Great investors are individuals that can identify opportunities where others see challenges. They can identify opportunities in the storm or rain. Nigeria as a country has its ups and downs. But there are a plethora of reasons investing in the nation is a wise decision.
That said if you have been nursing the idea of investing in Nigeria, then this article is for you. In this post, you will understand why Nigeria remains one of the ideal destinations for foreign investors and things you haven’t given a second thought. These are tips from an insider, and just so you know, many international investors are flourishing in the country.
Here are seven of the many reasons Nigeria is an ideal destination for foreign investors. Read on!
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Mouthwatering Incentives for international investors
If nothing appeals to you about investing in Nigeria, then the incentives should. The Nigerian government wants you to enjoy doing business in Nigeria like you are in your home country even though you are a foreigner. The incentives are numerous and encouraging. It is the government’s way of assisting international investors as seen in the Nigeria Investment Promotion Commission Act.
What are the incentives?
First, foreign investors are free to repatriate all their profits and dividend back to their home country. They are also given 100% ownership of their companies, although this does not apply in the oil and gas sector.
Other mouthwatering incentives include
- Favorable Companies Income Tax
- Free Trade Zones
- Pioneer Status Grants
- Tax relief for development and research projects and more
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An abundance of Natural Resources
If you still not convinced Nigeria is great country to invest, check out the list of natural resources available. In fact, if you are thinking of investing in solid minerals, Nigeria is one of the African countries to visit. She has tons of natural resources, but the amazing thing is that most of these solid minerals are not fully explored. Here is a quick list of mineral resources that Nigeria has;
- Coal
- Tin
- Lead
- Zinc
- Iron ore
- Natural gas
- Limestone
Also, Nigeria has a vast amount of arable land which makes it great for agribusiness investors. Agricultural products that thrive well in Nigeria include palm oil, groundnuts, cocoa, coconut, cassava, livestock and others too numerous to mention.
Nigeria is also one of the most significant oil (fossil fuel) producers in the world which creates a massive inflow of foreign investment for the region. In addition to oil, Nigeria is also booming in industries like textile and leather.
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Large population size and consumer market
Investors who have the interest to produce and sell in Nigeria have great opportunity to achieve massive success given the population size of the country. Nigeria currently has a population size of 198 million people which grows at about 2.6 percent.
The population growth of the most populous African country, Nigeria, is not the only thing that should interest you as an investor. The population structure also should. Over 75 percent of the populace is under 30 years of age which shows the region has a good number of working population and a healthy growth picture that shows the future would be brighter.
How does population size lead to benefit for investors?
A report made available on the Investment U indicates that Nigeria has one of the largest domestic markets in the continent given its population size. And this clearly shows that goods and services domestically produced will always be in hot demand in the country. So investors can get good returns on their investments without even going through the rigors of exporting their products. Again, the middle-class population is growing which means the consumer market will always expand.
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Great economic growth potential
Nigeria for decades ranked among the top three destinations conducive to foreign direct investments in the whole of the continent. Its GDP also remains one of the talking points and has grown steadily even in the wake of economic challenges which significantly affected other country’s economy.
The government is also working tirelessly to create policies that would favor foreign investment. And with several agricultural transformational policies in place, the country’s growth rate is expected to surpass other destinations around the globe.
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Infrastructural development
Nigeria’s infrastructure has dramatically improved compared to what we have in other African regions. There has been a significant improvement in the areas of transportation, communication, water supply, and electricity. Extensive road maintenance, repairs, and construction of new ones is a yearly activity. State governments even go as far as using their state allocations on projects that would enhance their state’s infrastructure.
Nigeria, on the other hand, has a good road network that makes transportation and the movement of goods a breeze. The country also has 4 international airports – Lagos, Port Harcourt, Kano, and Abuja, as well as 6 well-equipped seaports. The opening of several inland dry ports is also another giant stride by the government which will create more opportunities, boosts trade and the economy.
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Rock solid banking and financial sector
The Nigeria government, in 2009, took a giant step to strengthen the banking sector. The number of banks allowed to operate where reduced and most of them merged during the process to become more efficient. Another step that strengthened the industry the more was the increase in bank’s minimal capital. The Nigeria Stock exchange is also performing well not just the banking sector.
The banking sector in Nigeria is highly competitive with different banks looking for how to make transactions swift for their customers. The introduction of mobile and internet banking have also made transactions swift and convenient. Also, Nigeria banks invest heavily in security to ensure customers get the best services.
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Political Stability
Despite few regional crises, Nigeria’s political environment is stable and conducive to do business. The country’s apex electoral body, Independent National Electoral Commission saddled with the responsibility of conducting elections, organized what was regarded as the country’s first most successful elections in 2011. Other polls conducted in subsequent years have been peaceful, free and fair. Corruption which has been a significant challenge in the country is also receiving considerable attention. Several agencies have been empowered to lead the fight, and Nigeria has also improved significantly among corrupt nations in the world.
Wrapping it up
There are many reasons Nigeria is the ideal destination for international investors. The country has a robust economy with high potentials for expansion and growth. Investors can take advantage of the government’s interest to diversify the economy too. They can invest in other sectors apart from oil and gas, and still get good returns on their investment.