Skip to content

Discuss The Nigeria Economic Structure

The African Capital Alliance (ACA), a non-public equity fund manager in western Africa, announced the raising of $200 million from investors in July this past year. The next installment of your Capital Alliance Private Equity (CAPE) fund will target important sectors including power, oil and gas, communications and financial services in Nigeria and across the sub-Saharan region. The ACA is confident of eventually raising an overall total of $350 million for your fund from aid agencies, international banks and Nigerian institutional investors. The development reflects mounting confidence in Nigeria’s resurgent economy, considering the country’s fist such fund that started out in 1998 by using a capital of just $35 million.

Nevertheless there is no conclusive data on the size of the Nigeria equity market according to naija news, estimates for the whole of Africa place it over $6 billion in 2000; South Africa, the continent’s largest economy, making up half the share. High economic growth fuelled by an enthusiastic reforms programme has seen Nigeria’s growth scale to almost twice the figure for developed markets lately. The country’s GDP growth rate in 2006 stood at 5.6%, significantly more than america (3.2%) or perhaps the UK (2.8%)1.

The foregoing statements aptly connote two understandings of the condition of Nigerian economy. These understandings show, the economy is among the fastest growing economies in Africa and on earth. Although Nigeria has experienced hash economic history, it provides undergone yet still undergoing economic reforms, that are directed at making Nigeria the Africa’s financial hub and among the twenty largest economies on the planet with the year 2020. Of course that this country has experienced political instability, corruption, and poor macroeconomic management previously, it was liable for unpleasant and harsh economic situation. The us government relentless efforts to reposition the economy have translated into a remarkable economic development and growth.

Naija News That You Can Make The Most Of

Several mechanisms happen to be put in place to sustain this development and growth, effective at balancing the interests of stakeholders. Perhaps, this view must have influenced Gordon Smith submission. He described Nigeria because the most dynamic market in Africa, which is under severe pressure from some countries in Africa to work as a cushion from the effects of global turbulence. He also noted that some countries like Ghana, Malawi, Mauritius, and the like were based on her presently because of global risk exposure and therefore the country’s economy, led from the consolidated banks, was faraway from being impacted by the global credit crisis currently rocking the world’s financial giants. He stressed further that foreign investors, who can show patience enough to weigh the Nigerian financial system about the credit risk perspective in accordance with global events, will find the nation’s financial sector more interesting to spend and lift capital from.

Its large population and market size bestow tremendous potential around the Nigeria economy – Africa’s third largest and some of the most rapidly growing. The country’s ambitious Vision 2020 programme and also the UN Millennium Development Goals together represent considerable challenges when it comes to economic revival. Past experience favours strongly against big businesses, that contain had a dismal history along with a high-failure rate under both private and public operation. Undeniably, the fate of Nigeria’s long-term goals rests on rapid proliferation of SMEs along with their power to drive an enterprise revolution which will sufficiently diversify the economy from oil and reverse decades of stagnation. The goal is by using SMEs to deliver sustainable development, employment creation and above all, poverty alleviation.

In priority, Nigeria government must let the rapid diversification of Nigeria’s economy as this is the sole sustainable method to survive the actual environment of global economic uncertainty of international oil price volatility and shocks, unfavourable quota system and depletion.

Without doubt, Nigeria like seen on newspapers is surely an investment haven with countless and lucrative investment opportunities including oil and gas, solid mineral, agriculture, tourism, telecommunication, power and steel, transport, trade processing zone, financial sector, real-estate / property, manufacturing, sport and entertainment, and fashion industry. Investors have a wide array of opportunities to pick from. It is essential to remember that the pace of growth and development of investment is fantastic and exponential in some of these sectors. Investors are at benefit of presenting their services and products to already-made market taking advantage of the population of more than 140 million.

Before the political crisis of 1967-1970, agriculture’s positive contributions towards the economy were instrumental in sustaining economic growth and stability. The bulk of food demand was satisfied from domestic output, thereby obviating the requirement to utilize scarce foreign exchange resources on food importation.

The record on newspapers revealed that Nigeria, Zambia, Tanzania, The Democratic Republic of Congo, Kenya, Algeria, Tunisia, Ghana and South Africa are highly competitive markets in the area. The record further contends that two-third of Africa’s telephony are in their early phase of development, with penetration rates below 30 per cent at the conclusion of 2007.In percentage terms, it was actually noted that Africa will be the fastest growing market on earth, but the second smallest regarding connections after Middle-East.

He is an organization mentor for Princess Trust throughout the uk. He or she is part of the Inter Governmental Committee of ICAN plus a part of BCBC, which represents Black Church Membership of Christians whose responsibility is to ensure the Christian companies are not ignored in the commercial opportunities as a result of the 2012 Olympics In The Uk.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *