A Pan-African Perspective on Strategic Wealth Creation
So you’re embarking on the journey towards financial freedom, and you’re realizing that there’s more to this trip than just finding the treasure. It’s about crafting a roadmap, a strategy deeply rooted in principles of wealth management, or let’s say, Asset Management. This isn’t just about acquiring and keeping an eye on resources. It’s about the strategic deployment of these resources with the goal of reaping a healthy return on investment. However, let’s not confuse wealth creation with a treasure hunt. It’s a carefully tailored blend of various financial tools, economy-watching, and tech-know-how. All these are sewn together by our rich African values of planning, perseverance, and prosperity. A Community Pot of Wealth Creation Asset management mirrors the communal ethos of our African forebears. It’s a methodical approach to nurturing our investments and assets, creating a rich soil for prosperity to flourish. This process entails careful selection of investments, balanced portfolio diversification, and efficient risk management to foster financial stability and lasting growth. Remember, an asset isn’t just a thing you can touch. It could be a brand, a license, a right of way, a group of businesses, or even a hidden opportunity. A Tribute to Our African Resilience Asset management is like carving a trail through the jungle of investment diversification, strengthening our financial standing like a baobab tree stands tall amidst the savannah. This trail traverses a range of investment options such as stocks, bonds, mutual funds, real estate, tangible assets, and even cryptocurrencies. Diversification, a concept deeply rooted in African societies, acts as a protective shield against risks. It also marks the path to long-term financial success. Embracing the African Spirit of Innovation In today’s world of digital connectedness, technology is as integral to asset management as threads are to a tapestry. Think of portfolio management software and data analytics tools as our community’s wise elders, sharing their wisdom on our wealth creation journey. Leveraging technology gives us real-time data, automates routine tasks, and helps us make informed decisions. This combination turns up the volume on wealth creation prospects. In conclusion, asset management, a testament to our rich African heritage, is a powerful tool for wealth creation. It arms us with the ability to manage our investments for sustained financial growth. By embracing professional asset management services, crafting strategic asset allocation plans, understanding risk management, using advanced tools, and maintaining regular performance monitoring, we’re paving a road to sustainable wealth. As we stride along this road, we’re stepping into a brighter financial future, proudly carrying our African heritage with us. Read our recent blog post on our SEC licence
How to Boost Your Corporate Growth with “Founders to Investors (FTI)”
As an entrepreneur, you know that launching a great product or pioneering a new service is not enough. You also need to strategically guide your company toward financial stability and growth. That’s where our “Founders to Investors” (FTI) program comes into action. FTI is more than a service—it’s a partnership. We offer a comprehensive corporate treasury design session tailored for CEOs and CFOs. We use sophisticated wealth planning tools to help you create a balanced, high-growth investment strategy. Let’s explore how we do it. Create an Investment Strategy That Works for You An investment strategy is the heart of your company’s financial future. It defines how you allocate your resources, manage your risks, and achieve your goals. With FTI, we work with you to devise a plan that reflects your business objectives and aligns with market trends. We help you lay the foundation for sustained growth. Find Your Sweet Spot Between Risk and Reward Every entrepreneurial journey embraces risk. But how much risk are you willing to take? And what kind of reward are you expecting? Our team at FTI helps you answer these questions and define your company’s risk appetite. We make sure that your investment decisions are in harmony with your risk tolerance. Understand and Incorporate Various Asset Classes Effectively Investing can often feel like navigating a labyrinth of asset classes and risk-reward ratios. How do you choose the right asset classes for your company? And how do you balance their returns and risks? With FTI, we make this complex world simple. We explain the particulars of various asset classes and help you incorporate them effectively into your investment strategy. Tap Into Global Investment Opportunities and Diversify Your Portfolio The global market presents a wealth of investment opportunities. But how do you access them? And how do you diversify your portfolio to reduce your exposure and maximize your potential? Our FTI program is your bridge to these opportunities. We help you broaden your horizons and diversify your portfolio. Turn Your Plan Into Reality and Execute Your Corporate Treasury Mandate Ideas and plans are just the first steps. You also need to execute them and turn them into reality. FTI stands by you as you implement your corporate treasury mandate. We help you transform your financial strategy from a vision into a reality. Connect with Global Investment Communities and Networks Part of the FTI experience is providing you with exclusive access to global investment communities and networks. These are sources of insights, ideas, and collaborations that can enrich your financial journey. They position you firmly within the global investment landscape. Ensure Success with Regular Check-Ins and Evaluations Change is an integral part of the business world. To adapt to this, FTI offers twice-yearly check-in sessions. These touchpoints allow us to evaluate your investment strategy, measure its success, and tweak it for continued growth. Our “Founders to Investors” program is more than a service—it’s a stepping stone to a robust financial future. It bridges the gap between entrepreneurs’ innovative spark and investors’ financial acumen. Are you ready to capitalize on the potential of the FTI program? Book a free call with one of our expert fund managers by completing our quick contact form. We promise to be in touch within 48 hours. Let’s elevate your financial strategy together, combining innovation and investment for a brighter future.
