ECN example SWOT Nigeria (0411)


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An example of our SWOTs.

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ECN example SWOT Nigeria (0411)

  1. 1. NIGERIA GDP: $305bn Pop: 155m GDP per head (PPP): $2,830 (all 2011 forecasts)Strengths Weaknesses• By far Africas most populous nation with a very large consumer market • Corruption remains a massive issue at all levels of society• Africas largest oil producer and also a major gas exporter • Large bureaucracy and lack of capacity has brought about a highly inefficient public sector• Strong growth in recent years, even during those of global economic downturn • Politicised and very slow judicial process• Growth has been driven by non-oil sector including dynamic communications and • Slow development of fixed-line telecoms services, which is restraining roll-out of broadband construction sectors • High levels of entrenched poverty limit the development of the consumer market• A major financial centre in West Africa • Development of oil sector has done little to help the poorest in the country• Strong political relations with the US — the main purchaser of its oil — and Europe, • Rigid labour market with highly militant trade unions based on Nigeria’s important role in regional affairs • Dire infrastructure, in particular power supply and roads• One of most open countries for foreign ownership on the continent: restrictions exist • High levels of crime only in the banking sector• Major recipient of remittances from large Diaspora• Large and growing entertainment industry: "Nollywood" films are watched throughout the continentOpportunities Risks• Likely to overtake South Africa as continents largest economy in the next 10 to 15 • The 2011 elections and their fallout could threaten political stability years • Popular unrest arising from political frustration and/or economic deprivation• Middle class is emerging, representing another new consumer market • Ethnic and religious violence in the so called "central belt" where the Muslim north meets the• Young population offers large pool of labour Christian south• Urban youth are keen consumers of social media • Likely to miss the governments target of Nigeria becoming one of worlds 20 largest economies• Government seeking private investment into infrastructure development by 2020• Major investment going into increasing power production and distribution • Failure to meet high growth targets would see increased fiscal deficits due to slower-than-• Privatisation programme continuing – power sector currently being liberalised expected government revenue growth• Agricultural potential is underexploited • Government efforts to save some oil revenues for future generation could be undermined by state governments urging more spending now• Natural resources aside from hydrocarbons are underexploited• "Brain gain" if skilled Nigerians currently working abroad can be attracted back • Upsurge in terrorist activity in oil sector could restrict production as it did in 2006-09Updated April 2011© 2011 Economist Corporate Network An Economist Group business