Nigeria, widely regarded as the most populous black nation in the world and also known as the giant of Africa is very rich in natural resources and human resources with many of its potentials unexplored or under-explored.
From the South which is blessed with oil and other natural resources to the north which is blessed with gold and other resources, Nigeria is full of opportunities for anyone willing to invest. This article reveals the most lucrative investment opportunities in Nigeria.
No matter your budget, there are opportunities you can invest. From as little as ₦100 to big billions of naira, you can invest in Nigeria and expect a good return on your investment. This article covers investment opportunities in Nigeria for low-income and high-income earners. For foreign investors too. There is something for everyone!
Why should you invest in Nigeria?
There are many reasons why you should consider investing in Nigeria. Nigeria is the largest economy in Africa ahead of South Africa, Egypt and the rest. With so many opportunities for growth, PwC has projected Nigeria among the top world economies in 2050 ahead of Italy, Canada, South Korea, Spain, Netherlands, Australia and others.
With over 200 million people, Nigeria has the people, manpower, and workforce that will help any business thrive. The minimum wage in Nigeria is low compared to other nations. This means you can spend less and get more done.
There are numerous government incentives including tax holidays, duty drawbacks, investment allowances, tax exemptions, export development funds, double taxation reliefs and many more.
There is an influx of investors from China, The West, and South Africa into Nigeria. Nigerians are also waking up to invest in their country.
Most lucrative investment opportunities in Nigeria
Here are the most lucrative investment opportunities in Nigeria:
1. Agriculture
Nigeria’s population is estimated to be over 200 million. And one of the biggest challenges is feeding this large population. Nigeria has been unable to produce enough food for it’s population so they depend so much on import.
in 2018, Audu Ogbe, the minister in charge of Agriculture in Nigeria at that time said the country spends $22 billion every year on food importation. Since independent, successive government has tried to reduce food importation. And as a result, many incentives has been given. The Bank of Agriculture was created to help businesses that are into agriculture get finance and support.
There are many financial institutions including the ministry of finance in Nigeria that offer special financial assistance to Agriculture focused businesses. Agriculture is definitely one of the most important investment opportunities in Nigeria.
Investing in the Agriculture sector will be a very lucrative venture if well-planned and executed. Areas of major interest include crops, livestock, transportation, farm equipment and many more
2. Real Estate
Real Estate is one of the most profitable investment opportunities in Nigeria. This is because of the booming population. And large migration to major cities such as Lagos, Abuja, Port Harcourt, Uyo and the rest. Investment in real estate in major cities can be very lucrative for investors.
The opportunities include low-cost housing, supplies of building materials, hotels, shopping complexes and so many more. There are many aspects you can invest in real estate and make profit.
As the population continues to grow and the economy keeps growing, one of the biggest problems is housing.
3. Oil and Gas
The Oil and Gas sector is what Nigeria depends on. Both foreign and local investors can key into the Oil and gas sector in Nigeria and watch their investments grow. Nigeria is one of the largest oil producers in the world.
Here are some areas investors can key into in the oil and gas sector
- Exploration and Exploitation
- Products Marketing
- Pipe-lining
- Well Services
- Petroleum transportation
- Development of local alternatives for imported items such as medium-pressure valves, pumps, shallow drilling equipment, drilling mud, bits fittings, drilling cement, detonators, steel castings, magnetic tapes and more.
- Construction and Installation
- Domestic Production and marketing of Liquefied Petroleum Gas (LPG)
- Manufacturing of LPG cylinders, valves and regulators, installation of filling plants, Retail distribution and development of simple, flexible and much less expensive gas burners to encourage the use of gas instead of wood and other fuels
- Refining
- Establishing industries to produce chemicals and Solvents from natural gas, such as Chlorinated methane, Formaldehyde and others
- Establishing a plant for the production of refined mineral oil, petroleum jelly and grease and others
There are many investment opportunities in the Oil and Gas sector.
