As the year 2022 picks up in earnest, there is growing optimism that the Nigerian economy will continue to stretch out with positive indices. This also means that people who are smart enough to invest their money in proven most profitable businesses will win big this year.
These top ten businesses curated from the list of Nigeria’s fastest-growing industries should be a guideline to help you make smart investment decisions in 2022.
Information and Communication Technology
The information and communication technology sector is one of Nigeria’s most profitable businesses and sectors as it contributed about 12.45% to the nation’s GDP in the last Quarter of 2020. Here are four business ideas within this sector you should consider investing in.
One-Stop Information Technology Shop
With the continuous growth of this sector, the demand for information and communication accessories such as smartphones, I.T gadgets, laptops, palmtops, cameras, and services such as airtime and data recharge, pre-paid electricity token purchase etc. will continue to increase.
A one-stop shop that offers these products and services is sure to be a fast mover, especially in highbrow areas where these things are readily needed.
Computer/Smartphone Repair Shop
With a high demand placed on electronic gadgets, the need for support centres that cater to the repair of these items is another viable business venture you can invest in.
Call Center Outsourcing
Telecommunication companies outsource quite a number of business segments, one of which is their call centres. Establishing a dynamic call centre outsourcing company is sure to pick up in no time with the right strategy put in place.
Server setup and Maintenance Business
Servers play essential roles in the setup of telephony, internet and intranet service. Setting up a business service that caters to the setup and maintenance of servers is certainly a good angle to look at.
The Energy and Power Sector
Business opportunities to consider in the energy and power sector include:
Fuel is a daily need in the lives of many Nigerians. For a nation still battling with constant electricity supply and basic infrastructure, Nigerians depend on petrol and diesel to power their generators, cars and other machinery. Investing in a filling station or other ventures around these essential products would certainly be a profitable move.
However, renewable energy is the future of power supply globally, with the world gradually moving away from fossil fuels. The energy supply gap in Nigeria has created an opportunity for the big-ticket renewable projects to bridge the shortfall with several distributed power innovations that are smaller scale, lower cost and quicker to market.
According to the Renewable Energy Master Plan in Nigeria, the country is steadily aligning with the global trend by transitioning from overdependence to less dependence on hydrocarbons as a primary source of energy and income to Nigeria.
The government’s transition strategy includes the short term (2005-2007), the medium-term (2008-2015) and the long term (2016 – 2025).
“In the short term, crude oil is expected to play a dominant role in the economic development of the country while an energy transition from crude oil to a less carbon intensive economy is anticipated in the medium term. This anticipated transition is notably indispensable. On the other hand, the long term envisages a country that will significantly be less dependent on hydrocarbons,” Scielo cited in a review of Nigeria’s renewable energy plan.
With this, it’s a no brainer that the renewable energy market would experience exponential growth in 2022 and beyond, making it a gold mine and one of the most profitable businesses any savvy investor should consider.
Gas Cylinder Sales and Refill Center
One of the basic needs of humans is food, and to get this done, gas is an essential component of the cooking process. Opening a gas shop where cylinders are sold and filled is sure to be a profitable venture for anyone looking in this area.
Under the manufacturing sector, entrepreneurs can explore different products such as paper making, bottled water processing and packaging, garri processing, bread making and manufacturing of soaps and detergent, etc.
Sewerage, Waste Management and Remediation
Solid Waste collection and disposal
Although different types of waste could be explored, solid waste is a good business area to invest in. Solid waste comprises various materials such as plastics, rubber, paper, metal and even food. Such waste mainly comes from homes, offices and other commercial places.
Setting up a waste collection business that helps companies, estates, and commercial retail centres dispose of their solid waste is a good business idea that is not usually considered by many.
Quarrying and Mining Sector
The quarrying and mining sector is a largely untapped sector with so much potential.
According to reports, there are at least 44 solid mineral types across the 36 states in Nigeria. Many of these are available in proven commercial quantities but are largely unexploited.
Some of these solid minerals include Iron Ore, Coal, Gold, Barite, Aluminium smelter, Zinc, Lead, Bitumen, Lime Stone and Clay, amongst many others. Business ideas in this area include:
Equipment Leasing and Rentals
Mining these minerals requires heavy equipment such as excavators, mining drills, blasting tools, earthmovers, crushers, conveyors and analysis equipment.
These types of equipment are usually too expensive for miners, especially those operating on a small scale; thus, they typically resort to rentals and leasing. Investing in this equipment to rent and lease within the mining sector is highly profitable.
Transport and Haulage Services
This involves providing trucks for transporting products and minerals from mining sites to where they are stored or processed. This service is very much in demand and going into it is sure to guarantee good returns.
A word of caution here, though. A good understanding of the business you want to venture into is essential, as is a good network of contacts. This ensures smooth navigation of the pitfalls and challenges that will come in the investment process. It is recommended that you carry out extensive research and feasibility studies before committing your resources to any business of these most profitable businesses.