Investing in Nigeria: A Primer

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Introduction Falling oil and gas prices has led to calls for diversification

Notwithstanding the slump in oil prices, Nigeria remains a favorable investment destination

It has Africa’s largest population: 182 million

And the continent’s largest economy

Current oil-dominated economy presents opportunities for investing in non-correlated sectors

Opportunities Investor-friendly incentives

5-7 year tax breaks0% import duty on machineries100% repatriation of profits

MiningUntapped goldfields in the north-western region Coal and Iron ore deposits in the central regionBitumen deposits in the south-western regionOil and gas in non-traditional regions (for example,

north-east)

Opportunities cont’d Agriculture

In 2016, food import bill was estimated at $22 billionMajor food imports include rice, wheat, and tomatoes Investment in these products promise huge returns

Real Estate Increasing population and urbanization remain major

trendsThis creates opportunities for investments in residential

and commercial real estate (hotels, malls etc.)

ChallengesInsecurity

Terrorism in the north since 2009Militancy in the southern part of the countryHowever, recent counterterrorism initiatives has

reduced incidence of attacks

Macroeconomic instability Falling strength of currency amidst low oil pricesRising inflation However, the new FX regime would address thisCompanies also react by adjusting prices accordingly

Conclusion Opportunities abound in different parts of Nigeria

Challenges also exist

Intending investors could mitigate risks by seeking advice from highly experienced professionals

These professionals should possess deep knowledge of national and subnational factors

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