Nigeria’s Most Lucrative Businesses For 2024
Nigeria’s economy has been booming the past few years, and it shows no signs of stopping soon, as Africa’s largest economy continues to push economic development forward with great strides. We have compiled a list of Nigeria’s most lucrative businesses that will see their profits spike in the next five years.
With an ever-expanding middle class and more businesses in every industry clamoring to get in on the action, Nigerian businesses will continue to make great strides over the next decade.
These Nigerian businesses are poised to become the most lucrative businesses in Nigeria by 2022.
Top Trillion Naira Industries
This is based on the rise and fall of industries which can make a lot of money in Nigeria. Listed are the most lucrative businesses in Nigeria in 2022;
Farming; Based on the price of various crops as well as crop productivity, this has been identified as one of Nigeria’s top-ten trillion naira industry worth over N2 trillion. This industry employs about 6 million people.
The Nigerian farmer produces an estimated 97% of its food production from farming activities; hence it is no surprise that this will be one of Nigeria’s top 10 trillion naira industries by 2022. The agriculture sector alone contributes about 18% to the nation’s GDP annually, accounting for more than $28 billion out of a total GDP of $197 billion.
Manufacturing And Energy
Manufacturing is booming in Nigeria. The Nigerian government has introduced incentives to attract investors to the country, and as a result, manufacturing centers have popped up all over the nation.
It is estimated that by 2030 there will be 10,000 industrial robots operating in Nigeria. Additionally, the energy sector of Nigeria is booming due to its vast natural resources and high demand from neighboring African countries.
Agriculture
The Nigerian economy is largely agricultural, with a significant proportion of the population living in poverty. Agriculture generates about 14% of GDP and employs over half the labor force. The most important cash crops are oil palm, cotton, cocoa beans, groundnuts (peanuts), shea nuts (karite butter), soybeans and maize.
Important food crops include cassava, yams, sorghum and plantains. Fish production has increased rapidly, especially on the coast where canneries have been built to process fish caught by local fishing boats. Cattle ranching is an important part of Nigeria’s rural economy, accounting for 20% of export earnings from agriculture.
Nigeria’s climate is favorable to livestock production and farming which makes it one of the leading exporters of beef in Africa as well as poultry meat and eggs
Transport And Logistics
Road transport is the most popular mode of transportation in Nigeria. This can be attributed to the fact that it is an affordable and efficient way to transport goods and services.
The government has a policy of liberalizing certain sectors of the economy, which has enabled businesses in Nigeria to thrive and grow. The country’s logistics industry is a growing sector with vast opportunities for entrepreneurs looking to invest in new ventures.
The key drivers are demographic shifts, economic growth, urbanization and technological advances. One of the major industries in Nigeria is Logistics which includes freight forwarding, trucking and warehousing.
Other industries include shipbuilding, steel manufacturing, textiles, petrochemicals and sugar processing amongst others. Foreign investors from countries such as India have invested heavily into the Nigerian market due to its enormous potential for return on investment.
Telecommunication/IT
Telecommunications and Information Technology (IT) will be the most lucrative industries in Nigeria, according to a report by Ventures Africa. The Nigerian telecom industry is currently worth an estimated $7 billion USD, with annual growth of about 10%.
One example of this growth is MTN Nigeria, which had a market share of 32% in 2016. The IT sector is also growing at a steady rate, increasing from $500 million USD in 2010 to $1.5 billion USD in 2016. In addition to these two sectors, there are several other areas that are gaining traction as well.
A study by UBER revealed that they generated an estimated $1 billion USD revenue in just one year. Banking, insurance and property also showed strong signs of development.
Even though many sectors show promising signs, Nigeria still faces significant challenges such as low oil prices, insufficient infrastructure and endemic corruption that continue to hinder development and progress. These factors have caused investors to turn their backs on Nigeria.
Foreign direct investment dropped from $14 billion USD in 2012 to only $2.3 billion USD in 2016, but there is still hope for the future. President Muhammadu Buhari has promised reforms that he hopes will bring investors back and help develop Nigeria into a leading economy by 2030.
Financial Services
The Financial Services industry in Nigeria is projected to grow by 13% over the next five years. Nigeria has the third-largest population in Africa, with a combined GDP of over $500 billion. The Nigerian financial services industry is projected to become a trillion dollar industry by 2050.
Nigeria’s financial services industry can be broken down into three major categories: wholesale, retail, and insurance. Wholesale operations are dominated by banking institutions that provide loans, securities trading, and currency exchange services.
Retail operators include credit card providers, consumer lending institutions such as credit unions or building societies; and investment funds. Insurance companies offer life insurance products (life policies), health insurance products (health policies), property insurance products (property policies), vehicle insurance products (vehicle policies) etc.
Retail
The retail industry in Nigeria has seen an increase in the number of new entrants. This is attributed to an increase in demand by consumers and growing population.
The growth of the industry can also be attributed to increased participation from investors, as well as increased competition. Some key players include Dangote Group, Hameeda Retail Company Limited (HRC), Orji Osadolor and Sons Limited (OSL), Benue Cement Company Limited (BCCL) among others.
These companies have invested over N1 trillion in 2018 on retail space alone. To provide a better customer experience, they are investing in stores with all amenities including parking spaces, high-quality design, easy accessibility and wide product range.
The Nigerian consumer spends $36 billion annually on retail products such as food items, textiles and electronics. To take advantage of this spending power, big retailers are investing in hypermarkets which offer a variety of merchandise under one roof.