VIABLE INVESTMENT OPPORTUNITIES FOR SMALL-SCALE ENTREPRENEURS IN NIGERIA

Nigeria, the Giant of Africa, is a country with a vibrant and rapidly growing economy, making it an attractive destination for smart investors globally. 

With a population of over 200 million people, Nigeria presents several investment opportunities for small-scale entrepreneurs.

Here are the top 5 viable investment opportunities for small-scale entrepreneurs in Nigeria, and how can you capitalize on them?

1. Agriculture

Agriculture is the backbone of the Nigerian economy, and there are several investment opportunities in this sector, it contributes over 20% to the country's GDP. Nigeria has a vast amount of arable land and a favorable climate for agriculture.

Small-scale entrepreneurs who invest in the production of crops such as cassava, maize, rice, and yam are reaping their benefits annually.

There is also an opportunity to invest in the production of livestock, such as poultry, cattle, and goats. These investments can be in the form of farming, processing, and distribution.

The agricultural sector in Nigeria has the potential to create jobs and increase food security.

Over the last decade, the Nigerian government has invested heavily to facilitate growth in the agricultural sector and introduce several development policies, including the Anchor Borrowers Program, the Presidential Fertilizer Initiative, and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL).

These policies and initiatives aim to increase agricultural productivity, reduce food imports, and create job opportunities, while at the same time reducing dependency on crude oil as the major export of the country.

2. Real Estate

Nigeria has a high demand for affordable housing due to its high population, and this presents an opportunity for small-scale entrepreneurs to invest in real estate.

Small-scale entrepreneurs can invest in the construction of residential and commercial properties. They can also invest in the development and management of rental properties.

The real estate sector in Nigeria has seen significant growth in recent years, with an increase in the number of developers and investors.

As of the fourth quarter of 2021, the banking sector has allocated in private credit about 2.1 trillion to real estate in Nigeria.

The Nigerian government has also launched a number of programs and policies to aid the real estate industry. One of which is the founding of the Mortgage Refinancing Corporation and the Real Estate Investment Trust (REIT). These laws and programs are designed to broaden access to affordable housing and enhance Nigeria's mortgage system.

3. Information and Communication Technology (ICT)

The ICT sector in Nigeria, growing at an average of 9% per annum is the fastest in Africa, and there are countless investment opportunities in this sector.

The Nigerian economy is rapidly switching from analog to Tech, and this has created opportunities for small-scale entrepreneurs to invest in the development of software applications, the provision of IT services, and the sale of hardware and accessories.

Nigeria has a large population of highly employable young people who are tech-savvy, making it an attractive destination for technology investment.

With the advent of Fintech startups in the country, there is also room for partnership within the ICT space for small-scale entrepreneurs to invest in initiatives aimed at increasing access to technology, improving ICT infrastructure, and creating job opportunities.

4. Manufacturing

The manufacturing sector in Nigeria is still in its early stages, but there are several investment opportunities in this sector. Small-scale entrepreneurs in the country are already investing in the production of goods such as textiles, food, and beverages.

There are also opportunities to invest in the production of building materials such as cement, tiles, and roofing sheets. The manufacturing sector in Nigeria has the potential to create job opportunities and reduce importation.

The Nigerian government has also introduced several policies and initiatives to support the manufacturing sector. These include the Industrial Policy and Competitiveness Advisory Council, the Nigerian Industrial Revolution Plan, and the National Enterprise Development Program.

These policies and initiatives aim to increase local production, improve the business environment, and create job opportunities.

5. Transportation

The transportation sector in Nigeria presents several investment opportunities for small-scale entrepreneurs. Nigeria has a large population, and transportation is a vital part of the economy. Small-scale entrepreneurs are already investing in the transportation of goods and services in form of Logistic delivery startups.

There is also a large room for investment opportunities in various transportation means which include the supply of bikes (Okada) to riders to fetch income and create job opportunities, and the supply of vehicles for taxis.

Further investment potential exists in the creation of applications for purchasing train and plane tickets as well as in the provision of transportation and hospitality services, both of which are currently underserved by investors.

Conclusion

Although investing in Nigeria can be difficult with cases of security challenges and political instability, there are often opportunities for small-scale business owners to profit from the expanding economy and sizable consumer market with careful planning.

Among the industries that offer investment prospects are agriculture, real estate, Technology, manufacturing, and transportation. It's crucial for small business owners to do their homework and comprehend the benefits and hazards of every investment option.

The Nigerian government has implemented a number of measures and laws to assist these industries, making it simpler for small-scale business owners to make investments. To enhance the business climate and draw in additional investment, further policies and programs are still required.