CASH CRUNCH FOR THE UNBANKED – RETROSPECTIVE LESSONS FROM NIGERIA
This article was originally posted in The Guardian By Subomi Plumptre March 24, 2023 It’s 9pm on a Monday evening, and Tunde is desperately looking for cash in Lagos, Nigeria. After queuing for 3 hours at a bank ATM, he approaches a local Point-of-Sale (PoS) agent who charges him N1,500 to withdraw N10,000. He accepts the unfair price with a mix of anger and resignation. He has no cash to get to work the next day and public buses do not accept electronic payments. Tunde’s struggle exemplifies the current fate of everyday Nigerians due to the Central Bank of Nigeria’s recent cash policies. The currency redesign and cash withdrawal limits of the Central Bank of Nigeria (CBN) sparked economic turmoil and some outrage across the country ahead of a general election. The policies, which included the introduction of new N200, N500, and N1,000 banknotes and the phasing out of the old notes, aimed to tackle corruption and facilitate the country’s transition to a cashless economy. However, the immediate result was a scarcity of Naira, a black market for old and new notes, and PoS operators charging exorbitant fees for cash withdrawals. A Deputy Governor of the CBN admitted that he did not anticipate the unexpected effects – more specifically, entrepreneurial human behaviour. People created new business lines such as going to ATMs with multiple cards (from family and friends) to withdraw cash for sale. According to the National Bureau of Statistics (NBS), inflation was at a 17-year high, rising by 21.82% in January, amid the deadline for phasing out old notes. Coupled with Nigeria’s epileptic power supply and escalating petrol prices, the scarcity of Naira transformed the country into a steaming hotbed of citizen frustration and agitation, ahead of the general elections. Court Hearings and Contempt Charges In February, some state governors dragged the Federal Government to the Supreme Court and on the 8th, the court issued an interim order, restraining the CBN from enforcing the February 10th deadline for the phasing out of the old Naira. The government largely ignored the order except for allowing only the lower N200 denomination to be used by Nigerians for another 60 days until April 2023. The courts fixed a follow up hearing for February 22 (by which time there were sixteen plaintiffs), and the hearing was adjourned until March 3rd, a week after the Presidential elections. At the hearing, the apex court ruled that the old N200, N500, & 1000 notes should remain legal tender until December 31st. But people allegedly rejected the old notes due to a lack of confirmation from the CBN. On the 11th of March, ten states filed contempt charges against the Federal Government and the CBN for non-compliance with the court order. Two days later, the CBN directed Nigerians to go back to using the old notes along with the new ones, barely five months after it announced the Naira redesign policy and all its intended benefits. The Indian Comparison and Unintended Consequences They say the road to hell is paved with good intentions; but most Nigerians would say that the good intentions of the CBN’s policies only succeeded in paving the way to hell-on-earth for them. The policies have hit the middle class and unbanked particularly hard. The cash crunch and disruption in banking services also affected small and medium-scale enterprises, which are mostly owned by middle and lower-class Nigerians. In a bid to withdraw cash, citizens reportedly vandalized banks in some states. According to Oluwole Olusoji, president of the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), up to N5 billion may have been lost by banks due to attacks