Nigeria - Country Information
Large and growing population
Nigeria has the largest population in Africa and the ninth largest in the world, at an estimated 190.6 million in 20171. Population growth is expected to remain high in the next decade, at more than 2.5% per year on average. This makes the country extremely attractive for consumer-based businesses. While job creation and housing provision pose short-term challenges, Nigeria stands to gain if it can harness its youthful and growing population to boost economic development.
Abundant natural resources
Nigeria has a wealth of natural resources, including arable land, coal, iron, limestone, natural gas, ore, petroleum, tin and zinc. Thanks to local availability, these raw materials are cheaper in Nigeria, making it an attractive location for related businesses.
Friendly business climate
The government has created an investment-friendly climate for business and industrial ventures. Administrative and bureaucratic procedures have been made much simpler and processes are smoother. The current administration prioritises making the economy freer, to attract investors. In particular, Nigeria plays a key role in the Continental Free-Trade Area (CFTA), scheduled to be signed in March 2018, which will increase intra-regional trade by removing tariffs on most goods for African countries.
Venture to Nigeria
Nigeria is Africa’s leading oil producer, with oil and gas accounting for about 95% of export earnings and 80% of government revenue2. In light of low oil prices, the government has pledged to diversify the economy and reduce dependence on the oil sector. Non-oil growth has been driven by sectors such as agriculture, construction, hotels and restaurants, and telecommunications.
In the long term, agriculture and manufacturing reforms are likely to bring about positive change. By 2050, Nigeria is projected to be a “top 15 global economy,” just behind the UK, France and Germany3.
1 and 2: CIA World Factbook, 2017
3: PwC report, 2017