Industry

In spite of the country’s traditional reliance on hydrocarbons, Nigeria’s industrial sector is diversified and growing, ranging from food and beverages to building materials. After a decades-long slump in manufacturing output, triggered by the scaling up of oil production in the 1970s, the country is working to reverse the trend and enable manufacturing and heavy industry to play a larger role in the economy. In the short and medium term, the government’s focus is on import replacement and addressing primary sector blockages, such as power, transport infrastructure and financing. The country’s solid fundamentals, including rising purchasing power, a growing population and limited penetration, make it an attractive long-term bet, as evidenced by the spate of new investments in recent years and the strong performance of companies in the FMCG, auto and building material segments.