EY-Nigeria-Country-Report

Africa by numbers 

A focus on Nigeria 

Special report issued for: 

World Economic Forum on Africa 2014

Introduction 

1 

| Africa by numbers A focus on Nigeria

Over the past 3 years, EY’s Africa 

attractiveness reports have highlighted the 

continent’s steady rise. Our research, which 

includes both investor surveys and analysis 

of greenfield and brownfield FDI trends, 

has helped to provide some quantitative 

substance to the growing perception that 

African markets offer an exciting growth 

and investment opportunity. What our 

research has also highlighted, however, is 

a lingering perception gap between those 

companies already doing business on 

the continent and those with no business 

presence. 

We have recently completed our 4th annual 

survey, and the perception gap continues 

to persist – those respondents with an 

established business presence in Africa 

are more positive than ever about the 

continent’s prospects, and, for the first 

time, have also ranked Africa as the most 

attractive regional investment destination 

in the world today. In stark contrast, 

respondents that have not yet invested 

remain negative, rank Africa as the least 

attractive regional investment destination 

in the world. 

The reality 

In many respects, Nigeria epitomises 

this almost bi-polar view of Africa: for 

many of us already doing business on the 

continent it is an exciting, dynamic, high 

octane growth market; for some others, 

often on the outside looking in, it seems 

chaotic, unstable, and uncertain. The 

reality is obviously less cut and dried than 

either of these extremes and in many 

respects depends on the perspective that 

one chooses to adopt. Nevertheless, we 

certainly believe that the facts support the 

more positive perspective on Nigeria and its 

prospects as an investment destination. 

The numbers tell us that Greenfield FDI 

projects into Nigeria have grown at a 

compound rate of close to 20% since 2007, 

positioning it among the 10 countries with 

the highest growth rates in Africa. Nigeria 

has also attracted the most FDI capital and 

the 2nd most FDI projects in Sub-Saharan 

Africa over that period, making it one of 

the star performers in a period in which FDI 

flows into the region have been fairly robust. 

What is equally positive is the increasingly 

diversified nature of the investment. 

Although more than 50% of the FDI capital 

invested into Nigeria since 2007 has been 

into the capital intensive resource sectors 

(primarily oil), nearly 50% of FDI projects 

are service-orientated. There has been 

particularly strong growth in investment 

into telecommunications, with the sector 

attracting 23.9% of FDI projects between 

2007 and 2013. Growth in investment into 

other service sectors like financial services, 

consumer products, tourism and business 

services, further highlights the growing 

opportunities emerging in these sectors. 

A key driver of growing levels of investment 

has been Nigeria’s robust and sustained 

economic growth. Over the past decade, 

the economy has consistently registered 

high single digit growth rates. The recent 

rebasing of Nigeria’s GDP now makes it the 

largest economy in Africa, and one of the 

30 largest economies in the world. Nigeria’s 

economic performance is still somewhat 

dependent on oil, and remains susceptible 

to changes in the oil price. However, as the 

FDI trends indicate, it is the non-oil sector 

that has been the main driver of growth in 

recent years, led by agriculture, services, 

and wholesale and retail trade. 

However, like most emerging markets, 

Nigeria will continue to face its fair share 

of challenges. Corruption, threats to 

physical security and poor infrastructure 

are among those often cited as constraints 

to investment and doing business. Arguably 

though, power shortages have been the 

biggest constraint to expanding investment 

and doing business. Nigeria has one of the 

lowest per capita national power supplies 

in the world, and most businesses rely 

on fuel-powered generators for reliable 

power. Besides the cost this adds to doing 

business (estimated to be as much as 

40% in some sectors), it also significantly 

hampers broader industrial development. 

Recent progress made in the privatisation 

of the power sector should significantly 

increase levels of investment into electricity 

generation and distribution, and could 

transform the business environment in 

Nigeria. 

Nigeria has also attracted the most 

FDI capital and the 2nd most FDI 

projects in Sub-Saharan Africa 

Africa by numbers A focus on Nigeria | 

2

The privatisation of the power 

sector should significantly 

increase levels of investment 

into electricity generation 

and distribution, and could 

transform the business 

environment in Nigeria. 

A robust economy 

Despite these challenges, and while many 

other emerging markets are suffering 

from the consequences of global monetary 

tightening, the Nigerian economy has 

remained remarkably robust. EY recently 

developed a heatmap to illustrate the 

economic vulnerability of a group of 25 

different emerging markets, drawing 

on previously published research into 

currency and banking crises, and ranking 

each country under seven indicators of 

risk (current account balance, government 

debt, inflation, currency volatility, etc.). 

According to these indicators, Nigeria has 

the 3rd highest overall ranking among all 

these emerging markets (and is also well 

ahead of the aggregate ranking for the US, 

Japan and Germany). This strong macroeconomic 

management coupled with 

progress in the political domain, provides 

us with confidence that overall growth 

rates will continue in the 5-6% zone for the 

foreseeable future. 

Given these continued growth rates and 

the recent GDP rebasing, an improving 

business environment, a portfolio of active 

infrastructure projects with a value close 

to $100b, and, of course, a population of 

about 170m people, Nigeria’s billing as 

a powerhouse in a dynamic, high growth 

region is certainly justified. As a result, we 

anticipate that Nigeria will continue to be 

a key hub for investment into Africa, and 

is likely to emerge as one of the most 

attractive developing market investment 

destinations in the world in coming years. 

3 | Africa by numbers A focus on Nigeria

Economic vulnerability heatmap 

Overall score 

Current 

account 

External debt 

Government 

debt 

Inflation 

Growth in 

credit to GDP 

Import cover 

Currency 

change over 

year 

Turkey 20 26 19 13 21 26 16 21 

Argentina 19 14 16 14 24 24 17 24 

Ghana 19 25 13 20 26 10 22 16 

Vietnam 18 13 22 18 18 23 25 8 

India 17 22 6 19 25 17 13 20 

Egypt 16 19 5 23 23 5 23 18 

Czech Republic 16 20 21 15 6 18 21 10 

Brazil 15 17 4 22 17 25 3 19 

Poland 15 23 24 21 5 16 15 1 

Indonesia 15 12 9 7 20 21 11 23 

South Africa 14 18 11 12 15 1 20 22 

Advanced* 14 10 26 24 3 6 14 15 

Ukraine 13 24 25 10 1 3 24 4 

Colombia 13 21 8 9 9 20 9 14 

Mexico 13 15 7 11 14 19 18 6 

Chile 12 16 18 2 7 13 12 17 

Thailand 11 11 12 8 10 22 7 11 

Kazakhstan 11 5 23 4 16 4 19 9 

Malaysia 11 4 15 17 8 15 8 12 

Russia 10 6 14 3 19 12 4 13 

Korea 9 8 17 16 4 7 10 3 

UAE 8 3 10 1 2 8 26 4 

Qatar 8 1 20 1 12 11 5 4 

Nigeria 7 7 1 6 22 2 6 7 

China 6 9 2 5 11 14 2 2 

Saudi Arabia 5 2 3 1 13 9 1 5 

*Aggregate measure of Germany, Japan and the US. 

What is displayed in each column 

1. Overall scores are based on the addition of the seven rankings. We have 

then normalised the total rankings from 1 to 20. The highest figure 

indicates the highest risk. 

2. Current account balance shows the strength of the current account 

balance in 2013. 

3. External debt shows the level of external debt over GDP in 2012. 

4. Government debt shows the level of government debt over GDP in 

2012. 

5. Inflation shows average inflation in 2013. 

6. Growth in credit market shows the average growth of credit markets as 

a share of GDP fro 2010 to 2012. 

7. Import cover shows the ratio of foreign exchange reserves to imports in 

2013. 

8. Currency change over year shows the change in the currency against 

the US Dollar over the 12 months to mid-December 2013. 

Legend of colours used in first column (overall score). 

For each indicator, we have marked: 

• In red: the eight countries with the highest risk 

• In orange: the nine ountries with medium risk 

• In green: the nine countries with the lowest risk 


4

Nigeria 

Abuja 

Ibadan 

Lagos 

Port Harcourt 

Country overview 

Western 

Sahara 

Cape 

Verde 

Senegal 

Gambia 

Mauritania 

Morocco 

Mali 

Algeria 

Burkina Faso 

Guinea 


Bissau 

Benin 

Guinea 

Togo 

Equatorial Guinea 

Sierra Leone 

Liberia Sao Tome 

Côte d’Ivoire Gabon 

Congo 

Ghana 

Niger 

Tunisia 

Libya 

Egypt 

Chad Sudan Eritrea 

Central African 

Republic 

Cameroon 

Angola 

Democratic 

Republic of 

Congo 

Burundi 

Zambia 

Zimbabwe 

Namibia 

Botswana 

South Africa 

South 

Sudan 

Ethiopia 

Uganda 

Kenya 

Rwanda 

Tanzania 

Malawi 

Mozambique 

Swaziland 

Lesotho 

Djibouti 

Somalia 

Seychelles 

Comoros 

Madagascar 

Mauritius 

Reunion 

Opportunity indicators 

GDP (current)* 

Population growth (annual) 2.56% 

Population (m) 171.3 

Mobile penetration (% of population with mobile 

access) 