on their facilities in different parts of the country. The situation in Nigeria drew comparisons to India’s attempt at a similar policy in 2016. Indian Prime Minister Narendra Modi’s sudden withdrawal of the highest denomination currency led to suffering for people without access to debit cards or mobile money. The Nigerian government’s decision was less sudden than that of India, which happened overnight. The CBN gave a 90-day notice and a further 10-day extension. But the result was the same for a nation of 200 million people, about 55% of whom are unbanked, according to the World Bank – sheer chaos and suffering. To be fair, the CBN’s policies have had some unintended positive consequences. Nigerians are becoming more open to cashless transactions. However, now that the dust is settling, there are retrospective lessons we can learn, particularly in the areas of policy implementation and stakeholder management. I will highlight some of them. Nigerians Can Adapt to Change, But They Shouldn’t be Taken for Granted by Government. One big effect of the CBN’s policies is that more Nigerians are adapting to digital payments, including those who were otherwise averse to doing so, such as roadside vendors and market people. This shift is reflected in the rise in Point of Sales transactions, which hit N807.16bn in January 2023, representing a 40.69% year-on-year increase compared to January 2022, according to Nigeria Inter-Bank Settlement System (NIBBS). But there are complaints about the exorbitant transaction charges that come with digital payments during a cash crunch. The CBN Could do Better With Policy Communication. Nigeria’s apex bank still has problems with policy communication, stakeholder engagement, and implementation. In recent times, the bank has had to make a series of explanations, clarifications, extensions, and modifications after-the-fact. A text-mining analysis of the CBN’s communication published in the CBN Journal of Applied Statistics states that, “While the institution’s communication has increased substantially over the years, the word and sentence structures of the policy communique have become more complex, reducing its readability.” (Tamala and Omotosho, 2019) The Infrastructure for Digital Banking Needs to be Scaled by Regulators. To support the cashless economy, the infrastructure for digital banking needs to be scaled by regulators. Failed transactions on mobile banking apps were on the rise during the cash crunch. While most customers suppose the transaction issues to be a problem with their banks,
Volition Cap Co-Founder, Subomi Plumptre, Joins Forbes A-list
Subomi Plumptre, the co-Founder and Chief Executive of Volition Cap, has been accepted into the Forbes Business Council, the foremost growth and networking organisation for successful global business owners and leaders. The recognition came following Subomi`s cumulative business and social entrepreneurship achievements. Beyond her key role in managing the Volition ecosystem over the last six years, she has a track record in strategy, marketing, investment advisory and financial education. Commenting on the acceptance, Subomi said: “I am pleased to be honoured by Forbes Business Council and consider it a new opportunity to represent Volition Cap`s values within the global community of business leaders. Volition Cap has recently been issued a fund management licence by The Nigerian Securities and Exchange Commission. My membership will create new opportunities for us to reach middle-class Africans and Diasporans.” As a member of the Forbes Business Council, Subomi gains access to a network of leading business executives around the world and an opportunity to share thought leadership articles.
