Nigeria

by Developed Africa 18. October 2013 09:00

Nigeria's economy is changing, and there are many new development projects underway. 

There has been a lot of attention recently surrounding the Nigerian billionaire, and richest man in Africa, Aliko Dangote. The Nigerian businessman famed for being Africa's richest man wants to take on not just Africa, but the world. But what is most interesting about Dangote's success is that it started in Nigeria, and he insists of investing it back into Nigeria, despite what any naysayers think. For example he has recently built a hospital costing N2bn in the city of Kano in order to improve the access to healthcare for Nigerians. This is proof of his dedication to improving Nigeria, and also his faith in the country's development. 

An in-depth profile of the billionaire from the Financial Times analyses his investment and presence in Nigeria, and what it shows is that Dagnote whilst others may not have faith in Nigeria:

Dangote could be in a position to be an even more significant catalyst- by proving that labour-intensive manufacturing can also thrive on the world's poorest continent, as freight costs for imports rise, power supplies improve and markets deepen"

The hope is that by proving he has faith in investment into Nigeria, then more will follow his example, and all they have to do is look at what he has done for himself and they should have no doubt. It is not just Dangote with faith in Nigeria, there are reports that show its economy is strong, and apt to get stronger. And as the second largest economy in Africa, this should not be too surprising. 

Standard & Poor's based its strong positive outlook on the Nigerian economy on the background of strong gross domestic product, GDP, growth prospects of the country, deriving from the reals sectors such as telecom, agriculture, and the strong drive to fix the power sector"

This positive look at the country's economy, paired with the faith investment shown from Dangote, should be enough to convince other investors of its potential. The country is now embarking upon a move into the agricultural sector, with a $36 million food processing plant, supported by Dangote. The move is an attempt to cement Nigeria a future in agriculture, and a better run agriculture sector than currently exists, to replace the dominance of oil in the future. An article from the IB Times argues the 

Nigeria has already ramped up agricultural production by about 8 million metric tons last year, according to Bloomberg, and plans to spend about $10 billion on it over the next few years, with help from foreign investors. The new plant will help to turn that output into processed food on Nigerian soil, which could drastically reduce the $11 billion that Nigeria spends on food imports every year."

It is important to recognise the importance investors hold in this picture, without which many development projects could not go ahead. And as Aliko Dangote has proved with his vast wealth, investing in a country others might doubt can turn out to be the best move possible. 

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