Nigeria

Although penetration rates continue to lag behind those of other formal financial services, Nigeria’s insurance sector offers plenty of room for expansion over the coming years. Even so, there are a number of factors that could hamper growth and restrict earnings.

President Goodluck Jonathan and his economic team began 2012 with a renewed focus on their Agenda for National Transformation (ANT), targeting wholesale reform across a range of economic sectors.

Given the country’s comparatively low visitor figures, and its drive to diversify away from primary sector activity, Nigeria has long stated its desire to develop its tourism industry, although it will need to tackle challenges in human resources and training if it is to keep pace with the competition.

As the latest step in the country’s long march to encourage diversification, the Nigerian government has been facing a growing chorus of calls to step up efforts to support the manufacturing sector and reverse the decline the labour-intensive industry has been experiencing for some 20 years. However, any turnaround will require high levels of investment from both the public and private sectors.

Now four years on from the 2008 banking crisis, Nigeria’s financial sector is continuing to reap the benefits of the reforms that followed, with rapid growth in profitability and a significant decline in bad debt.