Despite the unsavory economic indicators and associated high level of poverty, as well as heightened sense of insecurity, Nigeria is the best nation in Africa to invest. The market is boon for investors who want quick and sizable returns to their investment. The country is the largest economy in Africa with high consumption indicators due its large population and high demand for goods and services.
Though its bifurcated economy may seem to obscure its diversification efforts, but sustained pragmatic economic plan and the stabilization of Naira against foreign currencies is making the country fertile again for foreign investment. So, contrary to what many people may be thinking and talking about the country and its global image, Nigeria is still a hopeful promise positioned to be the bastion for commerce and industry in the global market.
Nevertheless, Nigeria, one of the fast-emerging markets, is a country full of astonishing contrasts in the midst of its enormous natural and human resources. Besides oil and natural gas, the country is opulently endowed with a variety of solid minerals of various types, as well as industrial minerals such as gypsum, barytes, kaolin and marble. Nigeria’s economy, once considered lethargic and bifurcated, is now roaring back with investment opportunities because of government’s steady improvements in the economy. At least that is the perception of most Nigerians here, who are making preparations to relocate to invest at home. They seem to touting the increasing returns to investment in Nigeria if one is bold enough to take the economic risk.
There are some particularly high yielding areas, especially in a small scale, to invest in Nigeria with minimal funds. Such areas may require close supervision of associated activities to avoid the encounters with dubious agents and cost overruns.
In any case, investment in cottage manufacturing industries would allow the investors to leverage on the vast market in the continent of Africa. There is a market for virtually anything manufactured in Nigeria. The country serves as a suitable export hub for goods and services to other African countries. The market is literally untapped yet providing a rare opportunity to the early entrants.
Another important area of investment with high rate of return in Nigeria is in education—pre-kindergarten to high school level. The demand for quality pre-kindergarten-high school education is increasingly high as the population of school age children grows. Every parent wants to provide his/her child quality and reasonable education at this level. Thus, if you build, they will come. Parents are interested in ensuring that their children have a brighter future and are willing to provide their children with the best education at their earlier age. It is believed that solid educational foundation at the early age would assure success at the university level.
Also, Nigeria has many mouths to feed with an increasing population. As result, investment in agriculture with modern agricultural technology, would be apt for investors who would want to be in the sector for the long haul.
That said, the most lucrative area would be livestock farming. My anecdotal information suggests that poultry and fish farming could garner an investor a sizable return if the projects are executed properly with relevant technology and expertise. In addition to livestock, food production with preservation technology would be a lucrative venture in the country. Generally speaking, investment in a mechanized agriculture would help feed the nation as the investors make their money.
Interestingly, investment opportunities exist in the areas technology, real estate, healthcare and medical devices. For instance, real estate investment is thriving in Nigeria. It is no longer economically palatable for people to tie their money up in banks at a meagre interest rate.
If one has a large sum of money and have decided on the type of business to invest in, it would make more business sense to dump the money into real estate until such time one has made a final investment decision.
However, it would amount naught if caution is not exercised in all activities. Just like in any invest decision, one has to do his/her research to avoid falling for unsavory baits.
Nigeria’s attractive business climate did not come without synergic reforms that are currently being executed by the federal government. Some of the efforts and policies have yielded results that prompt those abroad to take the country seriously as an investment heaven.
Many countries are now investing in Nigeria. Recently, the Minister of Power, Works and Housing, Babatunde Fashola announced the approval of the contract of “the Mambilla hydro power plant—a joint ventures of Chinese Civil and Engineering Company for the engineering and turn-key contract, including civil and electro-mechanical works for 5.792 billion dollars,” that would produce “3,050 megawatts of electricity.”
The minister stated, “The money is coming from the Chinese government through their Exim bank, so it is an export funding support for them and an import funding for us. Eighty five percent is supposed to be financed by them and 15 per cent is our own counterpart funding.”
Similarly, “the Ministry of Mines and Steel Development has signed a Memorandum of Understanding (MoU) with the Bank of Industry (BoI) for the management of a N5 billion fund in support of Artisanal and Small-Scale Miners in the country.” Dr. Kayode Fayemi, the Minister of Mines and Steel Development and Mr. Olukayode Pitan, the Managing Director/CEO of BoI signed the MoU.