How is the Growing Economy Impacting Businesses in Nigeria?

It is a delusional fact known to the entire world that Nigeria being a nation in Central Africa is way behind many countries in terms of economic indicators for growth such as standard of living, poverty level and GDP growth. Well, what if we were to tell you that the world is changing, which sounds pretty believable. But what if we told you that grasping this opportunity in the race for development in Nigeria, which has been rapidly experiencing large scale economic growth in the past semi-decade. The primary sectors for doing business that come across to many economists as the significant profit-earning sectors are oil refining and trade, agriculture, electronics, labour outsourcing, confectionery production and education.

Nigeria – Africa’s Corporate Playground

Nigeria came on top as a surprise for many economists and market analysts as a sustainable business location. From chocolate production to oil refining, from broadcast media to social media and so on the list goes on, but the point is that Nigeria is a treasure chest of developing business opportunities. Flaunting an impressive resume of resources in terms of an educated and young workforce, the vast availability of land, untapped mines, and supportive government taxation system, Nigeria is slowly becoming a target location for many corporate juggernauts.

If not known before then let us get you up to speed about why Nigeria is a vital economic booster for Northern Africa –

  • Nigeria houses the second-largest oil and gas reserve in Africa
  • Africa’s largest smartphone and electronics market with 125 Million users and counting
  • The world’s fourth-largest producer and third-largest exporter of chocolate
  • Education is quickly developing, and thus more and more people are coming out as Literates and Educated

What used to be a fuel-powered Economy is now diversifying its different sectors with growth parameters shooting off the roof for some industries such as the 8% annual increase in the consumer goods sector, for example. The economic revamp had a fantastic impact on Nigeria so much so that when a private firm conducted a study on Nigeria in the year 2013, it was observed that the overall national GDP had surpassed 500 Billion USD. This number was far outrunning the leader in the economic battle, which was South Africa that was surprisingly lagging with its national GDP at 370 Billion USD. This information shook the business landscape across the globe tempting large corporations to jump the jolly wagon on a one way trip to making massive foreign direct investments in Nigeria.

The exposure to a more globalized business perspective provided a significant confidence booster for the in-house influencers and visionaries to come up with ideas for setting up indigenous businesses. The generic reason being that the private companies in the form of emerging entrepreneurial ventures had more market knowledge about their home ground than international private firms with big brand names. Capitalizing on these opportunities, the indigenous businesses received more attention from foreign investors, and thus, they started backing major projects that led to quintessential developments in terms of infrastructure, employment, general revenue and GDP growth.

The Big Businesses in Nigeria to Invest in

Nigeria is a market where one can find the least amount of competition and more amount of opportunities for investment. Some businesses being promising in calibre often also end up becoming capital intensive. Hence, it is crucial to ensure that management is sufficient to achieve the desired break, even numbers and accomplish overall business targets. With this kept in mind, the major businesses that are the most profitable amongst the industrial revolution are –

1. Construction

Due to the vast availability of land, resources and added investments in infrastructure, the Construction business seems to be flourishing with new projects being developed in locations across Nigeria. These projects include educational institutes, health care centres, shopping complexes, hotels and manufacturing and storage outlets. Not only is the construction business shining in the limelight, but the retail of construction material is also on the rise allowing cement companies to receive a massive boost for making profits.

2. E-Commerce

  • Electronics Retail

Well, it must have been a stereotype earlier but not anymore because Nigeria is populous of electronics users. And yes we are talking about flagship smartphones, premium accessories, top notch gadgets and much more. The growth of electronic sales in Nigeria has hinted many top brands to increase supply making it an exponential market for doing business.

  • Accessories and Merchandise

If you think that fans of sport or fiction or movies in the Central African region don't have the privileges to flex their favourite merchandise, then you are in for a twist. Be it pop-culture blockbuster movie merchandise; a custom made rock band accessories, favourite sports jerseys and much more, then Nigeria is a growing market. Due to E-commerce, the users of the internet have been frequently attracted to the fashion of clothing and appearance that is usually dawned by their favourite idols.

3. Tourism and Hospitality

There is a pinch of majesty in Nigeria's atmosphere be it the scenic waterfalls and rainforests, the jolly and friendly people, the relaxing beaches or a drive down an animal reserve, the tourism and hospitality sector is always ready to support new visitors to the essential African region. Tourists find it oddly attractive to find accommodation in ten suite resorts facing beautiful beaches where one can wake up with a touch of a delicate breeze, sighting dance palm trees along the coastline.

4. Oil and Fuel

Though Nigeria has diversified its economy, they still haven't forgotten their trump card. Their primary market-making industry, the oil and fuel sector that even to this date contributes majorly towards the Nigerian Economy.

Nigeria is an untapped market full of opportunities, and the added advantage is the scope of diversification into this market. Though there are many merits, the primary hurdle, which is that of company incorporation and business setup, contact us to know more about the Nigerian market and let us assist you in the process of setting up a business in Nigeria.

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