US$262.61bn 

58.58 % 

Risk indicators 

Ease of doing business overall rank out of 184 

countries (17th in Africa) 

Transparency International Corruption Perceptions 

Index (0=highly corrupt, 100=very clean; ranked 38th 

in Africa) 

Strength of investor protection index (0 =unfavorable, 

10=favorable; ranked 12th in Africa) 

Logistics Performance Index: overall rank out of 155 

countries (25th in Africa) 

Urban population (% of total) 49.62 % Democracy score (0=lowest, 10=highest) 4 

Real GDP growth (compound average growth rate): 

5-year forecast (2018) 

Real GDP growth (compound average growth rate): 

10-year historical (2003) 

GDP per capita (US$): 5-year forecast (2018) 

Country wealth (1=low income, 2=lower middle, 

3=upper middle, 4=high income (non-OECD), 5=high 

income (OECD)) 

5.38 % 

6.62 % 

US$2,652 

2 

Mo Ibrahim Index of African Governance (rank out of 

52 countries) 

Perceptions of governance – rule of law: percentile 

rank (0=lowest, 100=highest) 

Perceptions of governance – regulatory quality: 

percentile rank (0=lowest, 100=highest) 

Quality of overall infrastructure (1=extremely 

underdeveloped, 7=extensive and efficient by 

international standards) 

Literacy rate (total population %) 61.3 % Corporate maximum tax rate (%) 30% 

Source: The World Bank; OECD National Accounts; United Nations Population Division & World Urbanization Prospects; Oxford Economics; ITU International; Transparency 

International; International Bank for Reconstruction and Development; Polity IV Project; Mo Ibrahim Index of African Governance; Worldwide Governance Indicators; WEF Global 

Competitiveness Report; Worldwide Corporate Tax Guide 

• This is Nigeria GDP as per World Bank statistics. This is before recent rebasing of Nigerian economy by the Nigerian Bureau of statistics. 

131 

27 

5.7 

121 

43 

25.82 

20 

3.2 

Henry Egbiki 

EY West Africa Regional Leader 

Tel: +234 8023145694 

Email: henry.egbiki@ng.ey.com 


FDI trends in Nigeria 

Nigeria’s inflow of investment of FDI since 2003 

Nigeria received 6% of Africa’s total FDI for new projects and 11% of capital invested since 2007. 

Nigeria has seen strong compound growth in FDI projects of close to 20% since 2007. Although the average value of projects has declined, 

this reflects the growing diversification of investment (and the Nigerian economy). 

23059 

60 

58 

% CAGR (2007–13) 

New projects Capital invested Jobs created 

19.4% 10.4% -9.6% 

41 

43 

50 

45 

oject FDI 

7 

43 

Top sectors 

60 

Investments into Nigeria have 58been rapidly 

diversifying 50 in the period since 2007. Although 

the oil sector still attracts the most capital, 

there has been significant growth of FDI in 

34 

telecommunications, consumer products, 

construction and business services. 

4811 

Nigeria’s 3768investment into top sectors (2007–13) by 

most projects 

(Total = 306) 

6531 

19 

4656 

Nigeria’s investment into top sectors (2007–13) by 

most capital invested 

(Total = US$55,318m) 

14257 

009 2010 2011 2012 2013 

13 

7293 

561 

ject FDI 

9249 

642 

Other sectors 

47% 

Coal, oil and 

natural gas 8% 

Retail and 

consumer 

products 

4% 

11 

9441 

Other sectors 7% 

Chemicals 3% 

2516 

8480 

Business Services 

8% 

35 

11664 

25 

10447 

4906 

19 

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 

4613 

Capital invested FDI (US$m) Jobs created by FDI 10447New project FDI 

43 

7613 

5775 

Real estate, 

hospitality and 

986 

835 

construction 8% 

6531 

19 

5983 6581 

% CAGR (2007–13) 

