Investors: Nigeria’s Benefits May Outweigh Challenges

Anita Powell

VOA

March 12, 2015 10:17 AM

JOHANNESBURG—
Investors focused on Africa say Nigeria offers huge opportunities, but also huge challenges. The continent’s most populous nation is dogged by a deadly insurgency, what promise to be contentious elections and low oil prices. But some investors say the country's economic picture is fairly promising.

Africa’s most populous nation has its fair share of issues. The army is battling a Boko Haram insurgency that has rendered parts of its northeast a no-go zone. The nation will hold hotly contested elections at the end of the month, which were delayed six weeks due to security concerns. And the economy is still largely dependent on a volatile resource, oil.

But even that grim picture can not compete with the sheer numbers, Nigeria’s population is estimated at 170 million people, its middle class is growing rapidly, and a recent re-evaluation of the nation’s economy vaulted it above South Africa. In a more meaningful indicator, the World Bank says Nigeria’s per-capita GDP is steadily rising, to its current level of about $3,000.

Investment analyst Martyn Davis, the CEO of Frontier Advisory, said that made the West African nation a “no-brainer” for some investors - particularly those looking at the nation’s burgeoning consumer base.

“There has been an incredible interest, particularly in multinational South African capital, in going to Nigeria. And largely into the FMCG, Fast Moving Consumer Goods, sector. So particularly for consumer-facing enterprises, Nigeria’s been almost a no-brainer. One hundred seventy-odd million people, one in five Africans, almost, is Nigerian,” said Davis.

Despite the attractive numbers, doing business in Nigeria is tough for even savvy companies. Upmarket South African retailer Woolworths pulled out of Nigeria in 2013 after just two years, citing high rents and flagging sales.

Sub-Saharan Africa managing director for for ratings agency Standard & Poor's Konrad Reuss said Nigeria still had a double B-minus rating, putting it below the threshold to be considered an investment destination.

Reuss said the headlines did affect the rating and the agency was “holding its breath” as elections approach.

“I have to highlight that we have the rating on rating on 'watch negative' at the moment, because of a number of things that are obviously happening in Nigeria,” he said.

But, Reuss said, Nigeria also showed promise. “It is a diverse, very vibrant economy with very strong, very impressive entrepreneurs in Nigeria that run businesses that are super-successful. So yes, there are many positive things to say about Nigeria.”

Nissan auto's South Africa managing director, Mike Whitfield, said the key was to look at Nigeria as a long-term business opportunity.

“What we are doing now is not for the short term, it is very much a long-term investment. I think if one looks back and draws parallels to the Brazilian motor industry of 20 years ago, where Brazil was very much where Nigeria is, from an automotive point of view, today you have an automotive industry that is thriving with production in excess of three million vehicles, and also becoming a big exporter of vehicles,” he said.

It is an exciting prospect, investors say, much like this exciting, ever-changing nation. But success in Nigeria may require a virtue that today’s fast-moving market is not known for - patience.

http://www.voanews.com/content/investors-nigeria-benefits-may-outweigh-challenges/2677379.html

Its what you people always say where i heard most company are on the move for high cost of doing business

fromnigeria:
Its what you people always say where i heard most company are on the move for high cost of doing business

You heard from who?

Bad people want block Nija shine but God dey our side. So no matter how dem struggle to pull us down, dem just fall yakata for ground.

That is, on paper!

But hunger still dey, no job


Okonjo been giving fakes figures since 1AD

On paper starts

Let's some people start shouting GEJ is working an all those rubbish, this report is practically saying Nigeria is an investment haven despite the bad governance.

The report is practically saying investors find us interesting despite the bad governance because of the numbers we have to offer - the population.

Imagine if GEJ or Buhari finally wins and they do the right thing for the nation? Imagine how big this nation will be in the annals of big nations?

The best thing that can happen to us in this nation is APC winning the next presidential and PDP having majority in the other elections or vice versa.

If the threat of APC winning the election has gotten GEJ the jerk to do the little he has done the last 4 weeks, imagine if APC is in government and PDP are on their neck or PDP has the presidency and APC the majority in both the houses and states level?

Oklander:
That is, on paper!

That is an illiterate summation reached with zero research. The Nigerian middle class is expanding rapidly, FACT. That is why firms like Shoprite, which many Nigerians had claimed would fail beforehand since everyone was so poor except a ''tiny few'', are seeing a roaring success in their trade and are planning to build scores more outlets across the nation to satisfy the huge demand. Stay there shouting ''on paper'' while foreigners come in here and TAKE YOUR PAPER.

