New publication by Oxford Business Group highlights challenges and long-term investment opportunities
Nigeria, October 2016: Nigeria’s plans for tackling a difficult period of slower growth triggered by the impact of low global oil prices are explored in a new report just launched by the global publishing, research and consultancy firm Oxford Business Group (OBG) at the Nigeria Economic Summit Group (NESG) annual conference this week and introduced to the business community.
Exchange rate uncertainty and other weaknesses in the economy have exacerbated Nigeria’s economic problems, pushing down growth from 6.2% in 2014 to 2.8% last year, according to the country’s National Bureau of Statistics.
The Report: Nigeria 2016 explores the government’s drive to stimulate growth by channelling additional funding into targeted sectors of the economy, such as transport, power generation and transmission, health and education. Overhauling the country’s road network and improving the national pipeline network both feature on its agenda.
The publication also provides coverage of the Buhari administration’s wide-ranging plans to tackle corruption and government waste through measures that include restructuring initiatives for key public institutions.
Forecasts suggest that petroleum and its by-products will continue to dominate Nigeria’s economy for several years, despite an ongoing diversification drive. OBG’s publication charts the measures implemented by the government aimed at boosting non-oil exports, which include fiscal incentives for targeted industries, together with a N300bn ($947.1m) export stimulation fund for the Nigerian Export-Import Bank. The report also shines a spotlight on non-oil exporters that are delivering strong performances, despite lower overall international sales, such as the vehicle and vehicle parts sector.
The Report: Nigeria 2016 contains a viewpoint by President Muhammadu Buhari, together with a detailed, sector-by-sector guide for investors.
It also features a wide range of contributions from other leading representatives, including the Minister of Finance Kemi Adeosun, the Governor of the Central Bank of Nigeria Godwin Emefiele, the Managing Director of the IMF Christine Lagarde and Razia Khan, the Chief Economist, Africa, at Standard Chartered.
Andrew Jeffreys, OBG’s CEO and Editor-in-Chief, said that while the problems Nigeria faced shouldn’t be underestimated, the government’s budget for 2016 signalled a commitment to spurring growth in what has traditionally been one of the continent’s most popular investment destinations.
“Business leaders who are already aware of Nigeria’s economic potential and abundant resources will note with interest the government’s plans to increase capital spending in the current fiscal year and beyond,” he said. “With the creation of jobs and further diversification of the economy both priorities for Nigeria, the opportunities for investors who are prepared to stay for the long haul are considerable.”
OBG’s Managing Editor for Africa Robert Tashima agreed that even though challenges, ranging from a recession to a depreciating currency and troubles in the Delta, presented problems for Nigeria, the country still held expansive long-term potential in a number of sectors. “The coming months will require canny navigational skills from investors,” he said. “However, Nigeria continues to offer attractive fundamentals, including a large population, fast-rising consumption and a robust private sector.”
The Report: Nigeria 2016 marks the culmination of almost a year of field research by a team of analysts from Oxford Business Group. The publication assesses trends across the economy, including macroeconomics, infrastructure, banking and other sectoral developments. The Report: Nigeria 2016 has been produced with the Nigeria Investment Promotion Commission, the Nigerian Economic Summit Group, Ajumogobia and Okeke, FBN Capital and SIAO. It is available in print and online.
To read The Report Nigeria 2016, please go to www.oxfordbusinessgroup.com/nigeria-2016
About Oxford Business Group
Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic intelligence on the markets of Africa, the Middle East, Asia, the Caribbean, Latin and Central America. Through its range of print and online products, OBG offers comprehensive and accurate analysis of macroeconomic and sectoral developments, including banking, capital markets, insurance, energy, transport, industry and telecoms.
The critically acclaimed economic and business reports have become the leading source of business intelligence on developing countries in the regions they cover. OBG’s online economic briefings provide up-to-date in-depth analysis on the issues that matter for tens of thousands of subscribers worldwide. OBG’s consultancy arm offers tailor-made market intelligence and advice to firms currently operating in these markets and those looking to enter them.