% of gas resources is flared
  • The chemical industry virtually undeveloped
  • Domestic gas infrastructure is needed  

Arts & Entertainment

  • An estimated sector size of $882.2 million and growing
  • FGN recently provided a N1.8bn (US$5.9m) grant to support the film industry via the “Project Act Nollywood” initiative
  • Increasing global recognition of the Nigerian fashion and arts industry

Alternative Energy

  • 70% of households & SME’s either off grid or on bad grid with a high willingness to pay - ~$10 billion off grid opportunity estimated
  • Off grid investment opportunities in high density low income urban areas – makes economics more attractive
  • Energy demand is expected to double over the next 10 years

Natural Economic Resources are also abundant in each of the 36 States


Historically, the US has been one of Nigeria’s major trading and investment partners


  • Nigeria’s trade with the United States rose to $7.66 billion through the first 11 months of 2018
  • Nigeria’s exports increased 29.06% while imports fell 20.17%. The U.S. deficit with Nigeria was $2.74 billion
  • Nigeria ranked No. 49 among the United States’ top trade partners through the current period
  • Non-oil Nigerian exports to the U.S. under AGOA include leather, prepared vegetables, beans, cocoa paste, spices and cassava. etc.
  • The stock of U.S. Foreign Direct investment (FDI) in Nigeria stood at $5.8 billion in 2017, a 32.8% increase from 2016

See our strategic relationships