The 2023 presidential election in Nigeria resulted in a win for All Progressive Congress (APC) candidate Bola Tinubu. He is due to replace President Muhammadu Buhari from the same party on May 29, 2023. This date could be delayed due to opposition candidates challenging the result of the election.

However, experts predict that the result of the election will be upheld. If this proves to be the case, President-Elect Tinubu will have several major financial challenges ahead of him. Keep reading for a closer look at these challenges and how they are likely to affect the casino industry in Nigeria.

What are the financial predictions for Nigeria following the election?

Nigerian Eurobond prices recovered following the result of the recent presidential elections. However, the country still faces several financial challenges despite improving its position in recent years. These challenges include restricted Gross Domestic Product (GDP) growth, naira shortages, fuel shortages, high inflation, and debt-servicing costs that are not sustainable.

In the case of GDP growth, it’s expected to be moderate at 3% year on year (YOY) in 2023, following a figure of 3.3% in 2022. This decrease in growth is because of the election and cash shortages in the country. GDP is expected to rebound to 3.5% YOY in 2024. However, ongoing cash shortages may cause this forecast to be revised downward. Growth in certain areas, including ICT, finance, and entertainment, is expected.

Consumer spending is set to be restricted over the coming months by inflationary pressures and the fuel subsidy being partially removed. Predictions are that it will reach 2.1% YOY in 2023 and 2.7% YOY in 2024. Commercial centres in the country, including Ibadan, Lagos, Abuja, and Port Harcourt, will see the most sustained consumer demand growth. This growth will be assisted by promised investment in infrastructure by the new government.

How will the country’s financial position affect the Nigerian casino industry?

According to Statista, the Nigerian casino industry is expected to continue growing at an average rate of 8.16% YOY, to achieve a projected market volume of $1.09 million by 2027. Whether these predictions will be affected by the financial position in Nigeria and the work of the new government remains to be seen.

If you look at successful casino markets like the United Kingdom (UK), for some indicators, you can see that economic downturn and relatively flat consumer spending tend not to have a dramatic effect on casino revenues. This is especially the case in the online casino market, which is assisted by the growth of technology such as 3D gaming, live chat support, and live casino action.

There is some indication that a similar position exists in Nigeria, where the sports betting market is strong, with Nigerians spending around $2 billion annually on sports betting despite the strain on many people’s finances right now.

Of course, the position of the casino industry in Nigeria is different from that in the UK. Online casinos are regulated and licensed in the UK. There is a great emphasis on responsible gaming, and all licensed casinos are listed with GAMSTOP, an organisation that allows people to self-exclude from all UK-licensed casinos at once. People also have the opportunity to play at UK casinos not on GAMSTOP, which are based offshore. Doing this means their money goes outside of the UK economy. However, overall, online casino revenues in the UK boost the UK economy. The Nigerian economy gets some benefits from land-based casinos, sports betting, and the lottery but not from the online gaming industry due to a lack of regulation which means Nigerian fans of online casinos play at offshore sites.

Given all of this information, it’s unlikely that Nigeria’s financial position will have an impact on online casino play in the country as there is no current regulated online casino industry. In the case of land-based casinos, sports betting, and the lottery, data suggests that financial challenges have a limited impact on consumer spending on casino play and betting. However, it may still be prudent for companies to take mitigating actions for extra protection, such as investing more resources in retaining their valuable customer base.