Although it is Africa’s largest crude exporter, Nigeria remains dependent on imports for some 86% of its refined fuel needs of 35m litres daily, equivalent to 279,000 barrels per day (bpd). Successive rounds of turnaround maintenance (TAM) have failed to expand domestic refining capacity, while the subsidy structure of fuel sales incentivises the...
Electricity is regularly cited as Nigeria’s chief obstacle to economic growth, but 2013 may mark a turning point for what is often referred to as the country’s Achilles heel. Nigeria has a population of some 168.8m but produces less grid-connected electricity than a major British city. For more than a decade, the lack of reliable power has cut into...
While Nigeria’s oil and gas sector has historically attracted the majority of inward foreign direct investment (FDI), focus is broadening significantly to non-oil sectors. Slow progress in passing legislation to reform the hydrocarbons sector has delayed decisions on larger projects, while the broad domestic market is attracting investors seeking...
A 2010 law mandating local content for insuring risks in the energy sector domestically aims to create growth from the current small base in the insurance sector. Enforcement is a potential challenge, if recent history and the current legal environment are any indication. Further, market studies indicate that profiting from providing coverage to...
Central to the Transformation Agenda is an effective fiscal policy that prioritises investment in much-needed infrastructure and social development in health and education over wasteful recurrent spending. By improving its revenue collection and tightening capital budget disbursement, the Federal Ministry of Finance (FMF) aims to curb its domestic...
Proper metrics are crucial to a full understanding of the economy. By most measures economic data on Nigeria is vague at best, with GDP estimated at between $247bn and $555bn in 2012, according to the UN, and a more commonly used $259.8bn, according to the National Bureau of Statistics (NBS), depending on whether one includes Nigeria’s significant...
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