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The Nigerian Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 - Product Image

The Nigerian Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017

  • Published: December 2012
  • Region: Nigeria
  • 102 Pages
  • Strategic Defence Intelligence

Product Synopsis
This report is the result of SDI's extensive market and company research covering the Nigerian defense industry, and provides detailed analysis of both historic and forecast defense industry values including key growth stimulators, analysis of the leading companies in the industry, and key news.

Introduction and Landscape

Why was the report written?
The Nigerian defense Industry Market Opportunities and Entry Strategies, Analyses and Forecasts to 2017 offers the reader an insight into the market opportunities and entry strategies adopted by foreign original equipment manufacturers (OEMs) to gain market share in the Nigerian defense industry.

What is the current market landscape and what is changing?
During the review period, the Nigerian defense budget recorded a CAGR of 13.03%, with expenditure mainly driven by participation in peacekeeping initiatives and operations to stop the smuggling of oil. The defense budget, which stood at 0.78% of GDP in 2012, is expected to decrease to 0.75% of GDP by 2017, as the country's defense expenditure growth is expected to outpace its GDP growth. The defense budget is also expected to increase during READ MORE >

1 Introduction
1.1. What is this Report About?
1.2. Definitions
1.3. Summary Methodology
1.4. SDI Terrorism Index
1.5. About Strategic Defence Intelligence

2 Executive Summary

3 Market Attractiveness and Emerging Opportunities
3.1. Defense Market Size Historical and Forecast
3.1.1. Defense expenditure is projected to grow at a CAGR of XX% during the forecast period
3.1.2. Peacekeeping operations and efforts to stop smuggling to drive defense expenditure
3.2. Analysis of Defense Budget Allocation
3.2.1. Revenue expenditure accounts for the majority of Nigerian defense budget
3.2.2. Capital expenditure budget expected to decline during the forecast period
3.2.3. Defense budget as a percentage of GDP expected to increase during the forecast period
3.2.4. Per-capita defense expenditure expected to increase during the forecast period
3.2.5. Allocation for the Army accounts for the majority of the defense budget
3.2.6. Budget allocation for the army higher than navy and the air force
3.2.7. Defense budget allocation for the navy expected to be the lowest
3.2.8. Expenditure on the air force to increase during the forecast period
3.2.9. Allocation for other expenses to decline during the forecast period
3.3. Homeland Security Market Size and Forecast
3.3.1. Homeland security budget projected to increase during the forecast period
3.3.2. Extremism, drug trafficking, cybercrime, and money laundering to drive the homeland security market
3.3.3. Nigeria comes under 'moderately affected category' by terrorist attack
3.3.4. Nigeria experienced moderate terror activity during the review period
3.4. Benchmarking with Key Global Markets
3.4.1. The country's defense budget expected to increase during the forecast period
3.4.2. Nigerian military expenditure is limited compared to countries with the largest defense expenditure
3.4.3. The country allocates a lower percentage of GDP to defense
3.5. Market Opportunities: Key Trends and Growth Stimulators
3.5.1. AS332 Super Puma helicopters will provide attractive market opportunities
3.5.2. Offshore patrol vessels and patrol crafts expected to create new market opportunities
3.5.3. Demand for AW109 helicopters to increase
3.5.4. Demand for Oshkosh SandCat Mine-Protected Light Patrol Vehicles (M-LPV) to increase

4 Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limited defense capability of domestic defense market drives imports
4.1.2. Defense imports expected to increase during the forecast period
4.1.3. China and Italy account for the majority of the country's defense imports
4.1.4. Aircraft, ships, and armored vehicles are the largest imported military hardware
4.2. Export Market Dynamics
4.2.1. Nigeria does not export arms due to its under-developed domestic arms industry

5 Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining power of supplier: low to medium
5.1.2. Bargaining power of buyer: medium to high
5.1.3. Barrier to entry: medium
5.1.4. Intensity of rivalry: low
5.1.5. Threat of substitution: low