4656 

9 9 8 

1441 2761 

3111 

rmany Japan South Korea Singapore Switzerland 


19.4% 10.4% -9.6% 

telecommunication 

35 

14257 

38 

11664 

5595 

25 

10447 

4906 

3963 

5447 

3303 

20 

12069 

% CAGR (2007–13) 

13543 

5145 

7293 

9249 

34 

9441 

New projects Capital invested 

4811 

Jobs created 

% CAGR (2007–13) 19.4% 

3768 

10.4% -9.6% 

3768 

43 

Nigeria’s top 10 project investors since 2007 

38 

35 

Countries are ranked by most new projects (2007–13). 

2008 

4613 

5775 

27 

5595 

5447 

The US, South Africa and the UK are the top 3 investors into 3963 Nigeria. In terms of capital 

14 13 

3111 

11 

investment, there is still a strong bias towards the oil sector. However, there 2870is a marked shift, 

2708 

2516 

1978 

with investors from South Africa, the UK, and India, for example, leading the way in investing 

in sectors like telecommunications, consumer products and automotive. 

561 642 

7563 

43 

14257 


19.4% 10.4% -9.6% 

35 

11664 

25 

8480 

Source: All diagrams on this page have been sourced from fDi Markets and EY analysis. 

7613 

5983 6581 

35 

34 

2004 2005 Other 

14257 

investors 2006 (40%) 2007 2008 

13543 

2009 2010 Canada 2011(31%) 

2012 2013 

25 

12069 

11664 

10447 

19 

20 

9249 9441 

Capital invested FDI (US$m) Jobs created by FDI New project FDI 

8480 

7293 

7613 

6531 

South Africa (6%) 

5983 6581 

4656 

4906 

5145 

4811 

3303 

3768 

4613 

5775 4613 

27 

5595 

5447 

5595 

5447 

3963 

3963 

14 13 

3111 

11 

14 13 

9 9 

2870 

8 

3111 

2708 

11 

2516 

9 9 27 

2870 

8 

2708 

1978 

2516 

1441 2761 

1978 

986 

835 

915 

561 642 

327 

1441 

293 2761 

14 13 

986 

835 

915 

11 

561 642 

United States South Africa UK India France 327 Germany 9 Japan 13 South Korea 9 Singapore Switzerland 

2870 

8 293 

11 

2708 

9 

9 

Capital invested FDI (US$m) 

Jobs created by FDI 2516New project FDI 

8 

6 

7 

6 

United States South Africa UK India France Germany 4 Japan South 4 

5 5 

3 

Korea 4 Singapore 4 4Switzerland 

4 4 

1978 


Jobs created by FDI New project FDI 1441 2761 

986 

835 

915 

561 642 

327 

293 

7563 

43 

United States South Africa 

38 

UK India France Germany Japan South Korea Singapore Switzerland 

35 


4613 

5775 


Jobs created by FDI New project FDI 

27 

5447 

12069 

23059 

41 

6531 

13543 

19 

20 

9249 9441 

8480 

2004 2005 2006 2007 2008 

7293 

7613 2009 2010 2011 

60 

6531 

58 

5983 6581 

23059 

4656 

4906 

5145 

Capital invested FDI (US$m) 4811 

50Jobs created by FDI New project FDI 

Nigeria’s top 5 investors New projects for Capital FDI invested 3303 capital Jobs created invested since 2007 (total 3768 = US$55,318m) 

% CAGR (2007–13) 19.4% 10.4% -9.6% 

43 

41 

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 

Nigeria’s top 5 Capital investors invested FDI (US$m) for FDI Jobs new created projects by FDI New 

since 

project FDI 

2007 (total = 306) 

43 

38 

14 11 13 

9 

2870 

Other investors (49%) 

5775 

6 

France 9441 (5%) 

38 

35 

UK (7%) 

2004 2005 2006 2007 2009 2010 2011 2012 2013 


Coal, oil and 

35 

natural gas 52% 

Technology, 

media and 

915 

telecommunication 25% 

293 

Technology, 

media and 

24% 

3111 

5595 

Retail and 

consumer 

products 

21% 

Financial Services 

9% 

3963 

3303 

2708 

20 

12069 

23059 

41 

13543 

5145 

43 

7293 

9249 

34 

11 

13 

50 

35 

8480 

4811 

7563 

60 

27 

7613 

7563 

9 

9 9 8 

8 

6 

58 

5983 6581 

4656 

43 

14257 

35 

11664 


25 

10447 

34 

4906 

3303 

50 

12069 

20 

60 

41 

United States (14%) 

