Nigeria has the potential to emerge as a global economic force powered by a booming consumer market valued at $1.4 trillion by 2030, says McKinsey Global Institute (MGI), a consulting firm, in a new report released today (Thursday, July 24).Projected growth rates of roughly 7.1 percent per year through 2030 would raise total GDP to more than $1.6 trillion, making Nigeria a top-20 global economy, with a larger economy than the Netherlands, Thailand, or Malaysia in 2030.There is a large consuming class developing in Nigeria, with potentially as many as 160 million members by 2030, more than the current populations of France and Germany combined, says McKinsey.Based on an expanding consumer class in Nigeria, McKinsey projects that consumption could more than triple, rising from $388 billion a year today to $1.4 trillion a year in 2030, an annual increase of about 8 percent.This would make trade the largest sector of the economy and provide a good opportunity for makers of packaged foods and fast-moving consumer items such as juices, which could grow by more than 10 percent per year.BusinessDay findings show that multinationals and conglomerates operating in the country are undertaking vigorous expansion projects, while building capacity to have a fair share in the potential market.Procter & Gamble (P&G) recently announced investment of $300 million in an ultra-modern plant at Agbara, Ogun State, making it the largest non-oil investment in the country by a United States-based firm. The company manufactures diapers, detergents and inhalers for the treatment of common colds, among others, and has been in the country for 20 years, long enough to understand the local market.“The size of the plant at Agbara is 400,000 square metres, and we are expanding by bringing in businesses that will be locally produced,” said Yannis Skoufalos, global product supply officer, P&G, Cincinnati, in a recent interview with BusinessDay.The Dangote Group, one of the most diversified conglomerates in Africa, is expanding operations in its cement, sugar, flour, salt, packaging, food and beverages, among others. Its cement subsidiary recently launched the 3X brand and the 52.5, and further targets 35 million metric tonnes, according to Devakumar V.G Edwin, group managing director/chief executive officer, in earlier interview with BusinessDay. The group plans to pump $2 billion into sugarcane plantations and factories in six northern states.Aliko Dangote, president of the group, also recently announced the company’s intention to invest $250 million in Jigawa State in September this year. Farmers are also being empowered through equipment maintenance, fertiliser and technical input, according to Graham Clark, group managing director, in an interview with BusinessDay.Flour Mills of Nigeria is expanding its milling operations and began the 750,000MT-capacity commercial sugar refining plant in February, according to Jacques Vauthier, its chief financial officer. The company’s Golden Pasta and Noodles are being increasingly expanded and are giving competitors a ride for their money.West African Ceramics Limited (WACL) has also announced plans to establish a $50-million mega factory at Agbara, Ogun State. Nigeria is the world’s 13th largest ceramics consumer.Research has shown that beer is the most popular alcoholic drink in the country, making up about 96 percent of all alcohol sales. To further expand operations, Nigerian Breweries plc and Consolidated Breweries recently announced combination plans. Similarly, SABMiller is expanding operations in its Pabod Breweries, International Breweries, Intafact Beverages and Voltic.Honeywell Flour Mills is also investing N10 billion in the new agro-allied industrial complex sited on a 62.8-hectare land situated around the Sagamu Inter-change in Ogun State, a prospect that could serve as the food basket for the entire group. “We plan not only to have product extension, but also to go into the other areas of agric business,” said Lanre Jaiyeola, managing director, during a tour of the company’s factory in Lagos recently.  McKinsey Global Institute (MGI), a global business and economics research organisation, in its May report projected that there would be an exponential rise in the country’s annual consumption from $388 million to $1.4 trillion by 2030.According to the report, more than 34 million households, with about 160 million people, are likely to be earning above $7,500 annually, thus making them potential players in the consumer market.BusinessDay findings have shown that multinationals and conglomerates are undertaking vigorous expansion projects, while building capacity to have a fair share in the potential market.“This is a prospect that is already attracting investments by multinational consumer-goods producers and retailers,” said Paul Collier, professor of economics and public policy, Oxford University, and Acha Leke, African director, McKinsey, in a recent article ‘The Other Nigeria’.


http://businessdayonline.com/2014/07/nigeria-to-emerge-economic-force-on-1-4trn-consumer-market/#.U9CYFX3TXMI

I pray our economy will be stable......