About the Country PrivateSector Diagnostic The private sector is the engine of long-term economicgrowth and a vital catalyst for global social and economicdevelopment. When functioning well, the private sectorpromotes innovation and entrepreneurship, improvesaccess to and the quality of economic opportunities, andsupports the sustainable use of natural resources. Indeveloping economies, the private sector creates mostjobs, generates tax revenue, and accounts for significantinvestment. The revised Country Private Sector Diagnostic (CPSD)reports seek to unlock private sector–led growth andinvestment. Prepared jointly by the institutions of theWorld Bank Group, each report discusses the overallbusiness environment within a country and provides ananalysis of specific sectors in which private sectorinvestment could accelerate growth, if appropriatepolicy and regulatory issues are addressed. Designed from the perspective of an investor orentrepreneur, this new generation of reports seeks toidentify untapped private investment opportunities andthe barriers that stand in the way (earlier reports can befoundhere). The sector opportunities are chosen basedon their potential to spur private investment, create jobs,generate domestic revenue, and foster sustainable,inclusive growth, in response to targeted policy action.The report aims to help country policymakers prioritizethe most impactful actions that can boost private sectorgrowth, while delivering on broader development goals. The CPSD is one of the World Bank Group’s core countrydiagnostics produced to guide the design andimplementation of public and private investmentprojects, budget support operations, advisory services,and other analytical work. It is intended to be of interestto domestic and foreign business investors, governmentofficials, World Bank Group staff and management, civilsociety, and other development partners. Nigeria:Country Private Sector Diagnostic ContentsContents Acknowledgmentsiii Executive Summaryiv 3.1Sector Context and Opportunity203.2Constraints to Private Investment and Recommendations23 4Pharmaceutical Manufacturing27 4.1Sector Context and Opportunity294.2Constraints to Private Investment and Recommendations354.3Additional Considerations37 Solar Energy40 5.1Sector Context and Opportunity415.2Constraints to Private Investment and Recommendations47 6Cassava and Soybeans54 6.1Sector Context and Opportunity556.2Constraints to Private Investment and Recommendations62 Appendixes A. Country Growth and Jobs Report Dashboard68B. Solar Market Value Chain Mapping69C. Productive Use of Electricity71D. Summary of Impact of Reforms Methodology73E. Note on Computation of Potential Jobs78F. Drugs Produced and Exported from Nigeria80 Acronyms82Notes83References91 AcknowledgmentsAcknowledgments The Nigeria Country Private Sector Diagnostic was prepared by staff from across theWorld Bank Group. The core team was co-led by Denny Lewis-Bynoe and Karim OuledBelayachi, and included Chishamiso Mawoyo, Nadege Desiree Yameogo, Dotun Seyingbo,Julio Flores, Mohammed Aliyu, Alicia Maude Stephens, Jessica Wade, Florian Moelders, andIssei Takahashi. The extended team included Manievel Sene, Chidozie Anyiro, Tomi Ajayi,Volker Treichel, Ida Mboob, Maryam Lawal, Natalija Gelvanovska-Garcia, Obinna ChidozieIsiadinso, Collins Obi, Arsh Sharma, Hadija Kamayo, Ivor Ishtuk, Olawunmi Adelusi, FatouFadika, Ashish Shrestha, Jacqueline Irving, Abiodun Aina, Hanning Bi, Jessica Stiefler, andOlumide Okunola. Adama Badji, Chinazaepere Ndukwe, Tooni Akinola, Olayinka Sunday, Dumebi Okwuosah,and Mary Akerele provided able administrative and logistics support to the team. The report was conducted under the guidance and supervision of Jeffrey Chelsky, MaikoMiyake, Mehnaz S. Safavian, and Zeinab Partow and the guidance of directors DahliaKhalifa, Ndiamé Diop, Paolo Mauro, Abebe Adugna, and Shubham Chaudhuri. The workwas performed under the overall direction of Ousmane Diagana (Regional Vice President,Sub-Saharan Africa, IBRD), Susan Lund (Vice President, Economics and Private SectorDevelopment, IFC), and Sergio Pimenta (Regional Vice President, Africa, IFC). Peer reviewers at different stages in the preparation of the report were Miguel AngelSaldarriaga Noel, Feyi Boroffice, Ifeoma Ezeokafor, and Raha Shahidsaless. Technical consulting services were provided by Teleola Kola-Edun, Harshit Gupta, WilliamBurnfield, Olusola Teniola, Abubakar Maina, Usman Aliyu Mahmud, Sean Lothrop, ChrisGreacen, Leigh Vial, Ifunanya Genevieve, Emeka Okpukpara, Anadach Consultants andPBR Global Health Solutions. Editorial support was provided by David Harrison. The team is grateful for generous guidance and feedback from many other colleaguesacross the Bank Group, including Abdulaziz Faghi, Bertine Kamphuis, Christian Mulamula,Denis Medvedev, Kalim Shah, Roumeen Islam, Matheus Bueno, Ruchita Manghnani,Stephan Dreyhaupt, and Vengai C. Chigudu. The team also thanks other Bank Group s