Despite the vast resources, population and capacity for new business, Nigeria still continues to punch below its weight. With a GDP that rose significantly compared to South Africa’s own it is clear that, although it still has far to go, Nigeria has a lot to offer.
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Industrialisation of Nigeria
President Goodluck Jonathon launched an industrialisation plan that is aimed at turning Nigeria into one of the top ten economies of the world. Nigeria is no stranger to industrialisation: Before oil was discovered in the country it was the most industrialised country in West Africa.
After independence Nigeria specialised in processing agricultural products, manufacture of household items and vehicle assembly.
Today, most of these sectors operate at a low-capacity but the opportunities to turn these sectors around have been given hope by the government’s NIRP which focuses on Nigeria’s competitive advantage of agriculture, metals, construction and light manufacturing.
Here are a few business opportunities that Nigeria has to offer:
1. Nigeria as a technology hub
Nigeria has aspirations to become the next tech hub of Africa. Following the successful growth of the telecoms industry, focus now shifts from ‘Voice’ to the opportunity in ‘Data’ as the government looks to replicate this success by creating the ‘Digital Economy’.
Enthusiastic entrepreneurs have sprung up in this sector and the country has given birth to start ups such as successful online retailers Konga and Jumia.
With a population of approximately 170 million, the agriculture sector is showing rapid growth.
The fishery sector is estimated to contribute 3.5 per cent of Nigeria’s Cross Domestic Product (GDP) and provides direct and indirect employment to over six million people. Yet, only around 50 percent of demand for fish is currently being met by local supply.
Agriculture is one of the most significant opportunities in Nigeria as the government tries to reverse current importation focus and low yield to encourage efficient domestic production.
The country has a land area of 98.3 million hectares of which 74 million hectares is arable and less than half is being utilised indicating significant opportunity for growth.
Increased focus on resolving infrastructure challenges provides financing opportunities to willing investors.
Opportunities exist for concessions of roads and financing construction; while construction and concession opportunities are available to meet the increasing demand for air travel.
4. Haulage and logistics
Haulage and logistics is a fast growing business opportunity in Nigeria.
Due to poor rail transport system, most of the Nigerian goods are transported through the road, making haulage business in Nigeria a viable investment option.