Nigeria Country profile

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Country risk in Nigeria is high. The OECD country credit grade is 6, akin to a speculative grade sovereign rating. This indicates an elevated risk of Nigeria being unable and/or unwilling to meet its external debt obligations.

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Nigeria is ranked 114th out of 190 countries on the World Bank’s ease of doing business gauge. Nigeria has improved dealing with construction permits and starting a business in recent years. Although Nigeria lags the regional average on most measures, it is significantly easier to get credit, protect minority investors and enforce contracts in Nigeria.

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The World Bank ranks Nigeria in the bottom quartile for all but one dimension of governance. Nigeria also falls behind the sub-Saharan average on all areas of governance. Nigeria is particularly prone to political instability and violence, scoring in the worst 5 countries for terrorism in the last five years, according to the Institute for Economics and Peace.

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The risk of expropriation in Nigeria is high, despite having laws that protect against expropriation. A US-owned waste management company was expropriated in 2008.

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Political risk is also high. The prevalence of many extremist groups, including Fulani Herdsmen, Boko Harem and Islamic State undermines security in Nigeria.

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