How to take advantage of a bear market
How to take advantage of a bear market According to Investopedia, a “bear market” occurs when a market endures extended price decreases. It often refers to a situation in which stock values have fallen 20% or more from recent highs due to widespread pessimism and poor investor sentiment. Although all this might sound scary, it also presents an opportunity for investors, especially new investors coming into the market. This means that if you’re new to investing, now is the moment to start accumulating wealth through the financial markets. Furthermore, when it comes to investing in stocks, it literally pays to start sooner rather than later. This is because shares gain value over time. So don’t put it off any longer. The longer you wait, the more money you’ll need to save to achieve your financial goals. We will be sharing three ways you can take advantage of the bear market. Take advantage of low stock prices in the bear market. While financial advisors warn against trying to time the market, it does make sense to buy when prices are low. For seasoned investors, this means staying invested during market turbulence. However, for rookie investors, this means taking advantage of some low pricing while laying the groundwork for a lifetime of sound investing practises. Think of it as saving 20%, 30%, or 50% in a store — but you still have to be a smart shopper and make sure that what you’re buying makes sense for your financial goals. You have a better chance of surviving difficult market conditions if you invest across asset types. Experts generally advise novice investors to stick to funds, which are pools of financial assets such as stocks, rather than attempting to pick an individual firm whose shares they believe will rise, thereby placing all of their eggs in that basket. Calibrate risk. There is no way around the fact that workers with bigger account balances have considerably more to lose in a bear market. Older plan participants have less time to make up for any such losses before retirement. Given the balance of risk and return, an investor nearing retirement should be far more cautious in the event of a bear market than a younger worker with a smaller account balance. Only you know what portfolio allocation will allow you to sleep well at night and protect your future, given your age, means, and risk tolerance. The essential thing is to figure it out and act on it rather than succumbing to inertia. Create a long-term investment plan. Looking at recent stock performance may make it seem like a risky moment to begin investing. However, developing a long-term strategy now is an excellent way to ensure that you can weather future turbulence. This is critical because volatility is normal. According to Sam Palmer, head of digital wealth planning and advice at J.P. Morgan Wealth Management, new investors should begin by taking stock of their existing situation before developing a plan. While individual stocks may be appealing to inexperienced investors, doing so can concentrate your risk. A diversified portfolio, on the other hand—a mix of stocks, bonds, and cash weighed according to your goals, time horizon, and risk tolerance—can help smooth returns during periods of volatility. Summary In summary, when markets fall, investors with a long-term investment perspective, emergency savings account covering three to six months of living expenses, and a decent grasp on debt should not panic or make quick changes. Read our newsletter on how you can create a long-term investment strategy by clicking this link.
The business environment: top policies that are affecting it.
Many external policies have a harmful or beneficial impact on businesses. These variables must be addressed by business leaders, who must make decisions that minimize the impact of the external environment. Political factors and the ecosystem in which a country operates have an impact on any business environment and can also add a risk factor that can result in losses or damage a company’s profit stream. To maintain a stable business environment, a corporation must plan for a variety of government policies and regulations. Political influences can impact the overall business environment if administration policies shift. Tax and economic policies: These changes may be economic, legal, or societal, and may contain the following elements:An excellent example of a political component is raising or lowering tax rates. Due to specific factors, government rules may raise the tax rate for some enterprises while lowering it for others. This judgement will have an immediate impact on businesses. This is why it is critical to have a strategy in place that can deal with such scenarios. Political stability: A country’s lack of political stability can have a considerable influence on corporate operations. This is particularly true for companies that operate on a worldwide basis. A hostile takeover, for example, can overthrow a government. Such a condition will eventually result in looting, riots, and overall disturbance in the environment. Such circumstances can wreak havoc on a company’s operations and activities, negatively impacting its bottom line. Foreign Trade Regulations: Every company needs to expand its operations in new countries. However, a country’s political history might have an impact on a company’s desire to grow its activities. Government-controlled tax laws can encourage a corporation to expand operations in other places, whilst other tax rules might stymie the process of corporate expansion for certain industries. When it comes to international corporations’ competitiveness in a foreign region, government programmes aimed to help local enterprises may backfire against them. Employment Laws: Employment laws defend employees’ rights and cover every facet of the employer-employee relationship. Employment law is a complicated subject with numerous difficulties. Businesses that stay up to date on the newest developments in this law can steer their operations in the right direction; but, those who get it wrong must be well-prepared for the costly consequences. Employees account for over 98% of the company’s accomplishments (or lack thereof) in modern organisations, and any changes in employment law will, of course, have a significant impact on business operations.
