1.

Infrastructure and environment for foreign investments in Nigeria

1.1. Overview of foreign investments in Nigeria
- FDI flows to Nigeria dropped by 21% to reach 3,5 billion USD in 2017, under the effects of
austerity measures
http://www.doingbusiness.org/en/rankings
- Estimated at USD 97.6 billion, the total stock of FDI represents 24.4% of the country's GDP
(UNCTAD 2018 World Investment Report)
- Nigeria lays at the 145th place in the Doing Business 2018 report of the World Bank, an
improvement of 24 places compared with the last report
http://www.doingbusiness.org/en/data/exploreeconomies/nigeria
https://www.state.gov/e/eb/rls/othr/ics/investmentclimatestatements/index.htm?year=2018&dlid=
281450#wrapper

1.2. What to consider if you invest in Nigeria?

 Strong points
- Offers a vast array of natural resources, as well as a significant domestic market in the region:
 Important size of its domestic market (Africa's most populous country)
 Important hydrocarbon resources and high agricultural potential;
- Relatively low public and external debt;
- Improvements in credit access and the easing in business registering
  Weak points
- Infrastructure:
 Inadequate infrastructure: has been the primary obstacle to the country’s growth
 Basic infrastructure is extensive, given the size of the population -the largest in Africa -- it
is actually quite inadequate.
 Widening gap between current infrastructure capacity and the much greater level needed
to provide satisfactory basic services.
 The physical problems of dilapidated roads and bridges
 Shortages of fuel, water, electrical power are complicated by periodic episodes of social
and political unrest across the country.
 Most cities in the region lack adequate sewage treatment facilities, and rapid migration of
the rural
 Telephone System: an inadequate system, further limited by poor maintenance; major
expansion is required and a start has been made

- Environment for foreign investment

 Foreign investors are challenged by the country's corruption and opaque regulatory system
 Foreign investors must spend a great deal of time, money and effort to begin operations
before the profits can be earned.
 An inefficient judicial system and unreliable dispute settlement mechanisms
 A high tax burden and a volatile exchange rate
 The economy is vulnerable to volatility on global markets and to large swings in energy
prices
 An increasing lack of security