In many respects, Nigeria epitomizes an almost bi-polar view of Africa: for many of us already doing business on the continent it is an exciting, dynamic, high octane growth market. For some others, often on the outside looking in, it seems chaotic, unstable and uncertain.
The reality is obviously less cut and dried than either of these extremes and in many respects depends on the perspective that one chooses to adopt.
Nevertheless, we certainly believe that the facts support the more positive perspective on Nigeria and its prospects as an investment destination.
The numbers tell us that Greenfield FDI projects into Nigeria have grown at a compound rate of close to 20% since 2007, positioning it among the 10 countries with the highest growth rates in Africa. Nigeria
has also attracted the most FDI capital and the 2nd most FDI projects in Sub-Saharan Africa over that period, making it one of the star performers in a period in which FDI flows into the region have been fairly robust.
What is equally positive is the increasingly diversified nature of the investment. Although more than 50% of the FDI capital invested into Nigeria since 2007 has been into the capital intensive resource sectors (primarily oil), nearly 50% of FDI projects are service-orientated. There has been particularly strong growth in investment into telecommunications, with the sector attracting 23.9% of FDI projects between 2007 and 2013.
Growth in investment into other service sectors like financial services, consumer products, tourism and business services, further highlights the growing opportunities emerging in these sectors.