Nigeria’s Renewal: Delivering Inclusive Growth in Africa’s largest economy
Global investors and business leaders are focusing on Africa as the next frontier of growth and opportunity, assuming the role that Asia has played in the past 30 years. As in Asia, rapidly developing economies have the potential to lift millions of people out of poverty, contribute to global labour pools, and create a new consuming class. Nowhere is this potential more apparent than in Nigeria, which is the largest African nation not only in population, but also in economic output. This report was prepared through a collaboration between the McKinsey Global Institute (MGI) and McKinsey’s Nigeria office to assess the opportunity that Nigeria’s growth represents for global, local, and regional businesses and, most importantly, for its people. We find that the substantial progress that Nigeria has made in the past 15 years has not been fully appreciated in the outside world, where the nation’s challenges—including security issues—have garnered more media attention. Nigeria has, in fact, established a record of steady growth and improved political stability. Despite persistent poverty, the country has a rapidly growing consuming class. In the following pages, we describe how Nigeria can build on its recent success and ensure that in the coming decade growth is more inclusive so that more Nigerians can escape poverty and enjoy a decent standard of living.