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The Nigerian retail market remains fragmented and dependent on informal sales channels such as neighbourhood markets and kiosks, which account for 90% of retail activity. As in most emerging markets, the bulk of household expenditure in Nigeria is directed towards food. But with traditional in-person shopping limited by lockdowns, and many households facing tighter budgets, the sector contracted by 8.49% over the course of 2020. Nonetheless, retail activity showed signs of recovery by the end of that year. Nigeria remains attractive for investors and retailers that apply growth strategies tailored to specific consumer preferences. While macroeconomic headwinds and currency volatility have weighed on consumer spending power in recent years, price sensitivity is leading to new opportunities for smaller packaging, localised retail developments and the sale of essential goods. This chapter contains an interview with Juliet Anammah, Chairwoman, Jumia Nigeria; and Chief Sustainability Officer, Jumia Group.

Nigeria is one of Africa’s largest ICT markets in terms of its share of telecoms subscribers and internet users, and this sector is set to grow in 2021, even as other areas of the economy remain constrained by the pandemic. ICT is being prioritised as part of the country’s longer-term goal of developing a digital economy supported by its large, youthful population. Indeed, the government has made progress on removing several barriers faced by telecoms providers and created opportunities for the private sector as it works to boost broadband penetration across the country. In addition to improving the ecosystem for entrepreneurs, infrastructure development and the future deployment of 5G will be crucial to Nigeria reaching its goal of fostering a digital economy. This chapter contains interviews with Isa Ali Ibrahim Pantami, Minister of Communications and Digital Economy; and Olugbenga Agboola, Co-founder and CEO of Flutterwave.

In recent years focus has returned to agriculture as an important source of revenue for a diversified Nigerian economy. But despite the sector’s robust performance, the country remains vulnerable to food insecurity and is unable to meet domestic demand. This is explained by low levels of irrigation and an outdated land tenure system which have kept agricultural productivity low and caused post-harvest losses. Moreover, the Covid-19 pandemic has further exacerbated the challenges that were already present in the sector, as lockdowns and panic-buying not only contributed to a hike in food prices but also disrupted supply chains. Hence, plans to revitalise agriculture are expected to be centred on increasing local production and improving the value chain. This chapter contains interviews with Mezuo Nwuneli, Managing Partner, Sahel Capital Agribusiness Managers; and Osazuwa Osayi, Co-founder and Co-CEO, Farmforte.

Nigeria has a varied industrial sector, and although the pandemic disrupted international supply chains and local operations, the performance of some industrial segments in Nigeria bucked the trend. Major projects continue to push ahead, such as Nigeria’s first privately owned oil refinery and new cement plants, while government plans to add greater value to agricultural output kicked off with external financing. The construction of new free zones is also ongoing, providing investors with more opportunities close to seaports and in the hinterlands. Other segments such as metal and cement are poised for growth, with producers to benefit from high local demand. Overall, the government sees industry as a way to diversify receipts and cushion the fallout from future oil price declines. This chapter contains an interview with Jean-Marc Ricca, Managing Director of BASF West Africa.

Nigeria is Africa’s top oil producer and possesses the largest proven gas reserves on the continent, making it a key player in the global energy market. However, despite its wealth of resources, the country has been unable to meet domestic demand and has one of the lowest net electricity generation rates per capita in the world. The pandemic aggravated this trend, as 2020 saw a steady decline in global demand for petroleum products. However, optimism for an improved macroeconomic environment in 2021 bodes well for investment in the energy sector, with growing opportunities in the nascent renewables segment as the country looks to expand electricity access to underserved communities. This chapter contains an interview with Mele Kolo Kyari, Group Managing Director of the Nigerian National Petroleum Corporation.

Both Nigeria’s banking system and capital markets have seen significant changes over the course of recent years. Indeed, measures implemented in 2020 to restructure loans, enhance oversight and boost accountability are expected to create stronger sector players in the longer term. Meanwhile, an ongoing focus on financial inclusion has led to the emergence of new segments, including non-interest finance, microbanks, bancassurance and payment service banks. However, the economic effects of the Covid-19 pandemic are still expected to affect the banking system in the short term, including loan quality, profitability and currency stability. Even so, the Central Bank of Nigeria has identified banks as key players in a sustainable recovery due to their ability to strategically allocate credit to fuel widespread growth. Meanwhile, continued steps towards demutualisation and the launch of the Growth Board in 2020 will make the Nigerian Stock Exchange more competitive. The wider investment landscape is also set to benefit from ongoing efforts to bolster financial inclusion and promote awareness of the advantages of capital markets as an alternative to conventional banking when it comes to funding business expansion and growing and preserving individual wealth. This chapter contains an interview with Samaila Zubairu, CEO of Africa Finance Corporation.