Nigeria

Long-awaited reforms to Nigeria’s oil industry may be gaining momentum again. Investors are seeking clarity about the new structures to be introduced by the passage of the Petroleum Industry Bill (PIB), now in its fifth year of deliberations. The legislation is expected to increase efficiency and transparency, although some aspects of the code are proving tricky to resolve.

While Nigeria’s economy has posted impressive headline growth rates in recent years, its tourism sector has remained relatively underdeveloped. Largely overlooked by a government and investors with other priorities, the industry currently contributes only a small share of GDP. However, calls for greater investment are increasing in volume, with sector leaders pointing out the potential for growth.

A government decision to enact long-awaited mobile number portability (MNP) regulations, together with infrastructure sharing, should go some way towards improving the quality of service in the Nigerian telecommunications market.

The banking industry in Nigeria has pledged to increase lending to the country’s micro, small and medium enterprises (MSMEs) and make loans for the segment more affordable, although details of the initiative, such as how it will be funded, have yet to be finalised.

While the latest assessment of Nigeria’s economy carried out by the IMF maintains a robust forecast for annual growth in 2013, it also highlights the challenges the country faces, led by a struggle to balance a stubborn inflation rate with a reduction in unsustainable subsidies.