How to invest in a volatile market
The watchword in recent times for investors is uncertainty, which is certainly creating a volatile market. Recently, it was stated somewhere that uncertainty is the only certain thing right now in the world’s economic market. As you try to gear up and adjust to one news, another news is setting in. Market volatility has reached new highs as a result of the Russia-Ukraine war, inflation, and an increase in interest rates by the Fed. Increased volatility implies that the market will experience large “up” moves, resulting in the creation of trillions in wealth. That’s why it’s so enticing for investors to start gambling on these huge fluctuations in the hopes of profiting from market timing. Before we proceed to strategies to apply when the market is volatile, let us understand what a volatile market is. What is a volatile market? Intense activity and wide and quick price changes are some of the characteristics of a volatile market. They can be the outcome of a trade order imbalance in one way (for example, all buys and no-sells). Economic releases, company news, a recommendation from a well-known analyst, a popular initial public offering (IPO), or unexpected financial results, according to some, cause volatility in the markets. Others blame day traders, short-sellers, and high-frequency corporations for the volatility. Now, let’s highlight four strategies to adopt when investing in a volatile market, especially if you are a long-term investor. Know what you own “Know what you own, and know why you own it,” Peter Lynch says. Why should you invest in a firm if you have no idea what it does? Furthermore, investing in your friends’ projects or the latest meme stock just because it’s popular may not be the greatest option for you. Fortunately, Seeking Alpha’s research, news, and quantitative ratings can help you comprehend your investments right away. Stick to your investment plans and risk tolerance, and stay on track to meet your objectives. Choose stocks with solid fundamentals that will pay off in the long run. Stay Invested-Think Long-Term. Market volatility is usually short-lived, so it’s usually a good idea to keep your money invested. Pulling that money out of the market is a risk that should be carefully considered because you risk locking in losses if you do so. The importance of staying involved stems from the fact that, historically, the best days in the market follow the worst days, and timing the market with precision and accuracy is impossible. According to J.P. Morgan’s Guide to Retirement (GTR), the impact of being out of the market is one of the largest detriments to portfolio returns. Loss aversion and trying to time the market are two of the biggest detriments to portfolio returns. Keep your money invested and consider the long term. Diversify your portfolio and focus on good companies. As the markets recover, you may be able to select stocks with reasonable valuations that are trading at attractive prices but have suffered a price drop due to market volatility. Top dividend stocks with secure dividends provide a safety net against the market’s downturn. Finding high-quality firms’ stocks with sustainable growth, excellent valuation frameworks, substantial profits, favourable earnings revisions, and strong momentum relative to peers is the key to long-term investing. Companies with a solid track record of earnings growth and high earnings quality are what you should be looking for. Find resources and tools to educate yourself People are more likely to make emotional investment decisions when they are scared, so they trade frequently during volatile periods. “When you buy a stock, you have to be prepared for it to go down 50% or more and be comfortable with it, as long as you’re comfortable with the holding,” Buffett says. There are a plethora of stock market investment research and analysis websites that provide useful information. At Volition, we have created an investment course that will prepare you for different investment and market situations. We have also made it available to you for free. Sign-up by clicking here. You can also sign-up for our newsletter, where we share market updates and other investment opportunities available to you. Sign-up for our newsletter here.
How to identify your investment risk appetite as a retail investor
The first stage in investing in any market should be determining your risk appetite. You might be able to navigate the market’s high peaks and low valleys with ease. Alternatively, you may find the uncertainty associated with an aggressive investment approach to be too stressful. Your risk appetite is determined by three factors: your risk tolerance, the amount of risk you need to take to meet your financial objectives, and your loss capacity (how much you can afford to lose). You may not reach your financial goals if you take on too little investment risk, and you may lose the money you can’t afford to lose if you take on too much risk. These three questions can help you figure out how much investment risk you’re willing to take: How much Investment risk can you take? According to Mark Gartman, Financial Advisor at Regions Investment Solutions, if you want to achieve a particular level of financial success, you must have certain financial and emotional risk tolerance. Financial development necessitates a willingness to take risks, both financially and emotionally. You may act rashly if you find it too stressful to watch the value of your portfolio fluctuate. If market changes make you nervous, you might want to consider developing a portfolio with lower investment risk. What is your investment goal? According to financial advisor David Gartman, a sound financial strategy considers the big picture. It’s best to think about your goals, worries, and assets. Also, ask yourself, “What am I attempting to achieve?” Maintaining a diverse portfolio to work toward financial goals while minimizing risk is recommended. The goal is to achieve balance so that no single asset falls into a single category. What is your investment timeframe? Your risk appetite can fluctuate as your investment timeline progresses, which takes into account both your age and the amount of time you have to attain your financial goal. You may be able to bear a larger amount of financial risk when planning for retirement. When you’re in your 20s, set aside at least 10% of your net income per paycheck for long-term goals like retirement. According to Gartman, as you get closer to retirement, your risk tolerance will likely fall because you will have less time to recuperate any money lost due to market changes.
