Fantastic Business Opportunities in Nigeria

Seep Gupta

17 Mar, 2023

Nigeria has a large consumer market with one of the fastest-growing economies in the world. It is also one of the most populous countries in Africa. Nigeria provides significant business opportunities because of several reasons, such as strong infrastructure and significantly growing market economies make it a suitable place for conducting business. Nigeria also has a strong and deep sense of local culture. This article will explain why Nigeria can be a suitable place for starting a business and what are some of the amazing business opportunities in Nigeria that businesses can do in collaboration with the local and indigenous people.

Why Nigeria is an Ideal Place to Start a Business?

Nigeria can be an ideal place to start a business because of various reasons. One of the major reasons why Nigeria is a favourable place for investors and businessmen to conduct their business is the country’s size. Nigeria is the most populous country in Africa, with a growing population of 186 million. The country is also one of the largest economies in the world, with a GDP^[1] of $405.1 billion as of 2016. According to the survey conducted by Mckinsey and PWC, Nigeria will be one of the 20 economies by the year 2030. It is due to the country’s rapid urbanization, fastest-growing economy, and exponential growth in digital connectivity. In the past few years, Nigeria’s economy has faced lots of crises and challenges, but it has bounced back since then.

Another major reason behind Nigeria’s growing popularity is the majority of Nigeria’s population is young. Out of 186 million citizens in Nigeria, 72.5 per cent of people are below the age of 35. This provides new and growing opportunities for businesses and investors and also provides them with a pool of talent of highly qualified labour workforce to choose from. A youthful population provides major benefits such as a young and energetic, active labour workforce and a growing consumer class. Another great benefit that Nigeria provides for doing business with other countries is its strategic and geographical location. Nigeria is strategically located in the West of Africa along the Atlantic Ocean Coast. This makes Nigeria a prime location for doing business because businesses look to distribute their goods and services to the neighbouring and surrounding African countries via these coasts only.

Nigeria is filled with a resilient and entrepreneurial spirit. Businesses are booming and flourishing in Nigeria. A new wave of entrepreneurship has emerged in Nigeria. Also known as the “City of Hustle”, Lagos in Nigeria contributes to the continent’s GDP, having higher GDP than both Kenya and Ethiopia combined. Nigerians are pro at devising new marketing strategies, and lots of Nigerians are also one of the most educated immigrants in the United States. Nigeria is also abundant in rich natural resources such as oil, natural gas, coal, tin, iron ore, and other minerals. This provides many business and investment opportunities in the extractive industries as well as downstream industries that use these resources.

Apart from this, the Nigerian government is fully supportive and has introduced several policies and schemes and initiatives to attract foreign investment and support businesses in their country. The Nigerian Investment Promotion Commission (NIPC) is responsible for promoting and for facilitating investment in Nigeria. Nigeria also has world-class modern infrastructure. The Nigerian government has made a significant investment in Nigerian infrastructure, including roads, railways, airports, ports, highways etc. These are some of the reasons behind amazing business opportunities in Nigeria

Amazing Business Opportunities in Nigeria

There are many business opportunities in Nigeria that businessmen from across the globe can do. Some of these business opportunities are given below:-

• Agriculture is one of the amazing business opportunities in Nigeria. Agriculture constitutes a major sector of the Nigerian economy. It’s one of the primary occupations of Nigerians. Nigeria is richly endowed and is blessed with a prolific arable land and a wide range of crops, including cassava, cocoa, maize, rice, yam and other crops. The businesses can invest in so many sub-sectors and businesses related to agriculture, such as in crop production, animal husbandry, fisheries and in agro-processing. Businesses can invest in any of these activities as these activities generate high revenues and are highly profitable in nature.
• The second amazing job opportunity in Nigeria that businesses can do is tech-related business. Nigeria has a large and growing tech industry with a young and enthusiastic tech-savvy population and generation. The country is also a hub for many startups, and many new high-tech researches and technologies are pouring into the country. Because of this, there is a growing demand for tech-related products and services. Businesses can take advantage of this amazing opportunity and can invest in e-commerce, the fintech industry, the software development industry and telecommunications etc. These tech-related industries have experienced rapid and drastic growth in the past few years, and they have emerging trends too from which businesses can take benefit.
• Another important sector where businesses and investors can invest in the renewable energy sector. Nigeria is currently facing an issue in the energy crisis, with a significant portion of the Nigerian population do not have access to electricity. Businesses can take advantage of this situation and can invest in renewable energy sources such as solar power, wind and hydropower etc. Businesses can invest in solar panels, including the installation or manufacturing of solar panels and also collaborating with other companies to provide sustainable solar energy solutions for homes and businesses. They can also invest in wind power projects or in hydropower projects to generate electricity for communities and other businesses that are off the national grid. Businesses can also invest in energy-effective technologies and solutions, and services which can help consumers to get solar electricity at their homes, which will eventually reduce energy consumption.
• Nigeria has a very vast and ever-growing healthcare sector. As Nigeria is one of the most populous countries in the African continent, it becomes tough to cater to the demands of the ever-growing population. Businesses can take advantage of this opportunity and invest in the healthcare sector, such as in the establishment of healthcare facilities such as hospitals, clinics, research laboratories etc., to provide premium and optimised healthcare facilities and services to the Nigerian population. Apart from this, businesses can also invest in new high-tech medical technology, such as telemedicine technology, to provide remote access to healthcare facilities to those people who can’t afford and can’t access to come to hospitals physically. Businesses can also collaborate with other companies and organisations to provide affordable and world-class treatment to the population.
• Nigeria has a vibrant and exotic cuisine which is appealing to both local and international tourists. The food business can be one of the most lucrative and amazing business opportunities in Nigeria. The food business is an evergreen business and is usually unaffected by the market factors such as recession and inflation because people are going to eat and consume food products no matter what. If a person is skilled at it, then it is very easy to generate high revenues and build loyal customers in the food business. All the person or business needs to do is find an attractive location for opening a food chain, acquire the right skills and hire the right employees. The food business is a business without season. It is in demand every time.

Conclusion

To conclude, Nigeria can be a great place for investment and to start a business. There are so many business opportunities in Nigeria. But there are also so many challenges to navigate that Nigeria may pose, which makes doing business there a little tricky and difficult. These challenges include corruption, security concerns, an inconsistent regulatory environment etc. That’s why it becomes important to conduct thorough research and due diligence before going to do business and investment in Nigeria.

Also Read: Top 6 Best Small Business Ideas for Beginners