Nigeria

Following last year’s successful privatisation programme, Nigeria is looking to increase electrification rates, stepping up investments in transmission infrastructure while also boosting generation capacity, though it will likely be well into the next decade before connectivity targets are reached.

Nigeria’s recent GDP re-basing may have brought attention to the larger-than-expected role the services sector plays in driving growth, but in recent weeks, it has been the hydrocarbons industry taking centre-stage. A major initial public offering (IPO) in May combined with a pair of significant investment deals have highlighted the rising profile of the country’s indigenous firms.

The recalculation of Nigeria’s GDP may encourage more foreign investment and further development, though the rebasing process has also underscored the need for more of this newly identified wealth to be invested in structural reforms to ease income inequality and boost social and economic inclusiveness.

A favourable macroeconomic outlook – aided by a growing population, infrastructure investments and rising consumption – is driving the expansion of Nigeria’s cement market, with a number of large investments in capacity in the offing.

The completion of a recent spectrum auction in Nigeria represents a big step forward for the mobile broadband networks. However, given the challenges and costs of maintaining the infrastructure for high-speed access, there is increasing attention from both the public and private sector to reducing overheads and improving infrastructure efficiency.

A new report from the IMF says growth in Nigeria will accelerate this year, but the economy still has a range of structural weaknesses, including rigid labour markets and insufficient power supply.