6 Market Entry Strategy
6.1. Market Regulation
6.1.1. Nigeria does not disclose any offset obligations imposed by the country
6.1.2. FDI in defense sector prohibited by the Nigerian government
6.2. Market Entry Route
6.2.1. Direct selling is the preferred market entry route for foreign OEMs
6.3. Key Challenges
6.3.1. Corruption acts as an obstacle for market entry
6.3.2. Small defense budget does not attract suppliers

7 Competitive Landscape and Strategic Insights
7.1. Competitive Landscape Overview
7.2. Key Domestic Companies
7.2.1. Dornier Aviation Nigeria AIEP Limited: overview
7.2.2. Dornier Aviation Nigeria AIEP Limited: products and services
7.2.3. Defence Industries Corporation of Nigeria: overview
7.2.4. Defence Industries Corporation of Nigeria: products and services
7.2.5. Defence Industries Corporation of Nigeria: recent announcements and strategic initiatives
7.2.6. Defence Industries Corporation of Nigeria: alliances
7.2.7. Defence Industries Corporation of Nigeria: recent contract awards

8 Business Environment and Country Risk
8.1. Demographics and Social Statistics
8.1.1. Population - Female
8.1.2. Population - Male
8.2. Economic Performance
8.2.1. Construction Output, Current Prices, Local Currency
8.2.2. Construction Output, Current Prices, US Dollars
8.2.3. Current Account Balance as Percentage of GDP
8.2.4. Deposit Interest Rate
8.2.5. Debt Service Ratio
8.2.6. Exports of goods and services, current prices
8.2.7. External debt as percentage of GDP (%)
8.2.8. Fiscal Balance as a percentage of GDP
8.2.9. Foreign Direct Investment
8.2.10. GDP at Purchasing Power Parity
8.2.11. GDP, Constant Prices (Local Currency)
8.2.12. GDP, Constant Prices (US$)
8.2.13. GDP, Current Prices (Local Currency)
8.2.14. GDP, Current Prices (US$)
8.2.15. General Government Final Consumption Expenditure
8.2.16. Gross Fixed Capital Formation, Current Prices
8.2.17. Imports of goods and services
8.2.18. Inflation, average consumer prices
8.2.19. Interest Rate (Lending)
8.2.20. Manufacturing Output, Current Prices (Local Currency Bn)
8.2.21. Manufacturing Output, Current Prices (US$ Billions)
8.2.22. US$- Exchange Rate (Annual Average)
8.3. Energy and Utilities
8.3.1. Crude Oil Distillation Capacity
8.3.2. Electricity Installed Capacity
8.3.3. Fossil Fuel Proved Natural Gas Consumption
8.3.4. Fossil Fuels- Proved oil reserves
8.3.5. Hydroelectricity Installed Capacity
8.3.6. Natural Gas Consumption
8.3.7. Natural Gas Production
8.3.8. Net Conventional Thermal Electricity Generation
8.3.9. Net Hydroelectric Power Generation
8.3.10. Petroleum, Consumption
8.3.11. Petroleum, Production
8.4. Minerals
8.4.1. Coal Consumption
8.4.2. Coal Production
8.5. Social and Political Risk
8.5.1. Political Stability Index
8.5.2. Transparency Index

