Investing in MINT Countries – Focus Nigeria

Nigeria is being ranked as the next big investment destination and growing economy in the world. Several economists have identified a certain set of countries as emerging economies, which have grown 10 times in the recent decades. After the BRIC (Brazil, Russia, Indonesia and China) countries, it is now the turn of the MINT (Mexico, Indonesia, Nigeria and Turkey) nations to attract global investments. In fact, many audit and tax firms are particularly exploring the options to invest in Nigeria. There is a high long-term growth that can be expected out of Nigeria, and it is, therefore, the best time to investigate about what kinds of businesses have a potential for growth in Nigeria. Market experts believe that Nigeria will initially move to the stock market, and will later eventually make it big in the property sector.

Factors of Influence

People all over the world are looking to invest in countries that have a growing middle class. Several other factors, like regulatory boards, government policies and stability of the country, matter when it comes to investing. In recent times, countries like Nigeria, India, and China have proved their mettle with these factors. However, performances of India and China have been disappointing in the recent times. Nigeria has surpassed these countries in terms of performance in the last few years.

What types of businesses to invest in?

Nigeria is a growing economy, with signs of development exhibited in multiple industries, opportunities exist in all sectors of the economy, especially: Power-Generation, Transmission and Distribution , Oil & Gas (extractive and non-extractive), Agriculture and Agro Allied, Port Management, Mass transportation-road, rail, air and aviation, information & communication technology (ICT), Health Services, Solid minerals, banking and financial services, Tourism/Hospitality, Manufacturing-Pharmaceuticals & Garments, Automobiles, Iron & Steel, and Education.

The power sector is growing in Nigeria, making industrial development possible with the increased power supply. Not to mention, there is also growth in the FMCG (Fast-Moving Consumer Goods) sector. People are now able to afford various food products, thanks to the growth in employment rate. Retail industry is another way to invest in Nigeria, which could span different domains such as clothing, food, or lifestyle. Nigeria is now in a position to provide increased manpower, as the citizens are now keen on finding employment. Though garments made in India and China are exported worldwide, the export business also has the potential to take off in a really large way here, as the country has plenty of skilled labour available at inexpensive costs.

Things to Look Out for in Nigeria

Nigeria is rich in minerals, and the government is now also open to mining and exploring opportunities that harness its mineral wealth. The Nigerian economy has been able to bridge the gap between poverty and the hardworking middle class. Major parts of the Nigerian community consist of the middle class, with the populace being able to afford education and meet its living costs. It has money to spend on things that were previously considered luxuries, though a necessity in today’s life for most other people. As a result of this economic growth, Nigeria has become one of the top-most investment destinations in the world.

Nigerian Government Policies

After decades of economic turmoil and ethnic clashes, Nigeria has now stabilised as a nation. The government is much stable and self-reliant than it was a few decades ago. The leadership of Nigeria has regulated the foreign direct investment policies, and is welcoming businesses from the developed world. For businesses investing in Nigeria, additional support is also provided by the government, in terms of structuring electricity and other resources required for running a business. Nigeria has also configured several avenues to train people for skilled labour.

Summary of Economic Performance

GDP growth is expected at 6.75% in 2013, up from 6.61% in 2012. Growth in Q1, Q2 and Q3 of 2013 are 6.56%, 6.18% and 6.81% respectively.

The external reserve, has been relatively stable – US$44.9billion as at November, 2013

One of the MINT (Mexico, Indonesia, Nigeria & Turkey) Emerging Market Economies with potential for High Return on Investment (RoI) in the next ten years (Fidelity International, 2011)

Ranked Highest recipient of FDI inflows into Africa ($7.03b) in 2013 ahead of South Africa, Ghana, Egypt, Angola (UNCTAD)