The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Foreign investment: from telecoms to beer

International oil and gas companies dominate foreign direct investment in Nigeria, while foreign investors have traditionally invested in breweries, food and bottling companies and car manufacturers as strategic investors or via the stock market. But recently the telecommunications industry has become something of a phenomenon

The size of Nigeria's population and its as-yet largely untapped demand is the primary reason that international investors have succeeded in building businesses in the country. And the government is encouraging them to come in as part of its overall reform commitments to supporting private-sector led economic growth and providing jobs.

Foreign investors helped to make the Nigerian Stock Exchange one of the world's best performers between 2000 and 2004, although admittedly from a very low base.

Two brewers dominate the market's capitalisation – Nigerian Breweries, producer of the ubiquitous Star brand, and Guinness Nigeria. In recent months, however, several banks have listed in an attempt to rack up their capital bases ahead of the central bank's end-of year deadline.

The government's privatisation plans should provide further opportunities for investors. However, there are some concerns at the level of supply – bank issues are yet to finish and NITEL and NEPA are still to go public. Already this year the stock market's index has stumbled under the weight. Then there are concerns about whether or not the security and the strength of the regulatory and infrastructural system are enough to cope with the boom in capital market activity over the last five years.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree