The oil sector is king in Nigeria. It contributes some 90 percent to government’s foreign exchange earnings, attracts a relatively larger chunk of foreign direct investment and is the largest recipient of commercial bank lending.
The sector’s grip on Nigeria is so tight that it almost effortlessly plunged the economy into its first recession in 25 years in 2016 (at the time of low global prices and reduced local production), before pulling it out of water in 2017 as prices recovered and production inched upwards.
However, fast growing sectors like consumer goods, distributed power, education and technology are starting to give the oil sector a run for its money at least as far as private equity goes, according to most recent data compiled by the Emerging Markets Private Equity Association (EMPEA) and exclusively obtained by BusinessDay.
EMPEA is the global industry association for private capital in emerging markets with membership spanning across some 300+ firms representing institutional investors, fund managers and industry advisors who together manage more than US$5 trillion in assets across 130 countries.