Nigeria

Major changes are in the works for the Nigerian aviation sector, with plans to upgrade a number of airports. Officials have also called for a review of the government’s airport concession agreements, with an aim to generate more revenue to support further development of the country’s air travel infrastructure.

Nigeria’s new Sovereign Wealth Fund (SWF), to be established with an initial $1bn in investment, should significantly improve the country’s management of its crude oil earnings. The launch of the new fund, announced recently by the minister of finance, should also provide greater economic stability, improve national infrastructure and boost investor confidence.

As the most populous country in Africa – and one recently experiencing some of the highest and most sustained GDP growth anywhere in the world – Nigeria is going through the early days of a major boom in its retail sector.

After only one year operating, NTA-Star TV Network, a joint venture between state broadcaster Nigerian Television Authority (NTA) and Chinese media company StarTimes, has attracted some 400,000 subscribers to its digital terrestrial television (DTT) service. The company, currently in several major urban areas, plans to expand to more markets across the country within the next five years.

With local refineries unable to meet domestic demand, Nigeria – Africa’s largest exporter of crude oil – currently imports more than 70% of its petroleum needs. However, this could change if plans to build three new refineries are realised.

More robust enforcement of mandatory insurance laws is set to increase Nigeria’s insurance penetration rate, which currently stands at less than 10%. In August, the National Insurance Commission (NAICOM), the regulatory agency for the sector, announced that starting this month it would implement compulsory insurance laws that have been on the books – but largely unenforced – for many years.