Investment opportunities in Nigeria

13 Most Promising investment Opportunities in Nigeria

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Nigeria, widely regarded as the world’s most populous black country, and also known as Africa’s giant, is very rich in natural resources and human capital, with many of its unexplored or underexplored potentialities.

Nigeria is full of opportunities for anyone willing to make any investment from the South blessed with oil and other natural resources to the North blessed with gold and other resources.

This article describes Nigeria’s most lucrative investment opportunities.

There are places you can spend, no matter what your budget. You can invest in Nigeria and expect a decent return on your investment from as little as about 100 to the large billions of naira.

This article deals with investment opportunities low income and high income earners in Nigeria.

But before then, i would like to help clarify some things and questions

Why should you invest

You’ll want to invest your money in building your wealth. Investing helps you to put your money into vehicles which have the ability to receive high return rates.

If you are not investing, you will be missing opportunities to increase your financial value. You have the potential to lose money in investments, of course, but if you invest wisely, the potential to gain money is greater than if you never invest

Basically, you invest to make more money and like a wise man once said,  “it takes money to make money”. There are investment opportunities in different places like Nigeria for instance.

Below are some of the reasons why you should thunk about investing

1. Make more money

Just like i mentioned previously, it’s to make more money.

Investing your money can allow you to grow it. Many investment vehicles, such as stocks, certificates of deposit, or bonds, offer returns on your money over the long term. This return helps you to build up your money, creating wealth over time.

2. Save and prepare for retirement

You will be saving money for retirement when you are working. Bring your retirement assets into an investment account, such as stocks , bonds , mutual funds, real estate, Roth ira,  businesses, or precious metals. Then, you can live off funds gained from those investments at retirement age.

With your savings, you may want to consider being riskier at a younger age based on your personal risk tolerance. Greater risk raises the chances of being wealthy. It can be wise to become more cautious with your investments as you grow older, particularly when you are near retirement age.

3. You earn higher in your returns

You need to put your investments in a place where you can make more money and where it can earn a high rate of return.

The more money you make, the higher the rate of return. Investment strategies tend to deliver a chance of receiving higher return rates than savings accounts.

Therefore, if you want the opportunity to earn a higher return on your money, you’ll need to explore how to invest your money.

4. Achieve your financial goals

Investment will help you reach major financial goals. When your investment earns a higher rate of return than a savings account, you can earn more money both in the long term and in a shorter time span.

This return on your investment can be used toward major financial goals, such as buying a home, buying a car, starting your own business, or putting your kids through college.

5. The use of pre-tax dollars

Some savings options, such as 401(k)s funded by an employer, allow you to invest your dollars before tax. This option allows you to save more money than you would if you could only invest your dollars after tax.

6. Being able to take part in employer-matching programs

 

Some employers offer to match up to a certain amount of the money you are investing in your 401(k ) plan. Of course, if you actively invest in your 401(k ) plan, the only way you can qualify and earn those matching funds is. So, many people are investing in their 401(k)s to get the matching employer funds.

7. An opportunity to expand your business

Investing is an integral aspect of developing and growing businesses. Lots of investors want to back entrepreneurs and help build new jobs and new products.

They enjoy creating and setting up new businesses and building them into successful entities that can deliver a strong return on their investment.

Why should you do your investment in Nigeria?

 

There are many reasons why investment opportunities in Nigeria should be considered here.

Nigeria is Africa’s largest economy ahead of South Africa, Egypt and the rest. With so many development prospects, PwC has forecast Nigeria ahead of Italy, Canada, South Korea, Spain, the Netherlands, Australia and others among the top world economies in 2050.

Nigeria has the resources, energy, workers of over 200 million people who can help every company thrive.

Nigeria’s minimum wage is small as compared to other nations. This means that you can spend less, and do more.

There are various policy benefits including tax holidays, duty drawbacks, savings credits, tax exemptions, export development funds, double tax reliefs and much more.

Investors from China, The West, South Africa are inflowing into Nigeria. Nigerians are waking up to invest in their own country, too.

Most profitable investment opportunities in Nigeria

Below is a list of the various investment opportunities to leverage in Nigeria

1. Agriculture

Nigeria is estimated to have a population of over 200 million. And feeding the huge population is one of the biggest challenges.

Nigeria was unable to produce enough food for its population so they depend so heavily on import.

In 2018, Nigeria’s Minister for Agriculture Audu Ogbe said the country spends $22 billion annually on food imports.

Since independent, successive governments have been trying to cut food imports. And as a result there was a lot of opportunity given.

The Bank of Agriculture was established to help farmers get funding and support.

There are many financial institutions in Nigeria, including the Ministry of Finance, offering special financial support to businesses focused on agriculture.

Agriculture is certainly one of Nigeria’s most important investment prospects.

Agriculture investment will be a very lucrative venture if well planned and carried out. Areas of great concern include crops, animals, transportation, agricultural machinery and much more

2. Real Estate

Real Estate inside one of Nigeria’s most lucrative investment opportunities. That is because the population is booming. And big migration to major towns like Lagos, Abuja, Port Harcourt, Uyo and the rest. Real estate investment in major cities can be very lucrative for investors.

The opportunities include low-cost housing, building materials supplies, hotels, shopping complex and so much more. You can invest in real estate and make profit on several aspects.

