ANALYSIS OF KEY SECTORS OF NIGERIA

Transcription

1 ANALYSIS OF KEY SECTORS OF NIGERIA MORDOR INTELLIGENCE

2 Introduction Majority of population still in poverty Total population of million $600,000,000,000 Nigerian economy growing tremendously Diversification in other industries proving successful as economy grows Ongoing threat in the north from Boko Haram $500,000,000,000 $400,000,000,000 $300,000,000,000 $200,000,000,000 $100,000,000,000 Estimated to be the first African economy to be worth $1 trillion by 2030 Huge dependence on oil $ GDP Linear (GDP) 2 per. Mov. Avg. (GDP) Considered as Africa s largest economy Developing economy with fast growth rates

3 Nigeria have been highly dependent on oil Oil only 10% of GDP, but upto 85% of government revenues Fall in oil prices have hit the country hard Oil exports to drop from $88 billion to $52 billion Government revenue expected to drop by 40% Spending halts in other sectors, including infrastructure Government cash crunch Drop in oil price has devalued the naira, effected entire economy Still the 12 th biggest producer in the world Founding member of OPEC

4 Future still bright Almost half of economic output comes from services Nollywood, film industry, worlds second largest in terms of output (has 1 million employees) Secures many jobs Innovative startups occurring from all industries From fashion to software development Food inflation has not sped up as fast as expected The past has proven that when the naira depreciates, food prices inflate tremendously Food imports have more than halved between In 2009 it was $4.3 billion In 2013 it was $2.0 billion As the economy diversifies, the country is less vulnerable to oil and external shocks

5 Sectors Growth from 2011 to 2012 (in %) 214% 21% 59% -1% 32% 17% 48% 59% 58% 49% 44% Nigeria has established itself as the largest telecommunication market in Africa. The country s telecom sector is undergoing speedy transformation on account of explosive growth and rapid infrastructure developments.

6 Nestle shows a great example Built food factories in Agbara, one of the companies largest Produces enough soup that could feed almost half the Nigeria population a day Company extremely efficient despite local issues Nestle generates huge profits in Nigeria Twice the return earned by the global parent

7 Young labor force means the time is right Very young labor force 43% are between 0-14 Means huge demand for jobs Cheap labor motivates foreign firms to enter More educated than previous generations

8 Opportunities seem perfect for investment Strengths Abundant supply of natural resources High economic growth rates Largest African Economy Diversifying economy Weaknesses High levels of corruption Inefficiency in most industries Dependent on oil Vulnerable to price shocks in oil Opportunities Improve infrastructure Young labor force High returns More diversification in areas such as: Healthcare Education Technology Threats: Boko Haram Insurgency in the north disturbs political and social security

9 WHO WE ARE? Mordor Intelligence has the world s most inclusive research on the Key Sectors of Nigeria. We monitor and analyze industry trends around the world, including in-depth analysis on market entry, market share and market size from qualitative analysis to qualitative with market data. Mordor Intelligence data and market analysis supports your organization s awareness of the Key Sectors of Nigeria and the greater competitive atmosphere, ensuring accurate and focused strategies for your business. Report on Key Sectors of Nigeria helps the organizations looking forward towards market entry. It also helps existing organizations and entities and supports in strategy formation for nurturing your business. A resource for your entire organization, Mordor Intelligence market research supports every level of business, assisting in strategic development, marketing, mergers and acquisitions, and brand management.

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