Female-led startups to look out for in 2022
In 2021, both male-led and female-led startups raised almost $5 billion in venture capital funding. It was a huge milestone for the African startup ecosystem compared to the amount raised in previous years. One other significant achievement was the number of female-led startups that gained funding. In 2021, we saw that number increase significantly as compared to the previous years. This disparity is due to the fact that most male-led startups are fintech companies (which received most of the funding raised), with most female-led startups being in the edtech and health-tech industries. In this article, we are highlighting some of the female-led startups that received investment from venture capital companies. Edukoya Honey Ogundeyi, the edtech’s founder and CEO, started the company in May 2021. The company raised $3.5 million in a pre-seed round, the largest in Africa by an edtech startup. Edukoya is a complete exam preparation platform designed to assist students in studying more effectively. Its goal is to make high-quality learning support and resources more accessible and inexpensive for Africans. This will be done by creating the world’s largest online learning platform for Africans. It intends to do so by providing African students with digital curriculum content and on-demand teachers for real-time online learning. The new funding will be used by Edukoya to transition from beta to live launch in 2022. It will also be used to hire more people, build its user base, and strengthen the technology underpinning its learning platform, including support for its Pan African and European development hubs. Okra In April 2021, Okra, an API platform founded by Fara Ashiru Jibutoh, raised $3.5 million in a seed round. Okra is an API “super-connector” that establishes a safe platform and process to communicate real-time financial information between clients, applications, and banks. It was founded in 2019 by Fara Ashiru Jituboh (CEO) and David Peterside. They have also secured a total of $4.5 million in two rounds ($1 million in pre-seed). This current investment will be used to extend the company’s data infrastructure across Nigeria. Reelfruit Affiong Williams founded Reelfruit in 2012. The company manufactures a variety of healthy dried fruit and nut snacks that it sells to schools, hotels, and retail supermarkets around the country. In September, the Nigerian agritech business launched a $3 million Series A fundraising round. This is done with the intention of building a new plant to assist with production capacity. Reelfruit was a participant in the Village Capital accelerator program, where it was chosen as one of the winners of the accelerator’s $50,000 prize pool. Shuttlers Shuttlers, a ride-sharing platform founded by Damilola Olokesusi and Busola Majekodunmi in 2016, offers organizations greater mobility options for their employees. Rising Tide Africa, CcHub Syndicate, Launch Africa, EchoVC, Consonance Investment, ShEquity, Sakore, CMC 21 & Alsa, Five35, and Nikky Taurus were among the investors in a $1.6 million seed investment round headed by VestedWorld. The money will be utilized to expand to new cities both inside and outside of Nigeria. Klasha Klasha is a cross-border technology firm created by Jess Anuna and based in San Francisco. It has raised $2.4 million in seed funding to build digital infrastructure for cross-border trade in Africa. With this capital, the company will be able to further develop its technology to help global B2B and B2C businesses such as ASOS, Zara, Amazon, and Zoom accept payments in African currencies from customers across the continent.
Top 5 sectors in the Nigerian economy in 2021.
