Why Invest in Nigeria?
Massive Potentials
New government policies are creating an enabling environment in Nigeria. By putting the right recovery policies in place now, Nigeria has shown its commitment to enabling potential in the future.
Positive Policies
Around 75% of Nigeria’s government revenues are derived from oil, exposing the country to downswings in the commodity sector. A number of policy changes have been introduced to reduce Nigeria’s oil dependency.
Homegrown innovation
Homegrown innovation holds the key to unlocking Nigeria’s untapped potential in industries outside the oil sector.
Manufacturing for global procurement
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.
Turning around a reactive food supply chain
In 2016 the country faced its first recession in over two decades. Heeding the call to diversify. The government of Africa’s most populous nation rose to the challenge and started to implement a number of initiatives to not only grow its economy but to protect it from similar commodity downswings in the future.
Nigeria holds vast agricultural potential due to its large domestic market and its abundant arable land, with nearly one-third of all employed Nigerians finding themselves leaning towards the agricultural sector, which is one of the country’s main foreign exchange earners. However, only 40% of the country’s 84million hectares of arable land is currently under cultivation.
High demand for power supply
Due to the unreliability of the national grid, about 42% of Nigerian businesses and homes have a secondary power system (typically diesel generators) installed to reduce the negative impact of energy failures across the countries grids.
Currently, the Nigerian government is not a stakeholder in the distribution market, providing room for private sector competition. As current installed capacity outweighs usage, opportunities exist in enhancing utilization of power plants and in the distribution of power.
Growing Fishing Industry
Fish farming in Nigeria, over the years, has become a lucrative business in the agricultural sector of the country. From the beginning of time, farmers have centered their production of agriculture on peasant farming, farms produce, plantation, livestock farming, (crop farming and animal husbandry). It is the basic and popular farming system in Nigeria.
This agro-economic sector (Fish Farming) is a fast-growing business and is popular across every market and some strategic locations.
Abundant Energy Resources
Nigeria is endowed with abundant energy resources, both conventional and renewable, which can potentially provide the country with a sufficient capacity to meet the ambitions of both urban and rural Nigerians of a full, nationwide electrification level.
Yet, Nigeria has one of the lowest consumption rates of electricity per capita in Africa. With the demand superseding the generation, there is inequitable access of rural communities to the electricity service in the country. There are inherent obstacles militating against the effective implementation of an orderly energy policy in Nigeria.
What Our Experts Say
“Nigeria is a unique market that requires tailored solutions that draw on lessons learnt from previous failures and successes.” – Dr Martyn Davies
To achieve success in Nigeria, it is key to invest both time and effort to develop a long-term strategy that will allay the complexities of the market.