Nigeria is recognised as potentially one of the most exciting investment destinations on the continent.
With a country population of around 200m people and a median age of just 18 years of age, the country enjoys a variety of natural resources including oil, natural gas, iron ore, coal and abundance of arable farm land.
Despite all of these resources, Nigeria has been plagued with political instability, under-developed capital markets and infrastructure challenges – a common theme across African markets.
Allan Gray portfolio manager Nick Ndituru did an interesting write-up at the end of 2017 around the opportunities in Nigeria which can be found here.
With the oil price rebounding, stability in the banking sector and additional development funding being made available, Nigeria has a number of things to look forward to over the next decade.
A regular question is “How does a retail investor get access to the Nigerian market without picking individual stocks?”
With the majority of specialist Africa-focused investment funds requiring high minimum investments and lock-in periods, arguably the best way to do this is to invest in the Global X MSCI Nigeria Exchange Traded Fund (NGE).
This ETF invests in the largest and most liquid Nigerian businesses including the major banks represented in the region, Nigerian Breweries, Nestle Nigeria and Dangote Cement. By investing in the ETF, you are reducing exposure to individual shares and rather securing access to a basket of the top listed Nigerian businesses.
Over the past 12 months, the fund has delivered a 46% return and trades on an historical price to earnings multiple of 8 and a price to book of 1.3. Investors also receive a nominal 1.2% dividend.
South African investors can access this ETF from just $1000. If you require further information on how to access this ETF, you can mail firstname.lastname@example.org or complete the form below.