Nigeria

Businesses and consumers in Nigeria will be hoping that a more reliable electricity supply could be in sight after the government transferred most of the country’s power generation and distribution to the private sector at the beginning of November.

The role of locally-owned firms in Nigeria’s oil sector is expected to expand further in coming years, even as international producers move away from onshore and littoral fields. However, there are some who query if the local industry is ready to take the step up.

In line with its performance in recent years, the Nigerian economy is expected to grow strongly in 2014, with expansion continuing to be driven by high oil prices and robust domestic demand. But the country may need to push forward reforms to encourage broad-based development, alleviate poverty and nurture a trend towards diversification.

With local companies starting to buy into the concept of farming out some technology-based activities, Nigeria’s business process outsourcing (BPO) sector is gaining wider acceptance in the domestic market. However, expanding onto the global stage will require countering perceptions of weak regulation and poor security.

As might be guessed from the snarled traffic on the bridges of Lagos, vehicle sales in Nigeria are growing rapidly, with automakers seeing double-digit growth over the past year. To try to capture a greater share of demand, firms are looking to expand retail detailerships while some of the more adventurous are taking a stab at local assembly.

Private universities in Nigeria have shown promising growth and could help retain the thousands of students who have in recent years spent billions of dollars studying abroad. However, to ensure that growth in post-secondary enrolment continues, the increase in the number of private institutions is being matched by increased government investment – part of a broader shift to expand the skilled labour pool and improve employability.