Nigeria offers a wide range of opportunities to aspiring entrepreneurs. Here is a look at the most profitable sectors in 2021. Nigeria is the most populous country in Africa, so the market is immense. What should you focus on?
1. Cultivation of Rice
Nigerian love rice, but the country does not produce enough to meet domestic demand. Today, the country still imports massive volumes of the seed. The gap between local supply and demand is roughly 2.5 million tonnes.
Consumption of rice in Nigeria has grown a lot since the 1980s. This makes cultivation a viable opportunity. Today, the country consumes as much as 7 million tonnes per annum.
2. The Housing Market
The local real estate sector has an important and largely untapped prospect — housing for young professionals. Student housing developers are seeing substantial demand, which boosts their bottom line. These residents are looking for build-to-rent properties to cut their costs.
Young people are not looking for large spaces. These professionals spend little time at home. Most of them leave early in the morning and come back late after socializing with friends and coworkers. They are satisfied with 45-square-meter apartments with shared utilities, as long as key transport hubs are not far.
3. Schools and Tutoring
The demand for private education is growing, and the pandemic has stimulated interest in distance learning systems. Online courses and tutoring are increasingly popular. However, brick-and-mortar schools are also needed, as the restrictions will be lifted eventually.
Experts suggest creating a chain of branded schools. Centralization of services and modern management software will allow you to benefit from economies of scale. It is not necessary to start from scratch. A faster and more efficient way is to copy an existing model.
For example, it is evident in the educational system of India. There, a single chain may connect as many as 40 schools. At the moment, the only saturated segment is tier-A education, while tier-B and tier-C have considerable potential.
4. Online Trading Opportunities
The local population is actively engaged in currency trading. Before the pandemic, the country had the second-biggest volume of daily fx trades. Today, the biggest financial markets are a tap away, and locals enjoy the freedom of Forex trading via platforms and apps. This domain offers diverse opportunities.
The beauty of Forex is in its accessibility. One does not need considerable investment, as entry may require just $10. International brokers like Forextime are adapting their offerings to the local needs. For instance, the Forex demo account is free. Accounts denominated in the Nigerian naira enable holders to avoid conversion fees.
Nigerians trade currency pairs, precious metals, stocks, and various CFDs through the Internet. On the one hand, you can make a profit trading. On the other hand, you may share your knowledge with a vast audience for a fee — for example, by establishing your own Forex training center.
5. Maintenance of Equipment
Agricultural equipment, such as tractors, requires regular servicing. Like vehicles, these machines tend to break down sooner or later. It is another profitable niche with guaranteed demand. For farmers and farming companies, maintenance is a major pain in the neck. They are willing to pay for high-quality servicing. At the moment, spare parts are not always available. As a result, agricultural equipment may be idle for weeks, which hinders work. A company providing efficient repair services will always have customers. Focus on industrial equipment or tractors.
6. Development of Malls
Value retailers see untapped potential in the local market. Nigerians need shopping centers. The existing retailer base fails to meet domestic demand. This creates a feasible opportunity.
Today, even centers of modest sizes cannot gain sufficient traction. Moreover, retailers in Nigeria do not offer discounted products. Discount retailers should seriously consider entering the market.
Opportunities for the Business-Minded
As you can see, Nigeria offers quite a few options to people interested in opening their own businesses. From remote education to farming to online trading, there are many new and promising niches. Conventional fields like oils and gas, palm oil production, or food business, are not going out of fashion, either. In the future, when the country finally overcomes its dependence on oil exports, there will be even more exciting prospects.
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