South Africa (12%) 

UK (11%) 

India (9%) 

United States South Africa UK India France Germany Japan South Kore 

1224 

953 

TMT 

243 

1491 

RCP 

58 

Business services 

154 

45 

Financial services 

160 

1862 

710 

Coal, oil and natural gas 

256 

1980 

RCP 

99 


194 

2239 

1887 

16 

67 

TMT 

Jobs created by FDI 


410 

845 

Real estate, hospitality and construction 

United States 7 

South Africa 

UK India 

7563 

1540 

488 

TMT 

23059 

34 


101 

13543 

United States (8%) 

Mauritius (8%) 

1125 

619 


5145 

327 

43 

7293 

New project FDI 

409 

760 

44 

76 

RCP 


1246 

1593 

TMT 

58 

47 

492 

Life sciences 

9249 

34 

11 

Healthcare 

9441 

109 

3 

24 

639 

6 


3768 

835 

2 

189 

1776 

Automotive 

50 

9 

8480 

1441 

4 

2190 

690 

Coal, oil and natural gas

United States South Africa UK India France Germany Japan South Korea Singapore Switzerland 




Nigeria’s top investors by their top sector FDI investments since 2007 

Investor countries are ranked by most new projects 2007–13. 

These top investors contribute to 56% of all project activity and 44% of capital invested into Nigeria since 2007. 

11 

9 

6 

4 

3 

13 

9 

6 

4 4 

8 

5 5 

4 4 

7 

4 4 

3 

2 

4 

3 

2 2 

1 

TMT 

RCP 




RCP 


TMT 



TMT 



RCP 


TMT 

Life sciences 

Healthcare 


Automotive 


TMT 



RCP 

1224 

953 

243 

1491 

58 

154 

45 

160 

1862 

710 

256 

1980 

99 

194 

2239 

1887 

16 

67 

410 

845 

1540 

488 

34 

101 

1125 

619 

409 

760 

44 

76 

1246 

1593 

47 

492 

11 

109 

24 

639 

1776 

189 

2190 

690 

19 

88 

616 

1000 

22 

126 

4 

20 

United States South Africa 

UK India France 

14% projects/8% capital 12% projects/6% capital 11% projects/7% capital 9% projects/5% capital 5% projects/5% capital 




Source: fDi Markets; EY analysis. 

46 16,475 

Nigeria’s FDI outlook 

FDI outlook 

13,782 

12,600 

2000 2013 2018 Comments 

10,500 

Natural resources 24 

Labor 

5,288 

Nigeria's oil and gas sector attracts a large proportion of total FDI, and its oil reserves will 

continue to attract substantial capital. 

7,015 

A rapidly growing working population, but relatively low levels of education remains a 

hindrance. 

Market size 

Infrastructure 

Roads and Power plants 

Bureaucracy 

bridges and transmission 

grids 

Political environment 

Overall outlook for FDI 

11 

Largest population and now the largest economy in the region, with rising GDP per capita 

2,848 

7 

levels, 2,470 makes this an increasingly attractive consumer market. 

5 

4 

Remains a challenge, but improvements 3have been made over previous decade, and there 

2 2 

is a substantial number of currently active infrastructure projects. 

103 

Airports Rail Industrial Significant levels still remain, Ports which hinders Oil and economic gas activity. Commercial However, Government Water is 

construction 

increasingly open for business. pipelines construction 

Capital value (US$m) Democratic institutions Project number and processes have improved substantially, but social tensions 

remain a concern. 

Natural resources and a growing consumer market are strong pull factors for FDI. 

Investment in infrastructure and improvements in the overall business environment will 

boost FDI levels going forward. 

Very unattractive Unattractive Average Attractive Very attractive for FDI 

Source: Oxford Economics; EY analysis 


Jobs created 

-9.6% 

3303 

20 

12069 

41 

13543 

1224 

953 

TMT 

243 

1491 

5145 

RCP 

43 

7293 

58 

6 


154 

45 

4 

160 


3 

1862 

710 


256 

1980 

RCP 

99 


194 

6 

2239 

1887 

2007 2008 2009 2010 2011 2012 2013 

TMT 

4 

16 

4 4 


67 

410 

845 

4 


1540 

488 

TMT 

34 

5 5 

Nigeria’s active* infrastructure projects up to July 2013 

Nigeria ranks 2nd in Africa by number of projects and 2nd by capital allocation. 

