Nigeria’s rich supply of commodities along with its Government’s determined efforts to clean up the country’s corrupt image are helping to provide a springboard to global expansion for its banks. Berwin Leighton Paisner’s Segun Osuntokun reports
Since the return of democratic rule in 1999, Nigeria has transformed itself into one of the most exciting ‘frontier markets’ in sub-Saharan Africa. Part of its attraction as an investment destination is attributable to the recent spikes in commodity prices – oil remains Nigeria’s principal export. However, the country’s newfound success can also be put down to prudent macroeconomic management, which saw it pay off its entire external debt of some $33bn (£18bn) and receive sovereign credit ratings of BB- by rating agencies Fitch and Standard & Poor’s for the first time. Wide-reaching reforms of the country’s telecoms and banking sectors have also played a part.
