Purchase OBG Publications

Anambra State has a population of 4.7m, making it the eighth most populated state in the country and the second most densely populated. In a region known for dominant oil operations and related security challenges, Anambra State has kept on a steady course towards economic diversification in the last few years. The conclusion of sizeable deals with various companies in agriculture, manufacturing, production and petrochemicals bodes well for those hoping to tap into the state’s investment potential. With clear development goals and a number of industries on the rise, Anambra’s economic growth model is likely to attract considerable interest from local and foreign business communities.

Transforming Nigeria into a knowledge-based economy is the central goal of the government’s policy on ICT. Mobile use is the main means of access, with around 92m users, and numbers could grow significantly as other devices become available. While there are a number of opportunities to develop the Nigerian IT sector, the field is not without some challenges, including those arising from the lack of connected terrestrial infrastructure. These could be solved, however, thanks to significant investments being made in satellite technology and by telecoms operators in fibre-optic networks and base stations. Significant investments by all operators in their terrestrial infrastructure should bring about better coverage and quality of service, but these firms still face challenges in terms of power costs and security issues. This chapter contains an interview with Ernest Ndukwe, Chairman, Openmedia Group, and Director, Centre for Infrastructure, Policy, Regulation and Advancement, Lagos Business School.

There is no single answer for bringing the transport sector up to speed to meet the needs of the economy and population, and any approach to overhauling it must be comprehensive. The government, through its National Transport Policy (NTP), recognises that lifting barriers to private enterprise is a vital element of any comprehensive plan for the sector. The NTP calls for initiatives to modernise roads, bridges, rails, ports, urban transport and other areas vital to commercial activity. Where the government has chosen not to undertake transport projects, it has entered into public-private partnerships (PPPs). For instance, the completion of a port at Lekki, in Lagos State, in 2015 is expected to take some pressure off Lagos Port Complex and Tin Can Island Port. This chapter contains an interview with Martin Wittig, CEO, Roland Berger Strategy Consultants.

This chapter looks at Nigeria’s power output and generating capacity, both of which currently sit well below those of neighbouring countries, although work to address this is proceeding. According to figures from a World Bank study, Nigeria produced 124 KWh per year in 2010. Much of Nigeria’s power generation, transmission and distribution capacity is ageing and poorly maintained. At present, around 70% of national capacity, which works on natural gas, has either failed or is proven to be insufficient. Therefore, President Goodluck Jonathan has made the power sector a top priority, initiating a detailed road map for its development. The sector has already attracted interest: Germany-based Siemens recently built the 414-MW Geregu power plant and is engaging in the development of other projects in partnership with international investors. This chapter contains interviews with Sam Amadi, Chairman, Nigeria Energy Regulatory Commission; and John Rice, Vice-Chairman, General Electric.

Buoyed by demographic and economic growth, Nigeria’s construction sector has the potential to become the largest and most competitive on the continent. Between 2006 and 2010 the industry expanded at a rate of 12.58%. This positive growth is expected to continue in the near future as the government rolls out a number of infrastructure projects. Overall strong economic growth in Nigeria has also driven expansion of the real estate sector, which is expected to continue on its upward trend in coming years in line with the country’s rising GDP. However, whilst its growth prospects are positive, the sector faces a number of serious challenges, including limited funding to address a shortage in affordable housing and the task of providing formal homes for some 80% of the population who currently live in informal housing structures. This chapter contains an interview with Ogunbusola Solomon, President, Federation of Construction Industry.

While demographics alone should mean there is plenty of room for growth, the insurance sector’s recent performance has not been sufficient for it to reach the critical mass necessary to improve its image with clients and enhance its capacity to underwrite large risks. According to the Nigerian Insurance Association (NIA), insurance penetration reached 0.6% in 2011, far lower than other African countries, such as Kenya (2.5%) or South Africa (16%). The market at its current size is certainly crowded: there are 30 general firms, 16 life insurers and nine composite underwriters. However, recent divestment and consolidation efforts have already pared the industry down, with further mergers expected to decrease its size even further. This chapter contains an interview with Dave Uduanu, Chairman, Pension Fund Operators Association of Nigeria.