Nigeria is now one of the countries one can do a successful business in the World. Business opportunities in Nigeria is very adaptive because it gives you the edge to mingle with different people, as Nigeria was once rank in 2011 as the happiest country in the world. There are many business opportunities one can engage in Nigeria and I will be sharing it with you further in this article.
Nigeria is Africa’s most populous country with a population of about 170 Million and one of the most developed in Africa. Investment in the petroleum industry has increased steadily since the 1970s. Shell Petroleum Development Company of Nigeria, Exxon Mobil and Chevron, Texaco Nigeria dominates upstream operations. Manufacturing sector is rising up to take over other sectors in Nigeria and this is a very good advantage.
Nigeria has the home of many billionaires including the richest Man in Africa as stated by Forbes with a net worth of over $15 Billion. The CNBC named him among the top 25 people who have had the biggest impact on business in the last 25 years. Nigeria is Africa’s largest mobile market with more than 125 million mobile phone subscribers. Already ranked The World’s Highest Face book Mobile Penetration country. The second largest oil and gas reserves in Africa and more than 11 million Nigerians are on face book.
9. Profitable Business And Investment Opportunities in Nigeria
Nigeria has one of the largest free market economies on the African continent. The Economic activities mainly occur in Abuja, Lagos, Onitsha, Port Harcourt, Aba, Enugu, Ogun, Bayelsa, Kano. The country accounts for the highest production of crude oil in Africa.
Nigeria has overtaken South Africa as the continent’s largest economy after it overhauled its gross domestic product data for the first time in more than two decades and has the highest production of oil and gas in Africa. More than 62% of Nigeria’s population are under 25 and its growing middle class makes up 23% of the population. Official figures for 2013, released by Nigeria’s statistics bureau, put the country’s GDP at $503bn (£307bn) – nearly double previous estimates and well ahead of South Africa at around $350bn. The announcement follows a protracted process to “rebase” Nigeria’s economic data and include information from sectors such as telecommunications and the film industry. The rebasing exercise has pushed the country’s GDP from 42.3tn naira in 2013 to 80.3tn naira ($509.9bn) – a jump of 89%..
Imports and Exports
Nigeria exports to some countries consist of primary and intermediate a commodity which varies from unprocessed raw materials, Crude oil, cocoa, rubber, cashew nuts, raw timber and Palm oil. It is also has the world’s largest film production industry after the United States and India, becoming a major exporter of movies and its movie company is popularly known as Nollywood. An importation in Nigeria varies from different perspective. China, United States and India are the main import partners for Nigeria market and it is mainly on machinery, chemicals, transport equipments, manufactured goods, food and live animals.
Nigeria is one of the main agricultural productions in Africa with over 80 million hectares of fertile land for Agriculture. Nigeria ranks 6th worldwide and first in Africa in farm output. The sector alone accounts for over 26.8% of GDP and two-third of employments. Nigeria has over 19 million head of cattle and the highest in Africa. Though the Agricultural sector has suffered a set back because of lack on consolidation, the government of Nigeria now is investing more in Agriculture and assist small scale farmers from distribution of fertilizer and availability of loan to them.
Banking and Finance
The Banking system in Nigeria is regulated by the Central Bank of Nigeria (CBN) to protect the interest of investors and depositors. The Central bank also known as the apex bank has made a lot of reforms in reducing the number of commercial banks from 89 to 23. The banking system is categorized as Commercial banks, investments banks, mortgage houses and micro-finance banks.
The Nigerian Stock Exchange services the largest economy in Africa and is championing the development of Africa’s financial markets. The NSE, a registered company limited by guarantee, was founded in 1960 and it is licensed under the Investments and Securities Act (ISA) and is regulated by the Securities and Exchange Commission (SEC) of Nigeria. The Exchange offers listing and trading services, licensing services, market data solutions, ancillary technology services and more.
The Nigerian Stock Exchange is committed to adopting the highest levels of international standards. To support this commitment, The NSE belongs to a number of international and regional organizations that promote the development and integration of global best practices across its operations. It is a member of the International Organization of Securities Commissions (IOSCO), the World Federation of Exchanges (WFE), Sustainable Stock Exchanges (SSE) Initiative, the SIIA’s Financial Information Services Division (FISD) and the Inter market Surveillance Group (ISG). The Exchange is a founding member and executive committee member of the African Securities Exchanges Association (ASEA).
