Thirteen industries in Nigeria have been identified as the top industries to watch out for in 2023 due to their proclivity to provide opportunities to the country’s growing population.
Agriculture, Renewables, Transportation, Security, Telecomms, Data/Artificial Intelligence (AI)/Cloud Computing, Vocational and Education, Fintech, Infrastructure, Entertainment, Trade (e-Commerce/Hybrids), Fast Moving Consumer Goods (FMCG), and Real Estate are among these industries.
Mr. Obi-Chukwu stated during his presentation that, while Nigeria faces a difficult business environment in 2023 due to rising inflation, currency depreciation, and other factors, there are still opportunities for Nigerians in the highlighted industries.
Previous government intervention funds, he claims, have helped to stimulate agricultural and power sector businesses across the value chain. As a result, investments in both sectors have increased.
Renewable energy
It is worth noting that previous government intervention funds have aided in stimulating investments in renewable energy. The Nigerian government has contributed to the growth of renewable energy in Nigeria in collaboration with partners such as the World Bank, the African Development Bank (AfDB), the European Union, and the Bank of Industry (BoI). The partners have been able to collaborate through initiatives such as the Rural Electrification Agency (REA), which facilitated a €9.3 million deal with solar mini-grid developers in 2021 to develop projects in unserved areas.
The BoI Solar Energy Fund, which was first launched in 2017 as a N1 billion fund for micro, small, and medium enterprises (SMEs), has been increased to N6 billion, according to EntrepreneurNG.
Households and businesses (agribusiness, solid minerals, artisans, service and hospitality industries), project developers (providing solar solutions for residential estates, educational facilities, and healthcare facilities), and deposit money banks (DMBs)/micro-finance banks are now among the BoI fund’s target markets (MFBs).
In addition, in December 2022, the Federal Government and Sun Africa, a US-based renewable energy company, signed an agreement for the engineering, procurement, and construction (EPC) of 5,000 MW of solar generation and 2,500 MW/h of battery energy storage power plants. The power plants will be spread across the country’s six geopolitical zones, supplying clean and affordable electricity to over 30 million people.
Agriculture
Government intervention funds have also increased agricultural investment in Nigeria. Mr. Obi-Chukwu examined the differences in the sectoral distribution of credit in Nigerian industries between December 2015 and September 2022 during his presentation.
According to him, the agricultural sector will grow by 172% between 2015 and 2022, from N610 billion in 2015 to N1.66 trillion in 2022.
This demonstrates that Nigeria’s agricultural sector has expanded.
This was reinforced by Mr. Obi – Chukwu’s data presentation, which showed crop production at N40.6 trillion in 2022 (trailing 12 months) (TTM).
EntrepreneurNG previously reported that the Buhari administration has made significant investments in agriculture since 2015. Nigeria’s finance minister, Dr. Zainab Ahmed, stated in June 2022 that the agricultural sector is important to the Federal Government and that investments in the sector are aimed at increasing output across the entire value chain in order to meet the country’s demand for food, export, and employment.
In November 2022, EntrepreneurNG reported that the Central Bank of Nigeria (CBN) disbursed N41.02 billion to several agricultural projects under the Anchor Borrowers’ Programme (ABP) between September and October 2022.
The total amount disbursed under the ABP to over 4.6 million smallholder farmers cultivating 21 commodities across the country was N1.07 trillion.
The Bank also disbursed N300 million under the Commercial Agriculture Credit Scheme (CACS) to finance large-scale agricultural projects, bringing the total disbursement to N745.31 billion.
Transport
In November 2022, Nigeria’s road transport sector, which accounts for 83.6% of the total sector expanded by 49.68% year-on-year, higher than the 21.11% recorded in the corresponding period of 2021.
Meanwhile, the water transport sub-sector expanded by 19.48%, an uptick from the 3.02% growth recorded in Q2 2022. Air transport grew by 14.58%, and transport services expanded by 6.66%.
Security
According to Mr. Obi-Chukwu, the challenge of insecurity in the country creates an opportunity for security companies to tap into closing security gaps both for the public and private sectors.
In November 2022, the Nigerian think-tank, Agora Policy recommended the use of private security contractors in a specified and controlled manner to close security gaps in the country.
These contractors must have clear objectives and measurement parameters to be monitored closely
Telecoms
There are many opportunities in Nigeria’s telecoms sector, as the market is large and diverse, with consumers’ needs going beyond several aspects of the market due to an increased digitalized economy.
According to Mr. Obi-Chukwu, talent globalization is to be expected in 2023. Following this, there will be an increased need for more reliance on the telecoms sector.
Data/Artificial Intelligence (AI)/Cloud Computing
Nigerians are showing a rising interest in data and artificial intelligence.
This interest will create business opportunities in 2023 and beyond.
EntrepreneurNG had earlier reported that Google search interest in “artificial intelligence” reached a record high in 2022 in Nigeria.
AI businesses can provide AI-powered assistance for sustainable farming practitioners in Nigeria.
Businesses can also tackle information technology issues using AI.
Vocational and Education
Nigerians are interested in learning more to be a part of the fourth industrial revolution. This need can provide opportunities for stakeholders in education. As of October 2022, Nigeria’s balance of payment report showed that Nigerians spent a sum of $11.6 billion (N5 trillion) on foreign education between 2019 and 2022.
However, the educational system is still lacking in critical infrastructure, manpower, and up-to-date curricula. These are gaps that can be filled in person and online by educators in the country.
Fintech
According to Mr. Obi-Chukwu’s presentation, the general services sector which fintech is a part of has seen a 211% increase in the sectorial distribution of credit between December 2015 and September 2022.
This increase shows that there is more participation in the sector, which can only grow further as the population expands and more Nigerians increase their knowledge of technology.
EntrepreneurNG recently reported that the Chief Executive Officer of the Ham Institute of Cyber Security, Hanniel Jafaru, said that the fintech business in Nigeria is set to take a giant leap in 2023 because of the cashless policy the Central Bank of Nigeria (CBN) is trying to implement.
He emphasized that due to the cash withdrawal limit that comes with the policy, most persons will begin to look at the possibility of using fintech services to carry out their transactions.
Real Estate
Although rent will likely increase in 2023 due to inflation rates, according to projections made by Mr. Obi-Chukwu during his presentation, there are still opportunities in Nigeria’s real estate sector.
According to the Chief Commercial Officer at Mixta Africa, Rolake Akinkugbe-Filani, some innovative ways for owning real estate in the country have emerged.
One of these innovative pathways is fractional ownership. She also made reference to realistic payment plans that many Nigerians can afford.
For the record
In 2023, Nigerians can also tap into opportunities in the following sectors; Infrastructure, Entertainment, Trade (e-Commerce/Hybrid), and Fast-Moving Consumer Goods (FMCG).
