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In conjunction with PwC, OBG explores the taxation system, examining Nigeria’s investor-friendly environment. OBG talks to Ken Igbokwe, Country Leader at PwC Nigeria.

OBG introduces the reader to the different aspects of the legal system in Nigeria, in partnership with Ajumogobia & Okeke. Ovie Ukiri, Managing Partner at Ajumogobia & Okeke, talks to OBG.

Nigeria’s industrial sector is quite small overall, accounting for less than 1% of GDP, but some fields are expanding rapidly. The cement segment, for example, has grown rapidly in recent years, and in 2012, the country produced enough cement to meet local market demand for the first time. Authorities are also planning to use the country’s rising natural gas output as industrial feedstock, positioning Nigeria to become a regional centre for petrochemicals manufacturing. In retail, local press reported in August 2012 that a record $1.3bn in foreign investment had come into the sector over the preceding two years. A prime example of foreign investment in the sector is the South African supermarket champion Shoprite, Africa’s largest retailer. In the clothing arena, French lingerie and swimwear firm Etam opened an outlet at The Palms in April 2011, while Spain’s Zara set up shop at Lagos’ Silverbird Galleria in February 2012. With its population of about 164.8m, Nigeria is a potentially lucrative market. This chapter contains interviews with Olusegun Aganga, Minister of Trade and Investment; Kola Jamodu, President, Manufacturers Association of Nigeria; and Oba Otudeko, Chairman, Honeywell Group.

With a population of some 160m, Nigeria has one of the most active media sectors of any emerging market. Excluding satellite networks, 147 television stations and 100 radio stations fill the airwaves. The dramatic rise of Nollywood in the past decade has spurred global interest from viewing audiences and investors alike, and the industry is poised to be a major force both domestically and internationally. Despite the encouraging signs, challenges to expansion remain. Among these are the high costs associated with unreliable infrastructure, including electricity outages and unrefined distribution networks, which hamper circulation. An overdependence on advertising revenues may also prove problematic, and, there remains a degree of uncertainty concerning Nigeria’s regulatory environment with respect to broadcast and online media. This chapter contains an interview with Jason Njoku, Founder and CEO, iROKO Partners.

Agriculture makes a significant contribution to the economy, accounting for 40% of GDP at the end of the fourth quarter of 2011 and employing 60% of the population. Sector policy is guided by the Agricultural Transformation Action Plan (ATAP), which aims to diversify the economy and support rural areas while also reducing the cost of food imports. Some $8.3bn is spent on importing staple foodstuffs annually, a figure that is rising by 11% a year. Under the ATAP strategy, the government wants to boost domestic production for staple crops such as rice and cassava, as well as cash crops like palm oil, cocoa and cotton. Yet significant obstacles remain in the form of finance, infrastructure and land availability. This chapter contains an interview with Akinwumi Adesina, Minister of Agriculture and Rural Development.

Tourism is among those sectors with significant potential to support efforts to diversify away from oil in a sustainable and inclusive manner. According to the Federal Airport Authority of Nigeria, the inflow of passengers rose in 2011, with more than 1.9m arrivals recorded at the international airports of Lagos, Abuja and Port Harcourt, up by about 10% year-on-year. Traffic at domestic terminals was much higher, with 5.5m incoming and 5.4m outgoing passengers. Roughly 98% of visits by foreigners are for business reasons. This has resulted in an increase in demand for international hotels, which have been opening their doors in growing numbers, particularly in Lagos. A N5bn ($32m) fund was set up at the beginning of 2012 that will be used to support the development of the industry, providing financing and facilitating capacity building. Estimates put the sector’s direct contribution to GDP at 1.6% in 2011. This is expected to increase by 11% in 2012 and an average of 6.3% a year between 2012 and 2022. This chapter contains an interview with Taleb Rifai, Secretary-General, World Tourism Organisation (UNWTO).