Uncharted Territories: Emerging Industries Poised for Growth in Nigeria’s Economy

As Nigeria’s economy continues to evolve, there are emerging industries that are poised for substantial growth. These industries which represent uncharted territories, offer opportunities for innovation, job creation, and economic development.

This comes as Nigeria’s 2022 Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS) revealed that the waste management sector grew by 13.6% in 2022, representing the third fastest-growing sector in the year. 

The report also noted that the transportation and storage sector of the Nigerian economy stood as the second fastest sector for the year. Join me as we explore the drivers behind their growth, the opportunities they present and the impact they can have on Nigeria’s economy.

Water and Waste Management

The waste management sector which involves water supply, sewage, and waste management in 2021 ranked as the second-fastest growing sector. It, however, lost its position as it slowed by 18.3 %. With a population of over 200 million, a huge percentage of Nigerians struggle to access clean water. Worse is, only a small fraction of the waste generated in the country is recycled or composted.

So if you are considering a career change or looking for a business to explore, you can start producing a product that purifies water. The P&G Purifier of Water is a very good example of such a product. Or you can like Wecyclers reduce the growing demand for recycled materials.

Transportation and Storage

With a growth rate of 15.2% in 2022, the transportation and storage sector which comprises road, rail, water, air transport, and other transport-related services stood as the second fastest sector of the year. As the sector continues to grow, young entrepreneurs can leverage technology to develop a mobile app that can help people find transportation and storage solutions.

They can also establish a logistics company that provides a variety of services including freight forwarding, warehousing and customs clearance. Moreso, they can invest in new technologies like drones, self-driving vehicles and artificial intelligence.

Oil and Gas

With the recent launch of Aliko Dangote’s $19 billion oil refinery, Nigeria’s oil and gas industry is poised to experience exponential growth. The 650,000 barrels per day (bpd) refinery will create about 250,000 jobs in the oil and gas sector. 

Billed to reduce Nigeria’s oil imports, the refinery will also generate billions of revenue for the sector. Young entrepreneurs can decide to invest in the industry or develop new businesses that can aid the supply chain process.

Tourism

Nigeria boasts of a rich culture and history, and the country is home to a number of tourist destinations. From the Obudu Mountain Resort, Agbokim Waterfall, Tinapa Business Resort, Alom Ikom Monoliths (Cross River state), and Ibeno Beach (Akwa Ibom state) to the Yankari Game Reserve (Bauchi state), the tourism industry contributes 2 per cent of Nigeria’s Gross Domestic Product (GDP).  

However, experts argue that the business potential of the sector can be harnessed if there is proper investment in the sector. Described as one of the fastest-growing sectors, Tourism can attract foreign investment into Nigeria that will have a multiplier effect to equally boost the hospitality industry, and aviation sector and generate more foreign exchange.