Nigeria

As evidenced by the constant hum of diesel generators across the country, electricity in Nigeria is a big issue, with low generating capacity having long hampered growth. However, sizable progress has been made over the past month to reverse this trend, with reforms to Nigeria’s power sector underway and efforts to almost double electricity production by the end of 2013 boding well for consumers.

As Africa’s most populous country, its second-biggest economy and a major hydrocarbons producer, Nigeria has often drawn sizable capital inflows but only in recent years have real estate investors taken a studious look at the sector. Supply shortages in some segments, including high-end office space, have pushed prices and rents to highs in some cases above those of developed countries. With more developments coming onto the market in all segments, bottlenecks may ease, but demand looks set to continue its upward trajectory, underpinned by sound economic fundamentals.

A mix of reforms and investments aimed to revive Nigeria’s agriculture industry are set to stimulate growth up and down the production chain and create new jobs that could number in the millions. However, vital to this plan will be efforts to encourage banks to boost lending to crop farmers and large-scale processors, as well as for the government to deliver on its promises.

After a major debt issue by a World Bank organisation, Nigeria’s bond market is expected to pick up momentum in 2013. Hunger for its emerging-market issues have pushed down yields, helping lower the cost of investment in Africa’s second-largest economy.

In spite of the “water no get enemy” mantra that is plastered across the blue and white pipelines of Lagos, Nigeria is in danger of falling short of targets it set more than a decade ago to provide clean water and sanitation to the majority of citizens. However, increased government funding for water management and calls to encourage private investment in treatment plants and distribution systems could help put targets back within reach.

A major policy rethink for Nigeria’s cement sector is set to steer the industry in a new direction aimed at building up an export market and improving competitiveness.