Africa Investor, a leading investment magazine with focus on the African continent reported that even though South Africa is recognized as Africa’s largest economy, Nigeria far outweighed it in foreign direct investment, receiving about 16 billion US dollars in FDI between June 2009 and June 2010 to lead the pack on investment index in the entire continent. However, while most of the investment was in the oil and gas sector, other sectors have received more of lip service than real investment. It is not yet Uhuru!
Agriculture has been the greatest culprit because more than 70% of Nigerian population is engaged in agriculture-subsistence agriculture-leading to huge supply gap in the food sub-sector. As a matter of fact, it is estimated that out of about 71.2 million hectares of available cultivatable agricultural land in the country, less than half is currently being utilized. This is the sector to put your funds right now. You may invest in green houses, improved seedlings for farmers, post harvest facilities, processing of produce, agricultural marketing and export.The Nigerian food market is robust and ripe for foreign investment for the following reasons:
a. an enlarged middle class with good disposable income, in search for good quality and well packaged products
b. increase in the demand for ready meals and cold foods (frozen products) due to rise in the employment of women especially in the services sector.
c. increase in the number of Nigerian Repatriates (returnees from overseas)
d. growth in the expansion of supermarkets and shopping malls due to the renewed interest among Nigerians for convenient shopping
e. increase in the number of Expatriates working in various projects in Nigeria.
f. increase in the number of Quick Service Restaurants (QSR) in response to the gap created by long hours at work.
Nigeria has been reported to be one of the few countries in the world now that up to 30% return on investment can be achieved. Take a chance!
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