It is not farfetched today in the Nigerian news if someone should say there are no benefits of being a Nigerian. There is a wide belief that Nigeria and her leaders have woefully failed the citizens of the beloved country. These notions tend to discourage investment in Nigeria.
The society faces issues ranging from insecurity, mismanagement of public funds, low standard of living, poor governmental policies and also bad foreign image. These have waned down the glory of the country and that of its inhabitants.
Due to this mindset, citizens and other stakeholders talk ill of the Giant of Africa. Consequently, potential investors have been scared away believing that their business will not have a stronghold in the country.
Nevertheless, this article serves to give you insights on the peculiar privileges available for Nigerians and foreigners looking to make investments in Nigeria.
Reasons Why You Should Invest in Nigeria
In case you are wondering why you should consider; investing in Nigeria. To run a successful Nigerian wazobia investment. I believe these opinions should help you make positive decisions.
Low personal income tax
You may not know this but unlike other countries of the world, Nigerians pay little or no tax at all. Most small business and enterprises operate for years without paying a dime as tax returns to the government. Individuals are not forced to pay tax on their earnings especially when they are not directly employed by the government.
In other countries, citizens and visitors on work permits groan under the weight of taxes. Basically, they pay taxes on everything from electricity bill, parking bills, housing, residency and much more.
Friendly Business Environment
As a developing country, Nigeria is a capitalist hub. Those with business ideas and mastery of technical know-how feed off the numerous available resources laying waste in the country. To make it juicer, the government does not have strict policies against investment. The country provides a business platform and ready consumer population of about 200 million people waiting to patronize your business.
Not to sweet-talk, issues like lack of electricity and good road have been the recurring obstacles to most business. Nonetheless, those who provide alternatives to run their business overcome these hurdles and making great profits in the process. As much as we say it is difficult for entrepreneurs to thrive, we still find many businesses making great sales on a daily basis.
On a larger scale, foreign investors get the bigger chunk of Nigeria’s friendly business environment. They are easily given preference and space to open up, establish and expand. In some cases, they even get more contracts than home-based establishment in the same line of business with no grudges from competitors. Why would you not want to bring your business to such fertile land?
Read also: Top 7 African countries for business investment and expansion
Potential for exponential growth
As a country still undergoing development, Nigeria gives investors opportunity to expand. Investment in Nigeria has even been backed up with favourable government policies. They give space for local and foreign investors to gain ground, build, run their business and flourish in the country. So if you have a sum of money with great and feasible business ideas, Nigeria will give you a comfortable environment to establish your brand.
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Following the availability of a friendly business and enterprises environment, labour in Nigeria is cheap. Nigerians are a hard-working set of people. There is always availability of human resources and sufficient man power everywhere in the country. Most crude labours are cheap, as employers of these types of work hardly pay by the hour. Therefore, you can get anything done with as much people as you want without having to pay a corresponding huge amount of money for wages.
You do not understand fully. Do you? Okay then, let us break it down to the minimal.
Services and wages
All these services pay less than $20 as daily pay which sometimes include between 5 -10 hours of work
- Building construction works:
A bricklayer gets about 3000 – 5000 (±$15) as daily pay, while a labourer gets about 1500 – 3000 (±$10)
You can get a decent photoshoot for N5000, even in events where large sum of money is charged, the workmanship hardly exceeds 20,000 for an average photography as a daily pay
- Make-up and Hair Styling:
Fees for these services vary ranging from as low as N3000- N15000 in most towns and communities.
Excluding possible returns from materials, workmanship for daily jobs hardly exceed N10,000.
Enough for vocations, when it also comes to white collar jobs. Due to the economic conditions, salaries are wages are affordable, labour sells as cheap as N50, 000 monthly for a 8-5pm weekdays jobs.
While these rates are on the downside of the labour market, they are pretty the normal as far as the country is concerned. Little wonder why entrepreneurs and investors go home with heavy profits at the end of the day.
As we all know, everybody wants to earn in dollars and other top foreign currencies. This is because when you place Nigerian Naira side by side with these top currencies, the naira value is lower. However, for a foreign investor, or for those who earn in dollars, pounds, Euro and other too currencies. This could be a blessing in disguise.
Currently, the exchange rate from Dollar to Naira is in-between 350-450 Naira per Dollar. Consequently, you get a lot of value when exchanging to Naira and purchasing in Nigeria, because commodities and services are relatively cheaper.
This applies to Forex markets and online trading, there are some traders who earn basically from converting dollar and other crypto currencies to naira and reselling them on the Forex markets. So why not seize these available opportunities to make money for yourself in Nigeria
Delightful climate condition
For investors to come in to a country, climatic conditions of the geographical area is a crucial component for observation. Nigeria however is blessed with amazing weather. There are hardly risks of natural disasters, the country does not experience recurrent landslides, earthquakes, volcanic eruptions, tornadoes or hurricanes.
Firms that have large plants remain unhinged for years and their facilities remain strong and not troubled with harsh weather conditions. This makes investment in Nigeria favourable unlike many Asian and European countries.
Sectors You Can Easily Invest In
In case you are wondering what sector of the economy you can still invest and reap good dividends for your entrepreneurial efforts. Below are various sectors with investment opportunities in Nigeria:
This goes beyond crop farming, it includes rearing of animals, catfish farming, poultry etc.
Housing continues to be one of the major problems in the country. Therefore, investment in real estate that will cater for middle class citizens would also be a worthwhile.
The country is unarguably lagging behind when it comes to technology, ICT companies are little in number. Consequently, they rake in tons of profit in this technologically advancing age we are in.
Insecurity rate in the country has made it an investment opportunity to investors who have the capability to provide services of private escorts, security men, surveillance and installation of security measures for companies and communities.
Online Investment Opportunity In Nigeria
Online investments in Nigeria are also open. Many online investment platforms have opened up. These include crypto trades, forex markets, binomo investment, and those who invest on behalf of people. Although, it is important to be cautious to avoid being scammed.
Read also: Risk management tips for business owners in Nigeria.
Others are include food processing, crypto currency and forex markets, clothing brands, social media markets to mention but a few.
In a nutshell, the opportunities available are numerous and it is never to late to capitalize on investing in various aspects of Nigeria’s growing economy.
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- Temitayo is an experienced event photographer, entrepreneur, and brand manager. He is a graduate of French and a freelance English and French translator, tutor, and creative writer.
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