The economy of Nigeria advanced 2.55% year-on-year in the fourth quarter of 2019 compared to an upwardly revised 2.28% rise in the previous period. It was the strongest expansion since the third quarter of 2015, mainly driven by the oil sector.
The non-oil sector expanded 2.26 percent, up from a downwardly revised 1.84 percent gain in the previous period, driven by telecommunications & information services, crop production, financial services, retail sector, industrialization etc.
The GDP increased 5.59 percent on a quarterly basis, following an increase of 9.23 percent in the previous period. The economy grew by 2.27 percent in 2019, the most since 2015, compared with 1.98 percent in 2018.
Nigeria has an enviable supply of the world's most expensive resources, and the oil and gas industry has been the economy's main engine for many decades.
Today, however, modern technologies are helping to fuel the most populous country in Africa. Consumer-facing businesses have gradually grown into a significant economic power, and are ready to continue to expand. The Nigerian telecommunications and banking industries have undergone rapid expansion over the last decade, serving pent-up demand and a rapidly rising middle class.
The next chapter of emerging growth for the middle class will be in the retail sector. Wholesale and retail sales are now the third biggest contributors to Nigeria's GDP, fueled by a new wave of Nigerian customers.
The retail market in Nigeria is both captivating and too big to overlook. Companies who act now to develop a winning business model will be tapping into one of the biggest growth opportunities in Africa.