Rossikk:



Investors: Nigeria’s Benefits May Outweigh Challenges

Anita Powell

VOA

March 12, 2015 10:17 AM

JOHANNESBURG—
Investors focused on Africa say Nigeria offers huge opportunities, but also huge challenges. The continent’s most populous nation is dogged by a deadly insurgency, what promise to be contentious elections and low oil prices. But some investors say the country's economic picture is fairly promising.

Africa’s most populous nation has its fair share of issues. The army is battling a Boko Haram insurgency that has rendered parts of its northeast a no-go zone. The nation will hold hotly contested elections at the end of the month, which were delayed six weeks due to security concerns. And the economy is still largely dependent on a volatile resource, oil.

But even that grim picture can not compete with the sheer numbers, Nigeria’s population is estimated at 170 million people, its middle class is growing rapidly, and a recent re-evaluation of the nation’s economy vaulted it above South Africa. In a more meaningful indicator, the World Bank says Nigeria’s per-capita GDP is steadily rising, to its current level of about $3,000.

Investment analyst Martyn Davis, the CEO of Frontier Advisory, said that made the West African nation a “no-brainer” for some investors - particularly those looking at the nation’s burgeoning consumer base.

“There has been an incredible interest, particularly in multinational South African capital, in going to Nigeria. And largely into the FMCG, Fast Moving Consumer Goods, sector. So particularly for consumer-facing enterprises, Nigeria’s been almost a no-brainer. One hundred seventy-odd million people, one in five Africans, almost, is Nigerian,” said Davis.

Despite the attractive numbers, doing business in Nigeria is tough for even savvy companies. Upmarket South African retailer Woolworths pulled out of Nigeria in 2013 after just two years, citing high rents and flagging sales.

Sub-Saharan Africa managing director for for ratings agency Standard & Poor's Konrad Reuss said Nigeria still had a double B-minus rating, putting it below the threshold to be considered an investment destination.

Reuss said the headlines did affect the rating and the agency was “holding its breath” as elections approach.

“I have to highlight that we have the rating on rating on 'watch negative' at the moment, because of a number of things that are obviously happening in Nigeria,” he said.

But, Reuss said, Nigeria also showed promise. “It is a diverse, very vibrant economy with very strong, very impressive entrepreneurs in Nigeria that run businesses that are super-successful. So yes, there are many positive things to say about Nigeria.”

Nissan auto's South Africa managing director, Mike Whitfield, said the key was to look at Nigeria as a long-term business opportunity.

“What we are doing now is not for the short term, it is very much a long-term investment. I think if one looks back and draws parallels to the Brazilian motor industry of 20 years ago, where Brazil was very much where Nigeria is, from an automotive point of view, today you have an automotive industry that is thriving with production in excess of three million vehicles, and also becoming a big exporter of vehicles,” he said.

It is an exciting prospect, investors say, much like this exciting, ever-changing nation. But success in Nigeria may require a virtue that today’s fast-moving market is not known for - patience.

http://www.voanews.com/content/investors-nigeria-benefits-may-outweigh-challenges/2677379.html

I've always admired your zeal and positive campaign for Nigeria. It shows solidarity and faith for the Nigerian movement
But let's call a spade a spade.
Now is the time we tell ourselves the truth.

Forget what those media organizations are saying. Forget what's written on paper, broadcast on media, forget what Western organizations are saying.

An Urban Development expert Rahman A.A. said, "development is said to occur when
1. Corruption
2. Unemployment
3. Inequality
4. Poverty
Has been brought down from high levels."

Some urban Economic scholars/planners say "growth could be either lateral or vertical advancement which could either be seen or heard, but development covers every facet and is felt by the people down to the grassroots level."

Let's look around us realistically, without political, religious, ethnic bias etc let's ask ourselves these one truth "ARE WE DEVELOPING OR RETROGRESSING?

All the transformation and change campaigners una try, but I am neither for any of them because they've always failed to impress me.

Ask yourself where are improvement in these sectors:
Power supply. As I am typing this, my blackberry device battery is at the lower end of the bar. in a place like Abuja, its a luxury if we see power supply for 4 hours now. Previously, it wasn't like this. They've increased the bill, ss I am talking with you, to get a prepaid metre installed in your premises, you're gonna pay nothing less than 60K for a prepaid meter which I know R& + actual MRSP isn't up to 25K why? its now 5K for flat rate. Is this development? For me it is a NO!

