Industry
From The Report: Nigeria 2013
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As manufacturers scour the globe for new growth opportunities, few markets offer greater long-term potential than Nigeria, which boasts an enormous domestic population, plentiful feedstock and limited market penetration. The total value of Nigeria’s manufacturing sector increased 7.55% in 2012, reaching N761bn ($4.8bn) at current base prices, up from N634bn ($3.9bn) in 2011. A globally competitive manufacturing sector is integral to Vision 20:2020, which aims to transform the country into one of the world’s top 20 economies by 2020. With production under capacity, Nigerian industry is operating well beneath its potential, increasing the challenge of competing with cheap foreign goods. However, the success of some local producers shows plenty of room for optimism about the sector’s long-term potential.

This chapter contains interviews with Olusegun Aganga, Federal Minister of Industry, Trade and Investment; and Laurent L Philippe, Group President of Central and Eastern Europe, Middle East and Africa region, Procter & Gamble.

Articles from this Chapter

Overview

Long-term returns: Despite the ongoing challenges of weak infrastructure, there are reasons to be optimistic about the future
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As manufacturers scour the globe for new growth opportunities, few markets offer greater long-term potential than Nigeria, which boasts an enormous domestic population, plentiful feedstock and limited market penetration. Current business conditions, however, including sky-high operating costs and cheap unregulated imports, make it difficult for industry to survive, much less thrive. As a result, those manufacturing firms that have already laid foundations in Nigeria are in it for the long run.…

Analysis

Hold the phone: Manufacturers set up shop as the mobile market shows its true potential
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The government is leveraging packages of fiscal incentives and one of the world’s fastest-growing mobile phone markets, to entice international mobile phone producers to assemble products locally. As a result of these policies several handset firms, including Africa-focused Mi-Fone and China’s Tecno, have already announced intentions to set up local operations. GROWTH MARKET: Nigerian consumers spent $1.2bn on 21.5m mobile phones in 2012, excluding purchases of used or refurbished phones,…

Interview

OBG talks to Olusegun Aganga, Federal Minister of Industry, Trade and Investment
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Interview:Olusegun Aganga How can the country control imports while also decreasing smuggling across its borders? OLUSEGUN AGANGA: Nigeria has the potential to manufacture many products that are currently being imported. For example, tariff policies support the implementation of the country’s industrial policies by strengthening Nigeria’s manufacturing sector and increasing the contribution of the industrial sector to GDP from 4% to 10% within four years. Appropriate tariffs must be put…

Interview

OBG talks to Laurent L Philippe, Group President of Central and Eastern Europe, Middle East and Africa region, Procter & Gamble
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Interview:Laurent L Philippe What can be done to improve formalisation in distribution and retail chains? LAURENT L PHILIPPE: The shift of fast-moving consumer goods’ (FMCG) geographic footprint in emerging markets is driven by rapid social, economic and demographic development. Modern trade in sub-Saharan Africa is rapidly developing with recent entrants to the formal retail landscape like Walmart and ShopRite. However, the informal sector remains a significant component of the FMCG market…

Analysis

Fast-moving target: Manufacturers are looking to take advantage of new growth opportunities
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A booming population offers huge potential for manufacturers of consumer goods, particularly as Nigeria’s nascent middle class further establishes its foothold, but persistent poverty and unemployment mean that price sensitivity is still a major issue. As a result, segments geared toward the lower end of the market offer more predictable returns, and investment in Nigeria’s fast-moving consumer goods (FMCG) sector is growing. However, the operating environment for manufacturers in Nigeria…

Analysis

Gear change: Taking a long-term view, automotive manufacturers are hoping to make big gains
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As the economy grows, sales of buses, trucks and cars are rising in Nigeria. Automakers are capitalising on the vehicle boom and setting up dealerships across the country, while some firms are taking a stab at local assembly. However, ensuring that the vehicles – whether imported formally or locally produced – can compete with cars sold on the grey market is still a challenge. BY THE NUMBERS: Some 15m vehicles were registered in Nigeria in 2013, up from 10m in 2007, according to Bola Akindele,…