6 Reasons Why You Should Start a Business in Nigeria Today

April 6, 2015

1. Now Nigeria still remains a hub for most entrepreneurs and investors. In fact, Nigeria is now the largest economy in Africa, the number one destination for Foreign Direct Investment in Africa and one of the fastest growing economies in the world. That’s why South African and Chinese companies are scrambling to invest in Nigeria.

 
  • Tiger brand recently acquired Aliko Dangote’s stake in Dangote Flour.
  • MTN South Africa recently mopped up shares of MTN Nigeria and Wal-Mart has moved heavily into Nigeria through its subsidiary, Shop Rite.
  • GlaxoSmithKline U.K has increased its stake in GlaxoSmithKline Nigeria PLC.
  • General Electric is partnering with power generation companies in Nigeria to boost the nation’s power supply.
  • Chinese companies are partnering with Nigerian companies to setup manufacturing plants right here in Nigeria. An example of such plant is Innoson Vehicle Manufacturing company in Nnewi.
  • Nissan has also established an auto manufacturing plant in Nigeria.

The list goes on and on but the point I want to stress is that this is the right time to invest in Nigeria. Please if you are in doubt of any of the information listed above, Google is your friend. Just do a search.

2. There are over 150 million people resident in Nigeria and the population in Nigeria is been predicted to overtake that of United States by 2050. Now what this means in essence is that the market is big enough to absorb any product, provided enough marketing and awareness is created. Another positive impact of this population statistics is that there is cheap labor. One of the reasons China grew to become an industrial hub is because of her large population, which in turn brought down the cost of labor.

3. Nigeria is fast developing and there is a huge need for innovative products. If you are resident in Nigeria, kindly reflect on the position of Nigeria ten years back and compare it with her present state; you will agree with me that there is a huge change.

Economically, technologically, etc; Nigeria is growing, whether you admit it or not won’t change the fact. That is why entrepreneurs and institutional investors from countries like South Africa, China, Lebanon, Brazil, India, etc are scrambling to invest in Nigeria because they see the potential that we citizens don’t see.

4. Nigeria is currently riddled with problems and the government is currently battling to tackle these problems. I am talking about challenges such as falling oil prices, security, infrastructural decay, unemployment, power failure, corruption, fall in education standard, accommodation, etc. The average minds believe these problems can never be resolved and if it is to be resolved, it should be done by the government.

However, people with entrepreneurial mindset know that these problems are opportunities; and only those who act will turn these opportunities into profitable businesses. In all honesty and humility, I want you to know that I am currently profiting from the security situation in the country by providing a solution to a specific security challenge.

5. The government is working to improve the economic condition of the country, by implementing several policies aimed at encouraging local content production and small scale enterprises. If you are well positioned to take advantages of such opportunities, you will make something from it.

6. The eye of most entrepreneurs and investors doing business in Nigeria is usually on Lagos, Abuja, and Port Harcourt. However, tremendous opportunities are laying waste in other states cities such as Owerri, Aba, Onitsha, Nnewi, Kano, Ogun, Ibadan, Enugu, etc.

Source: My Top Business Ideas

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