101 


1125 

619 



4% CAGR (2007–13) 4 19.4% 4 10.4% 4 -9.6% 

3 

2 

Nigeria’s infrastructure project breakdown 



9249 

34 

9441 

3768 

50 

8480 

4811 

7613 

5983 6581 

409 

760 

RCP 

6531 

19 

44 

76 

4656 


14257 

1246 

1593 

TMT 

35 

11664 

47 

492 

Life sciences 

25 

10447 

11 

Healthcare 

109 

4906 

24 

639 


189 

1776 

Automotive 

4 

2190 

690 


3303 

20 

12069 

41 

13543 


19 

3 

TMT 

88 

2 2 

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 

5145 

43 

7293 

616 

1000 


9249 

34 

9441 

22 

126 


4 

1 

3768 

RCP 

20 

8480 

4811 

7613 

5983 6581 

United Infrastructure’s States % contribution South Africa by number of projects UK Infrastructure’s India % contribution by France capital value 


Construction sectors 7% 

Social and welfare 4% 

Social and welfare 2% 

Power generation and 



New project FDI transmission 22% 

Power generation and 

Logistics sectors 66% 

transmission 23% 

Construction sectors 25% 

Logistics sectors 51% 

46 

16,475 

7563 

13,782 

7563 

43 

38 

35 

12,600 

27 

4613 

5775 

5595 

3963 

5447 

27 

10,500 

2708 

14 13 

2870 

1978 

561 

327 

642 

11 

2516 

24 

9 9 8 

1441 2761 

986 

835 

915 

293 

5,288 

3111 

7,015 

2708 

14 13 

2870 

1978 

561 

327 

642 

11 

2516 

9 9 8 

1441 2761 

986 

915 

835 

293 

India France Germany Japan South Korea Singapore Switzerland 11 

United States South Africa UK India France Germany Japan South Korea Singapore Switzerland 



2,848 

7 

5 


2,470 

4 


3 


2 2 

103 

Roads and 

bridges 

Power plants 

and transmission 

grids 

Airports Rail Industrial Ports Oil and gas 

construction 

pipelines 

Capital value (US$m) 

Project number 

Commercial 

construction 

Water 

4 4 

*Active projects are categorized into three phases: 1. Conceptual to feasibility; 2. Financial closure to early implementation; 3. In progress and near completion. 

11 

9 

8 

7 

6 

5 5 

4 4 

4 4 

4 

Source: Africa Project Access, 

3 

2 Business 3 

2Monitor 2 International; EY analysis. 

1 

13 

9 

8 

6 

4 

4 

5 5 

3 

4 

7 

4 4 

4 4 

4 

3 

2 

3 

2 2 

1 

16 


67 

410 

845 


1540 

488 

TMT 


Examples of some active infrastructure projects in Nigeria 

34 


101 

1125 

619 


409 

760 

44 

76 

RCP 


1246 

1593 

TMT 

47 

492 

Project name Capacity and time frame Company involvement Other details 

Lagos Rail Mass Transit (PPP) 

Project 

Sponsored by the Lagos 


Metropolitan Area Transport 

Authority (LAMATA). 

ica 

UK India France 

capital 11% projects/7% capital 9% projects/5% capital 5% projects/5% capital 

2,848 

7 

Abuja-Kaduna Rail 

Modernisation (PPP) Project 

Upgrading to standard gauge. 

5,288 

2,470 

Geregu 5II Gas-Turbine Power 

4 

3 

Plant 

Located in Ajaokuta, Kogi State. 

ports Rail Industrial Ports Oil and gas 

construction 

pipelines 


Life sciences 

11 

Healthcare 

109 

7,015 


24 

639 


189 

1776 

Automotive 

2190 

690 


10,500 

19 

TMT 

88 

616 

1000 


22 


126 

RCP 

20 

• Phase one: the 27.5km 

Blue Line from Marina to 

Okokomaiko; LAMATA's 

has envisioned a long-term 

plan of seven lines 

• Completion of phase one is 

pushed out to end-2015 

• 186km rail modernization 

network 12,600 will result in a 

track with 36 bridges and 9 

fully developed stations 

• In progress (brownfield); 

completion expected in 

2014 

• 434 MW 

2 2 

• The plant was 103 turned over 

on schedule in mid-2013 

Commercial 

construction 

Water 

1224 

953 

TMT 

243 

1491 

RCP 

58 


The China Civil Engineering Construction South Africa Corp. 