4. Mining
Apart from oil, Nigeria is blessed with very numerous natural resources that has not been given attention. An investment in these ignored areas can be very lucrative for a determined investor. The mining sector in Nigeria is way under-explored. Not much has been done. This leaves a lot of openings for potential investors who will want to have a look.
Many of the resources in Nigeria are untapped and the government has continued to show signs it is willing to cooperate with investors who want to get in.
Some of the resources include:
- Limestone
- Coal
- Iron metal
- Bitumen
- Gold
- Columbite
- Tin
- Uranium
- Marble
- Kaolin
5. Manufacturing Industry
Nigeria is a country that is over-dependent on importation for the smallest of things that you may never think of. This is not good enough for the largest economy in Africa. As the economy continues to grow, there is a need to produce many things at home. The manpower is there.
An investment in Nigeria’s manufacturing sector will yield results. It will create employment and boost the economy. Consecutive governments have constantly called for investment in the manufacturing sector.
Minor household items such as toothpicks are mostly imported into Nigeria. There are many crucial things to manufacture: Food items, water (table and sachet), fibre cables, telecommunication equipment, tyres, fashion and the list is long
6. FGN Savings Bond
FGN savings bond is a bond issued by the Debt Management Office (DMO) on behalf of the Federal Government of Nigeria. The bond is tailored and targeted at retail investors with guaranteed quarterly interest payment and repayment of the principal at maturity.
When you buy into the FGN savings bond, you are lending money to the Federal Government of Nigeria for a period of time and you will be paid interest. This is considered a very safe investment in Nigeria because it has the full backing of the Federal government of Nigeria.
You can invest from invest N5,000 to N50,000,000 for a period of two to twenty years. The interest you earn on each investment depends on the term
7. Stocks
Stocks can be a very risky investment but it can also be very lucrative. If you have money that you have no urgent need for, you can put it into well-analyzed stocks.
It is like betting on a company to do well. You buy into it. If the company appreciates, you make money.
8. Fixed deposit
This is a good way to invest money with peace of mind. If you have huge money that you might not need for a period of time, you can fix that money in a bank or other financial institution and make big profit from it. Politicians take advantage of this a lot.
Usually, the longer you fix the money, the bigger the profit. Just approach a bank and tell them you want to open a fixed deposit account. You will be put through the process.
Just go home, relax and go about your normal duty while your money is literally growing.
9. Tech
Tech stands for technology. Investing in technology is the best practice in this century. Technology dominates everything that we do. According to statistics, there are over 76 million Nigerians who use the internet. That is big!
Nigeria is struggling with so many problems that can be solved with technology. There are many ways technology can make life better.
Invest in tech companies or build one yourself. Pick a problem to solve and the future is yours.
Recently, FinTech has been trending in Nigeria. But there are many other aspects of tech!
10. Transportation and Haulage services (logistics)
Nigeria has a problem. Especially in big cities such as Lagos. The population is so concentrated in these areas that transportation becomes a big challenge. It is a very common thing to see a large crowd of people at different bus stops in Lagos at the close of work helplessly waiting for buses.
An investment in the transportation sector is a good investment. With the number of traffic in Nigeria, there is a need for alternative transportation such as water transport and trains.
In places where motorcycles and tricycles are allowed, it can make a good investment.
Haulage services are very lucrative. There is a constant need to transport various items from petroleum products to edible products, textiles and more.
11. Franchise
There are franchise opportunities that anyone can tap into and grow money. A franchise can be the fastest way to launch a business and have many customers. Because you will have a brand name that is trusted and well-known. This means people will patronise you from day one without any form of marketing!
12. Cryptocurrency
Cryptocurrency is trending worldwide and it is in Nigeria too. From as little as N100, you can invest in cryptocurrency and reap great returns.
If you have a big investment, you can start a localized cryptocurrency trading platform.
13. Investment apps
There are investment apps that can help you invest your money no matter how little you have. These apps can help you grow your money without stress. All you have to do is deposit the money in the app and you will reap profit in time. They are reliable.
