This is a very important question that will border the minds
of many who want to generate an alternative income apart from their jobs or
those who intend to start new businesses and are looking for areas of
comparative advantage. You could be one who has money and is looking for areas
in the economy to put such money in order to get an appreciable return on your
invested fund.
Coming back to the big question, “where can I invest right
now in Nigeria to get good returns?” I kind of like the analysis done by Nelly
Nyagah of the frontier Market Network, her analysis of the top five growth
sector in Nigeria could give you a clue of the key sectors of the economy where
the money is really being made right now. As her report simply stated, the
areas of trade, agriculture, infrastructural development, manufacturing and,
oil and gas are the investment areas really pulling up the soaks in terms of
financial returns.
These sectors are currently attracting interest from
investors, both local and international with some investors investing directly
while others are using available economic instrument like the stock market,
bonds, etc. to ply their trade. the local investors includes business seekers
on the street who using their little income to also be part squabble for
relevance in the economy. Before analysing how to participate in these business
areas, let us look at Nelly's sectorial analysis:
Trade and Import
Given the expansion of the consumer class, we project that
consumption could more than triple, rising to almost $1.4-trillion a year in
2030, an annual increase of about 8%. This would make trade the largest sector
of the economy and provide a particularly good opportunity for makers of
packaged foods and fast-moving consumer items such as paper goods, categories
that could grow by more than 10 percent a year.
Agriculture and Farming
Improvements on several fronts could help raise both the
volume and the value of Nigeria’s agricultural production in the next 15 years.
The economic value of agriculture, already the largest sector of the economy,
at 22% of GDP, could more than double, from $112 billion a year in 2013 to $263
billion by 2030
Infrastructure and Construction
On average, the value of a nation’s core
infrastructure—roads, railways, ports, airports, and the electrical
system—represents about 68 % of GDP, but in Nigeria it is only about 39%.
Between core infrastructure and real estate, total infrastructure investments
in Nigeria could reach $1.5-trillion from 2014 to 2030. This would make
building infrastructure not only a major contributor to GDP but also an enabler
of growth across the economy.
Manufacturing and Packaging
Though growing rapidly, manufacturing in Nigeria contributed
just $35-billion to the economy in 2013, or about 7% of GDP. If Nigeria could
match the performance of nations such as Malaysia and Thailand when their
manufacturing sectors were expanding rapidly, output could reach $144-billion a
year in 2030.
Oil and Gas
While the oil-and-gas sector is expected to grow by 2.3% a
year at best, its success is still vital to Nigeria’s economy. With the right
reforms, we estimate that liquids production could increase from an estimated
2.35 million barrels a day, on average, in 2013 to a new high of 3.13 million
by 2030. Oil and gas would then contribute $108-billion annually to the
economy, compared with $73-billion in 2013. However, this estimate of potential
output assumes renewed investment to reverse the production declines of recent
years.
Where to Pull the Strings
Yes you have seen the analysis of key performing areas of
the economy and their potential projected into the future which starts today.
Now how can these projections make you rich or influence your pocket is another
question. Except the economic jargons reflects in your ability to to use them
as investment tolls they make no meaning.
It is always better to use examples you can relate with.
Aliko Dangote became African richest man by starting on the trade aspect of the
economy, importing into this country commodities such as sugar, flour, cement,
milk, including packaging items and many other items too numerous to mention.
After sojourning in the trading area for some time, he then
downloaded some of his commodity companies into the stock exchange. Companies
like Dangote sugar, Dangote flour and Dangote cement saw themselves in the
stock market and some of these company shares were later traded off afterward
by Dangote who now became not just a business man, but a heavy investor. Hitting the stock market gave him the
opportunity to be captured on the Forbes list of the world richest persons.
He then ventured into manufacturing, agriculture and raw material
development just to support his industry and he is a major player in the
upstream oil and gas sector with associations in the downstream sector of the
petroleum industry as well.
Right now, even the break light of his bank account is
difficult to see anymore. But remember, he started from importation, trade and
logistics, something that was easier for him to do then or start out with. Now
Dangote is virtually in all the areas of growth and as the economy grows he
grows with it.
Now the Nigeria economy lay bear for all to see and the
opportunity opens for potential investors and business seekers to take
position. Where do you want to start from and how do you want to end. There is
no ending to those who start with knowledge. Those who do not start at all,
never gets anywhere and those who start and fail always get the reward of
experience.
Get insight into areas of business you can fit into in all
these investment areas.
Get an investment expert to be your guide
Start early and not when it is too late to have the energy
or inspiration
visit investmentlight.com
