ABOUT NIGERIA

The Nigerian economy is to enjoy more foreign investments with the arrival of 14 European companies in the second quarter of the year. The companies, drawn from across Western Europe, have concluded plans to invest in real estate, construction, refinery projects, mining, agriculture among others and seek local partners in Africa.

Country Profile:
With a population of about 173 million people, Nigeria is the largest country in Africa and accounts for 47% of West Africa’s population
It is the biggest oil exporter in Africa, with the largest natural gas reserves in the continent. Given these large reserves of human and natural resources, the country has significant potential to build a prosperous economy characterized by rapid economic growth.
The economy has enjoyed sustained economic growth for a decade, with annual real GDP increasing by around 7%; it was 6.3% in 2014. The non-oil sector has been the main driver of growth, with services contributing about 57%, while manufacturing and agriculture, respectively contributed about 9% and 21%.

NIGERIA FOOD SECTOR:

Nigeria is Africa’s 2nd largest importer of food processing and packaging technology
Nigeria has a young and growing population of about 173m people. The Nigerian consumer market is estimated at €130bn and has been thriving on the market demand stemming from a robust demography. According to the Economist Intelligence Unit, household goods constitute 3.6% (approximately €4.75bn) of total consumer expenditure in Nigeria. As a result of a growing population and an emerging middle class, there is a growing demand for fast moving consumer goods (FMCG) in the country.

Expenditure in Nigerian food and beverage sector up 16.4% to €80.69bn in 2013
In the food sector, vegetable oil/fat, dairy, baked goods, cereal and chilled foods are the most important products. Most of these products are imported, while local manufacturing is concentrated with the large multinational companies and a few local firms.

Nigeria’s population of approximately 170m offers a large and growing market for food products.
Commercially processed food is fast becoming a trend amongst the emergent middle class
Favorable government policies: Nigeria is a main exporter of consumer goods into the neighboring countries. Since 2002, the government reimburses 40% of the export value for agricultural products upon application and proof of export. The 40% rebate on agricultural exports, a government incentive to help exporters become more competitive, has motivated local producers and firms to improve product quality and packaging to meet international standards.

The 2014-2017 outlook for the Nigerian food and beverage sector is highly positive. Higher disposable in-comes and increasing company advertising are expected to boost value growth. The average Nigerian is expected to spend more on food, especially on items that were previously regarded as luxury goods. Value growth will also benefit from the rising sophistication of the Nigerian consumers and improving product quality. Food items that are fast and convenient, such as pasta and instant noodles will also continue to boost dynamic value growth.