1. Market Research
  2. > Energy & Environment
  3. > Energy
  4. > Oil and Gas Market Trends
  5. > African Infrastructure Tracker—Nigeria

African Infrastructure Tracker—Nigeria

  • November 2015
  • -
  • Frost & Sullivan
  • -
  • 50 pages

Summary

Table of Contents

Infrastructure Development in Nigeria

Nigeria has the largest economy in Africa but is affected by its limited infrastructure—particularly, its transport and energy infrastructure which imposes serious limitations on the country’s economic growth potential. Significant challenges such as power shortages are evident in the electricity sector and this has negatively impacted industrial growth. There is a massive drive toward infrastructure development to support economic growth, with significant development in rail, energy, and electricity infrastructure.

Introduction
Nigeria has overtaken South Africa and has emerged as the largest economy in the African continent after re-establishing their Gross Domestic Product (GDP) calculation. In 2014, the Nigerian economy
was largely driven by the non-oil sector, as declining oil prices and production volumes posed major challenges to the economy. Significant efforts are being initiated by the federal government of Nigeria
to facilitate better access to high-quality living standards through enhanced developments in education, healthcare, and other infrastructure services. Exhibit 1 depicts the development of infrastructure for different industrial sectors in Nigeria for 2015. The Nigerian economy has been significantly affected due to oil-price volatility, sluggish economic growth, and inadequate investments in the infrastructure sector. Although the country recorded annual growth of approximately % in 2015, this was only possible due to enhancements in the non-oil sector of Nigeria.

As estimated in the 2015-2017 Medium Term Expenditure Framework (MTEF), oil prices in Nigeria have been benchmarked to $ from an earlier rate of $65, thus affecting the fiscal revenues of the country. Moreover, highly regulated gas pricing policies implemented by the government have induced minimal investments in gas exploration and supply activities resulting in reduced natural gas production in Nigeria. To address these challenges, the federal government has been heavily recovering revenue from the non-oil sector to compensate for declining oil revenue. In addition, the government also plans to impose monetary penalties on
non-complying entities to prevent large scale natural gas flaring in the country. The Trans-Saharan gas-pipeline project between Nigeria and Algeria is a major development undertaken by the Nigerian National Petroleum Corporation (NNPC) to establish connectivity with Algeria and Niger, as well as the European continent.

The electricity supply industry in Nigeria is highly affected due to gas pipeline vandalism, inadequate transmission infrastructure, and insufficient funding which hampers timely completion of the projects.
Social unrest, which is prevalent in the country, has resulted in power shutdowns on a large scale, resulting in negative implications in other key sectors of the economy including retail, trade, transport,
and telecom. However, various strategies are being implemented by the government to overcome the inflation caused by the deteriorating energy crisis in line with increased private sector participation to
inject huge investments towards development of the projects. Insurgency is a major threat affecting implementation of various infrastructure projects in the country. Most of the contractors have abandoned their projects owing to loss of life due to frequent militant attacks. The construction of key roads in Nigeria has been hindered on a large scale because of the inadequate support from the government in terms of funding, security, and technical expertise.

Inefficient modes of transportation have also induced heavy pressure on the road sector preventing further rehabilitation and expansion of existing road projects. Over the last few decades, railway sector development has remained stagnant owing to negligence from the federal government as well as management issues concerning the Nigerian Railway Corporation (NRC). However, a 25-year Railway Strategic Plan has been introduced by the government to modernize obsolete railway infrastructure and to ensure completion of all existing and ongoing railway projects in the country. To enhance the economy of the country, the Nigerian government has also initiated the development of new deep-sea ports that are expected to further transform Nigeria into a major hub for trade and business in West Africa. The federal government is also engaged in the development of new terminals at existing airports in the country to facilitate the efficient handling of incremental passenger and freight traffic by incorporating huge investments through private sector participation.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
Get This Report
24/7 Customer Support

Talk to Veronica

+1 718 514 2762

Purchase Reports From Reputable Market Research Publishers
Global Oil Storage Industry Outlook to 2021 - Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Terminals

Global Oil Storage Industry Outlook to 2021 - Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Terminals

  • $ 8000
  • Industry report
  • March 2017
  • by GlobalData

Global Oil Storage Industry Outlook to 2021 - Capacity and Capital Expenditure Forecasts with Details of All Operating and Planned Terminals Summary "Global Oil Storage Industry Outlook to 2021 - Capacity ...

Analysis of Key Sectors of Malaysia: Agriculture, Manufacturing, Financial Services, Oil and Gas, ICT, Aviation, Wholesale and Retail, Tourism and Healthcare Along With Production and Consumption Data (2017 - 2022)

Analysis of Key Sectors of Malaysia: Agriculture, Manufacturing, Financial Services, Oil and Gas, ICT, Aviation, Wholesale and Retail, Tourism and Healthcare Along With Production and Consumption Data (2017 - 2022)

  • $ 6000
  • Industry report
  • February 2017
  • by Mordor Intelligence LLP

Malaysia is one of the few developing countries in the Asia pacific region which has used its abundant natural resources to grow sustainably. From being a major exporter of raw materials the country has ...

Analysis of Key Sectors of Angola: Agriculture, Dairy, Meat, Oil and Gas, Manufacturing and Mining Along With Production and Consumption Data (2017 - 2022)

Analysis of Key Sectors of Angola: Agriculture, Dairy, Meat, Oil and Gas, Manufacturing and Mining Along With Production and Consumption Data (2017 - 2022)

  • $ 6000
  • Industry report
  • February 2017
  • by Mordor Intelligence LLP

Angola is one of the fastest growing and most promising economies in Africa. Angola's high GDP growth is driven by high international oil prices. However, the worldwide slump in oil prices has affected ...


Download Unlimited Documents from Trusted Public Sources

Oil Industry in Canada

  • April 2017
  • Oil  

    Oil And Gas  

    Energy  

  • Canada  

View report >

Oil Distribution Supply

  • April 2017
  • Oil Distributio...  

View report >

Global Oil And Gas Industry

  • April 2017
    4 pages
  • Oil And Gas  

  • World  

    United States  

View report >

Tourism Markets

20 hours ago

Related Market Segments :

Oil

ref:plp2015

Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.