Opportunities in different sectors in the nigerian economy
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The document highlights investment opportunities across various sectors in Nigeria, emphasizing the country's large and growing population of over 174 million, with significant disposable income among urban households. It identifies key sectors for investment, including agriculture, construction, education, information technology, fashion, and manufacturing, each presenting unique opportunities due to emerging demographics and economic growth. Lagos, the fastest-growing city, showcases potential through its real estate, consumer spending, and urgent housing demands.
Opportunities in different sectors in the nigerian economy
- 1. OPPORTUNITIES IN DIFFERENT SECTORS IN THE NIGERIAN ECONOMY Presented by angela ihunweze(mrs) Ceo angela itambo company [email protected] 08033280453
- 2. FACTS ABOUT NIGERIA Nigeria is the most populous black nation with over 174million people 37 million households A significant 11 to18 percent of urban households – numbering over 2 million –have purchasing power and annual incomes over $10,000, which puts them in the modest affluent class. Half of the country’s growth in wealth will come from these households. Over 90% have discretionary income Over 30% of population unemployed Real GDP (2005 based) is growing at an accelerated rate of 7 percent (compound annual growth rate) and is expected to hit $294 billion by 2020 , up from $178 billion in 2012. This compares to a growth rate of just 4 percent in South Africa. the emerging middle class – there is also considerable growth. Nigerian households with incomes of more than $5,000 a year will increase from a current 20 percent of the population to 27 percent by 2020.
- 3. FACTS ABOUT NIGERIA part 2 Nigeria’s rate of urbanization is one of the fastest in the world, with almost half of the population living in urban areas in 2011 and an ongoing urbanization rate of 4 percent a year. Eight Nigerian cities containing 16 percent of the nation’s population will drive 36 percent of its growth, as per capita consumption in large cities is much higher than in Nigeria as a whole
- 4. FACTS ABOUT LAGOS STATE Lagos has a population over 20million The World Economic Forum (WEF) says Lagos is the fastest-growing city in the world, with a growth of 85 people per hour. GDP is estimated to be $136.6bn. According to published data; the state generates the largest amount of waste in the country, which is about 11,000 metric tonnes daily, adding that 60 per cent of the waste Lagos remains uncollected and is estimated to provide 500,000 jobs Consumer online expenditure is projected to be $297m by 2018; which would be twice its current size. Wholesale and retail is one out of the seven sectors that emerged as a major driver of Lagos economy, contributing over eight per cent to its GDP. Consumer spending is projected to exceed $45.6bn by 2030.
- 5. FACTS ABOUT LAGOS part 2 Lagos residents spends over N3billion daily on food the rate of waste generated by residents has hit 13,000 metric tonnes on a daily Housing demand estimate in Lagos state is roughly 4.4 million units, the estimated current supply of housing in the state is 1,417,588 units, and the estimated gap between housing demand and supply for Lagos state is roughly 3 million units. The state has the following public schools: 1. A total of 1001-primary schools 2. 339 Junior Secondary Schools 3. 319 Senior Secondary Schools
- 6. PROFITABLE SECTORS TO INVEST Agricultural sector: With the ever increasing population, there is a consensus that the agricultural sector is a viable sector to invest. The sector is categorized into the following: Crop production: Nigeria has over 930 thousand hectares of arable land spread across 36 states. And it can produce major crops and minor crops . Major crops such as , BEANS, CASSAVA, MAIZE, YAMS ,TOMATOES,VEGETABLES essential food stuffs for making our daily meals. Animal rearing: rearing of animals for their meat, Poultry, cattle and goat ranch, pigs, rabbit, grass cutter, cat fish Food processing and production(processing of cassava to garri, starch, flour, processing of plantain to plantain flour, chips e.t.c fruit juice production
- 7. AGRICULTURE SECTOR part 2 Animal waste processing (to organic fertilizers Animal feed processing Agric credit to coorperatives
- 8. CONSTRUCTION SECTOR The Nigerian real estate market at N6.4 trillion ($41.2 billion), with the Lagos sub-segment accounting for at least 40 per cent of the total market. Growth, it added, continues to be driven largely by new to market residential and commercial properties in Lagos, Abuja and Port Harcourt.Nigeria's construction and real estate sectors are growing at more than 10 and 12 percent respectively.Deficit in housing units in Nigeria and failure of government to address these challenge is an excellent opportunity. Opportunities Especially the provision of affordable housing, 1 bedroom self contained to 2 bedroom self contained Construction of halls for events Construction of public toliets Block making production Sale of building materials
- 9. Educational sector Demographics of Nigerians are as follows: 1. 0-14 years: 42.79% (male 40,744,956/female 38,870,303) 15-24 years: 19.48% (male 18,514,466/female 17,729,351) 2. These group needs basic education from early education to tertiary education 3. Youth illiteracy of Nigeria increased from 5.19 million number in 1991 to 9.43 million number in 2015 growing at an average annual rate of 24.32 %. 4. Youth female illiteracy of Nigeria fell gradually from 66.1 % in 1991 to 62.1 % in 2015(However the rate is high) 5. Mass failure in WAEC and Jamb 6. A larger population unable to afford private schools due to decadence in the public education system
- 10. Education sector According to published report Internet penetration in Nigeria has increased to 53 per cent, which is the highest in Africa. Also, mobile subscription in the country has increased to 81 per cent, similar to Africa Opportunities On-line school Tutorial centers Low cost schools from early to post secondary school Vocational centers Adult literacy schools
- 11. INFORMATION TECHNOLOGY Nigeria, with a population of over 186 million people, has been ranked as the number one African country with the highest number of internet users, with over 97.2 million users This translates to 63% of the population subscribes to mobile telephony. Approximately 48% has internet access, which is primarily via mobile devices 1. Computer programming, consulting and related services 2. Information services 3. Telecommunication 4. Production of computer, optical, electronic products
- 12. FASHION AND LIFESTYLE Global apparel market will grow to 2.10 trillion dollars by 2025 irrespective of the global slow down The Nigerian Textile Manufacturers Association of Nigeria (NTMA) has revealed that Nigerians spend N1.29 trillion annually importing textiles and readymade clothing. According to the Fashion designers association of Nigeria(FADAN) the nation’s fashion industry is worth about 10 billion dollars Opportunities 1. Production of textile 2. Production of apparel
- 13. MANUFACTURING Manufacturing especially 1. in the production of table water, it is estimated that with over170 million people we donot have enough to meet the demand. In addition 2. Industries in agro and agro-allied sub-sectors including fruit and vegetable processors, cereal milling, feed mills and vegetable oil processing. 3. Industries which support food production programmes 4. local manufacture of chemicals, 5. equipment and light commercial vehicles in particular, and 6. chemical as well as petrochemical based manufacturing industries 7. Production of leather and related products 8. Production of wood and cork related products 9. Production of furniture 10. Production of fabricated metal products 11. Production of plastic and rubber related products 12. Production pr paper and paper products
- 14. RETAIL The growth of online retailing is also on the rise and offering new sales avenues for fashion and other consumer goods. With 56 million internet subscribers and 120 million active cell phone lines in September 2013, e- commerce has witnessed an impressive growth in Nigeria over the past few years, and will continue to grow as infrastructure and confidence in online retail both grow. Supermarket Discount chain Whole chain Gift shop Bukateria Boutique
- 15. What we can do for you
- 16. What we can do for you part 2