Nigeria

A slew of recent initiatives are targeting insurance reform in the corporate and retail segments in Nigeria, to help unshackle the latent potential of a sector that has traditionally struggled with spotty enforcement, limited capacity, and low penetration.

The establishment of a new fund to support the tourism sector is setting the stage for expansion in one of Nigeria’s most promising but least developed industries.

While a large number of free zones have been established in Nigeria since the 1990s, offering a host of encouraging regulatory and fiscal incentives and bringing in billions in direct investment, many of them have yet to reach their full potential, with operators continuing to face some broader challenges, including infrastructural bottlenecks.

As increasing purchasing power and a sizeable housing deficit fuel demand for accommodation and retail facilities, Nigeria’s real estate sector is slowly emerging as a promising destination for capital returns on both affordable and high-end housing.

In spite of the ongoing uncertainty fed by the still-pending passage of the long-awaited Petroleum Industry Bill, stronger forecasts for offshore production and a renewed focus on processing facilities bode well for Nigeria’s ever-important energy sector.

The combination of low savings and the recent reinstating of fuel subsidies means Nigeria’s government is looking for way to trim expenditures and raise funds. Despite a small drop in planned expenditures, however, the budget deficit is expected to rise in 2012 to 2.97% of GDP from the 2.77% target rate the government announced in December 2011.