DUBLIN--(BUSINESS WIRE)--The "Future of the Nigerian Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2024" report has been added to ResearchAndMarkets.com's offering.
The report provides readers with detailed analysis of both historic and forecast defense industry values, factors influencing demand, the challenges faced by industry participants, analysis of industry leading companies, and key news.
The defense budget of Nigeria was US$1.6 billion in 2019 and registered a negative CAGR of 3.5% during the historical period. The country has been facing internal conflicts affecting its economic growth and stability. The emergence of Boko Haram has intensified the rebellion in northeast Nigeria and led to a state of emergency announcement by the president regarding the affected states.
Recently in January 2019, a military base in remote north-east was attacked by Boko Haram, which killed at least 10 people and led to thousands fleeing the area. Similarly, in 2017, in a triple suicide attack, at least 30 people were killed and more than 80 others injured in Mandarari.
Efforts are being taken to bolster peacekeeping operations and counter oil smuggling and piracy. These measures are also expected to drive the country's military expenditure over the forecast period. The country's military expenditure is expected to increase at a CAGR of 6.55% to reach US$2.2 billion by 2024. Multirole aircraft, C4ISR, attack helicopters, military IT-networking and physical security are the key opportunities for equipment suppliers.
Capital expenditure's share in the defense budget increased from 9.8% in 2015 to 26.6% in 2019, and is expected to average 27.3% over the forecast period. Allocations towards the navy are expected to decrease from 18.8% during the historical period to 17.8% over the forecast period. Allocations towards the army are expected to marginally increase from an average of 37.1% during the historical period to 37.6% over the forecast period.
In particular, it provides an in-depth analysis of the following:
- The defense industry market size and drivers: detailed analysis of the Nigerian defense industry during 2020-2024, including highlights of the demand drivers and growth stimulators for the industry. It also provides a snapshot of the country's expenditure and modernization patterns
- Budget allocation and key challenges: insights into procurement schedules formulated within the country and a breakdown of the defense budget with respect to capital expenditure and revenue expenditure. It also details the key challenges faced by defense market participants within the country
- Porter's Five Force analysis of the Nigerian defense industry: analysis of the market characteristics by determining the bargaining power of suppliers, bargaining power of buyers, threat of substitution, intensity of rivalry, and barriers to entry
- Import and Export Dynamics: analysis of prevalent trends in the country's imports and exports over the last five years
- Market opportunities: details of the top five defense investment opportunities
- Competitive landscape and strategic insights: analysis of the competitive landscape of the Nigerian defense industry. It provides an overview of key players, together with insights such as key alliances, strategic initiatives, and a brief financial analysis.
Topics Covered
1. Introduction
2. Executive Summary
3. Market Attractiveness and Emerging Opportunities
3.1. Current Market Scenario
3.1.1. Primary Threat Perception
3.1.2. Military Doctrine and Strategy
3.1.3. Nigerian Military Equipment
3.1.4. Procurement Programs
3.1.4.1. Ongoing Procurement Programs
3.1.4.2. Future Procurement Programs
3.1.4.3. Top Procurement Programs by Value (US$ Million) 2019-2024
3.1.5. Social, Political, and Economic Environment and Support for Defense Projects
3.1.6. Political and Strategic Alliances
3.2. Defense Market Size Historical and Forecast
3.2.1. Nigerian Defense Budget to Grow at a CAGR of 6.55%
