Nearly one-third of all employed Nigerians find themselves working in the agricultural sector, which is one of the country’s main foreign exchange earners.
The Nigerian government has set up incentives to help modernize and mechanize their agricultural industry. Not only will locally grown foodstuffs be promoted on behalf of the investor, business and enabling companies may receive the pioneer company status and qualify for tax incentives.
Subsidies on fertilizer and zero import duties on raw materials needed to manufacture livestock feed are some of the other incentives to attract investors to this sector.
Another is the release of grants from the Raw Materials Research and Development Council for research and development that leads to the greater domestic use of Nigeria’s raw materials.
Consider rice production, poultry, tomatoes, cassava, oil palm, fish farming etc. People must eat and so, anyone who is into the production of food products will always be in business. One good thing about agriculture is that, there are no major raw materials needed. Nigeria has large, good and fertile land and good weather conditions that favors agriculture.
Nigeria’s population is an estimated 186 million people. This population suggests a massive potential workforce as well as a consumer base. For a manufacturer this is an ideal scenario, not only do you have potential customers, but you also have potential employees.
The Nigerian government is eager to expand the manufacturing capability in the country, and to that end, they are offering incentives for manufacturers that are able to locally source their raw materials, for example, agro-allied manufacturers processing foodstuffs such as fruit juices and vegetable oils.
Any manufacturing industry that provides multiplier effect solutions for the economy is also looked upon favorably. An example of this would be machine tools, flat sheet metal, and spare parts manufacturing.
The Manufacturing sector also includes production, marketing and distribution of household goods and commodities. Most of the household commodities used in Nigeria are imported and anyone who can start the local production of these items that are imported will enjoy local patronage and will also enjoy the Nigerian Government support. The manufacturing sector is what made Aliko Dangote the wealthiest man in Africa.
3. INFORMATION AND COMMUNICATION TECHNOLOGY SERVICES
Nigeria is one of the fastest growing internet users in the world. According to Statista, a global statistics company, there are approximately 76.2 million Nigerian internet users as of 2017. This is an increase of nearly 50 percent from the 2013 figure of 51.8 million.
By tapping into the underdeveloped skills of the Nigerian youth, there are countless opportunities for new economy companies to develop technology leaders of the future in Nigeria and in the rest of Africa.
It is an undeniable fact that technology is one of the fastest growing sectors in the World and thus, it will be advisable for one to invest in technology at this point in time.
The need for skilled trades-persons, computer programmers, and agricultural workers will only increase in demand as Nigeria transforms its economy and becomes an international economic power.
At present, there is an opportunity for private education to offer specific programmes that are in demand in the country. Nigeria is a country with vast underemployment and by offering distance learning or night schools, there is potential for strong investment returns in for-profit education.
This also involves establishing primary, secondary and even tertiary institutions. There are several public and private educational institutions in Nigeria. However, only few are of good standard. This is one of the reasons why many wealthy people send their children abroad to study in foreign schools. Anyone who can provide standard educational services will succeed.
5. RETAIL TRADE
5. RETAIL TRADE
Retailing is one of the fastest growing sub-sectors of the Nigerian economy and this will be so for a very long time due to growing population, rising consumption, improvement in technology, rise in mobile payment and growing sophistication of the working population.
Retailers provide massive amount of goods and services to households including food, appliances, furniture, clothing and much more. The opportunities in the sector are massive and that is the reason popular global brands such as Shoprite, game and spar use that to their advantage.
The type of retail business you can start in Nigeria will depend on your capital and skill. From a once corner grocery shop or your unit neighborhood store to the large supermarket chain and specialty stores – the opportunities are enormous. What this means is that you can start retail trading at any scale your finances can and still be profitable.
Other sectors include:
- Oil and gas
- Information and Communications Technology
- Power generation and distribution
- Real Estate
- Health care