Where Can I Invest Right Now In Nigeria To Get Good Returns

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.

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