Nigeria Sectoral Study – Food and Drinks

Nigeria is located at the extreme inner corner of the Gulf of Guinea on the west coast of Africa and has a tropical climate with variable rainy and dry seasons, depending on location.
Nigeria, commonly known as the giant of Africa with more than 180 million people is the most populous country in Africa. With a democratic presidential system of government, it has an economy which is based on its rich natural resources, traditional agriculture and the trade sector. The country has a rich land of diverse cultural heritage, with more than 250 ethnic groups, including a wide array of religions and sophisticated visual arts.
It not only shows high potential in human resources but also is endowed with rich natural resources such as oil, gas and minerals. The country aims to develop other productive sectors, boosted by the size of its population and economy, it is a regional powerhouse.
Growth in the consumer sector has been a bright spot in Nigeria’s economy, with many of the fastest-growing industries focused on the country’s rapidly growing private consumer demand, thanks to a very large population and a rising retail sales growth. According to BMI Research, Nigeria’s food and drink industry will contract over 2016 due to an acute decline in per capita food spending. Over our forecast period, economically priced products will perform well as consumers trade down price points to mitigate rising food costs. From 2017, growth will return to positive territory and inflation will abate, relieving pressure on consumer purchasing power.
Last but not least, the Business Environment in Nigeria can be characterized as unsupportive, with the World Bank ranking it (ease of doing business) 170 out of the 189 countries surveyed in its 2016 “Doing Business” report.