If you're not investing in Nigeria, you might regret it...

By Adejare Doherty

Nigeria is Africa’s most populous country hosting almost 200 million inhabitants. With a cultural respect and thirst for knowledge and education, an average age of just over 19 years and an historical national past time of travelling and trading, this population’s latent economic, scientific and entrepreneurial potency is potentially world beating.

In turmoil often lies opportunity and Nigeria has seen tumultuous times as much of late as in any other time in its relatively short modern history yet there has probably never been a better time to invest.

Nigeria lacks almost every major generator of wealth a country could possibly have yet possesses the ideal environment to build them and flourish from them. Apart from the obvious petroleum resources, Nigeria essentially is a reflection of its own coat of arms. A powerful, unharnessed stallion with no rider on board. The human, geological and intellectual fuel is there. Those who help to build the economic and structural engines will benefit immeasurably from the resultant financial power produced. Agriculture, consumer goods, leisure, property – you name it, billionaires will be borne of these industries.

Prima facie, it would seem a bold investor that ventures into the seemingly unknown abyss to find fortune in Africa’s giant, yet there have never been more well educated Nigerian professionals in the diaspora with one foot in Africa and the other in Europe, Asia or The Americas forming an easily negotiated bridge to The Motherland. Have no fear, help is abundant and at hand.

The country has also buttressed its legal structures and diminished and decentralised the power of its military, part of the reason for the apparently unchecked advancement of religious violence but also the foundation for a coup free democracy. The IRA did not prevent Britain increasing its financial might and neither will Boko Haram stop Nigeria. Your money will be safe and importantly, retrievable.

There is a big secret amongst small groups of people who will double, triple and quadruple their wealth over the next few years. The Chinese whisper it and some adventurous westerners snigger to themselves as they hop on the short 6hr flight from London to Lagos: opportunity abounds in Nigeria and there is a fire sale on right this very now.

Due to the failure of successive governments to diversify Nigeria’s economy, recent low oil prices have catalysed the depreciation of Nigeria’s currency against the sterling and the dollar. Nigerian assets are worth 50% what they were less than 2 years ago. Property, shares, and labour are cheap. They will not stay like that for long.

Nigeria is a country of proud resilience and ingenuity. Without a shadow of a doubt, once the population at large moves towards freeing up its economic might in terms of agriculture, mining, consumer goods etc the rise will be rapid and it will be too late to dip your toe in the water. The Nigerians will be coming after your American, Asian and European assets and the juggernaut will be moving too quickly to simply hop on board. At the moment, it is docked at a quay, waiting for smart investors with dollars, euro and sterling to join the cruise.

You see, Nigeria lies in a unique position in Africa. It doesn’t really need anyone else. The population is so large, growing so quickly and so dynamic that the internal latent demand is enough to sustain an extended period of rapid growth. Don’t be surprised if you see a decade of double-digit growth there with peaks of 15%+. Nigeria grew at 7%+ with essentially no leadership and generating 4,000 MW of power – roughly enough to power Bradford, a city of 300,000 people.

Speaking of electric opportunity, Nigeria needs 200,000 MW of power right now. That’s $200Bn of investment needed right there and imagine the opportunities for infrastructure development and investment in a territory 3 times the size of the UK with virtually no railway to speak of and a national road system as desperate for investment as its power sector.

As I said, opportunities abound and if you don’t look now, you might be missing the trick of a generation particularly sterling holders. Your money’s no good in USA and Europe but it has doubled in value in Nigeria.

Look now, before it’s too late.


Adejare Doherty is the Principal Associate NASSA Capital.
NASSA CAPITAL is an independent advisory firm in London specializing in Nigeria and Sub-Saharan Africa. He is also the Managing Director of The Wholeleaf Co London.