Last updated on November 29th, 2022 at 12:03 pm
In this article, you will learn more about new and untapped market opportunities in Nigeria you should get into.
Nigeria is one of the most vibrant economies in Africa. With a population of over 170 million people, Nigeria has an immense market that can be tapped into for new business opportunities.
The Nigerian economy is projected to continue its growth at 6% annually until 2022. One thing to note about this country’s economy is its strong manufacturing base which has been growing steadily over the years and contributes significantly to the GDP.
a). Construction business
The government’s focus on infrastructure development has led to the construction industry becoming one of the fastest-growing sectors in Nigeria.
This emerging market offers great opportunities for new start-ups, especially those involved with renewable energy services, transportation and logistics as well as waste management & recycling solutions.
Compared to other major economies worldwide, Nigeria’s GDP per capita is still relatively low which means that there is significant room for growth before reaching economic maturity.
Not only does this provide access to an abundant workforce but it suggests that Nigerians are more willing than ever before to spend their money domestically rather than internationally.
The Nigerian middle class now numbers around 40 million people which represents about 60% of the population.
The number is expected to rise significantly over the next few years as a result of growing disposable income and increased access to education, healthcare, and financial services.
b). Mining Exploration Or Mechanized Agriculture Equipment Manufacturing
Mining is another one of the untapped market opportunities in Nigeria.
Nigeria’s economy has been fueled by its rich natural resources which include oil, gas, gold, and cocoa among others.
While Nigeria exports most of these resources to international markets such as China & India, there are still untapped opportunities for new businesses in areas like mining exploration or mechanized agriculture equipment manufacturing that can help local farmers produce higher yields with fewer work hours required per day.
In addition to this low-cost labor remains one of the biggest draws for foreign investors interested in setting up shop here – especially those involved textiles – apparel – leather goods, light manufacturing, food processing, and agribusiness.
c). Petrochemicals Storage & Transportation Equipment
Nigeria has emerged as one of the world’s leading oil producers with its crude accounting for more than 90% of all revenue generated by exports which totaled $57 billion in 2016 alone.
While Nigeria is projected to remain a top-three global producer until 2021, there are still untapped opportunities within downstream industries such as petrochemicals storage & transportation equipment or plastics recycling that can help local businesses meet domestic demand at lower costs while also providing them access to international markets.
The country has already begun to develop an extensive refining capacity but further investments will be required over the coming years if it wants not only to keep up but catch up with other regional players like Angola and Algeria who have a more advanced refinery infrastructure.
d). Information technologies
Nigeria is also a major exporter of raw minerals and agricultural produce, with the former accounting for about 40% of all exports – mainly gold – cocoa – rubber – palm oil – hides & skins.
The government has been working on diversifying its export markets to ensure that Nigeria’s economy remains stable in times where there are significant changes or fluctuations in global commodity prices.
This means that new opportunities abound not only within agriculture but other sectors like information technologies (mobile phones) as well as chemicals manufacturing equipment.
Agriculture-related businesses will find it easier than ever before to access international markets especially those involved with food processing equipment technology or irrigation systems since many Nigerian farmers still use manual techniques rather than modern mechanized alternatives which require higher initial investments but lead to lower labor costs and increased yield per hectare.
e). Waste & Sanitation Management
Wastes & sanitation management is another one of the new market opportunities in Nigeria.
The market is expected to grow exponentially in Nigeria over the next few years as a result of increased urbanization.
The country’s population has tripled since 1990 which means that there are more than 110 million people living in cities today and this number will continue to rise dramatically during the coming decades.
Not only does this mean that businesses related to the solid waste collection or recycling technologies can expect strong demand but it also suggests an opportunity for new entrants interested in building water treatment facilities within communities where access remains limited due to poor infrastructure, inefficient policies, or corrupt practices between state officials and contractors which often lead to high costs associated with water bills once these systems have been installed.
There are currently about 30 million Nigerians without access to safe drinking water while more than 100 million people still do not have adequate sanitation facilities.
This means that the growth of both domestic and industrial markets is expected to create a lot of opportunities within this industry over the next few years.
f). Gold ore production
Nigeria has been working on improving its mining sector for quite some time now but most investors are only interested in high-value commodities such as gold, diamonds, or oil – leaving other sectors like base metals & copper untouched.
The government has tried to develop a more comprehensive strategy through new policies encouraging foreign investment without imposing too many restrictions on companies trying to enter these industries so it can tap into unexploited mineral reserves currently being left behind by major international players who prefer investing in countries where there’s less risk involved with exploration activities due to unstable political and economic climates.
The country’s mining sector has been growing steadily over the past few years as a result of increased investment in steel manufacturing – which is expected to reach US$12 billion by 2020, especially from China & India – but there are still many opportunities left untapped such as those related with gold ore production which currently represents less than one percent of total global production or revenues generated through exports.
Some foreign investors have also taken advantage of Nigeria’s large consumer market by opening their own stores across different sectors like retail where entrepreneurs can find strong demand for products ranging from furniture to household appliances.
Even though it requires quite an initial investment since distribution costs tend to be much higher compared to other African countries due largely to poor infrastructure within this industry.
However, the government is working on modernizing its transportation sector which has been encouraged by an increasing number of foreign investors interested in taking advantage of a growing middle class with higher disposable incomes.
h). Mobile money
Nigeria’s telecommunications market continues to expand at a rapid pace as services & infrastructure improve.
But there are still many opportunities left untapped for both local and international companies especially within high-growth sectors like mobile money or broadband internet access.
Here, penetration rates remain relatively low compared to other African countries.
Despite recent setbacks related mainly to poor network quality, Nigeria remains one of the most lucrative markets in Africa due largely to its large population concentrated mostly in major cities that offer significant potential for growth over the next years.
The country also represents an attractive market for foreign investors due to its relatively low cost of doing business as well as a large number of untapped opportunities within key sub-sectors like mobile money, broadband internet access, or the development of new applications related to Africa’s growing e-commerce industry.