Sectors to Invest in the Nigerian Economy
Nigeria is a country with abundant human and material resources. It has the largest market in West Africa. Nigeria has a thriving and huge business environment. This means that Nigeria has numerous investment opportunities in various sectors of the economy. Some of the viable sectors of the economy include:
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Nigeria has a total landmass of 923,768 km2. The Nigerian land is fertile, arable, and suitable for forestry and animal husbandry. There are about 13 national strategic export products and services to replace crude oil. For instance, palm oil, cocoa, cashew, sugar, and rice. The Federal Government is implementing a lot of incentive schemes to make the agricultural sector attractive to investors.
Furthermore, farmers who produce key agricultural commodities such as cereals (rice, maize, wheat, etc.); cotton; roots and tubers (cassava, potatoes, yam, ginger, etc.); sugarcane; tree crops (oil palm, cocoa, rubber, etc.) legumes (soybean, sesame seed); tomato; and livestock (fish, poultry, ruminants, etc) can now access loan from Nigerian banks at an interest rate of 9%.
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Information Communication Technology (ICT)
Nigeria is one of the emerging ICT hubs in Africa. Many businesses are now available. Many more will join and become visible within the coming month. With the increasing use of affordable smartphones and easy access to the internet, businesses are beginning to thrive online. They are taking advantage of free access to a wide range of online customers.
As a result, the creation of virtual businesses that operate via social media is also on the increase. Nigeria has an abundance of young and highly skilled manpower that will drive this sector. Therefore companies and individuals can use this opportunity to set up IT companies to offer various ICT-based solutions.
Nigeria has a population of over 180 million. With an increasing population, there is a remarkably high demand for healthcare services. The construction of medical facilities with modern healthcare technology will increase accessibility to medical services. It will also reduce the rate at which Nigerians seek medical treatments abroad. Also, It will increase health awareness across all population levels in the country.
Furthermore, opportunities in the healthcare sector are not for hospital management. Certainly, it also includes the provision of health insurance services (HMOs) and pharmaceuticals, etc. This sector promises a huge and quick return on investment. Companies and individuals can invest in this sector of the Nigerian economy. The nation has the manpower and the material resources to drive this sector of the economy.
Therefore companies and individuals can use this opportunity to set up healthcare centers across the nation.
Oil and Gas
It is on record that Nigeria has one of the largest oil and gas deposits in the world. The oil and gas sector plays important role in the economy of Nigeria. Exploration of the country’s huge oil and gas reserves is still on. This means that investors can make a lot of return on their investment.
The FG also seeks to explore huge Nigeria’s natural gas reserves as an alternative source of power generation. Nigeria has oil and gas deposits in 10 states. Some of the states are; Abia, Imo, Rivers, Delta, Lagos, etc. Therefore companies and individuals can use this opportunity to set up petrochemical companies across the nation.
Nigeria has abundant solid mineral deposits. Unfortunately, due to the government’s focus on oil and gas, this viable sector of the Nigerian economy is neglected and the huge economic impact that it should have had on the economy is lost. The solid mineral sector of the country is not properly harnessed and is been managed by locals.
Investors can explore the opportunities untapped in this sector of the economy. Some of the solid minerals in Nigeria include Talc, Gypsum, Iron Ore, Lead/Zinc, and Gold.
This is another profitable sector to invest in the Nigerian economy. Given the huge population of Nigeria, investment in the transportation sector has been rewarding. A huge amount of taxpayers’ money has been invested in the development of infrastructure for transportation.
Plans are on the ground to further develop the maritime industry by constructing two new seaports in Bonny, Rivers State, and Lekki, Lagos State. Furthermore, The Aviation Sector is not left out of this chain of development as the Federal Government has announced approval to concession the international airports in Abuja and Lagos.
It is important to note that the inland waterways are a transport medium with potentials that are insufficiently harnessed.
Entertainment and Media
Nigeria is set to be the world’s fastest-growing Entertainment and Media country in the next five years. Total music revenue in Nigeria had a 9.0% growth to reach US$39 million in 2016 and is set to rise by 13.4% to US$73 million by 2021. After the United States “Hollywood” and India’s “Bollywood,” Nigeria’s movie industry, “Nollywood”, is currently the third-largest in the world.
As a result, social media is now leading traditional media as the foremost entertainment medium. The entertainment industry in Nigeria, whether in film, music, or art, remains a gold mine for investors.
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Nigeria has some of the best tourism centers in West Africa which are largely base on events. Due to the large number of ethnic groups in Nigeria, and also rain forests, waterfalls, and other natural attractions, Nigeria has a rich tourism base. The World Travel and Tourism Council estimated revenue related to tourism and travel in Nigeria will exceed $5 billion USD in 2021. This will account for approximately 6% of Nigeria’s gross domestic product.
For instance, some of Nigeria’s tourism centers include; Olumo Rock in Ogun State and Azumini Blue River In Abia State. Others are; Yankari Game Reserve in Bauchi State, Tarkwa Bay Beach in Lagos State, and Obudu Cattle Ranch in Cross Rivers State. There are several other undeveloped tourism centers in Nigeria. That means investors can make a lot of returns on their investment in this sector.
Nigeria has the audience to buy great local sporting content but lacks the necessary infrastructure to make local sporting content viewer-attractive. Over 50% of Nigerians watch sports content, particularly football, particularly on weekends. This figure drops drastically when it comes to local sporting activities.
This lackluster attitude is a result of poor sports infrastructure and poor capacity development in the Nigerian sports industry. Therefore investment in sports in Nigeria will definitely have a huge return.
This is also one of the most profitable sectors to invest in the Nigerian economy. With a population of over 180 million people in Nigeria, the demand for housing is on the increase. More so for low-income earners who are in the majority and also for middle-income earners.
Real estate has been known to be a safe investment haven with a steady increase in capital appreciation. This yields high returns over a long period of time. Investing in the construction industry will yield much profit within a short period of time.
Sectors to Invest in the Nigerian Economy, see the video