Indeed, the global
publishing, research and consultancy firm noted that though the nation is on
track to become one of the world’s 20 largest economies by 2020, with average
yearly growth of seven per cent in the past decade, sustained investments in
key major areas of services, manufacturing, agriculture and banking, would aid
the nation’s sustainable growth.
In its latest publication
on the country’s economy, “The Report: Nigeria 2015” and new infographic
entitled “Nigeria: a post oil economy”, the OBG noted that though the economic
policy of the incoming Buhari administration had yet to be clarified at the
time of printing, investors expect the structural changes that have already
been launched across some sectors to be seen through.
On sectoral performance,
the report showed that with Nigeria reducing its reliance on oil, the services
industry is moving centre stage as figures from the Nigerian Bureau of
Statistics show services now account for 52 per cent of GDP, with information
and communications technology (ICT) a key driver of growth.
Similarly, the report
stated that the nation’s manufacturing sector has also expanded, increasing its
contribution to GDP by five percentage points, adding that the agriculture
sector has continued to improve in its domestic output.
“This is a solid
performance that has prompted the government to set an ambitious target of
boosting manufacturing’s role in the economy to 10% by 2020”, the report added.
“The overhaul to GDP data
left Nigeria’s economy 89% larger than previously estimated, making it the
biggest market across the continent. Nigeria boasts a medium-sized middle class
in absolute, if not relative, terms, and benefits from having had its first
peaceful handover of power since 1999 following the presidential electoral
victory in March 2015 of Muhammadu Buhari over incumbent Goodluck Jonathan.
“As part of the Jonathan
administration’s Transformation Agenda, efforts have been made to ease
bottlenecks to growth, ranging from power generation and distribution to the
agricultural value chain, premised on total infrastructure spending of $2.9
trillion over the next 30 years. Investors expect the structural changes that
have already been launched – ranging from power sector restructuring to
streamlining rules for doing business – to be seen through.
“In spite of the country’s
traditional reliance on hydrocarbons, Nigeria’s industrial sector is
diversified and growing, ranging from food and beverages to building materials.
After a decades-long slump in manufacturing output, triggered by the scaling up
of oil production in the 1970s, the country is working to reverse the trend and
enable manufacturing and heavy industry to play a larger role in the economy.
“In the short and medium
term, the government’s focus is on import replacement and addressing primary
sector blockages, such as power, transport infrastructure and financing. The
country’s solid fundamentals, including rising purchasing power, a growing
population and limited penetration, make it an attractive long-term bet, as
evidenced by the spate of new investments in recent years and the strong
performance of companies in the FMCG, auto and building material segments”, the
report showed. (guardian)
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