SMEs and MDGs the last time I checked, the economic recession has caused many SMEs to close up. Most folks who wish to do one or two things are left stranded. Most youths are also unemployed. I for one know how difficult it is to rent and run a shop/office space in a shopping complex. For my office space I am paying 400K rent, I pay service charge, water bill, environmental fee, I pay power supply (prepaid) all these aren't cheap. I recalled when I came back from my little stay in Ibadan, I had to offset a bill of 250K for environmental bill. Do I generate much waste? NO, am I running a heavy industry? NO. Why the bill? Corruption and blindness of government to see the plight of citizens. In Nigeria, to access loans for SMEs, you'll actually be digging your grave.

HEALTH CARE I don't need to go far, check a case of DJDOLA and how that young fighter fought till the last breath. That's just one who got publicity, millions are out there no where to go to. Medical facilities are obsolete, no training and retraining of medical staffs, no encouraging welfare package, instead they're are harassed by our uniformed men.

WATER SUPPLY only a few places in Abuja have good water supply. Its not even anywhere near what UNDP projected for urban areas. Let's ask ourselves are there water supply in most urban areas? I read about how World Bank in collabo with FG and state govt sponsor urban, regional and/or rural water supply schemes, irrigation channels, dams etc. Where are the results of this collabo?

Need I go more?


My battery don kuku kpeme before I talk fini....


"Battery drained, shutting down handheld"

lomomike:


I've always admired your zeal and positive campaign for Nigeria. It shows solidarity and faith for the Nigerian movement
But let's call a spade a spade.
Now is the time we tell ourselves the truth.

Forget what those media organizations are saying. Forget what's written on paper, broadcast on media, forget what Western organizations are saying.

An Urban Development expert Rahman A.A. said, "development is said to occur when
1. Corruption
2. Unemployment
3. Inequality
4. Poverty
Has been brought down from high levels."

Some urban Economic scholars/planners say "growth could be either lateral or vertical advancement which could either be seen or heard, but development covers every facet and is felt by the people down to the grassroots level."

Let's look around us realistically, without political, religious, ethnic bias etc let's ask ourselves these one truth "ARE WE DEVELOPING OR RETROGRESSING?

All the transformation and change campaigners una try, but I am neither for any of them because they've always failed to impress me.

Ask yourself where are improvement in these sectors:
Power supply. As I am typing this, my blackberry device battery is at the lower end of the bar. in a place like Abuja, its a luxury if we see power supply for 4 hours now. Previously, it wasn't like this. They've increased the bill, ss I am talking with you, to get a prepaid metre installed in your premises, you're gonna pay nothing less than 60K for a prepaid meter which I know R& + actual MRSP isn't up to 25K why? its now 5K for flat rate. Is this development? For me it is a NO!

SMEs and MDGs the last time I checked, the economic recession has caused many SMEs to close up. Most folks who wish to do one or two things are left stranded. Most youths are also unemployed. I for one know how difficult it is to rent and run a shop/office space in a shopping complex. For my office space I am paying 400K rent, I pay service charge, water bill, environmental fee, I pay power supply (prepaid) all these aren't cheap. I recalled when I came back from my little stay in Ibadan, I had to offset a bill of 250K for environmental bill. Do I generate much waste? NO, am I running a heavy industry? NO. Why the bill? Corruption and blindness of government to see the plight of citizens. In Nigeria, to access loans for SMEs, you'll actually be digging your grave.

HEALTH CARE I don't need to go far, check a case of DJDOLA and how that young fighter fought till the last breath. That's just one who got publicity, millions are out there no where to go to. Medical facilities are obsolete, no training and retraining of medical staffs, no encouraging welfare package, instead they're are harassed by our uniformed men.

WATER SUPPLY only a few places in Abuja have good water supply. Its not even anywhere near what UNDP projected for urban areas. Let's ask ourselves are there water supply in most urban areas? I read about how World Bank in collabo with FG and state govt sponsor urban, regional and/or rural water supply schemes, irrigation channels, dams etc. Where are the results of this collabo?

Need I go more?


My battery don kuku kpeme before I talk fini....


"Battery drained, shutting down handheld"

Nobody said Nigeria was now an advanced country where everything worked as it does in Switzerland or Germany. Nobody said we are no longer a developing state. All the report shows is that indices like poverty and unemployment, once dire, are showing improvement, which accounts for the expanding middle class, and therefore, indicates great prospects for long term economic growth and investment. The more companies come in here to invest, the more jobs and opportunities for the people. In terms of infrastructure, there have been some positive developments at state and federal levels - roads, rail, seaports, airports and power are all seeing greater investment that is yielding fruit and should continue to in the long term.

Rossikk:


Nobody said Nigeria was now an advanced country where everything worked as it does in Switzerland or Germany. Nobody said we are no longer a developing state. All the report shows is that indices like poverty and unemployment, once dire, are showing improvement, which accounts for the expanding middle class, and therefore, indicates great prospects for long term economic growth and investment.

