Abuja Gate, Nigeria
Introduction
A New Era starts in Nigeria with a peaceful handover of power from a losing President to a new winner after decades of political instability. This is a turning point for Africa’s largest economy, a country full of material and human resources, that Healy Consultants Group believes is ready to take off! With its large and young population, Nigeria is the 7th most populous country in the world, and with English as the main language, this new political stability should lead to businessmen wanting to increasingly invest in Africa’s largest market.
Challenges
So why is there such cause for optimism when there are obviously a lot of challenges still to be faced? Nigeria has previously been known not only for being the largest oil producer in Africa but also for stumbling from coup to coup, having deeply-rooted corruption, tackling security issues in the Niger Delta and in the North East, and, ironically, oil shortages and poor electricity supplies.
New Era
Muhammadu Buhari, a former military leader who ruled during the dictatorship from 1983 to 1985, is the new president bringing the long awaited change. Now a popular democratic politician, his pledge is to eradicate corruption, with a focus on the oil industry. This approach is reminiscent of the “war on indiscipline” he ran during his dictatorship. He wants to get back to a functional democracy, which is a great opportunity for the Nigerian economy to improve even more.
Myths about Nigeria
There are frequent news reports about Boko Haram’s activities in Nigeria. However, without wishing to understate the impact that this terrorist organization has, it only operates in a fraction of the country, away from the lively business centers of Lagos and Abuja, in rural areas that contribute only 6.6% to the Nigerian GDP.
Secondly, Nigeria may be Africa’s largest exporter of oil but it cannot compare with the oil industry of the Gulf States. Oil and gas only contributes 16% to GDP, the biggest contributions coming from the continuously growing agriculture and services industries. This greater economic diversification is expected to be very beneficial to the future of the Nigerian market, as the nation is not as oil-reliant as the Middle Eastern economies are.
Going Forward
Investors are advised to turn to Nigeria’s up and coming market, particularly to the services and consumer products industries. Here lies the opportunity, with 68% of the population under the age of 29 and with only 7.5% unemployment. Nigeria’s economy has been growing rapidly, with a compound annual growth rate of 7% over 5 years and a GDP growth of 6.3% in 2015. Further, as the Heritage Foundation confirmed: “with 24 commercial banks, the financial sector continues to grow. The Nigerian Stock Exchange, with about 200 companies listed, has become a desirable financing option.” There is no question about it: Nigeria is becoming increasingly open to foreign business opportunities.
How can Healy Consultants Group Help You?
For over a decade, Healy Consultants Group has helped to set up companies in Nigeria and other similar markets for over 13 years. Healy Consultants Group has helped investors to develop their businesses worldwide, while providing support services such as corporate banking services, resident director services, virtual office services, and expedited solutions to get your business up and running. For more information about setting up in Nigeria, or other jurisdictions, you can contact our experts via email at
Useful Links
- Financial Times: https://www.ft.com/cms/s/2/37f8d542-d86c-11e4-8a68-00144feab7de.html#axzz3jkGoeHNo
- The Heritage Foundation: https://www.heritage.org/index/country/nigeria
Healy Consultants Group provides a wide range of corporate services across the world. Email or WhatsApp us now to find out more about our services.