Saturday 7 December 2013

Top 13 Small Business Investment Opportunities in Nigeria

  • Food Industry
If you are going to invest in Nigeria, then the food industry should be one of your first considerations. The food industry is probably one of the best options whether or not you are investing in Nigeria and the reason is that people need and love food. With a population of over 150million people, there is a huge demand for food and in fact, most of the food being consumed in Nigeria is still being imported.
Regardless of the food business you venture into, there is surely market for it. What you need more than money in the food business is thorough understanding of the market you are venturing into. If you are interested in investing in the food industry, you can choose to start a restaurant, fast food, food processing plant, beverages, buying farm products from farmers in the rural areas and reselling them at major towns, crop cultivation, livestock farming (poultry, catfish, snail, grasscutter, goat, cattle), selling cooked food in concentrated areas such as markets, schools, commercial areas, etc. You can also choose to invest on a small scale by starting a food cart business. I have seen families run successful food cart businesses; you don’t even need to push the cart around. You can concentrate on cooking while your employees can push the cart and sell the food at designated areas.
  • Tourism Industry
Nigeria may be associated to lots of bad things including online scams but this country is absolutely beautiful. It is a great travel destination. The tourism industry definitely gives some of the best investment opportunities in Nigeria. You can be an airline or hotel broker. You can offer ground or water transportation. You can even offer tour and sightseeing packages.
  • Accommodations
Nigeria is not just a travel destination. It is also a business hub. Many investors come to Nigeria. After all, it is an important part of the oil industry. You can provide accommodations to international businessmen and leisure travelers. I was in Owerri, Imo state recently and was shocked to find out that despite the high number of hotels in Owerri, it was still difficult finding accommodation on weekends. That goes to show the high demand for accommodation in Nigeria.
  • Bars and Clubs
If not a hotel, you can consider investing on a bar or a night club. Again, it attracts tourists who are looking for an active night life in countries like Nigeria. Plus, many local young adults in Nigeria seek a fun night life. If you are interested in investing in the entertainment industry, then you should consider starting a night club or bar.
  • Transportation Industry
The transportation industry is one of the best investment opportunities in Nigeria. Not everyone in this country owns a vehicle. Public transport is in great demand. You can earn a lot by providing public transport to people going to various places like market and shopping centers. You can also invest in water transport or better still, haulage and logistics.
  • Retail Industry
Nigeria is one of the countries that don’t have structured markets. Sellers are everywhere, not because they want to be there but because there is demand everywhere. However, there are some people who are looking for a clean and neat place to buy things. Tourists even have a hard time buying souvenirs at the markets of Nigeria. If you can, a well structured shop that keeps prices low will be one of the best investment opportunities in Nigeria.
  • Import and Wholesale Market
It is easy to sell items in wholesale in Nigeria because of the population. Many are inclined to earn from selling items in retail. They easily buy products as long as they are of use and affordable. These days, it is easier to import because of the internet. You don’t even need to leave the comfort of your home to become an importer.
  • Herding or Livestock farming
Because of the climate, raising animals like cows also serves as one of the top investment opportunities in Nigeria. In fact, you can see goats, cows and sheep in various places every day. Most of them are even transported to other countries. You can also invest in livestock farming such as poultry, catfish, snail, grasscutter, etc as there is huge demand for it.
  • Cold Room (Frozen Food)
Despite the high number of livestock farmers in Nigeria, frozen fish and chicken are still being smuggled into the country through the border because there is a market for it. Some people don’t want to go through the stress of killing and preparing fowls for eating, so they prefer to buy ready-made frozen birds. With the right plan and a strategic location, you can make millions by investing in building and operating a cold room.
  • Property Development
The real estate market is booming in Nigeria, this is due to the demand for affordable housing. Many tourists and businessmen rely on hotels but some of them opt to have a vacation house in the country. If you are an expert in property development, you can actually earn from rich locals and foreign investors who want a second home in this country. Or better still, you can invest in building low cost housing estates, commercial properties, events or conference centers, warehouses, shops, school hostels, etc. In fact, you can make money from real estate using the bank’s money; if you have the knowledge and a good plan. Property development is definitely one of the best investment opportunities in Nigeria.
  • Computer and Electronics

Nigeria is probably one of the countries with highest number of people who are active online and the number is increasing rapidly. Many of them buy electronic gadgets, phones and computers and use internet services. Computers and internet services are definitely some of the best investment opportunities in Nigeria. In fact, there is a current boom in the demand for used electronic gadgets like the Blackberry, iPad, iPhone, laptops, car devices, etc.
  • Oil and Gas
The oil and gas industry is currently of the most profitable in the country but it has its own downside. Starting an oil and gas business is capital intensive, man power intensive, the industry is strictly regulated and the profit margin depends on volume. However, if this sector catches your fancy, you can invest in the oil and gas sectors by building your own oil depot, building or leasing a fuel station, hauling oil and gas products, supplying companies and individuals with AGO (Diesel), retailing DPK (Kerosine) in residential areas, brokering deals between oil buyers and sellers, retailing domestic gas, etc.
  • Technology
I see Nigeria as a potential technology hub with a lot of money to be made. If you are a technology enthusiast or you understand the industry, you can set up your own technology firm here in Nigeria and grow as the industry grows. Now Nigeria is lagging behind with respect to technology, when compared to other developed countries. If you are interested in the technology sector, you can choose to set up a web development company, an app development company or a web TV company. You can also provide web design services, SEO services, digital marketing services, etc.
In conclusion, the investment opportunities in Nigeria are not limited to the list above. With a little digging and research, you will surely uncover more of these opportunities. However, the point I want to stress is that having the capital to invest in these opportunities does not mean you will succeed at it. More important than your capital and the business opportunity is to make sure you have adequate understanding about the industry you intend investing in. Knowledge and experience are the prerequisites for low risk investing.

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