Analysis of Key Sectors of Nigeria

1. ANALYSIS OF KEY
SECTORS OF NIGERIA
MORDOR INTELLIGENCE

2. Introduction
Majority of population
still in poverty
•Total population of 178.5
million
Ongoing threat in the
north from Boko
Haram
Huge dependence on
oil
Considered as Africa’s
largest economy
•Developing economy with
fast growth rates
Estimated to be the
first African economy
to be worth $1
trillion by 2030
Diversification in
other industries
proving successful as
economy grows
$-
$100,000,000,000
$200,000,000,000
$300,000,000,000
$400,000,000,000
$500,000,000,000
$600,000,000,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Nigerian economy growing tremendously
GDP Linear (GDP) 2 per. Mov. Avg. (GDP)

3. Nigeria have been highly dependent on oil
Oil only 10% of GDP, but upto 85% of government revenues
Fall in oil prices have hit the country hard
•Oil exports to drop from $88 billion to $52 billion
•Government revenue expected to drop by 40%
Spending halts in other sectors, including infrastructure
•Government cash crunch
Drop in oil price has devalued the naira, effected entire economy
•Still the 12th biggest producer in the world
•Founding member of OPEC

4. Future still bright
Almost half of economic output comes from services
•Nollywood, film industry, worlds second largest in terms of output (has 1 million employees)
•Secures many jobs
Innovative startups occurring from all industries
•From fashion to software development
Food inflation has not sped up as fast as expected
•The past has proven that when the naira depreciates, food prices inflate tremendously
Food imports have more than halved between 2009-2013
•In 2009 it was $4.3 billion
•In 2013 it was $2.0 billion
As the economy diversifies, the country is less vulnerable to oil and
external shocks

5. 21%
59%
-1%
32%
214%
17%
48% 59% 58% 49% 44%
Sectors Growth from 2011 to 2012 (in %)
 Nigeria has established itself as the largest telecommunication market in Africa.
 The country’s telecom sector is undergoing speedy transformation on account of
explosive growth and rapid infrastructure developments.

6. Nestle shows a great example
Built food
factories in
Agbara, one of
the companies
largest
Produces enough
soup that could
feed almost half
the Nigeria
population a day
Company
extremely
efficient
despite local
issues
Nestle generates
huge profits in
Nigeria
• Twice the return
earned by the
global parent

7. Young labor force means the time is right
Very young
labor force
43% are
between 0-
14
Means huge
demand for
jobs
Cheap labor
motivates
foreign
firms to
enter
More
educated
than
previous
generations

8. Opportunities seem perfect for investment
Strengths
•Abundant supply of
natural resources
•High economic growth
rates
•Largest African
Economy
•Diversifying economy
Weaknesses
•High levels of corruption
•Inefficiency in most
industries
•Dependent on oil
•Vulnerable to price
shocks in oil
Opportunities
•Improve infrastructure
•Young labor force
•High returns
•More diversification in areas
such as:
•Healthcare
•Education
•Technology
Threats:
•Boko Haram Insurgency in
the north disturbs
political and social
security

9. WHO WE ARE?
 Mordor Intelligence has the world’s most inclusive research on the Key Sectors of
Nigeria. We monitor and analyze industry trends around the world, including in-depth
analysis on market entry, market share and market size – from qualitative analysis to
qualitative with market data.
 Mordor Intelligence data and market analysis supports your organization’s awareness of
the Key Sectors of Nigeria and the greater competitive atmosphere, ensuring accurate
and focused strategies for your business.
 Report on Key Sectors of Nigeria helps the organizations looking forward towards
market entry. It also helps existing organizations and entities and supports in strategy
formation for nurturing your business.
 A resource for your entire organization, Mordor Intelligence market research supports
every level of business, assisting in strategic development, marketing, mergers and
acquisitions, and brand management.