‘Enormous’ opportunity seen in Nigerian election outcome

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According to the Nigerian independent election commission the former military ruler Muhammadu Buhari, of the APC party, has won the hotly contested presidential election. This marks the first democratic transition of power between parties in Africa’s biggest country and is hugely symbolic.

While many challenges remain, not least the war in the north east, a currency that appears overvalued and ongoing corruption concerns, the opportunity for positive change with genuinely new leadership is enormous. We note that the entire market capitalisation of all of Nigeria is circa $45bn (£30bn), a mere fraction of the country’s official GDP, and a sum roughly equal to one mid-tier UK FTSE 100 / S&P 500 corporate. Within Nigeria we think the banking sector has tremendous long term potential and trades at inexpensive relative and absolute valuations.

Sam Vecht is manager of the BlackRock Frontier Markets Trust

Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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