There are many investment opportunities you can invest in Nigeria. Therefore, if you are torn between the best investment to put your money, we will provide you with valuable information. Figure out what investment best works for you.
Investment in Nigeria
You can start investing in stocks with little capital and grow your portfolio with time. You need to research companies and find out which ones are doing well in the market. Look at historical data, share performance and the company’s performance to determine which stock has higher potential. You can even opt for mutual funds, where you can invest in large stocks as a group.
Real estate is a great investment opportunity in Nigeria. It is one area where chances of making losses are very minimal. The downside is that it requires a huge capital investment. You can invest in different properties like rentals, parcels of land and buildings. With many people wanting to build and others looking for rentals, you are sure to get clients.
In July 2020, the Nigerian government approved the creating of Nigerian Youth Investment Fund. The fund will provide loans to support 500,000 youth in business every year at an interest rate of 3 percent.
Nigeria has a favorable climate for agriculture with cash crops like cocoa and maize. The agricultural sector has received investors from within and outside Nigeria. The cost of farming is relatively low so that investors maximize profits. The market for agricultural produce is large, making it one of the best investment opportunities.
Nigeria has a high demand for construction materials and services. Many people are investing in rentals, creating a massive opportunity in the construction sector. You can provide construction materials and services and make huge profits.
Nigeria is doing well in the internet business and having been among the last countries to embrace digital marketing, and it has great potential. With many companies coming up, those in digital marketing are making a kill.
Logistics is one of the best performing and growing sectors in Nigeria. With the improvement in infrastructure by the Nigerian Government, there is even greater potential. You can start a logistics company to ferry imports and exports across the Nigerian borders. Nigeria is located along the coastline and you can deliver goods from the port to landlocked neighboring countries. Also, the logistic business has been boosted by the established railway system.
The Nigerian Government has FGN savings bonds for its citizens. You can get a regular income once you have invested in government bonds. It is one investment opportunity you are sure not to make a loss. Even if you do not have a considerable income, there are flexible and ideal options for low-income earners.
Oil and Gas
Nigeria is one of the oldest African countries to start mining oil and gas. Although foreign investors hold a large share of the sector, local investors can also participate. The Nigerian Government is seeking to establish incentives like reducing taxes to help locals invest in the industry.
The One Stop Investment Centre is part of Nigeria Investment Promotion Comission. It offers investment facilitation services involving 27 government agencies thereby reducing time required to process regulatory approvals and permits and assist with information and requirements from incorporation to expansion.
Tourism is one sector that has been doing well. With an increase in tourists to Nigeria over time, there are still more opportunities. Nigeria is one of the best tourist attraction destinations in Africa. You can invest in tours and travel business, or hotels and lounges. It would be best if you can set up your business along the coastline. There are still more opportunities in the tourism sector.
Fashion is a broad industry you can consider investing in, ranging from fashion designs, ideas and trends. You can start supplying school uniforms, second-hand clothes, importing new clothes and many more. Knowing the trending fashion is advantageous and you are sure to get many orders.
The making of gold has been a profitable investment. The value of gold never falls. You can invest in buying and selling gold jewelries and storing gold and selling it after some time. There are many gold commodities that you can still invest in like coins, bars and bullion. You need to know how the business works, like how it is measured and valued. The downside of this investment is that it requires huge capital investment.
Treasury bills are short term instruments that the Government uses to raise money. The Central Bank of Nigeria auctions treasury bills for different periods; 91 days, 182 days and 364 days. Also, financial institutions like banks also deal in short term instruments. Treasury bills are profitable and you can invest any amount of money.
If you are an accredited investor, then commercial papers are worth investing in. You must be aware of the risks associated with investing in commercial papers. Commercial papers are more like a promissory note. They have a minimum tenor of 2 weeks and a maximum of 9 months. Companies in the private sector issue them. Companies give commercial papers to borrow money to finance their working capital and needs and pay it back with profits. They have higher returns than treasury bills since they are riskier.
Final Thoughts on Top Investment Opportunities in Nigeria
Nigeria is the largest economy in Africa with a population of 200 million people. Being the largest market in the continent, there are many investment opportunities in Nigeria that you should consider venturing into.