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The industrial sector of what is arguably Africa’s largest economy is a diversified group of producers and outputs. With a wide range of accessible feedstock, from agricultural products to hydrocarbons, along with Africa’s biggest consumer market, the possibilities are substantial. The volume of output is small, however, and Nigeria is forced to import most of what it consumes, including the raw materials and intermediate goods its industries use. Cyclical pressures, along with structural challenges, have contributed to a challenging environment. Yet this has not slowed capital spending, and with a large consumer market the outlook is encouraging for many industrial segments. The retail sector is based on the latent potential of Nigeria’s population, currently estimated at 184m and growing. Firms hoping to cater to that block of consumers must overcome challenges such as finding land to build retail space, importing goods and managing currency risk. The central’s bank decision to change its currency policy is currently the most important factor for the retail sector. Once retailers gain some certainty on that, the next steps will likely be to take stock of balance sheets and capital requirements, then begin the process of utilising current retail capacity at malls. This chapter contains an interview with Okey Enelamah, Minister of Industry, Trade and Investment.

Against the backdrop of a slowing economy and low oil prices, the Nigerian banking sector – filled with heavyweight regional players and the largest sector on the Nigerian Stock Exchange – has sought to play an increasingly important intermediary role, facilitating efforts to diversify the economy by expanding private sector credit and lending to small and medium-sized enterprises. However, macroeconomic conditions, including a depreciating currency and changes to the government’s fiscal policy, are impacting the ability of banks to deploy capital in the real economy. Furthermore, the Central Bank of Nigeria has unveiled a number of plans to tighten the risk management of the sector and further reduce the exposure of banks to government debt, all of which could herald significant changes to the competitive landscape. This chapter contains an interview with Godwin Emefiele, Governor, Central Bank of Nigeria; and a roundtable with Peter Amangbo, Group Managing Director, Zenith Bank; Uzoma Dozie, Managing Director, Diamond Bank; and Herbert Wigwe, Group Managing Director, Access Bank; and Adesola Adeduntan, Managing Director and CEO, First Bank.

OBG introduces the reader to the different aspects of the legal system in Nigeria, in partnership with Ajumogobia & Okeke. OBG talks to Ovie Ukiri, Managing Partner, Ajumogobia and Okeke, on the development of privatisation in the power sector.

In conjunction with SIAO, OBG explores the taxation system, examining Nigeria’s investor-friendly environment. OBG talks to Ituah Ighodalo, Managing Partner, SIAO, on strengthening the tax system and increasing revenues.

The current trajectory of the health care sector is defined in large part by the potential offered by Nigeria’s demographics and income profile. However, realising that potential will necessitate major investment and reforms to ensure that both public and private infrastructure can keep pace with demand. With an 184m-strong population growing at 2.7% per year, propelling the country to the upper ranks of the global population tables, the burden on public social services is great and growing. This is placing a strain on the under-resourced and underfunded public health system, but is also opening up the way for private providers. The education sector is also feeling the pressure created by the country’s demographics. Without further reform and attention, the state school system – currently underfunded and understaffed – is likely to come under severe stress. However, if the government is able to adapt accordingly, it can capitalise on the current youth bulge, facilitating a rise in economic productivity and a drop in the dependency ratio. This chapter contains an interview with Isaac Folorunso Adewole, Minister of Health.

The Nigerian media industry is in the midst of what many local players consider to be a sea change. The rising popularity of ICT across the nation over the past decade and a half has had a major impact on the way Nigerians access media on a daily basis. This has created a range of challenges for print and broadcast media entities. The print industry, for instance, faces high levels of competition and falling revenues, as a steadily rising percentage of its output shifts online, where sufficient marketing and advertising models have yet to be fully developed or implemented. Furthermore, while broadcasters in particular are increasingly looking to the internet to help them reach new customers and larger markets, many Nigerians lack access to basic ICT services. However, the shift to digital is ultimately expected to be a boon to the industry, in that it has the potential to drastically expand the reach of local media producers, both domestically and further afield, with huge implications for revenues.