While sub-optimal GDP growth may persist in Nigeria for now, the country remains the most attractive investment destination in Africa. This is in spite of the prevalence of weak institutions, poor infrastructure, and political hailstorms. Beyond abundant natural resource, Nigeria’s attraction is bolstered by several frequently underestimated features.
By population size (over 180 million), Nigeria is the continent’s largest and is projected to become the third most populated country in the world by 2050. However, the catch is the booming young population (with a median age of 18years) and burgeoning middle class (with monthly online spending estimated at $1.3bn in 2014, an impetus for growth in consumer spending and output in the medium to long-term. Also, Nigeria’s teeming locally based, and returnee diaspora human capital is a huge advantage for investors venturing into Africa.
In addition, increased internet penetration (91million in June 2017) is supporting a growing mobile space as well as an increasingly socially conscious and upwardly mobile youthful population in Nigeria. This development is gradually making Nigeria’s commercial capital, Lagos, the hub for the continent’s largest cluster of internet Start-ups/Tech companies, a pointer to the future of creativity and innovation in Africa. Finally, Nigeria’s oft-ignored geographical location is a strategic
access point to the rest of the continent.