After the 2013 gross domestic profit reveal by the National Bureau of Statistics, Nigeria became known as one of the biggest economies with endless opportunities in Africa. This report also took into account industries like telecoms, music, airlines, information technology, and film production, declaring Nigeria’s GDP to be N81 trillion, making it the perfect startup destination in Africa.
Research shows that the petroleum sector in Nigeria alone makes up 90 percent of the country’s export profits. Nigeria is also the thirteenth biggest producer of crude oil in the world, according to information published by the US Energy Information Administration.
In 2013, it was said to have produced 2.4 million barrels per day, making it the second-biggest crude oil reserve in the whole of Africa. According to OPEC official statistics, Nigeria has 37.2 billion barrels and 5.12 billion cubic meters of natural gas reserve barrels. This makes up 2.98 percent of the world’s total- a significant amount for a single country alone.
1.Resources
Despite its underdeveloped state, Nigeria has an abundance of resources that are waiting to be exploited. The solids mineral sector holds loads of investment opportunities, making Nigeria the perfect startup destination in Africa.
Mineral resources, such as coal, tin, and iron ore, are easily available here. Moreover, groundnuts, palm oil, cocoa, coconut, and other agricultural products can be found in abundance. Nigeria is also known for its rising leather and textile industry. It is the most prominent oil producer in the whole of Africa, making it a perfect opportunity for foreigners to invest in.
2.Political Stability
Even though there are some periodic crises, Nigeria is known to be an overall stable country. In 1999, the country deteriorated because of the multiparty democracy.
Even though the 2011 legislative, gubernatorial, and presidential elections organized by the Independent National Electoral Commission did not go smoothly, they were still successful in restoring the country. All elections before these were successively flawed. However, the 2011 elections helped reverse all the damage. For this reason, the international arena views Nigeria as a dominant part of Africa’s market.
3.Consumer Market
Nigeria has a population of 155 million, making it the biggest country in Africa and the eighth-most populous place in the whole world.
Seventy-five percent of Nigeria’s population is under the age of 30. Nigeria is known to have a wonderful regional distribution. All of its eight cities have a population of more than 1 million. Statistics also show a bright future, proving that Nigeria is a viable startup destination in Africa.
4.Incentives
Foreigners are attracted to the number of private sector investment opportunities that have been set up by the Nigerian government. A detailed package of investment incentives has also been set up to encourage foreign investment.
The Companies Income Tax Act has allowed easy investment for entrepreneurs, while the Pioneer status allows companies a five-year tax holiday. Moreover, the Nigerian government has also set up a fund for research and development purposes.
5.Free Market Economy
The Nigerian government has worked hard to encourage business and industrial initiatives in the country. Administrative and bureaucratic strategies have been given importance. Moreover, one of the greatest successes of Nigeria is the number of programs, policies, and laws that have allowed it to be a free-market economy.
In the past few years, the state-owned petrochemical company was privatized, and the interest was traded in eight kinds of oil service industries. This helped reverse multiple suspect contracts that had been allotted by old governments.
6.Powerful Financial and Banking Sector
The Nigerian government, in 2009, helped build the banking sector of the country. In 2006, the number of banks was reduced, but this change helped overturn the banking overhaul while increasing the minimum capital requirement of every bank.
In Nigeria, the retail, corporate, and internet banking sectors are known to be ruthless. The home loan market is also competitive. Ever since 1999, the Nigerian Stock Exchange has had unbeaten success as it continues to grow even today.
7.Growing Infrastructure
Whether it is transportation, communications, electricity, or water supply- Nigeria seems to be at the top of it all. Road repairs and infrastructure developments are on the rise as state governments use government revenue to enhance Nigeria and attract foreign investors.
Lagos, Kano, Port Harcourt, and Abuja are four Nigerian airports that allow international flights, along with numerous domestic private planes.
8.Profitable Telecommunications Market
Profitable telecoms markets can also be found in Nigeria. Here, the market seems to be growing rapidly- almost twice the rate as the African average.
There is an abundance of industries, including the mobile telecommunications market, as well as lucrative foreign companies like South Africa’s MTN, have shown that Nigeria has the utmost potential, making it an exciting startup destination in Africa.
9.Economic Power
Nigeria has been listed as one of the top eleven Global Growth Generators, according to a 2011 report by Citigroup analysts. These analysts realize the potential Nigeria holds to become a wonderful investment opportunity for communities abroad.
Goldman Sachs also listed Nigeria as one of the N11 countries in 2005, stating that it had the potential of reaching the list of the world’s largest economies present in the 21st century.
According to experts, Nigeria has grown into a fabulous market as it has continued to learn from past failures and successes. If you are looking to be successful, Nigeria is the best startup destination in Africa. Try to invest the time and effort so that you can come up with a long-term strategy to invest your profits into the complex, ever-growing Nigerian market.
