Such things might give pause to anyone thinking of opening a business. In Nigeria, they happen with alarming frequency, and yet investors just keep coming.
The reasons are many: alluring returns in this high-risk frontier market; a huge and growing population with latent potential for a consumer boom; light crude oil ideal for making motor fuel; and sophisticated financial markets.
“We know it’s not risk free,” says Charles Robertson, global Chief Economist at Renaissance Capital. “But look around the world and find another economy with 160 million people growing at 7 percent with such potential. It’s a struggle to find them.”
Nigeria can look like it’s teetering on the cusp of chaos, but it is also Africa’s second biggest economy and top oil producer.
“Nigeria is the best kept secret in the world. Anybody who doesn’t invest in Nigeria only has himself to blame, going forward, if he misses out,” industrialist Aliko Dangote told Reuters in an interview at his Lagos office.
“I don’t really know of any place where you can make as much money as you make in Nigeria.”
As Africa’s richest man, he should know. Last year, the cement tycoon’s Nigeria investments boosted his personal fortune more than fivefold – a bigger rise than anyone else on the Forbes list of world billionaires – to $13.8 billion.
Dangote is from northern Nigeria, where Islamist insurgents of the Boko Haram movement have killed hundreds in daily gun and bomb attacks this year in a bloody anti-establishment offensive.Dangote, whose interests are mostly in the south, with some exposure to the north, does not let the violence affect his business decisions.
“Boko Haram has not destroyed any business here. They have not gone to any factory and planted a bomb,” he said.“Because of drugs barons fighting with the Mexican government, does it mean no one will go and invest in Mexico? No. People are rushing there.”
CLICK SOURCE FOR MORE
- Nigeria, a rugged road to high returns (transformationwatch.com)
- Dangote resumes as President of Nigerian Stock Exchange after court ruling (ghanabusinessnews.com)