Nigeria PESTLE Insights – A Macroeconomic Outlook Report
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All the vital news, analysis, and commentary curated by our industry experts.
Agriculture contributed 24.1% to the gross value added (GVA) in 2022, followed by mining, manufacturing, and utilities (21.9%) and wholesale, retail, and hotel activities (14.2%). In nominal terms, the three sectors are expected to grow by 16.8%, 16.8%, and 16.4%, respectively, in 2023.
Three cities generated around 23.0% of Nigeria’s GDP and comprised 11.1% of the country’s population, as of 2022, according to GlobalData’s cities database
PESTLE Insights of the Nigeria Macroeconomic Outlook Report
Political Landscape: The development of robust foreign relations between various stakeholders in the Nigerian economy is likely to strengthen market growth. For instance, in November 2022, the Nigeria Export Processing Zones Authority (NEPZA) and the Philippine Economic Zone Authority (PEZA) signed an MoU to promote economic cooperation and investment opportunities. Similarly, In October 2022, Nigeria and Saudi Arabia signed an MoU to promote mutually beneficial cooperation for both the economies through establishment of the Nigeria-Saudi Joint Commission. Furthermore, agreements with neighboring countries such as Egypt are expected to enhance cooperation in the sectors of construction, medical equipment, and engineering industries as well as agriculture, mining, technology, and real estate.
Economic Landscape: The country was ranked fourth in terms of ease of starting a business, according to the World Bank, Ease of Doing Business Report (2020). India, the Netherlands, and the US were the top three trading partners of Nigeria in 2021 and accounted for 25.9% of total trade (exports and imports. The government’s economic measures to curb the effects of the COVID-19 pandemic led to an increase in the government’s estimated borrowing requirement for the country. The government’s debt obligations have been steadily increasing and the wide public deficit has contributed to its continuous rise.
Social Landscape: Nigeria has performed well on various social parameters. According to the UNDP, Human Development Report (2021–22), Nigeria fared 163rd out of 191 countries. The country has witnessed an improvised level of human development. Nigeria is also expecting to launch the National Action Plan (NAP) 2022-2026 to curb human trafficking.
Technological Landscape: In terms of internet users as a percentage of the population, mobile and broadband penetration rate, the country ranked lower than its Middle Eastern and African peers in 2021, according to GlobalData. Nigeria has the lowest number of patents per million persons among its peer Middle Eastern and African nations. In August 2022, the Minister of Communications and Digital Economy announced the country is heading towards digital literacy and 95% of the population would attain digital literacy by 2030 through the National Digital Economy Policy and Strategy (2020– 30).
Legal Landscape: In September 2022, the Director-General of Nigeria Copyright Commission (NCC) signed an MoU with the Federal Airports Authority of Nigeria (FAAN). The agreement aims to curb the sale of goods that infringe copyright at the national airports in the country since numerous books and DVDs on display at the national airports were pirated, according to the NCC.
Environmental Landscape: On December 14, 2021, the World Bank approved a $700 million credit from the International Development Association (IDA) for the Nigeria Agro-Climatic Resilience in Semi-Arid Landscapes (ACReSAL) Project. The project aims to boost the implementation of sustainable landscape management practices in Nigeria to strengthen the country’s long-term enabling environment for integrated climate-resilient landscape management.
For additional highlights on each segment, download a sample report
Nigeria PESTLE Insights Overview
GDP 2021 | $442.3 billion |
Scope
In September 2023, the Minister of Works Nigeria revealed that the government requires approximately NGN217 billion ($512.6 million) for the construction of 269 roads across Nigeria. Following an inspection tour of various regions, including the Southwest, Southeast, Southsouth, and parts of the Northcentral and Northwest zones.
Key Highlights
The NGSEINDX Index exhibited a rising trend over the past year. As of November 27, 2023, the index stood at 71,228.8, compared to 47,554.3 on November 27, 2022.
Reasons to Buy
Macroeconomic Outlook Report identifies the potentials of the country as an investment destination by analyzing the political, economic, social, technological, legal and environmental (PESTLE) structure.
PESTLE Insights provides 360 degree view of the economy which can be used as a strategic tool to understand the market dynamics, business potentials and direction of operations
Along with providing the country’s snapshot, the report captures the risk factors pertaining to the macroeconomic risks, political environment, legal environment, demographic and social structure effectiveness, technology & infrastructure and natural and geographic aspects that might impact business.
This report also highlights key clusters/cities which contribute significantly to the country GDP and population along with major companies’ presence in these areas.
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Frequently asked questions
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What was Nigeria’s GDP in 2021?
Nigeria’s GDP was $442.3 billion in 2021.
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What was the rank of Nigeria in the GCRI Q3 2022?
Nigeria ranked 133rd out of 153 nations in the GCRI Q3 2022.
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What was the aim of the MoU signed between the Director-General of Nigeria Copyright Commission (NCC) and the Federal Airports Authority of Nigeria (FAAN) in September 2022?
The agreement between the Director-General of Nigeria Copyright Commission (NCC) and the Federal Airports Authority of Nigeria (FAAN) aims to curb the sale of goods that infringe copyright at the national airports in the country.
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