9 Appendix
9.1.1. About SDI
9.1.2. Disclaimer

List of Tables

Table 1: Nigerian Defense Expenditure, 2008-2012
Table 2: Nigerian Defense Expenditure, 2013-2017
Table 3: Nigerian Defense Budget Split between Capital and Revenue Expenditure (%), 2008-2012
Table 4: Nigerian Defense Budget Split between Capital and Revenue Expenditure (%), 2013-2017
Table 5: Nigerian Capital Budget Allocation (US$ million), 2008-2012
Table 6: Nigerian Capital Budget Allocation (US$ billion), 2013-2017
Table 7: Nigerian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2008-2012
Table 8: Nigerian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2013-2017
Table 9: Nigerian Per-Capita Defense Expenditure (US$), 2008-2012
Table 10: Nigerian Per-Capita Defense Expenditure (US$), 2013-2017
Table 11: Nigerian Defense budget Split between Army, Air Force, Navy, and others, 2008-2012
Table 12: Nigerian Defense budget Split between Army, Air Force, Navy, and Others, 2013-2017
Table 13: Nigerian Army Capital and Revenue Expenditure (US$ Million), 2008-2012
Table 14: Nigerian Army Capital and Revenue Expenditure (US$ Million), 2013-2017
Table 15: Nigerian Navy Capital and Revenue Expenditure (US$ Million), 2008-2012
Table 16: Nigerian Navy Capital and Revenue Expenditure (US$ Million), 2013-2017
Table 17: Nigerian Air Force Capital and Revenue Expenditure (US$ Million), 2008-2012
Table 18: Nigerian Air Force Capital and Revenue Expenditure (US$ Million), 2013-2017
Table 19: Nigerian Other Capital and Revenue Expenditure (US$ Million), 2008-2012
Table 20: Nigerian Other Capital and Revenue Expenditure (US$ Million), 2013-2017
Table 21: Nigerian Homeland Security Budget (US$ billion), 2008-2012
Table 22: Nigerian Homeland Security Budget (US$ billion), 2013-2017
Table 23: SDI Terrorism Index
Table 14: Benchmarking with Key Markets - 2008-2012 vs. 2013-2017
Table 25: Dornier Aviation Nigeria AIEP Limited - Main Services
Table 26: Defence Industries Corporation of Nigeria - Main Products
Table 27: Defence Industries Corporation of Nigeria: Alliances
Table 28: Defence Industries Corporation of Nigeria: Recent Contract Awards

