Nigeria

A resurgence in Nigeria’s banking sector has seen assets and profits recover to beat pre-crisis levels as wide-sweeping financial reforms improve the country’s investment image, although there are concerns the renaissance is vulnerable to shocks in the eurozone.

The privatisation of Nigeria’s power sector continues to ease forward, with the Ministry of Power now expecting the process to be completed by the second or third quarter of 2012. Meanwhile, in December the government licensed 20 independent power producers (IPPs), in a move that could significantly boost the country’s power-generating capacity over the next few years.

Emphasising the government’s fiscal prudence, Nigerian President Goodluck Jonathan presented the 2012 federal budget to the National Assembly in mid-December, noting that although spending is expected to rise, the deficit is projected to fall.

After overcoming a number of political obstacles in 2011, Nigeria's government has pledged to keep economic reform momentum strong this year, with steps aimed at encouraging macroeconomic stability, improving investment attractiveness and confronting unemployment.

In a bid to improve the quality of Nigeria’s universities and ensure that more secondary school graduates opt to attend local rather than foreign institutions, the government has unveiled plans to increase the number of campuses and improve funding for state education initiatives.

It is no secret that China has been increasing its economic links with Africa at an exponential rate in recent years, with hydrocarbons-rich countries such as Nigeria among the chief beneficiaries. The previous decade has seen Abuja concluding multibillion-dollar deals with Beijing-based conglomerates across a variety of sectors. While the relationship does have its critics, China’s role in both trade and investment in Nigeria has become increasingly central – and not only in the oil sector.