Discover Nigeria

Official Name: Federal Republic of Nigeria

Capital: Abuja

Population: (2023 est.) 222,486,000

Monetary Unit: Nigerian naira (₦)

Official Language: English

Contents

Introduction

Overview | Population | Currency | Key Cities

People

History | Demographics | Culture

Opportunities

Future Market Trends | Investment Potential | Entrepreneurship

Commerce

Economy | Infrastructure | Financial System

Resources

Data & Insights | Reports | Other Resources

Introduction

Nigeria, a country located on the western coast of Africa. Nigeria has a diverse geography, with climates ranging from arid to humid equatorial. However, Nigeria’s most diverse feature is its people. Hundreds of languages are spoken in the country, including Yoruba, Igbo, Fula, Hausa, Edo, Ibibio, Tiv, and English. The country has abundant natural resources, notably large deposits of petroleum and natural gas.

The national capital is Abuja, in the Federal Capital Territory, which was created by decree in 1976. Lagos, the former capital, retains its standing as the country’s leading commercial and industrial city.

Modern Nigeria dates from 1914 when the British Protectorates of Northern and Southern Nigeria were joined. The country became independent on October 1, 1960, and in 1963 adopted a republican constitution but elected to stay a member of the Commonwealth. Nigeria is bordered to the north by Niger, to the east by Chad and Cameroon, to the south by the Gulf of Guinea of the Atlantic Ocean, and the west by Benin. Nigeria is not only large in area—larger than the U.S. state of Texas—but also Africa’s most populous country. 

In general, the topography of Nigeria consists of plains in the north and south interrupted by plateaus and hills in the centre of the country. The Sokoto Plains lie in the northwestern corner of the country, while the Borno Plains in the northeastern corner extend as far as the Lake Chad basin. The Lake Chad basin and the coastal areas, including the Niger River delta and the western parts of the Sokoto region in the far northwest, are underlain by soft, geologically young sedimentary rocks. Gently undulating plains, which become waterlogged during the rainy season, are found in these areas. The characteristic landforms of the plateaus are high plains with broad, shallow valleys dotted with numerous hills or isolated mountains, called inselbergs; the underlying rocks are crystalline, although sandstones appear in river areas.

The Jos Plateau rises almost in the center of the country; it consists of extensive lava surfaces dotted with numerous extinct volcanoes. Other eroded surfaces, such as the Udi-Nsukka escarpment (see Udi-Nsukka Plateau), rise abruptly above the plains at elevations of at least 1,000 feet (300 meters). The most mountainous area is along the southeastern border with Cameroon, where the Cameroon Highlands rise to the highest points in the country, Chappal Waddi (7,936 feet [2,419 meters]) in the Gotel Mountains and Mount Dimlang (6,699 feet [2,042 meters]) in the Shebshi Mountains.

People

Nigeria: People

Nigeria boasts over 250 distinct ethnic groups, each with its own territory, traditions, and cultural identity. Individuals outside a dominant group residing in its territory for generations are still considered “aliens,” highlighting the historical significance of land ownership and community belonging. While migration within the country seeking fertile land has been common, some rural areas still restrict outsider land ownership.

Major Ethnic Groups

  • Hausa-Fulani (North, Muslim): This integrated group, the most numerous in the country, is predominantly Muslim. Town-dwelling Fulani intermarry with the Hausa and control their administration, while cattle-herding Fulani retain their own language and nomadic lifestyle.
  • Yoruba (Southwest, Diverse Faiths): Another large and influential group, the Yoruba trace their ancestry to Ile-Ife and revere the deity Oduduwa. Traditionally farmers, they now live predominantly in urban areas. Each subgroup has its own paramount chief, with the Ooni of Ile-Ife and Alaafin of Oyo holding the highest traditional authority.
  • Igbo (Southeast, Christian): Living in small, decentralized communities governed by councils of elders, the Igbo prioritize merit over heredity in leadership. A smaller urban population near Benin City shares closer cultural ties with the Edo people than their eastern counterparts.

Languages

Nigeria’s linguistic diversity reflects its rich cultural tapestry. The vast majority of languages belong to the Niger-Congo family, further subdivided into various branches. Hausa holds the title of most spoken language, while English serves as the official language. Yoruba, Igbo, Fula, and English Creole are also widely used, and many languages have written forms.