The Manufacturing sector in Nigeria is currently growing faster than the telecommunications, oil and gas and agricultural sectors. Nigeria’s large population of upwardly mobile consumers, coupled with investments in power, implies that the strong growth of manufacturers, including food producers and breweries, is sustainable. Manufacturers in Nigeria had attributed the remarkable increase recorded in capacity utilization within the last year to favorable government policies, especially with respect to industry, trade and investment. Manufacturing in Nigeria also potentially provides you more leverage from your investment of money than many other categories of business. Since you are adding value to raw materials, equipment, and capital costs, you can often be quite profitable.
Nigeria’s publicly owned transportation infrastructure is a major constraint to economic development. Principal ports are at Lagos (Apapa and Tin Can Island), Port Harcourt, and Calabar. Five of Nigeria’s airports—Lagos, Kano, Port Harcourt, Enugu and Abuja—currently receive international flights. There are several domestic private Nigerian carriers and the rail system is working with an investment plan from china to construct more rail networks in the country.
Nigeria’s media scene is one of the most vibrant in Africa. State-run radio and TV services reach virtually all parts of the country and operate at a federal and regional level. All 36 states run their own radio stations, and most of them operate TV services. Despite high levels of violence, the private press still occasionally criticizes the Government.
SMEs in Nigeria
Small and Medium Enterprises are a very important part of the Nigerian economy. In countries at the same level of developments with Nigeria, SMEs contribute a much higher proportion to GDP than currently observed in Nigeria Compared to other emerging markets. SMEs have significant untapped growth potential. SMEs in Nigeria are currently distributed along sectors within regions; creating potential operational and cost synergies. The Nigeria Government and the Nigeria banks have put a bold step in providing fund for many SMEs which can be seen through SMEfunds and the SMEdan is Government associate created by the government to help in developing SMES.
Benefits of Doing Business in Nigeria
- -Little or no price regulation except on things like fuel and fuel products
- – Little start-up capital required
- – Less restrictive business laws
- – Less taxation
- – Cheap labor costs: minimum wage for the organized labor sector is at N18, 000.
- – Economy is still growing even in global recession.
Growth in trade
The strong agriculture sector (42% of GDP) on-going reforms in the economy.
The fastest growing sectors in Nigeria are below:
- – Oil and gas
- – Wholesale and retail
- – Manufacturing
- – Telecommunications and paper mail
- – Construction
- – Agriculture
Nigeria has trade agreement with many countries which makes doing Business in Nigeria a good advantage.
Current Signatories : Algeria, Argentina, Bangladesh, Benin, Bolivarian Republic of Venezuela, Bolivia, Brazil, Cameroon, Chile, Colombia, Cuba, Ecuador, Egypt, Former Yugoslav Republic of Macedonia, Ghana, Guinea, Guyana, India, Indonesia, Iran, Islamic Republic of, Iraq, Korea, Democratic People’s Republic of, Korea, Republic of, Libyan Arab Jamahiriya, Malaysia, Mexico, Morocco, Mozambique, Myanmar, Nicaragua, Nigeria, Pakistan, Peru, Philippines, Singapore, Sri Lanka, Sudan, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Viet Nam and Zimbabwe.
Nigeria also presents a huge opportunity for business
With 174 million people and a rapidly expanding middle class. Bill Thomas a Canadian Tomatoes Magnate says
“If you can succeed in Nigeria,” Mr. Dido says, “there is a good chance you can do it elsewhere in Africa.”
The government is now trying to improve the country’s infrastructure, integrate agriculture and industry, become less reliant on the oil industry, privatize and modernize. These measures are crucial steps needed in order to increase foreign investment. Today, Nigeria can boast its longest period of civilian rule since its independence, which is a confirmation of its slow but growing progress.
The main business opportunities in Nigeria are
- Oil & Gas
- Financial Services
- Creative industries
- Real Estate
Any Foreigner wishing to do business in Nigeria may also refer to their embassies in Nigeria.
Nigeria is fertile ground for any person to invest and run and grow a successful business because of its vast business and investment opportunities. It has the available large markets and the human resources needed for any business to survive with a clear advantage of the large population.
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