Searches for power bank from oga smartchoices to charge my blackberry device.

Ehen I don show again

You see those indicators in writing, but in reality, middle class are groaning. Most corner shops in Abuja is destroyed or marked for demolition, most families are struggling with soaring cost of foodstuffs,

How many youths are churned out from higher institutions how many are being absorbed?

How many are thrown out of jobs? The last time I checked, Julius Berger Nigeria PLC laid of some workers not because of bad practices or poor performance rather because of recession in economy, do you know how many youth corpers registered for INEC Adhoc staff, how many young graduates registered for the immigration recruitment?

Do you know how many businesses are shut down?

I bet you those guys who did this survey or "whatamacallit" aren't in Nigeria to really go round every nook and crany of Nigeria to see for themselves. They're only relying on madam Nkojo's reports.

The best way to tackle long term improvement in Nigeria is addressing the following issues
1. Killing every form and tendency of corruption at every sector at every level,
2. Putting a halt to nepotism, family, religious, ethnic, political bias etc
3. Nipping the issue of terrorism, uprising and crises at the bud
4. Stimulating vital sectors of the economy such as power supply, loans for SMEs,
5. Changing our educational style from theory based to practical based system, and teaching students on ways to become entrepreneurs rather than government job seekers.
6. Massive aggressive education of people especially the lesser educated northern region (I am sorry, no pun intended).
7. Employing professionals to man key sectors, eg, power sector should be manned by a seasoned employee of PHCN one who rose thru the ranks and knows what's what when it comes to power generation, transmission, and distribution rather than some random politrickian, his friend or beer palour mate.


.... By the way, rossick, this debates is suppose be on national media but you know na...

Importers are lamenting on how the harsh economy is affecting their businesses. Inflation is on the rise,market men and women are complaining low patronage on their goods and VOA is saying the opposite. Did they actually do a survey to find out how bad the economy is and how it has affected Nigerians?

We need change please!

berem:
Importers are lamenting on how the harsh economy is affecting their businesses. Inflation is on the rise,market men and women are complaining low patronage on their goods and VOA is saying the opposite. Did they actually do a survey to find out how bad the economy is and how it has affected Nigerians?

We need change please!

True, VOA didn't do any survey. That said, pls let's not politicize this thread for any political party or politrickian.

This is a thread that's best discussed along the line of economy and sustainability in development and not some political campaign.

This is the 1st time u and I are in agreement.

lomomike:


True, VOA didn't do any survey..

Sorry but VOA DID conduct research which is how you reach economic conclusions, such as the fact that GDP per capita is now $3000. That figure was around $300 ten years ago. This explains why foreign investors are pouring into the country. Nissan, GM, Shoprite..even local firms like Jumla are making huge profits in this economy due to the increased purchasing power of Nigerians. You can keep lying to yourself but the fact is that millions of Nigerians are economically better off than they were a decade ago, and if YOU refuse to acknowledge it and capitalize on it, foreigners will come in and clean up.

ROSSIKE:
Sorry but VOA DID conduct research which is how you reach economic conclusions, such as the fact that GDP per capita is now $3000. That figure was around $300 ten years ago. This explains why foreign investors are pouring into the country. Nissan, GM, Shoprite..even local firms like Jumla are making huge profits in this economy due to the increased purchasing power of Nigerians. You can keep lying to yourself but the fact is that millions of Nigerians are economically better off than they were a decade ago, and if YOU refuse to acknowledge it and capitalize on it, foreigners will come in and clean up.

We all know there's global inflation, this is why you see the increased GDP without any commensurate development (be it physical, economic etc) to show forth in the Nigerian scenario. If the people and nation is better off than before, explain the rationale behind the higher unemployment level, higher corruption level, higher dependency level. Nigeria is better off yet people are dying, insurgency, stop being a keyboard warrior, go to the rural areas, slums and back alleys you'll change this your speech.
Go back this fact and figures you're posting with real life situation rather Than some Macro economics calculation and jargons.

Finally, we aren't fighting so there's no need for name tagging or condescending names. I am not even a supporter of any political party or candidate so you should know.

berem:
Importers are lamenting on how the harsh economy is affecting their businesses. Inflation is on the rise,market men and women are complaining low patronage on their goods and VOA is saying the opposite. Did they actually do a survey to find out how bad the economy is and how it has affected Nigerians?