Religion

Once dominated by traditional beliefs, Nigeria transitioned towards Islam and Christianity during British colonial rule. Today, the population is roughly split between Muslims and Christians, with a smaller minority adhering to traditional religions. Interfaith tensions exist, but the constitution guarantees religious freedom, allowing for co-existence and adaptation within communities. Islam prevails in the north, while Christianity dominates the south. Diverse Christian denominations coexist, with some incorporating traditional practices like drumming and dancing. Polygamy remains a point of contention, with Islam allowing up to four wives and Christianity officially prohibiting it.

Geographic Regions

Marked differences exist between north and south, extending beyond physical landscapes and climate to encompass social organization, religion, literacy, and agricultural practices. These distinctions define three main geographic regions:

  • South (Most Developed, Resource-Rich, Densely Populated): Home to major industrial centers, oil fields, and seaports, this region boasts intensive exploitation of forest resources and diverse cultural centers like those of the Yoruba, Edo, Igbo, and Ibibio.
  • Central (Least Developed, Sparsely Populated, Pockets of Density): Encompassing roughly two-fifths of the land area but supporting less than one-fifth of the population, this region witnessed limited development until the 1970s. Pockets of density exist in tin fields and the southern Tiv-inhabited area.
  • North (Formerly Outward-Oriented, Transformed by Railroad, Hausa-Fulani Culture): Historically connected to North Africa and the Middle East, this region experienced significant change with the construction of a railroad. Dominated by a blend of Hausa and Fulani cultures, with the former being settled cultivators and the latter nomadic herders, it features densely populated areas like Kano and Sokoto.

Commerce

Nigeria: Commerce

Economy

Nigeria boasts Africa’s largest economy, a vibrant scene buzzing with diverse commercial activity. Its bustling markets and entrepreneurial spirit paint a picture of immense potential. However, beneath this vibrant surface lie significant challenges that necessitate continuous development and improvement.

The Informal Juggernaut

  • Over 80% of Nigeria’s economic activity thrives in the informal sector, a realm characterized by small-scale businesses and limited regulations. From street vendors and artisans to local repair shops and food stalls, this sector provides crucial employment and income for millions, particularly in rural areas. However, its informality presents a hurdle to sustainable economic growth and formalization. Efforts are underway to integrate informal businesses into the formal economy through streamlined regulations, improved access to financial services, and capacity-building initiatives. By unlocking the full potential of this vast sector and ensuring its smooth transition into the formal economy, Nigeria can drive inclusive and sustainable growth.

Beyond Oil: A Diversification Drive

  • While oil exports remain a significant contributor to national income, the Nigerian government is acutely aware of the vulnerability this dependence creates in the face of volatile oil prices. The recent global shift towards sustainable energy sources further underscores the need for diversification. Diversification efforts are gaining momentum, with a focus on developing sectors like agriculture, manufacturing, and services. Investments in agro-processing, adding value to agricultural produce, are creating jobs and boosting exports. The automotive assembly industry is witnessing growth, fueled by rising domestic demand and government policies encouraging local production. The information technology sector is also thriving, attracting investment and fostering innovation. By diversifying its economy and reducing its reliance on oil, Nigeria can build a more resilient and sustainable future.

The Rise of the Aspiring Class

  • A burgeoning middle class, particularly concentrated in urban areas, is fueling consumer demand and driving growth in retail, entertainment, and other sectors. This growing segment, characterized by rising disposable incomes and aspirations for a better quality of life, represents a significant market opportunity for businesses and a powerful indicator of Nigeria’s evolving economic landscape. As disposable incomes rise, the demand for quality goods and services, from consumer electronics and designer clothing to restaurants and leisure activities, is expected to further propel economic activity. By catering to the needs and aspirations of this growing middle class, businesses can contribute to inclusive growth and create a more vibrant domestic market.

Infrastructure

Infrastructure development in Nigeria presents a mixed picture, with urban areas generally boasting better facilities compared to rural regions. Transportation infrastructure, the lifeblood of commerce, requires significant upgrades to bridge the gap and unlock its full potential.

Bridging the Gap: A Patchwork of Progress

  • Modernization of roads, particularly in rural areas, is crucial to facilitate the efficient movement of goods and people, reduce transportation costs, and boost trade competitiveness. Investments in modern highways, improved rural roads, and efficient mass transit systems are essential for connecting markets, supporting agricultural production, and promoting economic development across the country. Upgrading ports and waterways, including improving cargo handling capacity and reducing congestion, is also critical for facilitating international trade and attracting foreign investment.

