INVESTMENT OPPORTUNITIES IN NIGERIA

INVESTMENT OPPORTUNITIES IN NIGERIA

Investment implies the production of new capital goods, plants and equipment’s. John Keynes refers investment as real investment and not financial investment. Investment is a conscious act of an individual or any entity that involves deployment of money (cash) in securities or assets issued by any financial institution with a view to obtain the target returns over a specified period of time.

Investing money is a great source of making passive income in Nigeria. There are many investment opportunities in Nigeria. The Nigerian government has realised that they need to make the country as attractive and lucrative as possible for offshore investors to bring their capital, skills and business trade into the country. One way is to provide tax holidays to ‘pioneer companies’, who are engaged in the production of export goods, establishing new industries, or expanding production in vital sectors of the economy. 

Some of the investment opportunities in Nigeria include but not limited to the following:  

1. Manufacturing: 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 are also in demand. Examples include machine tools, flat sheet metal, and spare parts manufacturing. Finally, any investment in research institutes, especially those that focus on adaptive research and commercialisation of local inventions, is looked upon favourably by the Nigerian government.  
2. 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 were 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. There are millions of Nigerians who are interested in involving themselves in Information Communications and Technology Services (ICTS). This new economy does not require someone to be in a specific location to provide the service needed, rather they can be located anywhere in the world. One organisation that has already seen the potential in Nigeria is US-based software trainer Andela. The company offers learning programmes for young adults wanting to become computer programmers. The learning programme is a 2-year practical course where the learner interacts with companies around the world and assists them in building programmes, websites, and mobile applications. 
3. Agriculture: 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 modernise and mechanise their agricultural industry. Not only will locally grown foodstuffs be promoted on behalf of the investor, business and enabling companies may receive pioneer company status and qualify for tax incentives. 
4. Private Education: The need for skilled tradespersons, 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. As an example, one can look at the success of Curro in South Africa, which began as a private for-profit primary and secondary schools and now has a post-secondary offering. If a Nigerian model were created that focused on skills development, the potential returns could be very lucrative. 
5. Real Estate: People are always going to need homes, apartments, residences, office spaces etc. Rather than piling your money up in the bank, invest in real estate. You can buy a land in a good location, give it time to appreciate and sell at a much higher price, or rent out an existing property. If you don’t want to go through the ups and downs of running a real estate development business, you can simply invest the development of shopping malls, residential apartments, events and conference halls etc.
6. OIL AND GAS: Regardless of the shift from over-reliance on oil proceeds, the oil sector still plays an important role in the Nigerian economy as the exploration of the country’s huge oil reserves will not be neglected. The Federal Government also seeks to explore the country’s natural gas reserves as an alternative source of power generation. The Federal Government encourages investments in landmark projects of this kind that will enhance the country’s industrial development and provide employment opportunities for its citizens.
7. TRANSPORTATION: Investment opportunities lies in the development of infrastructure for transport purposes. The Federal Government approved the construction of the Lagos-Ibadan Railway with the aim of developing infrastructure. There are plans to further develop the maritime industry by constructing two new seaports in Bonny, Rivers State, and Lekki, Lagos State. The Aviation Sector has not been left out from this chain of development as the Federal Government has announced approval to concession the international airports in Abuja and Lagos. Private-Public Partnerships are encouraged in this sector. It is imperative to note that the inland waterways are a transport medium with potentials that are insufficiently harnessed.
8. POWER GENERATION: Electricity generation is the process of generating electric power from sources of primary energy. For electric utilities in the electric power industry, it is the first stage in the delivery of electricity to end users, the other stages being transmission, distribution, energy storage and recovery, using the pumped-storage method. There is enormous investment opportunities in this sector especially as the Federal Government is currently implementing reforms in this sector under the Power Sector Recovery Implementation Plan approved by the Federal Executive Council in March 2017 to develop the Nigerian Electricity Supply Industry (‘NESI’). This is expected to fast-track the provision of meters to consumers of electricity and encourages

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