Page 13 - one_africa18

Nigeria Market Access INVESTOR’S FILE
& Competitive Advantage

Today it is the largest economy in Africa and attracting great attention for investment
funds. Find out why...

NIGERIA is the largest economy in Africa and, according to Goldman provide guarantees against nationalisation, expropriation or compulsory
Sachs, one of the next 11 countries with a high potential of becoming acquisition of a foreign investor’s company or assets, provide incentives for
among the world’s largest economies in the 21st century. The most investments, and create effective dispute resolution process (investor-state
populous country in Africa with 188.5 million people, this is estimated to arbitration) not subject to local courts.
grow to 480 million by 2050. It has a youthful population where more than
36% are between 15-35 years of age. n Economic Snapshots

Although the largest economy in Africa, Nigeria is still a middle income,
mixed economy and emerging market, with expanding financial, service,
communications, technology and entertainment sectors. Nigeria is ranked
as the 21st largest economy in the world in terms of nominal GDP, and
the 20th largest in terms of Purchasing Power Parity. Economic reforms
initiated since the return to civilian rule (in 1999) have put Nigeria back
on track towards achieving its full economic potential. Nigerian GDP at
purchasing power parity (PPP) has almost tripled from $170 billion in
2000 to $451 billion in 2012, although estimates of the size of the informal
sector (which is not included in official figures) put the actual numbers
closer to $630 billion.

Nigeria’s manufacturing sector is the third largest on the continent and
produces a large proportion of goods and services for the West African
sub-region. The recent resizing of the Nigerian economy show that other
sectors of the economy, such as telecommunications, banking and the film
industry, are rapidly growing contributors to Nigeria’s GDP.

Nigeria’s petroleum sector accounts for about 90 percent of Nigeria’s foreign
income earnings. Although the petroleum sector is important, it remains in
fact a small part of the country’s overall vibrant and diversified economy.
The largely subsistence agricultural sector has not kept up with rapid
population growth, and Nigeria, once a large net exporter of food, now
imports a large quantity of its food products, though there is a resurgence
in manufacturing and exporting of food products.

n Market Access

Nigeria is well located in the Gulf of Guinea with direct freight access
to North America, South America, Europe, and Asia. Nigeria can be the
production hub to access the developed markets of North America and
Europe, which have a combined GDP of over US$43 trillion.

n Priority Sectors

• Agriculture
• Power
• Solid Minerals
• Healthcare
• Automotive
• Packaging
• Manufacturing
• Business Process Outsourcing (BPO)

n Promotion & Incentives for Foreign Investment Primary info source: Invest in Nigeria website:
https://www.nipc.gov.ng/
The economic policies of the federal government of Nigeria have been
geared towards creating a private sector-driven free-market economy,which
encourages indigenous participation while promoting foreign investments.
Foreign nationals may invest freely in any enterprise in Nigeria (except
those listed on the negative list), and thereafter freely repatriate capital,
interest,profits or dividend in freely convertible currency.Nigerian laws also

11

ONE Africa 2018