Would you like to make money by investing in Nigeria in something other than oil? Since the oil industry is vital to the economy and made up as much as 6.33% of the country's GDP in the third quarter of 2022, it can be hard to think of other industries that are doing well in the country.
The Nigerian government has worked hard to broaden the economy and find valuable jobs for its large labor force, so they are still very much there. Please find out about some of Nigeria's industries that are growing the fastest and what chances they offer people who want to do something different.
Transport
The Nigerian transportation and storage business grew by 41.59% in the third quarter of 2022. Nigeria's transportation business consists of roads, railways, airports, waterways, and pipelines. Together, they make up about 3% of the country's GDP.
Even though this increase is impressive, it's easy to understand. A country's transportation system is integral to growth because it helps with trade inside and outside the country and the supply line.
Public transportation, whether by car, train, ship, or plane, is also essential to a growing economy. Some investors have hesitated to invest in Nigeria's non-oil businesses in the past and still do today because of the country's lousy infrastructure, which the government is aware of and working to fix.
Even though developing the transportation sector has been difficult, Nigeria is eager to improve its public transportation because it sees it as crucial for its growth. Infrastructures like roads, trains, ports, and airports are all part of this. The state sector and private foreign players must work together for this project's success.
Nigeria is the most popular and influential country in Africa. Because of this, there are many possibilities for business in the transport and storage field, which can be very profitable.
Finance & Insurance
The Nigerian Finance and Insurance business grew by 12.7% in the third quarter of 2022. This was a big surprise because the country hasn't had many insurance customers, usually because of religious and cultural hurdles.
The business is still strong, bringing in more than N50 billion ($160 million) in investment income.
The Central Bank of Nigeria is likely to adhere to its strict monetary policy, and the Pension Reform Act 2014 will help the insurance industry grow at the planned 10% average rate each year. Life insurance and general insurance, which includes health, auto, and housing, are the two main types of insurance in Nigeria.
Information & Communication Technology
Nigeria is home to 82% of Africa's mobile customers and 29% of its internet users. It is thought to be the continent's biggest ICT market. With a compound annual growth rate (CAGR) of 4.6% and an expected rise of over 167 million users over the next five years, Sub-Saharan Africa is also likely to see the most rapid growth in the ICT business.
To move the economy away from oil and gas, the Nigerian government is encouraging regional ICT companies and foreign firms to collaborate. To promote these kinds of partnerships and help the tech industry grow, local governments have helped set up youth innovation programs, science technology zones, and startup hubs run by the government or the private sector.
As an economic reward for investors and business owners, the Nigerian government has even made Abuja Technology Village and other places special economic zones. This means that goods can go there duty-free, without labor issues.
Art & Entertainment
In Nigeria, the Art and entertainment industry grew by 7.79% in the third quarter of 2022.
The pandemic affected the industry in 2020, but it has since picked up, making very profitable deals with big foreign streaming companies and production houses. According to a study by PWC, this field will have the most rapid growth over the next five years.
Construction
Between 2022 and 2025, Nigeria's building industry is expected to grow by 3.2% each year. The real estate industry is steadily increasing, and the government is helping the energy and infrastructure industries.
The $2.7 billion Infra-Co fund, which is backed by the Central Bank of Nigeria (CBN), the Nigerian Sovereign Investment Authority (NSIA), and the Africa Finance Corporation Companies (AFCC), has brought investors into the construction industry and built trust in businesses that were already there. This has made the construction industry a safe place to put your money.
Food Processing
With more than 213 million people, the food business offers many great possibilities for companies. Over the last five years, the business has grown at an average rate of 3% per year, adding 4% to the GDP yearly. The industry is mainly made up of small and medium-sized businesses.
Still, big foreign food companies are starting to join, and current businesses are growing to meet the local market's needs. People are paying more attention to their diets because more people are moving to cities. This has interested people in low-fat, low-sugar, and low-carbohydrate foods and drinks.
Conclusion
Nigeria's economy has long been based on oil, but it is quickly becoming more diverse, which means many business possibilities exist in many fields. Transportation, banking and insurance, information and communication technology, Art and leisure, building, and food processing are all areas that are growing and changing a lot.
This is because the government supports these areas, and people want more of them. Nigeria is a good place for businesses looking for opportunities outside of oil because it has a large population and is working to improve its infrastructure.
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