(CCECC) is the main EPC contractor on phase 

one. The project is sponsored by the Lagos 


State Government (LSG) and will be developed 

by LAMATA on behalf of LSG. 

China Exim Bank is providing a US$500m 

13,782 

concessionary loan, the remaining US$374m 

comes from the Federal Government of 

Nigeria. China Civil Engineering Construction 

24 

Corporation (CCECC) was awarded the main 

EPC contract. 

154 


Siemens won the turnkey EPC contract to build 

the power station for the Nigerian utility Niger 

Delta Power Holding Roads Company and Power (NDPHC). 

plants 

45 


160 

1862 

710 


256 

1980 

RCP 

99 


194 

2239 

1887 

16 

67 

TMT 


410 

845 


1540 

488 

TMT 

34 


101 

1125 

619 


409 

760 

44 

76 

RCP 


1246 

1593 

TMT 

47 

492 

Life sciences 

11 

Healthcare 

109 

This modern rail-based public transport system is the 

first of its kind in SSA outside of RSA. The railway 

equipment, including signaling, rolling stock and fare 


collection equipment, will be provided by the private 

sector. The project is also responsible for generating its 

own electricity. Detailed design and surveying for the 

entire project has been completed. 

United States UK India France 


46 

bridges 

16,475 

and transmission 

grids 

11 

2,848 

Track laying for the single standard gauge line 

was officially launched in July 2013. The railway 

12,600 

modernization initiative in Nigeria aims at replacing 

10,500 

the existing narrow gauge system with the wider 

standard gauge system, while allowing high-speed train 

7,015 

operations on the railway network. 

5,288 

7 

2,470 

The project 5 was commissioned 4 under the National 

3 

2 2 

Integrated Power Project (NIPP) plan. Geregu II is now 

the third gas-turbine Industrial power plant to be Commercial constructed Water 

construction 

pipelines construction 

by Siemens in Nigeria as a turnkey project. By 2020, 


Nigeria plans to increase the country's generation 

capacity by five to eightfold from its current level of 

approximately 5 gigawatts (GW). 

Airports Rail Ports Oil and gas 


24 

639 


189 

1776 

Automotive 

2190 

690 


19 

TMT 

88 

616 

1000 


22 


126 

RCP 

20 

103 

Source: Africa Project Access, Business Monitor International; EY analysis. 


8

EY in Africa 

One 

African executive team 

One 

African integrated operating model 

Cape 

Verde 

Senegal 

Gambia 

Guinea 

Bissau 

Mauritania 

Morocco 

Mali 

Algeria 

Burkina Faso 

Ghana 


Benin 

Guinea 

Togo 

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Sierra Leone 

Liberia Sao Tome 

Côte d’Ivoire Gabon 

Congo 

EY office 

Support available 

Niger 

Tunisia 

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Republic 

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Democratic 

Republic of 

Congo 

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Sudan 

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Somalia 

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Comoros 

Madagascar 

Mauritius 

Reunion 

Africa footprint includes 

33 African countries 

263 partners and employ 

over 5400 people 

Exceptional 

client 

service 

164 years in Africa 

Building a 

better 

working 

world 


Africa Business Center TM 

Today, we are able to navigate through the complexity that our 

clients are experiencing across the geographies. We do this through 

our Africa Business Center. 

Its sole purpose is to help client make their investment and 

expansion decisions in Africa. Our Africa integration benefits our 

clients through: 

• A network of people across Africa and the rest of the world, 

enabling us to coordinate our resources to provide clients with a 

single point of contact. 

• Pre-eminent thought leadership and events such as the Africa 

attractiveness survey, the Strategic Growth Forum Africa and 

the Africa Tax Conference. 

• The unique Growing Beyond Borders software — an interactive 

map-based tool that visually maps data through the lens of the 

continent’s geography. 