List of Figures

Figure 1: Nigerian Defense Expenditure, 2008-2012
Figure 2: Nigerian Defense Expenditure, 2013-2017
Figure 3: Nigerian Defense Budget Split Between Capital and Revenue Expenditure (%), 2008-2012
Figure 4: Nigerian Defense Budget Split Between Capital and Revenue Expenditure (%), 2013-2017
Figure 5: Nigerian Capital Budget Allocation (US$ million), 2008-2012
Figure 6: Nigerian Capital Budget Allocation (US$ billion), 2013-2017
Figure 7: Nigerian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP, 2008-2012
Figure 8: Nigerian GDP Growth vs. Defense Expenditure Growth and Defense Expenditure as Percentage of GDP Growth, 2013-2017
Figure 9: Nigerian Per-Capita Defense Expenditure (US$), 2008-2012
Figure 10: Nigerian Per-Capita Defense Expenditure (US$), 2013-2017
Figure 11: Nigerian Defense budget Split between Army, Air Force, Navy, and others, 2008-2012
Figure 12: Nigerian Defense budget Split between Army, Air Force, Navy, and Others, 2013-2017
Figure 13: Nigerian Army Capital and Revenue Expenditure (US$ Million), 2008-2012
Figure 14: Nigerian Army Capital and Revenue Expenditure (US$ Million), 2013-2017
Figure 15: Nigerian Navy Capital and Revenue Expenditure (US$ Million), 2008-2012
Figure 16: Nigerian Navy Capital and Revenue Expenditure (US$ Million), 2013-2017
Figure 17: Nigerian Air Force Capital and Revenue Expenditure (US$ Million), 2008-2012
Figure 18: Nigerian Air Force Capital and Revenue Expenditure (US$ Million), 2013-2017
Figure 19: Nigerian Other Capital and Revenue Expenditure (US$ Million), 2008-2012
Figure 20: Nigerian Other Capital and Revenue Expenditure (US$ Million), 2013-2017
Figure 21: Nigerian Homeland Security Budget (US$ billion), 2008-2012
Figure 22: Nigerian Homeland Security Budget (US$ billion), 2013-2017
Figure 23: SDI Terrorism Heat Map, 2012
Figure 24: SDI Terrorism Index, 2012
Figure 25: Benchmarking with Key Markets - 2008-2012 vs. 2013-2017
Figure 26: Defense Expenditure of the World's Largest Military Spenders (US$ Billion), 2012 and 2017
Figure 27: Defense Expenditure as a Percentage of GDP of Largest Military Spenders (%), 2012
Figure 28: Nigerian Defense Import Trend, 2007-2011 (TIV values)
Figure 29: Nigerian Defense Imports by Country (US$ Million), 2007-2011
Figure 30: Country-wise Break-up of Nigerian Defense Imports (%), 2007-2011 (TIV values*)
Figure 31: Nigerian Defense Imports by Category (%), 2007-2011
Figure 32: Industry Dynamics - Porter's Five Forces Analysis
Figure 33: Nigerian Population - Female (In Millions), 2008-2017
Figure 34: Nigerian Population - Male (In Millions), 2008-2017
Figure 35: Nigerian Construction Output, Current Prices, Local Currency (In Billions), 2001-2010
Figure 36: Nigerian Construction Output, Current Prices, US Dollars (In Billions), 2001-2010
Figure 37: Nigerian Current Account Balance as Percentage of GDP, 2008-2017
Figure 38: Nigerian Deposit Interest Rate, 2001-2010
Figure 39: Nigerian Debt Service Ratio, 2001-2010
Figure 40: Nigerian Exports of goods and services, current prices (US$ Billion), 2001- 2010
Figure 41: Nigeria External Debt as percentage of GDP (%), 2001-2010
Figure 42: Nigerian Fiscal Balance as a percentage of GDP, 2001-2010
Figure 43: Nigerian Foreign Direct Investment (US$ Billion), 2001-2010
Figure 44: Nigerian GDP at Purchasing Power Parity (US$ Billion), 2006-2015
Figure 45: Nigerian GDP at Constant Prices (Local Currency Billion), 2006-2010
Figure 46: Nigerian GDP at Constant Prices (US$ Billion), 2006-2015
Figure 47: Nigerian GDP at Current Prices (Local Currency Billion), 2006-2015
Figure 48: Nigerian GDP at Current Prices (US$ Billion), 2006-2015
Figure 49: Nigerian General Government Final Consumption Expenditure (US$ Billion), 2001-2010
Figure 50: Nigerian Gross Fixed Capital Formation, Current Prices (US$ Billion), 2001-2010
Figure 51: Nigerian Imports of goods and services (current US$ Billion), 2001-2010
Figure 52: Nigerian Inflation, average consumer prices, 2008-2017
Figure 53: Nigerian Lending Interest rate, 2001-2010
Figure 54: Nigerian Manufacturing Output, Current Prices (Local Currency Billion), 2001-2010
Figure 55: Nigerian Manufacturing Output, Current Prices (US$ Billion), 2001-2010
Figure 56: Nigerian US$- Exchange Rate (Annual Average), 2002-2011
Figure 57: Nigerian Crude Oil Distillation Capacity (Thousand Barrels per Cal Day), 2000-2009
Figure 58: Nigerian Electricity Installed Capacity (Million Kilowatts), 2000-2009
Figure 59: Nigerian Fossil Fuels Proved natural gas reserves (Trillion Cubic Feet), 2002-2011
Figure 60: Nigerian Fossil Fuels Proved natural oil reserves (Billion Barrels), 2002-2011
Figure 61: Nigerian Hydroelectricity Installed Capacity (Million Kilowatts), 2000-2009
Figure 62: Nigerian Natural Gas Consumption (Billion Cubic Feet), 2001-2010
Figure 63: Nigerian Natural Gas Production (Billion Cubic Feet), 2001-2010
Figure 64: Nigerian Net Conventional Thermal Electricity Generation (Billion Kilowatt hours), 2001-2009
Figure 65: Nigerian Net Hydroelectric Power Generation (Billion Kilowatt hours), 2001-2009
Figure 66: Nigerian Petroleum Consumption (Thousand Barrels Per Day), 2002-2011
Figure 67: Nigerian Petroleum Production (Thousand Barrels Per Day), 2002-2011
Figure 68: Nigerian Coal Consumption (Thousand Short Tons), 2001-2010
Figure 69: Nigerian Coal Production (Thousand Short Tons), 2001-2010
Figure 70: Nigerian Political Stability Index, 2002-2010
Figure 71: Nigerian Transparency Index, 2002-2011

- Dornier Aviation Nigeria AIEP Limited

- Defence Industries Corporation of Nigeria

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