Nigeria

Nigeria's plans to further develop its Islamic finance sector received a major boost on June 20 when the Central Bank of Nigeria (CBN) granted a local bank provisional approval to operate as an Islamic bank and unveiled plans to issue a sovereign sukuk in the coming years.

A recent move by the Asset Management Corporation of Nigeria (AMCON) to list its N1.68trn ($10.85bn) bond on the Nigerian Stock Exchange (NSE) will give a boost to the country’s emerging fixed-income market.

Two new submarine fibre-optic cables have gone on-line in Nigeria in the past two years, with a third set to land in June. While this should eventually improve the nation’s spotty internet access, customers are still waiting to reap the benefits of increased bandwidth and lower prices. Nonetheless telecoms operators are switching over to the fourth generation (4G) platform to accommodate future expected demand for data services.

Nigeria’s efforts towards improving the safety of its aviation sector, in the wake of a disastrous 2005 and 2006, have finally begun to pay dividends, as international recognition of the regulatory upgrades paves the way for greater efficiency and an improved business climate for the country’s domestic airlines. However, a concomitant proliferation of fees and charges has sparked an outcry from carriers who are continuing to grapple with an extremely competitive marketplace.

While manufacturers in Nigeria have long had to grapple with constraining operating conditions, such as an intermittent power supply, cement producers have managed to establish an enviable track record. In eight years, the country has built up a domestic production industry capable of meeting two-thirds of local demand for cement. With further capacity expansion slated for this year, Nigeria is on track to achieve self-sufficiency in cement production and could even become a regional exporter.

While Nigeria’s pharmaceutical industry currently faces a range of challenges, including high import levels and a counterfeit drug trade, efforts by the government and the National Agency for Food and Drug Administration and Control (NAFDAC) to improve regulation should help local manufacturers.