The Nigerian economy is a middle-income, mixed economy and an emerging market. There is the expanding manufacturing, financial, service, communications, technology, and entertainment sectors. Nigeria is ranked as the 27th-largest economy in the world in terms of nominal GDP. It is also the 24th-largest in terms of purchasing power parity. The Nigerian economy is the largest in Africa. The country’s re-emergent manufacturing sector became the largest on the continent in 2013, and it produces a large proportion of goods and services for the region of West Africa. The Nigerian economy’s top five sectors will include Agriculture 30% of Nigerians are employed in agriculture. Nigeria ranks sixth worldwide and first in Africa in farm output. The sector accounts for about 18% of GDP and almost one-third of employment. Nigeria has 19 million head of cattle, the largest in Africa. Though Nigeria is no longer a major exporter due to the local consumer boom, it is still a major producer of many agricultural products, including cocoa, groundnuts (peanuts), rubber, and palm oil. Cocoa production, mostly from obsolete varieties and overage trees has increased from around 180,000 tons annually to 350,000 tons. Major agricultural products include cassava (tapioca), corn, cocoa, millet, palm oil, peanuts, rice, rubber, sorghum, and yams. Nigeria’s agriculture has been unable to keep up with the country’s rapid population increase. The country, which formerly exported food, now imports a large amount to survive. However, efforts are being made towards making the country food sufficient again. Oil Nigeria’s proven oil reserves are estimated to be 35 billion barrels (5.6×109 m3); natural gas reserves are well over 100 trillion cubic feet (2,800 km3). Nigeria is a member of the Organization of Petroleum Exporting Countries (OPEC). The types of crude oil exported by Nigeria are Bonny light oil, Forcados crude oil, Qua Ibo crude oil, and Brass River crude oil. Poor corporate relations with indigenous communities, vandalism of oil infrastructure, severe ecological damage, and personal security problems throughout the Niger Delta oil-producing region continue to plague Nigeria’s oil sector. Services Nigeria ranks 27th worldwide and first in Africa in services’ output. Since undergoing severe distress in the mid-1990s, Nigeria’s banking sector has witnessed significant growth over the last few years as new banks enter the financial market. Private sector-led economic growth remains stymied by the high cost of doing business in Nigeria, including the need to duplicate essential infrastructure, the lack of effective due process, and nontransparent economic decision making, especially in government contracting. In 2013, The World Bank stated that since 1999, the Nigerian Stock Exchange has enjoyed strong performance, although equity as a means to foster corporate growth is being more utilized by Nigeria’s private sector. Transport Extensive road repairs and new construction activities are gradually being implemented as state governments, in particular, spend their portions of enhanced government revenue allocations. Five of Nigeria’s airports (Lagos, Kano, Port Harcourt, Enugu, and Abuja) currently fly to international destinations. The Nigerian Airforce began a new airline called United Nigeria, with a Boeing 737-500 in 2013. There are several domestic private Nigerian carriers, and air service among Nigeria’s cities is generally dependable. Tourism Due to the country’s ample number of ethnic groups, tourism in Nigeria is largely centred on events. It also includes rain forests, savanna, waterfalls, and other natural attractions. The World Travel and Tourism Council estimates that tourism and travel in Nigeria will exceed $1 billion in 2007. This will account for approximately 6% of the gross domestic product. The industry suffers from the country’s poor electricity, roads, and water quality. In 2020, Nigeria’s GDP amounted to 152,32 trillion Naira or over 400 billion U.S. dollars. Between October and December 2020, the gross domestic product of Nigeria reached 43,564 trillion Naira (source: https://www.statista.com/statistics/1207926/quarterly-gdp-of-nigeria/). In the third quarter of 2021, the GDP added up to around 45 trillion Naira. Nigeria has the largest GDP in Africa. The gross domestic product per capita equalled 2.4 thousand U.S. dollars, ranking 17th among the African country with the highest GDP per capita. Also, Nigeria’s annual inflation rate fell for the eighth straight month to 15.40% in November of 2021, from 15.99% in October. It was the lowest rate since November last year, amid the continued deceleration in food inflation (17.21% vs 18.34%). Meanwhile, the annual core inflation rate, which excludes the prices of agricultural produce, rose to 13.85% in November, the highest since April of 2017, from 13.24% in the prior month. Every month, consumer prices inched up by 1.08%, after a 0.98% increase in the prior month. There is still be hope for the Nigerian economy if infrastructure spending is designed to create construction jobs and increase productivity by enabling businesses to operate more efficiently.