EY is a global leader in assurance, tax, advisory services 

and transaction advisory services. The insights and quality 

services we deliver help build trust and confidence in the 

capital markets and in economies the world over. We develop 

outstanding leaders who team to deliver on our promises to 

all of our stakeholders. In so doing, we play a critical role in 

building a better working world for our people, for our clients 

and for our communities. 

EY can give you a local and global perspective that is relevant 

to your sector. Across Africa, our principal focus is on: 

banking and capital markets; mining and metals; oil and gas; 

telecommunications; asset management; insurance; power 

and utilities; retail and consumer products; government and 

public sector; and government and infrastructure. 

• A proven methodology for supporting the development of 

growth strategies for Africa. 

Publications 

Africa by numbers 2013/14 

Whether entering into Africa or expanding across the continent, we believe it is critical to develop a structured analytical 

framework for prioritizing markets. This helps identify markets in which to expand and assess different strategic options. 

We stress the importance of having fact-based conversations about Africa, informed from a basis of rational analysis. 

Realizing potential. EY 2013/14 Sub-Saharan Africa talent trends and practices survey 

This report conveys optimism about Africa’s enormous potential and our commitment to building a better working world. 

Acknowledging the importance of human capital as a key enabler of growth allows us to consider how its performance and 

contribution can be harnessed to create that better working world for all in Sub-Saharan Africa. 

EY Rapid-Growth Markets Forecast — February 2014 

Looking into the future of the world’s rapid-growth markets (RGMs) could reveal some exciting opportunities. We expect 

our 25 RGMs to recover over the course of 2014, with growth of over 5% expected in 2015. However, should markets react 

negatively to the global monetary tightening that is expected this year, medium term growth prospects would be limited. 

Read EY’s latest Rapid-Growth Markets Forecast to find out more. 


10

World Economic Forum on Africa 

Abuja, Nigeria, 7 - 9 May 2014 

EY contacts at WEF Africa 2014 

Henry Egbiki 

Regional Managing Partner 

EY West Africa 

Tel: +234 8023145694 

Email: henry.egbiki@ng.ey.com 

Michael Lalor 

Lead Partner 

EY Africa Business Center TM 

Tel: +27 83 611 5700 

Email: michael.lalor@za.ey.com 

Adekunle Salau 

Leader Advisory Services 


Tel: +234 8112092999 

Email: adekunle.salau@ng.ey.com 

Dayo Batatunde 

Assurance Lead 

EY Nigeria 

Tel: +2348023145695 

Email: dayo.babatunde@ng.ey.com 

Claire Lawrie 

Partner 

EY Africa Advisory Oil & Gas Lead 

Tel: +234 (0) 703 909 7963 

Email: claire.lawrie@ng.ey.com 

Emmanuel Idoko 

Business Development 


Tel: +234 8037868022 

Email: Emmanuel.idoko@ng.ey.com 

EY’s attractiveness survey 

Africa 2014 

The fourth edition of the annual EY’s attractiveness survey – Africa 2014, will be 

launched on 15 May 2014. 

In our first edition of the Africa attractiveness survey 2011, we declared “It is 

time for Africa!” We also said that there was a window of opportunity to act before 

others woke up to the African opportunity. Today, that window is closing, and the 

cost of entering African markets is already beginning to rise. Companies with an 

already-established presence continue to expand and entrench their advantages. 

In our opinion, the risk of missing this window is likely to be far greater than any 

of the risks you will encounter in actually doing business in Africa. 

EY’s attractiveness survey 

Africa 2014 – Available 15 May. 

www.ey.com/za 

EY | Assurance | Tax | Transactions | Advisory 

About EY 

EY is a global leader in assurance, tax, transaction and advisory 

services. The insights and quality services we deliver help build trust and 

confidence in the capital markets and in economies the world over. We 

develop outstanding leaders who team to deliver on our promises to all 

of our stakeholders. In so doing, we play a critical role in building a better 

working world for our people, for our clients and for our communities. 

EY refers to the global organization, and may refer to one or more, of the 

member firms of Ernst & Young Global Limited, each of which is a separate 

legal entity. Ernst & Young Global Limited, a UK company limited by 

guarantee, does not provide services to clients. For more information about 

our organization, please visit ey.com. 

© 2014 EYGM Limited. 

All Rights Reserved. 

ED None 

This material has been prepared for general informational purposes 

only and is not intended to be relied upon as accounting, tax or other 

professional advice. Please refer to your advisors for specific advice. 

ey.com 

@ EY_Africa

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