Wednesday, November 4, 2020

why Businessminds should Pitch their Tents in Nigeria.....PART 1

 


Nigeria is the chief driver of international trade in Economic Community of West African States (ECOWAS), which consists of sixteen countries. Market analysts from the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) claim that Nigeria accounts for over 40 percent of imports in the sub-region and ranks among Africa’s largest consumer markets.

As a gateway to fifteen smaller West African countries and a net importer of equipment, Nigeria can be a very rewarding market for international companies that take the time and effort to understand its complex market conditions and opportunities, find the right partners and clients, and take a longterm approach to market development.

Nigeria’s annual growth rate averaged over seven percent during the past decade. As a result, the country is regarded as one of the fastest growing economies in the world. To sustain this annual growth rate, the Government of Nigeria (GON) is privatizing important sectors of Nigeria’s economy, promoting public-private partnerships and encouraging strategic alliances with foreign firms especially for infrastructure development and technology acquisition in critical sectors such as security, power generation, transportation, and healthcare.

Recent developments in some key industry sectors offer international exporters a range of opportunities. For instance, the Agricultural Transformational Agenda (ATA) is a priority program for the Government of Nigeria that is getting a lot of attention and support from the World Bank and International Fund for Agricultural Development (IFAD). While the World Bank has said that it will commit $1 billion to support Nigeria’s agricultural sector in the next five years, IFAD will commit $88.5 million to the program. Procurement opportunities for farm inputs include farm tractors, irrigation systems, agricultural fertilizers, pest control and improved seeds.

Nigeria ranks as Africa’s largest oil producer and the twelfth largest in the world, producing high-value, low-sulfur content crude oil. A now five-year long effort to reform Nigeria’s oil and gas legal framework has created uncertainty that has delayed billions of dollars in potential investment in this sector. The National Assembly is reviewing the most recent version of a Petroleum Industry Bill (PIB), which seeks to incorporate and update 16 different laws that regulate the sector.

.......................................TO BE CONTINUED 


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