ANALYSIS OF KEY

SECTORS OF NIGERIA
MORDOR INTELLIGENCE

Introduction
Majority of population
still in poverty

Nigerian economy growing tremendously

Total population of 178.5

million

Diversification in
other industries
proving successful as
economy grows

$600,000,000,000

Ongoing threat in the

north from Boko
Haram

$500,000,000,000
$400,000,000,000

$300,000,000,000
$200,000,000,000
$100,000,000,000

Estimated to be the
first African economy
to be worth $1
trillion by 2030

$-

Huge dependence on
oil
Considered as Africas
largest economy
Developing economy with
fast growth rates

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GDP

Linear (GDP)

2 per. Mov. Avg. (GDP)

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

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

Sectors Growth from 2011 to 2012 (in %)

214%

59%
32%

21%
-1%

48%

59%

58%

49%

44%

17%

Nigeria has established itself as the largest telecommunication market in Africa.

The countrys telecom sector is undergoing speedy transformation on account of
explosive growth and rapid infrastructure developments.

Nestle shows a great example

Built food
factories in
Agbara, one of
the companies
largest

Company
extremely
efficient
despite local
issues

Produces enough
soup that could
feed almost half
the Nigeria
population a day

Nestle generates
huge profits in
Nigeria
Twice the return
earned by the
global parent

Young labor force means the time is right

Very young
labor force

43% are
between 014

Means huge
demand for
jobs

Cheap labor
motivates
foreign
firms to
enter

More
educated
than
previous
generations

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

WHO WE ARE?

Mordor Intelligence has the worlds 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 organizations 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.