If you have already developed a preconceived notion about Nigeria just by hearing the name, then let us be the myth busters and inform you that Nigeria happens to be the most dominating African Economy surpassing the likes of South Africa in early 2013. Nigeria can easily be personified as the phoenix rising from the ashes into a modernized industrial revolution. The Nigerian Economy has been experiencing quintessential growth from the past five years since it started diversifying its Economy. Thus, the development led to the emergence of more industries and the overall market share being split into multiple corporate entities.
What used to be a petrol and fuel dominated economy was now being rebuilt by new emerging sectors focusing more on the consumer market. Businesses simplifying their daily needs profoundly influenced the convenience and lifestyle of the consumers and the general public. Moreover, the various effects of these businesses led to the creation of new employment opportunities, new trade deals being orchestrated, increased foreign direct investments and the rise of an indigenous startup revolution. With all the sudden market rush, many sectors had the privilege of the corporate spotlight after being underrated for many decades, thus, becoming the top sectors to be known as 'prospective business opportunities in Nigeria. With a flexible taxation system and several government contributions, the following are the new bullseye businesses in Nigeria –
From a whole industry perspective, all business activities that encompass the growth of the construction sector have been noted to be profitable in the past few years. The government, along with many private companies, have invested heavily in terms of capital requirements towards building new business hotspots in populous industrial regions of Nigeria. Therefore construction based activities such as –
- Railroad construction
- Highways and roadways construction
- Construction material retail
- Labour outsourcing
- Public-Private Partnerships – Construction of hospitals, police and security facilities and public parks
This industry is developing so well that it has contributed almost 20% to the country's total GDP in the previous year, and this growth is expected to escalate for the next times as well. With the government planning to invest more towards infrastructure development for creating business hubs, tech parks, and so on, the sector is expected to boom throughout the following years.
From fashion to food, smartphones to smart learning, this sector is skyrocketing through the roof in Nigeria. The youth of the nation that has better connectivity facilities to the internet are utilizing its benefits to the maximum possibilities by forming new companies with indigenous ideologies catering to the daily needs of the general public. The significant businesses that are operated through online mediums are –
- Food Delivery Services
- Electronics Retail
- Fashion Retail
- Accessories and Merchandise
- Travel and Transit services
The sector is currently valued at $12 Billion and is expected to rise till $75 Billion till the year 2025 exponentially becoming one of the most attractive business opportunities and the easiest to establish the business in for new players in the market. With increasing valuations in Nigeria, innovative business models, newly trending audit service updates and an everlasting temptation to profit through the times makes the E-commerce industry a business blockbuster.
3. Fuel and Gas
When it comes to not forgetting your roots, then the Nigerian government happens to be a headstrong example. The government was confident of diversifying into many business sectors as it had the backend insurance from its most profitable sector across industries. We are talking about fuel and gas trade in this context. In previous years, more than half of the Nigerian Economy was completely run on fuel and gas trade. Citing the vast availability of fuel reserves in Nigeria, many companies would only invest in Nigeria for exploiting in resources being the reason why the government remained financially sustainable throughout the years. Even to this date, a majority of the government's revenue is a result of the fuel and gas sector, a crucial reason for that being the availability of the second-largest oil reserve in the African continent situated in the core regions of Nigeria.
4. Packaged Consumables – Confectionaries and Fruit Juice
Apart from being credited as the world’s fourth-largest producer and third-largest exporter of chocolate, we cannot deny the fact that the market for various tongue sizzling confectionaries is ridiculously huge in Nigeria. The consumer market for confectionaries of different kinds is the most playful market for any company operating in the industry daily. The market is subjected to price inflations regularly and still experiences a high demand in the internal consumer market as well as international market making us wonder, what if Charlie and the Chocolate Factory were in Nigeria?
Now talking too much about chocolate, let's not forget Nigeria's Elixir of Life. Spoiler alert, we aren't talking about water. The packaged fruit juice industry has the most significant market potential in Nigeria across all the nations of the African continent. Studies suggest that Nigerian consumers' intake of fruit juice is valued at a juggernaut amount of $60 Billion on a per yearly basis. That number far surpasses the likes of highly populated nations like India and China, which are considered the best markets for fruit juice manufacturers and retail. We guess the Nigerian people's strategy to 'beat the heat' is to 'chug a jug.'
5. Poultry Farming
It might sound, but poultry farming is a robust business that is easier said than done. There is a huge demand for poultry products in the internal market as well as in the neighbouring nations of Central Africa. The growth of this sector has been steady, and small businesses have grown to become giant corporations over the past years. Even medium scale poultry farms raising around a thousand chicken manage to earn a healthy revenue of $20 Million per year. The market is quickly expanding through new distribution channels to regions beyond Central Africa, therefore, hinting at a brighter future for this industry.
Now that you know about the most prosperous business opportunities in Nigeria, you are partially prepared to begin your entrepreneurial journey. Though we claim to provide information regarding the Nigerian Market, we also agree that the process of company incorporation can be a complicated and hectic one. Let us assist you in your endeavour to set up a business in Nigeria. Contact us to learn more about our company incorporation and post setup services.