An example of our SWOTs.

1. NIGERIA
GDP: $305bn Pop: 155m GDP per head (PPP): $2,830 (all 2011 forecasts)
Strengths Weaknesses
• By far Africa's most populous nation with a very large consumer market • Corruption remains a massive issue at all levels of society
• Africa's largest oil producer and also a major gas exporter • Large bureaucracy and lack of capacity has brought about a highly inefficient public sector
• Strong growth in recent years, even during those of global economic downturn • Politicised and very slow judicial process
• Growth has been driven by non-oil sector including dynamic communications and • Slow development of fixed-line telecoms services, which is restraining roll-out of broadband
construction sectors • High levels of entrenched poverty limit the development of the consumer market
• A major financial centre in West Africa • Development of oil sector has done little to help the poorest in the country
• Strong political relations with the US — the main purchaser of its oil — and Europe, • Rigid labour market with highly militant trade unions
based on Nigeria’s important role in regional affairs • Dire infrastructure, in particular power supply and roads
• One of most open countries for foreign ownership on the continent: restrictions exist • High levels of crime
only in the banking sector
• Major recipient of remittances from large Diaspora
• Large and growing entertainment industry: "Nollywood" films are watched throughout
the continent
Opportunities Risks
• Likely to overtake South Africa as continent's largest economy in the next 10 to 15 • The 2011 elections and their fallout could threaten political stability
years • Popular unrest arising from political frustration and/or economic deprivation
• Middle class is emerging, representing another new consumer market • Ethnic and religious violence in the so called "central belt" where the Muslim north meets the
• Young population offers large pool of labour Christian south
• Urban youth are keen consumers of social media • Likely to miss the government's target of Nigeria becoming one of world's 20 largest economies
• Government seeking private investment into infrastructure development by 2020
• Major investment going into increasing power production and distribution • Failure to meet high growth targets would see increased fiscal deficits due to slower-than-
• Privatisation programme continuing – power sector currently being liberalised expected government revenue growth
• Agricultural potential is underexploited • Government efforts to save some oil revenues for future generation could be undermined by
state governments urging more spending now
• Natural resources aside from hydrocarbons are underexploited
• "Brain gain" if skilled Nigerians currently working abroad can be attracted back • Upsurge in terrorist activity in oil sector could restrict production as it did in 2006-09
Updated April 2011
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