We need change please!

sists..importers are the ones killing our economy and depreciating our currency..
if our economy is bad today and currency is affected ? We need to blamed the importers for relying more on imported products then blamed the government 4 not encouraging infant industries cum mismanagement of our economy..
importers should be highly tax for them to be discourage and promote our own locally products.
i guess it s because of the taxes,that s why importers re complaining..
If yu want change,ngozi should be change now instead of jonathan..
anyway, i'm a non partisan but i hunt for d facts..
how yu dey ,hope apc are warming up lol

lomomike:


We all know there's global inflation, this is why you see the increased GDP without any commensurate development (be it physical, economic etc) to show forth in the Nigerian scenario.

Actually we don't "all know" that at all. That is YOUR explanation and it is baseless. GDP growth is caused by an increase in the amount and value of goods and services produced in a nation, not "global inflation", otherwise all countries will post identical growth rates.

If the people and nation is better off than before, explain the rationale behind the higher unemployment level, higher corruption level, higher dependency level. Nigeria is better off yet people are dying, insurgency

What research have you conducted to show those claims? Merely listing "higher unemployment, higher corruption" etc is infantile and unschooled. Show your research.

Stop being a keyboard warrior, go to the rural areas, slums and back alleys you'll change this your speech.

More unschooled garbage. No one said poverty had ended in Nigeria. Is there a slow decline in its occurrence? Yes. These changes are measured using scientific and empirical methodologies and tools, not by walking through back alleys of slums.

Go back this fact and figures you're posting with real life situation rather Than some Macro economics calculation and jargons.

You are an economic illiterate. By your logic India is not developing since millions still live in slums and poverty. Go and learn the basics of research. Real life situation? You only see what YOU want to see. How do you explain the roaring success of firms like Shoprite? Is that not real life?
Innoson now employs 6000 Nigerians, producing vehicles. Nissan, VW, Hyundai etc are establishing plants all over the country, employing Nigerians. Is that not real life? Agriculture is witnessing a boom. The middlemen have been cut off to farmers' benefit. Is that not real life?

ROSSIKE:
Actually we don't "all know" that at all. That is YOUR explanation and it is baseless. GDP growth is caused by an increase in the amount and value of goods and services produced in a nation, not "global inflation", otherwise all countries will post identical growth rates. What research have you conducted to show those claims? Merely listing "higher unemployment, higher corruption" etc is infantile and unschooled. Show your research. More unschooled garbage. No one said poverty had ended in Nigeria. Is there a slow decline in its occurrence? Yes. These changes are measured using scientific and empirical methodologies and tools, not by walking through alleys of slums.You are an economic illiterate. By your logic India is not developing since millions live in slums and poverty. Go and learn the basics of research. Real life situation? You only see what YOU want to see. How do you explain the roaring success of firms like Shoprite? Is that not real life?

Its unfortunate you argue with insults on people rather than sticking to topics.

You claim gdp is as a result of goods and service produced in a country, that I agree. But in Nigeria's case, Nah! I DON'T agree. What are we producing? We produce almost close to zero. What do we export, raw materials, crude. And that's on d downward spiral.
Cassava, and some food crops.


Oh I forgot innoson is a Nigerian company. Abegi make we hear word, innoson don't produce no car that thing they doing there in anambra or nnewi is nothing but chinese engineering, its badged engineered and assembled piece of crap.

The last time I checked, I was in india, I saw development creeping into grassroots. Saw middle class family on the increase. In Nigeria the reverse is th case.
We aren't interested in the figures, what we need is these figures to be translated to reality on ground, feasible, physical, economic gains for all to benefit and not some scientific sham.

Pls next time argue with logic and stop resorting to insult. I'm done with you since you lack maturity when you debate.

lomomike:


Its unfortunate you argue with insults on people rather than sticking to topics.

You claim gdp is as a result of goods and service produced in a country, that I agree. But in Nigeria's case, Nah! I DON'T agree. What are we producing? We produce almost close to zero. What do we export, raw materials, crude. And that's on d downward spiral.
Cassava, and some food crops.


Oh I forgot innoson is a Nigerian company. Abegi make we hear word, innoson don't produce no car that thing they doing there in anambra or nnewi is nothing but chinese engineering, its badged engineered and assembled piece of crap.

The last time I checked, I was in india, I saw development creeping into grassroots. Saw middle class family on the increase. In Nigeria the reverse is th case.
We aren't interested in the figures, what we need is these figures to be translated to reality on ground, feasible, physical, economic gains for all to benefit and not some scientific sham.

Pls next time argue with logic and stop resorting to insult. I'm done with you since you lack maturity when you debate.

You cannot debate me because you lack the acumen to engage in proper economic analysis. Go to a university. It will help. You might even get "interested in figures''. Oh, and please don't insult Innoson. He is creating value through production which contributes to GDP and employment, and hence, economic development. We know that is all "jargons" to you since you lack economic education.