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As Africa’s largest oil producer, Nigeria’s energy sector accounts for 90% of exports and at least 50% of government revenues. The country is second only to Libya on the continent in the size of its reserves, and onshore fields have been productive for decades. Offshore deposits are a frontier that has been massively underexplored, and in recent years international oil companies have started to refocus their efforts there. That has left an opening on land, which local start-ups have filled. New and smaller indigenous companies are buying up onshore blocks from the global giants, investing in fresh capacity, and increasingly shaping the sector and its future. Under the current government, a number of substantial moves have been planned – all of which, if executed, could significantly modernise the hydrocarbons industry for one of the world’s largest producers. This chapter contains interviews with Emmanuel Ibe Kachikwu, Minister of State, Petroleum Resources and former Chairman of the Board, Nigerian National Petroleum Corporation; and Mohammed Sanusi Barkindo, Secretary-General, Organisation of the Petroleum Exporting Countries.

In 2015 Nigerian underwriters reported total gross written premiums of nearly N350bn ($1.1bn at the time of printing), according to data released by the Nigerian Insurers Association, an industry group. This figure was up around 19% on the previous year. In light of the pace of expansion, and in addition to Nigeria’s enormous population and low rate of insurance penetration, it is perhaps not surprising that the market has attracted a raft of major foreign insurance players in recent years. However, Nigeria’s insurers have faced a series of challenges. Far-reaching economic volatility, political instability and ongoing structural issues continue to hinder many local players. However, given the market opportunities many underwriters and market watchers are broadly optimistic about the future. This chapter contains an interview with Mohammed Kari, Commissioner for Insurance, National Insurance Commission.

Already home to the second-largest stock exchange in Africa by market capitalisation, the introduction of foreign-exchange futures trading in mid-2016 is a major step towards the market’s goal of offering increasingly sophisticated investment and risk-management products and services. Although there are a handful of potential initial public offerings in the pipeline, 2016 may not be an active year for new listings, but capital markets, through rights offerings, corporate debt issues and other products will remain a key source of new capital for corporations. The next 12-18 months will see a host of new financial products designed to help corporations raise capital, hedge risk and speculate in various markets. This chapter contains an interview with Oscar Onyema, CEO, Nigerian Stock Exchange; and a viewpoint from Kayode Akinkugbe, Chairman, FBN Capital.

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.

As Africa’s most populous nation, and with the biggest oil and gas reserves in the region, Nigeria has long been one of the continent’s sought-after markets, but also one of its most complex and challenging. A GDP rebasing in 2014 modernised the country’s statistical measurements, expanding GDP to N94.14trn ($155.1bn at the time of printing) in 2015. As the current government approaches the end of its second year in power, the outlook for Nigeria’s economy remains unclear. Through an expansionary budget and a war on corruption, President Muhammadu Buhari hopes to usher in an era of long-term, inclusive growth. However, lower oil prices and a still fragile global economy will likely pose significant challenges through 2017. This chapter contains interviews with Kemi Adeosun, Minister of Finance; Tunde Fowler, Executive Chairman, Federal Inland Revenue Service; Laoye Jaiyeola, CEO, Nigerian Economic Summit Group; Hajiya Ladi Katagum, Acting Executive Secretary, Nigerian Investment Promotion Commission; and Razia Khan, Chief Economist, Africa, Standard Chartered.

Long considered South-east Asia’s economic powerhouse, Indonesia has seen growth decelerate in recent years as commodities prices fall and demand in China weakens, while currency depreciation in light of US monetary easing has affected its manufacturing and industrial sectors, as well as small and medium-sized enterprises. Falling global oil prices led to a removal of oil subsidies, which freed up new fiscal space in 2015. However, a concurrent decline in prices for commodities such as palm oil and minerals brought growth to a six-year low that year, with forecasts for 2016 remaining subdued in the wake of ongoing global uncertainty. This chapter contains an interview with Sri Mulyani Indrawati, Former Managing Director, World Bank.