Nigeria is known as the “Hub” of Africa and presents tremendous potential for investment opportunities. This country has been vigorously pursuing its goal to be among the top 20 economies globally over the next ten years.

There are more than 200 million people in Nigeria, and the country has a GDP of more than $400 billion. It is, in fact, Africa’s biggest economy and the largest population.

Over the last couple of years, the growth of a strong GDP has developed a growing class of consumers who have attracted considerable interest from investors. 

Nigeria also offers abundant resources with its low-cost labor plus duty-free trading with other countries within the Economic Community of West African States – ECOWAS.

It is quite simply the land of possibilities and opportunities. In the last ten years, the GDP has tripled, which is impressive, making Nigeria the center of attraction for most international investors.

Today, this country is offering highly lucrative opportunities for investment through a wide variety of sectors such as food, agriculture, solid minerals, oil & gas, manufacturing, telecommunications, financial services, etc.

Nigeria offers many different incentives to encourage investment, and the government supports mechanisms such as favorable regulations, a qualified labor force, a competitive tax structure, and many other investment incentives.

A Bit of History

Nigeria is located on the western coast of Africa and has diverse geography. Its climate ranges from arid to humid equatorial, but the most varied feature about Nigeria is its people.

Hundreds of languages are spoken in Nigeria, including Igbo, Yoruba, Edo, Fula, Hausa, Tiv, Ibibio, and English.

It has abundant natural resources such as natural gas and petroleum. 

The capital city of Abuja, which is found in the Federal Capital Territory, was created through a decree in 1976. The former capital city was Lagos, still retains its standing as Nigeria’s leading industrial and commercial city.

Modern-day Nigeria dates back to 1914 when the British protectorates of Southern and Northern Nigeria were joined. 

Nigeria gained independence on the First of October 1960 and adopted the republican constitution in 1963, a commonwealth member-led.

The Nigerian Climate

You will love the climate in Nigeria as it is hot and wet for most of the year, and it has variable dry and rainy seasons depending on the location you live.

For example, the southwest and inland areas are dry, while the southeast is wet. A savanna climate with dry and wet seasons can be experienced in both the west and the north, but there is a lot of steppe climate with precipitation in the far north.

The People

This is the part you will enjoy most about being in Nigeria. In the whole of Africa, Nigerians are known to have “Big” personalities. They are proud of themselves, their country, and their traditions, and they do not play around when it comes to fulfilling their obligations.

There are an estimated 250 ethnic groups in the country and each one inhabits its territory considered to be its right of occupancy and inheritance.

Most people are not members of a specific dominant group, and they have worked and lived for many decades in different territories but are known as “aliens.”

The major ethnic groups are Yoruba, Igbo, and Hausa-Fulani.

Languages of Nigeria

Nigerians have spoken Hausa as their official language since 1951, but the most widely spoken language is English which is considered the “official” Nigerian Language. This makes it easy for foreigners to settle into the country with ease.

Religion

At the start of the 20th Century, most Nigerians followed traditional religions. Still, the British colonies came in and discouraged it, to the extent that by independence, a majority of them were classified as either Christian or Islam.

By the start of the 21st Century, half of Nigeria’s population was more Islam than Christian, but a small number still followed their traditional beliefs.

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Why Nigeria?

Other than all the great points we have pointed out above, here are a few more reasons why Nigeria should be the country of choice for your next Investment opportunity;

Well, we already mentioned that Nigeria is blessed with resources, and in fact, most of them are not yet fully exploited.

Tremendous investment opportunities exist in the country, especially in the solid mineral sector. 

These minerals are tin, coal, iron ore, and many others. Agricultural products are also quite plentiful, and they include things such as palm oil, groundnuts, coconut, and cocoa. 

Additionally, Nigeria has a booming textile and leather industry that is considered one of the largest in the continent and has created a substantial foreign investment inflow. 

Political Stability

Although a lot goes on in the Political arena, with periodic crises and other forms of protests, Nigeria is relatively stable politically, especially when it comes to Foreigners. You have nothing to worry about.

In 2011, the Independent National Electoral Commission had organized gubernatorial, presidential, and legislative elections. 

Although lots of corruption talks and imperfections mired them, it was considered Nigeria’s most successful return to the multiparty democracy. This also reversed the previous downward trajectory of flawed election processes.

The international business community sees Nigeria as the driver for the African Market. We talk more about this in our review of the Political Climate in Nigeria – a Mundo Rating.

Excellent Incentives

The government of Nigeria has already put in place some comprehensive packages filled with investment incentives for foreign investors. This is geared towards stimulating the private sector for investments both within and outside the country and continent.

One of these is the Companies income tax act that was amended to encourage existing and potential entrepreneurs and investors. 

Pioneer status is usually given to industries, which provides them with five-year tax relief and tax holidays, especially for research and development.

Robust Financial and Banking Sector

As of 2009, Nigeria took some steps into strengthening its banking sector. These reforms came on top of the already existing banking overhaul of 2006, reducing the number of banks in the country and increasing the minimum capital required.

Corporates, Retails, and internet banking are seen as the most competitive and intensive home loan markets with moderate competition. Since 1999, Nigeria’s Stock Exchange has been enjoying a solid performance.

Telecommunications Market

Nigeria is the home for some of the most lucrative telecoms in the continent, and it is growing at twice the rate.

This explosion of Industries like mobile telecommunications has increased the success of foreign companies like South Africa’s MTN that have demonstrated great potential in the country.

Large Consumer Market

With more than 200 million in population, Nigeria truly has one of the largest consumer markets in the continent. And it is actually the 8th most populous country worldwide.

So, the population structure is about 75% of people who are under 30 years, with an excellent regional distribution in the ‘anchor’ cities having one million each, which suggests how healthy the growth can be going forward.

Free Market Economy

The Nigerian Government has created an extremely favorable climate for industrial and business ventures. The bureaucratic and administrative procedures have been significantly streamlined, and the government has also put policies and programs in place to guarantee a genuinely free marketing economy.

In the past couple of years, Nigeria privatized one of the only government-owned petrochemical companies, which sold its interest in around eight other oil servicing firms.

This overturned the number of suspect contracts generally awarded to the government agencies, creating an opportunity for fair and accessible trading.

Nigeria’s GDP remains very strong and steady, and the growth rate is relatively high each year. There are a series of policy initiatives that are geared towards transforming the agricultural sector. There is a possibility of tremendous growth in later years.

Improving Infrastructure

Nigeria is a country that’s rapidly developing in terms of industrial and physical infrastructure. In fact, in terms of communication, transport, water, and electricity, a lot has changed and improved.

There are extensive new constructions and road repair activities that the state government is implementing, and they have remarkably enhanced the government revenue allocations.

Any plans for doing business in Nigeria? Need contacts of certain specialists in Nigeria? Don't hesitate to contact us! We are here at MUNDO to assist you with your business activities.

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