There are several investment opportunities in Nigeria, but as an investor, you have to do some research to know what sector works for you considering the risk to return.
In this article, we highlighted some opportunities in the country that would definitely interest you.
Top Investment Opportunities in Nigeria
Opportunities in Nigeria range from agriculture, real estate, power, oil and gas, transportation, entertainment and media, sports to health care.
Agricultural investment is a low-risk investment with a valuable long-term ROI. Investing in this sector can generate tangible revenue for its investors. Agriculture covers a wide range of livestock farming to crop farming and food preservation/processing.
Agriculture generates revenue via local purchase and consumption, exportation, food processing companies, and pharmaceuticals. The Nigerian government through its Agricultural Promotion Policy (APP) provides crop insurance for both farmers and investors to cover them in cases where crops have been destroyed or have a low yield.
In recent times, AgroTech organizations have sprung up. These organizations make exposure to the Agric sector easier by functioning as a middle man between local farmers in need of funding and local/foreign investors, and buyers as well. They also provide farmers with the necessary support to ensure productive yields. Such organizations include Farmkart, Thriveagric, etc. As an investor, between a time duration of 6 months to 12 months, you can get between 15% to 30% ROI from your agricultural investment.
Cryptocurrency investment is quite popular in Nigeria among young people. They have often used the digital currency to hedge against the risk that comes with holding the Naira. The common crypto to trade is Bitcoin, the biggest digital coin in the crypto market.
To trade cryptocurrencies, you have to first set up a wallet which you allows you to buy, receive, and sell cryptocurrencies. You can learn more about crypto trading in this complete guide to crypto trading and investing.
Real Estate has become virtually one of the easy investment opportunities in Nigeria. As urban areas are gradually extending into rural areas the worth of real estate increases. It is important to note that Real Estate investment is usually long-term with a low-risk rate.
Real estate investment covers three core areas:
- Land flipping: which is the most common real estate investment. It basically has to do with the buying of land or landed property, and reselling when its worth increases. The determining factor of land-worth increase is area proximity and development. With a good area, an investor can get up to 20%-30% ROI.
- Real Estate Investment Trusts (REITS): this is investing indirectly in the growth of real estate investments. It is done through the Nigerian stock exchange.
- Rental Properties: in the case of having a landed property with no interest in selling it, you can lease or rent out your property.
Transportation is one industry that continues to thrive. Lots of Nigerians make use of commercial transportation services daily – both city commute and cross-country travelling.
Just like AgricTech crowdfunding platforms that allow people to invest with little amounts, there are tech platforms that allow you to put money in transportation businesses. Crowdyvest is one of such platforms.