As the population keeps growing and the economy continues to grow, one of the biggest problems is housing.

3. Oil and gas

Nigeria is dependent on the Oil and Gas industry. Foreign as well as local investors can be key in Nigeria’s oil and gas sector and watch their investments expand.

Out of the investment opportunities in Nigeria, this particular one can mark a major turning point for you.

Nigeria is among the world’s top oil producers.

Here are some areas in which investors may be important in the oil and gas sector

  • Exploration and Extraction
  • Goods Marketing
  • Pipe-lining
  • Well Services
  • Petroleum transport
  • Production of local alternatives for imported items such as medium pressure valves, pumps, shallow drilling equipment, drilling mud, bits fittings, drilling cements, detonators, steel castings, magnetic tapes and more.
  • Construction and deployment Liquefied Petroleum Gas domestic production and marketing
  • Manufacture of LPG cylinders, valves and regulators, construction of filing plants, retail distribution and production of simple, versatile and much less expensive gas burners to promote the use of gas instead of wood and other fuels
  • Refining
  • Industries developed to produce natural gas chemicals and solvents, such as chlorinated methane, formaldehyde and others

 

4. Mining

Nigeria is blessed, apart from crude, with very numerous natural resources that have not been given attention.

For a committed investor an investment in such neglected areas can be very lucrative.

Nigeria’s mining industry is still under explored. Not much was done. It leaves much room for potential investors who want a look.

Many of Nigeria’s resources are untapped, and the government has continued to show signs that it is willing to work with investors who want to get in.

Some of the resources include: Bitumen Gold Columbite Tin Uranium Marble Koalin Limestone Coal Iron Metal

5. Manufacturing industry

Nigeria is a country which is excessively dependent on imports for the smallest of items you would never think of.

That is not good enough for Africa’s biggest economy. As the economy continues to expand, so much needs to be generated at home. The manpower is there

An investment in the manufacturing sector in Nigeria will yield results. Create jobs, and improve the economy.

Consecutive governments have been calling for constant investment in the manufacturing sector.

Most notably in Nigeria is minor household products such as toothpick. Many important things have to be produced: food products, water (table and sachet), fiber cables, telecommunications equipment, tyres, fashion and the list is long.

6. Fgn savings bond

 

FGN savings bond is a bond issued by the Debt Management Office (DMO) on behalf of the Nigerian Federal Government.

The bond is tailored and targeted towards retail investors with guaranteed quarterly interest payment and the principal’s repayment at maturity.

When you buy the savings bong into the FGN, you lend money to the Nigerian Federal Government for a period of time and interest will be paid to you.

This is considered a secure investment in Nigeria because it has the full support of the Nigerian Federal Government
You can start investing from N5,000 to N50,000,000 over a two to twenty year period.

The return you receive on each investment depends on the terms and conditions

7. Stocks

Stocks can be a very risky investment but can be very profitable as well. If you have money you don’t need immediately, you can position it in stocks that are well-analysed.

It’s like putting bets on a company to do well. You are buying in. If the firm appreciates that, you’re making profits.

8. Fixed deposits

This is a good way to use peace of mind to spend money. If you have a large amount of money you may not need for a period of time, you can fix that money in a bank or other financial institution and make a big profit thereon. Politicians are profiting a lot from this.

The longer you fix the money, the greater the benefit, generally. Only contact a bank and tell them you want to open a bank account with a fixed deposit. You are going to be put through the process.

Only go home, relax and get on with your daily duty when your money is through literally.

9. Tech

Technology is Tech. The best trend this century has been to invest in technology.

Technology has control over everything we do. There are over 76 million Nigerians who use the internet according to estimates. That’s very high!

Nigeria is struggling with so many issues that the technology can solve. There’s a lot of ways that technology can change life.

Invest in tech firms or develop yourself one. Choose a problem to solve and it’s yours to the future.

FinTect has been in trend in Nigeria recently. But there is a lot more of a tech dimension!

10. Logistics company

Nigeria’s got one issue. Particularly in the major cities like Lagos. In these areas the population is so concentrated that transport is a great challenge.

It is a very common occurrence to see huge crowds of people waiting helplessly for buses at various bus stops in Lagos at the close of work.

An investment is a good investment in the transport sector. Given the number of major traffic in Nigeria, alternative transport such as water transport and trains are required.

It can make a good investment opportunity in Nigeria in areas where motorcycle and tricycle are allowed.

The haulage services are extremely lucrative. There is a need to continuously transport various goods from petroleum products to food products, textiles and more.

11. Franchise

There are opportunities for franchise that anybody can tap into and grow money. Franchise can be the best way to start a company and it can have a lot of clients.

And you’ll have a respected and well known brand name. That means you will be patronized by people without any sort of marketing from day one!

12. Cryptocurrency

Cryptocurrency is a worldwide phenomenon, and is also in Nigeria. You can invest in cryptocurrency from as little as N100, and reap great returns.

There are many platforms which make investment easy for you.
You can start a localized cryptocurrecny trading platform, if you have a big investment.

13. Investment Apps

No matter how little you have, there are investment apps that will help you invest your money. Without stress these apps can help you grow your money.

All you need to do is deposit the money into the app and gain income in time. They are dependable.

Komolafe Timileyin is a passionate entrepreneur that loves to solve entrepreneurial issues. He is also a blogger and an upcoming Engineer.

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