Powering the Future: Overcoming the Electricity Hurdle

  • Inadequate and unreliable power supply continues to be a major bottleneck for economic activity. Businesses grapple with lost productivity, increased operational costs, and disrupted operations due to power outages. This not only hinders existing businesses but also discourages new investment and entrepreneurship. Investments in renewable energy sources like solar and wind, coupled with grid improvements and efficient distribution systems, are essential to illuminate the path towards a more sustainable and productive future. By diversifying the energy mix, reducing reliance on fossil fuels, and ensuring stable and affordable power

Opportunities

  Despite its complexities, Nigeria pulsates with an undeniable entrepreneurial spirit and presents a multitude of exciting opportunities for businesses, investors, and aspiring entrepreneurs across diverse sectors. Its vast and youthful population, strategic location, and commitment to economic diversification paint a compelling picture for those seeking to navigate its dynamic landscape.

Solving Local Challenges, Global Impact

  • Addressing local challenges like limited access to electricity, clean water, or healthcare can present opportunities for innovative and impactful entrepreneurial ventures. Social enterprises and mission-driven businesses that combine profitability with positive social impact have the potential to not only succeed but also contribute meaningfully to national development.

Market Access: A Gateway to Regional and Global Growth

Strategic Location

  • As the largest economy in West Africa, Nigeria serves as a gateway to a regional market of over 300 million people, offering immense potential for businesses seeking to expand their reach. Understanding regional cultural nuances and navigating trade regulations will be crucial for success.

African Continental Free Trade Agreement (AfCFTA)

  • The AfCFTA, aiming to create a single African market, further enhances Nigeria’s attractiveness as a regional hub, facilitating trade and investment across the continent. Leveraging this agreement and building strategic partnerships within Africa will be key for businesses to unlock its full potential.

Growing Trade Partnerships

  • Nigeria is actively establishing trade partnerships with other countries, opening doors for businesses to access new markets and export opportunities. Understanding trade agreements, logistics, and cultural considerations will be vital for businesses to navigate these new frontiers successfully.
By capitalizing on these promising opportunities, embracing innovation, and navigating the challenges with agility, Nigeria can solidify its position as a major player in the global economy. Businesses, investors, and entrepreneurs who dare to venture into its dynamic and evolving landscape stand to reap the rewards of its vast potential and contribute to shaping a brighter future for the nation and its people.  

Resources

  From insightful reports to engaging blogs, this curated list of resources provides a springboard for further exploration:

Economic Landscape

  • World Bank Nigeria Overview: https://www.worldbank.org/en/country/nigeria/overview – A comprehensive overview of the Nigerian economy, covering key sectors, growth trends, and development challenges.
  • IMF Nigeria Country Report: – The International Monetary Fund’s in-depth analysis of Nigeria’s economic stability and vulnerabilities, focusing on fiscal policy and external sector developments.
  • Nigeria Economic Summit Group (NESG): https://www.nesgroup.org/ – A leading Nigerian think tank promoting sustainable economic development through research, advocacy, and dialogue. Offers insightful publications and reports on current economic issues.

Investment and Business

  • Nigerian Investment Promotion Commission (NIPC): https://www.nipc.gov.ng/ – The official government agency responsible for attracting and facilitating foreign direct investment in Nigeria. Provides information on investment opportunities, incentives, and regulations.
  • PwC Nigeria Doing Business Guide: https://www.pwc.com/ng/en/publications/doing-business-in-nigeria.html – A practical guide for investors covering key aspects of establishing and operating a business in Nigeria, including legal, regulatory, and tax considerations.
  • Africa Business Communities: – Offers news, analysis, and insights on doing business in Nigeria, with a focus on specific sectors and opportunities.

Entrepreneurship and Innovation

  • Tony Elumelu Foundation Entrepreneurship Programme: https://tefconnect.com/ – A leading African philanthropy supporting aspiring entrepreneurs across the continent. Provides funding, mentorship, and training to empower young Nigerians to build successful businesses.
  • Nigeria Startup Ecosystem Report: – A comprehensive report on the Nigerian startup ecosystem, highlighting key trends, challenges, and opportunities for new ventures.
  • TechCabal: https://techcabal.com/ – A prominent technology platform covering technology and innovation in Nigeria, featuring news, analysis, and interviews with key players in the ecosystem.

Culture and Society

  • Nigeria Cultural Guide: https://www.britannica.com/place/Nigeria – An overview of Nigeria’s rich cultural heritage, covering its diverse ethnicities, languages, music, art, and literature.
  • CNN Travel: 10 Reasons to Visit Nigeria: – A glimpse into the vibrant tourism scene in