Nigeria - Racing ahead with ambitious infrastructure plans: This is Africa/Financial Times (Infographic & Report)

Report Contents

  • Foreword: Goodluck Jonathan, Nigeria’s President, and Abubakar Sulaiman, Deputy Chairman of the National Planning Commission, on the country’s infrastructure plans
  • Overview: The arrival of private sector investment is changing the outlook for Nigeria’s infastructure
  • Q&A: Olusegun Aganga, Nigeria’s Minister of Industry, Trade and Investment and Idris Umar, the Minister of Transportation, discuss opportunities for foreign investors
  • Infographic: Nigeria’s infrastructure investment opportunity
  • Power: Unreliable power suppliers make life difficult for many Nigerian businesses but the rolling back of red tape is proving a game-changer
  • Q&A: Chinedu Nebo, Nigeria’s Minister of Power, discusses reforms in the energy sector
  • Road and rail: Public private partnerships will be key to funding Nigeria’s ambitious plans for its transportation network
  • Aviation: Nigeria plans to make the country a flight hub for all of west Africa
  • Communications: Mobile phone access has grown exponentially in Nigeria, but the government wants this expanded into industrial growth that can sustain a knowledge-based economy
  • Finance: A more diverse range of funding is now available for spending on infrastructure projects
  • Private equity: Institutional investors, such as private equity, are increasingly important movers in the Nigerian economy, attracted by the country’s need for infrastructure and government incentives
  • Private equity: Black Rhino brings together the resources of the world’s biggest alternative asset manager, Blackstone, and the insights of Africa’s richest man, Aliko Dangote
  • Foreign Direct Investment (FDI): General Electric (GE) plans to invest $1bn in Nigeria over the next five years
  • Chinese investment: Blossoming relations with China are giving Nigeria the chance to cultivate strong ties with a long-term trading partner willing to invest in infrastructure
  • Databank: Nigeria in numbers

Read the full report below.

Overview (Extract)
Stand on a beach in Lagos and look offshore. On the horizon, you will see the shadows of dozens of ships, each waiting patiently to dock in the city’s sea port.

Lagos is Nigeria’s commercial capital, and the port at Apapa is a trading hub for West Africa. Boats wait for days for their turn to dock. When they finally do, they unload their cargo onto trucks, which must queue for hours – drivers sweating, horns honking – before they clear Apapa’s desperately congested roads. It’s a painstaking, expensive business. Few places could give a better picture of the challenges posed by Nigeria’s vast infrastructure deficit.

Nigeria is a country of vast economic opportunity. It famously became the biggest economy in Africa in 2014, after an economic rebase almost doubled the size of its gross domestic product (GDP). At about $510bn, its economy is now bigger than South Africa’s (and among the top 30 in the world). That news came as a profound endorsement for Nigeria, which – if it wasn’t already – is now the centre of the African growth story; a nation impossible for investors to ignore.

Vast hydrocarbon riches, and an enormous population of 170 million people are providing compelling investment opportunities. Oil riches have created a dizzyingly wealthy elite, but the middle class is growing too. It multiplied more than six-fold between 2000 and 2014, according to a recent report by Standard Bank.

In 2014, Nigeria will account for 45 percent of the total $360bn in household consumption expenditure across 11 sub-Saharan countries, which were surveyed as a proxy for the continent.

However, Africa’s biggest economy still faces major challenges. Chief among them is the state of its infrastructure. From roads and rail, to irrigation systems and water pipelines, to mobile and broadband networks, and housing and energy, the current supply is desperately inadequate.

In fact, Nigeria’s core stock of infrastructure is estimated at only 20-25 percent of GDP. “The level for middle income countries of this size should be around 70 percent,” says Ousmane Dore, Country Director of the African Development Bank (AfDB) in Nigeria.

Nigeria: Racing ahead with ambitious infrastructure plans

View more analytics from African Business Central.

Source: Nigeria Infrastructure Special Report – Microsites – This is Africa

Recommended