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During the 1970s Nigeria had a prosperous, export-orientated mining industry. Before the discovery of oil, the West African nation had developed strong production operations for coal, tin and columbite. The discovery of hydrocarbons eclipsed these activities and relegated mining to an economic footnote. However, with the recent decline in the global price of oil and reductions in production due to violence in the oil-producing Delta states, the government in Abuja is looking to revive the country’s mining sector. The government is becoming aware of the latent prospects of the industry and, as such, is putting in place a strong regulatory and taxation environment that should reassure investors about the security and potential of their capital in Nigeria. Nevertheless, given the paucity of mineral data and the high capital requirements of exploration in this nascent market, foreign entrance into the sector is likely to come from acquisitions and partnerships in the short to medium term. This chapter contains an interview with Kayode Fayemi, Minister of Mines and Steel Development.

While oil may be Nigeria’s breadwinner, agriculture remains the most important component of the country’s economy. The sector is the largest employer and accounts for 23.9% of GDP. And yet for many years the agriculture industry took a back seat to hydrocarbons, with Nigeria rising to be a key global producer. However, with the fall in the price of oil, the country’s high dependence on imports and a weakening currency, domestic agricultural is taking centre stage once again. In the coming years, the West African nation is likely to become a substantial producer of staple food crops, such as wheat and rice. At the same time, moves are afoot to rejuvenate traditionally strong segments like cassava and cocoa. While it remains to be seen whether the government can meet many of the ambitious targets it has set for these crops, the commitment to reducing imports and inflationary pressures, and boosting lending should ensure that production continues to increase, edging Nigeria closer to self-sufficiency and strong export growth. This chapter contains an interview with Audu Ogbeh, Minister of Agriculture and Rural Development.

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.

As the continent’s most populous nation and arguably its biggest economy, Nigeria offers a lot of potential for construction firms – particularly given the significant need for infrastructure work, from housing to roads. However, meeting this demand will require overcoming a number of obstacles, ranging from cash flow issues and payment delays to import of equipment and building material costs. A difficult macroeconomic environment is also constraining efforts to remedy this situation in the short term. The property market is defined by significant long-term potential, but realising it is not necessarily simple. A drop in the price of oil, a lack of foreign exchange and a depreciating currency are all combining to slow the economy, in turn dampening demand for both residential and commercial real estate. However, with a young and urbanised population of more than 184m people, the outlook in the longer term is more positive. If household incomes rise and access to finance improves, the scope for growth is immense. This chapter contains a roundtable with Ronald Chagoury Jr, Vice-Chairman, South Energyx; Odenigwe Ike Michaels, CEO, Centenary City; Vinay Mahtani, CEO, Churchgate; and Elias Saad, Chairman, Eko Pearl Towers.

From rails and roads to ports and airports, Nigeria’s transport sector is facing an extensive overhaul. The country has long suffered as a result of inadequate investment in infrastructure, constraining the movement of people and goods, and prompting the government to push for the rehabilitation and expansion of the entire transport network. Despite the government’s substantial project pipeline and increased budget allocations, potential issues connected to investment, funding and coordination could limit their implementation. The anticipated overhaul of the industry will only happen if the private sector can be fully engaged. The success of future transport projects also depends on the coordination and integration of the networks to provide intermodal connections and seamless travel for people and goods on these ambitious new routes. This chapter contains an interview with Iyiola Adegboye, former Acting Managing Director, Lagos Metropolitan Area Transport Authority.

A shortage of electricity is among Nigeria’s greatest obstacles to growth. Chronic shortages affect all consumers, due to a legacy of underinvestment in maintenance and new facilities. The system typically functions at less than half of its installed capacity of around 12,000 MW. Successive administrations have made sector reform a priority, with partial privatisation of the national grid being a key pillar. After years of delays, there have recently been some key investments made, and Nigeria has emerged as a test case for how development finance institutions can help catalyse investment in power across the continent. Although meeting Nigeria’s massive and expanding electricity needs will require the development of its major offshore gas fields, in the short term the combination of reforms and local involvement continues to provide opportunities for investors willing to risk capital on the new, and as yet untested, systems now in place This chapter contains interviews with Babatunde Fashola, Minister of Power, Works and Housing; and Jay Ireland, CEO, GE Africa.