Nigeria

Online activity is on the rise in Nigeria, with internet subscriber numbers growing and digital transactions increasing, though uptake risks being slowed by gaps in infrastructure.

Low oil prices have hurt Nigeria’s upstream revenues but a long-overdue administrative restructuring of the national oil company and improved production at Nigeria’s refineries should give the country’s downstream hydrocarbons sector a welcome boost. 

Buoyed by improvements in headline indicators, the insurance sector in Nigeria is seeing a steady increase in interest from overseas investors, with strong long-term fundamentals underpinned by low penetration rates in a rapidly expanding population, coupled with moves to broaden product options to include sharia-compliant policies. 

Nigeria’s newly elected President Muhammadu Buhari, who was sworn in on May 29, has signalled his intention to restore confidence in the country’s economy, but as he takes office, a number of pressing issues are demanding his attention, including slowing oil revenues, fuel shortages and rising inflation.

Due in part to a large housing deficit, demand for residences in Nigeria looks set to remain strong, putting the real estate sector on course for a period of sustained growth.

Banks in Nigeria have been given additional time to implement stricter regulations, but challenging market conditions combined with higher capital adequacy ratios are pushing lenders towards the capital markets.