3.2.2. Insurgency, Piracy, Oil Smuggling, and Peacekeeping Operations are Expected to Drive Defense Expenditure
3.2.3. Defense Budget as a Percentage of GDP to Average 0.26% over the Forecast Period
3.3. Analysis of Defense Budget Allocation
3.3.1. Share of Capital Expenditure will Slightly Increase over the Forecast Period
3.3.2. Capital Expenditure is Anticipated to Record a CAGR of 6.42% during Forecast Period
3.3.3. Armed Forces Account for Most of the Defense Budget
3.3.4. Army Defense Expenditure to Reach US$0.9 Billion in 2024
3.3.5. Per Capita Defense Expenditure to Rise over the Forecast Period
3.4. Homeland Security Market Size and Forecast
3.4.1. Homeland Security Budget Projected to Increase over the Forecast Period
3.4.2. The Threat from Boko Haram, Drug Trafficking, Cybercrime, and Money Laundering are Expected to Drive the Homeland Security Budget
3.5. Benchmarking with Key Global Markets
3.5.1. Nigerian Defense Budget Expected to Increase over the Forecast Period
3.5.2. Nigerian Military Expenditure is Limited Compared to the Countries with the Highest Global Defense Expenditure
3.5.3. The Country Allocates a Lower Percentage of GDP to Defense than Other African Countries
3.6. Market Opportunities: Key Trends and Drivers
3.6.1. Top 10 Defense Market Sectors by Value (US$ Million) - Projections over 2019-2024
3.6.2. Multi-role Aircraft
3.6.3. Airborne C4ISR
3.6.4. Critical Infrastructure Protection (CIP) - Physical Security
4. Defense Procurement Market Dynamics
4.1. Import Market Dynamics
4.1.1. Limited Domestic Defense Capabilities to Drive the Country's Defense Imports
4.1.2. Russia, China and the US Accounts for the Majority of the Country's Defense Imports
4.1.3. Aircraft and Naval Vessels Accounted for 73.6% of Defense Imports
4.2. Export Market Dynamics
4.2.1. Nigeria Does not Export Arms due to its Underdeveloped Domestic Arms Industry
5. Industry Dynamics
5.1. Five Forces Analysis
5.1.1. Bargaining Power of Suppliers: Medium to High
5.1.2. Bargaining Power of Buyers: Low to Medium
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 the Defense Sector is Prohibited by the Nigerian Government
6.2. Market Entry Route
6.2.1. Budgeting Process
6.2.2. Defense Procurement Process
6.2.3. 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 Discourages Major Suppliers
6.3.3. Unorganized, Mismanaged Industry Jeopardizes the Development of the Domestic Industry
7. Competitive landscape and Strategic Insights
7.1. Competitive landscape Overview
7.2. Nigeria Market Share Analysis, 2018-2024
7.3. Key Companies
7.3.1. Defense Industries Corporation of Nigeria: Overview
7.3.2. Defense Industries Corporation of Nigeria: Products and Services
7.3.3. Defense Industries Corporation of Nigeria: Recent Announcements and Strategic Initiatives
7.3.4. Defence Industries Corporation of Nigeria: Alliances
7.3.5. Defence Industries Corporation of Nigeria: Recent Contract Awards
7.3.6. Dornier Aviation Nigeria AIEP Limited: Overview
7.3.7. Dornier Aviation Nigeria AIEP Limited: Products and Services
7.3.8. Dornier Aviation Nigeria AIEP Limited: Recent Announcements and Strategic Initiatives
8. Business Environment and Country Risk
8.1. Economic Performance
8.1.1. Gross Domestic per Capita
8.1.2. Gross Domestic Product, Current (US$)
8.1.3. Exports of Goods and Services
8.1.4. Imports of Goods and Services
8.1.5. Gross National Disposable Income (US$ Billion)
8.1.6. Local Currency Unit per US$
8.1.7. Market Capitalization of Listed Companies (US$ Billion)
8.1.8. Market capitalization of Listed Companies (% GDP)
8.1.9. Government Cash Surplus/Deficit as a Percentage of GDP (LCU)
8.1.10. Goods Exports as a Percentage of GDP
8.1.11. Goods Imports as a Percentage of GDP
8.1.12. Services Imports as a Percentage of GDP
8.1.13. Services Exports as a Percentage of GDP
8.1.14. Net Foreign Direct Investment
8.1.15. Net FDI as a Percentage of GDP
8.1.16. Mining, Manufacturing, Utilities Output (LCU Billion)
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