GET.invest

Close
Best results
See all results
Full meaning African Union Community of Sahel–Saharan States Common Market for Eastern and Southern Africa Economic Community of West African States Foreign direct investment Gross domestic product Inclining block tariff(s) International Monetary Fund Independent power producer Kilowatt Kilowatt hour Liquid petroleum gas Megawatt Pay as you go Power purchase agreement Private public partnership Standard and Poors Global Ratings Sub-Saharan Africa Transmission and distribution Time of use West African Economic and Monetary Union United Nations Industrial Development Organization Value added tax World Bank Regulatory Indicators for Sustainable Energy General government debt-to-GDP ratio measures the gross debt of the general government as a percentage of GDP. Debt is calculated as the sum of the following liability categories (as applicable): currency and deposits; debt securities, loans; insurance, pensions and standardised guarantee schemes, and other accounts payable. This percentage is calculated from the number of mobile cellular subscriptions per 100 adults. Occasionally a single user will have more than one mobile subscription and so it is possible for this value to exceed 100%. 190 countries ranked This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear. Disclosed share of foreign investment in the clean energy sector (of both local and foreign investment in clean energy, this tells us the amount of foreign investment in clean energy). This includes all renewable energy sources (solar, wind, small hydro, geothermal and biomass and waste), and excludes large hydro (above 50 MW) and nuclear. Downgraded in March 2020 Downgraded in September 2016 Upgraded from BB- in March 2015 If already assembled into a generating set (e.g. a SHS), the duty is 5%. As per the tariff book (which adopts the ECOWAS CET) As per the tariff book (which adopts the ECOWAS CET) As per the tariff book (which adopts the ECOWAS CET) As per the Tariff book (also perused the 2019 Finance Act, VAT Act 1993 (No 102), taking into account VAT (Amendment) Act of 2007) As per the Tariff book (also perused the 2019 Finance Act, VAT Act 1993 (No 102), taking into account VAT (Amendment) Act of 2007) As per the Tariff book (also perused the 2019 Finance Act, VAT Act 1993 (No 102), taking into account VAT (Amendment) Act of 2007) The median time (the value for 50 percent of shipments) from port of discharge to arrival at the consignee. Refers to all types of entry ports. Unit is days. Year is 2018, unless specified otherwise. The real economic growth, or real GDP growth rate, measures economic growth as it relates to the GDP from one period to another, adjusted for inflation, and expressed in real terms as opposed to nominal terms. The real economic growth rate considers inflation in its measurement of economic growth, unlike the nominal GDP growth rate, which does not. 167 countries ranked. Scores are averaged across 2012, 2014, 2016 and 2018 with the last year weighing most of the score. See "Source" below for more details.

The components analysed in the International LPI include:
• The efficiency of customs and border management clearance;
• The quality of transport infrastructure;
• The ease of arranging shipments;
• The quality of logistics services;
• The ability of tracking and tracing;
• The frequency with which shipments reach consignees within expected delivery times.

Overview

Nigeria has the largest economy on the continent. A population of around 200 million people constitutes a large accessible market. Over the last few years, the country has gradually developed its gross domestic product (GDP) from negative growth in 2016 to more than 2% in 2019. The 2019 figure signified a marginal increase from the 1.9% growth recorded the previous year. Per capita GDP in 2019 was back at the 2016 level of almost €2,000 following two years of slow growth, yet remains well below €2,500 observed in 2015. The country’s investment rating was revised downward by Moody’s in 2016, and again in 2017 to B2. Standard & Poor’s (S&P)’s country rating of B+ was downgraded to B in 2016 and to B- in 2020.

Inflation remains high at 11.3% for 2019, although rates have meaningfully improved from 12.1% in 2018 and rates exceeding 15% in the preceding two years. Quarter-on-quarter exchange rates have been relatively stable since 2015, with the exception of Q3 of 2016 and the last quarter of 2019. Over this period, the Nigerian naira depreciated more than 34% against the US dollar and the euro, in addition to a 14% devaluation between the last two quarters of 2019.

Foreign investment fell to a five-year low of about €1.7 billion in 2018, or 0.5% of GDP. With the exception of 2016 at €2.7 billion, previous years in this period have all seen foreign investment exceeding €3 billion. At its relative peak in 2016, foreign investment accounted for 1.1% of GDP, amounting to more than €4 billion. Clean energy investment has been inconsistent with fluctuation between single, double and triple digit millions of euros in annual investment since 2014. The majority of this investment comes from foreign sources, accounting for 79% and 86% of investment into the sector in 2017 and 2018 respectively.

To develop and promote investment in the country, the government has created the Nigerian Investment Promotion Commission (NIPC) as a centralised agency to oversee and manage investment-related activities, including promoting opportunities, incentives and access to finance. Incentives for solar PV panels are favourable as they are exempt from VAT and incur no import duty. Wind turbines are also VAT exempt, yet are charged 5% import duty. Batteries offer much less attractive incentives and are charged the standard national VAT rate of 7.5% and 20% for import duties.
Regional affiliation
AU, CEN-SAD, ECOWAS
Official language(s)
English
National currency
Naira
Presence of port
Yes
Port of Apapa, Port of Onne, Port Hartcourt
Next planned election and cycle length

2023 (4-year cycle)

Demographics

Population
% urban population of total population
% rural population of total population
Population growth rate
Working age (15-64) share of total population
Working age (15-64)
Rest of population
Urbanisation rate (% urban population growth)

Connectivity

Mobile telecom operators
9mobile/Etisalat
Airtel
Glo
MTN
All three connectivity indicators
% penetration of mobile cellular subscriptions
% penetration of mobile money
% population with access to internet

Logistics, Import duties and value added tax

Logistics

Median lead time to import
2018
2 days
Aggregated Logistics Performance Index ranking
2018
103

Import Duties and Value-Added Tax

Import Duties
Solar panels
Wind turbines
Batteries (for renewable energy storage)
VAT
Solar Panels
Wind turbines
Batteries (for renewable energy storage)

Business intelligence

Energy Ranking

Climatescope ranking
2019
15
2018
14
2017
23
2016
30
2015
12
WB RISE ranking
2018
112
2016
99
2014
Not ranked

Economy

GDP
Real GDP growth
GDP/capita, real
SSA average
GDP/capita, real
SSA average
GDP/capita, real
Debt to GDP ratio (gross debt)
Inflation rate
Exchange rate
Currency exchange rate vs. EUR and USD
Currency exchange rate vs. EUR
Currency exchange rate vs. USD
Total volume of clean energy investment
% foreign investment in clean energy
2018
86.00%
2017
79.00%
Methodologies
Get to know how this Country Brief was developed
Read more
Contact
Questions or feedback are always welcome
info@get-invest.eu