Earlier this month the world of international finance was somewhat surprised to learn that Nigeria is now the biggest economy in Africa. This left most economists scratching their heads but after some digging on my part it emerged that this “readjustment” was mostly due to some creative bookkeeping on the part of the Nigerian government.
Regardless of how you measure it, this surprise announcement made many investors suddenly sit up and take notice.
Despite some major challenges facing Africa’s most populous country, not least of all a growing insurgency and the threats to stability this represents (not only to Nigeria but the greater west African region as a whole) and widespread corruption (currently ranked as the world’s 33rd most corrupt nation), the outlook is undeniably positive.
Whichever way you interpret it, the future is bullish for “Naija” and most investors agree on this interpretation, even if it is likely to be a bumpy ride. An extremely young population (44 % fall into the 0-14 demographic), easy access to some of the world’s richest oil reserves and a strategic location are making many investors reach for their cheque book.
However, the difficulty in doing business (ranked 147 of 189) often deter investors despite a current growth in GDP sitting at 7.72 percent..
Working in Nigeria? Is it worth the risks and what are some of the biggest obstacles ? We would loveto hear your opinions and comments on living and working in this land of contradictions. Please leave your comments below.
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