Where to invest in Nigeria in 2017Where to invest in Nigeria in 2017

Where to invest in Nigeria in 2017

Forget the recession; many opportunities exist for those who plan to invest in Nigeria in 2017. Strategic areas where to invest in 2017 include agro-processing, mining, financial markets and real estate.

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Where to invest in Nigeria in 2017

Forget the recession; many opportunities exist for those who plan to invest in Nigeria in 2017. Strategic areas where to invest in 2017 include agro-processing, mining, financial markets and real estate.

The current recession is nothing more than an economic correction that is creating opportunities for a complete turnaround for those who can see and plunge into it.

Agriculture is a lucrative business to venture into in this year especially in the processing and packaging part of its value chain.

 

Where to invest in Nigeria in 2017 – Agribusiness

Especially Value-added agro-processing!

Agriculture is the NOT the next revolutionary industry in Nigeria as many experts suggest. The reason?

We have always been involved in Agriculture. Why are most farmers poor?

What potential investors at home and abroad need to wake up to are the huge potentials in agribusiness.

Agribusiness is a lucrative business that many outsiders are secretly investing in within Nigeria. The market already exists and it is more than 180 million people.

You don’t need to own a farm to be involved in agribusiness. You need to add value to agricultural produce, package and brand it and sell where it is in demand.

For instance, you buy melange or even fully grown catfish, smoke package and export or you buy cassava, make garri and package and brand it and sell where it is in demand.

You can also use the extracted starch for glue, package and brand it and sell where it is in demand.

As you can see adding value, packaging and branding it and sell where it is in demand is where the wealth in agriculture lies.

 

Where to invest in Nigeria in 2017 – Animal Farming

Animal farming especially snail, catfish and poultry farming in Nigeria are very lucrative businesses that are at the moment not meeting the meat demand of the nation. Out of these three, the investment in poultry farming is the highest, followed by catfish.

Funtuna and Nantundo eggs are regular eggs that have been packaged and branded and sold to supermarkets where they are in demand.

 

Where to invest in Nigeria in 2017 – Rice and Cassava

Rice is still the number one staple food of Nigerians. Billions of dollars are used to import rice every year from China and Thailand due to the inability of local farmers to meet the demand.

Nigeria is the world’s biggest producer of cassava with over 34 per cent of the world’s Cassava produced. It is next only to rice in its consumption.

At the moment several state governments are looking inwards and creatively growing or partnering to grow produce rice. Lagos an Kebbi States recently harvest the Lake rice – a joint partnership between both states, Osun state is currently developing their agriculture resources and the governor Aregbesola said that “the only panacea to the current economic crisis in the country was for every government to rise to the occasion and look for alternative means by exploring the abundant potential in agriculture.” He believes only agriculture can rescue Nigeria from the economic recession currently being experienced as a result of oil glut and the activities of the Niger Delta militants.

The governor said Osun state would keep investing massively in agriculture and become the state the food basket of the nation. He plans to transform the state from peasant, rural and subsistence agricultural to a modern, industrial and commercial agricultural state. However, he needs to deal with the threat of the Fulani herdsmen who recently burnt our rice farm in Iwo, Osun State.

In fairness to his excellency, he has initiated proceedings to compensate us.

President Muhammadu Buhari assured that the federal government will sustain concrete measures to diversify the economy by devoting more resources to agriculture in the 2017 budget while speaking in Nairobi, Kenya, on the margins of the sixth Tokyo International Conference on African Development (TICAD VI).

The government’s intention is to put more resources in the 2017 budget to procure machinery for land clearing, fertilizers, pesticides and training of less-educated farmers as farm extension instructors. 13 states that will be self-sufficient in rice, wheat and grains before the end of 2018 have been identified with the potential to export these food products.

 

Where to invest in Nigeria in 2017 – Real Estate

Over the last ten years, the population of major cities has risen due to business opportunities, investments, urbanisation and jobs.

This has resulted in to a domino effect; shortage of decent accommodation causes competition for the limited houses and a hike in rental and sale value and price of properties, making such cities among the most highly sort after places in the world for real estate investment.

In deciding to buy or build and rent out a property, you start to earn rent income, monthly, or yearly. With the rising inflation in the economy, rent is always on the increase. Compared with other investment options, real estate income is quite regular and manageable risk.

 

Where to invest in Nigeria in 2017 – Nigerian Financial Markets

For those who have patience and the capital, the Nigerian money and capital markets are where they can invest whether on the short, medium to long term.

Nairametrics blog is a great platform to learn about the financial information and instruments in Nigeria.

The Nigerian Financial markets are the Capital markets and the Money Market. The Capital Market is the stock market while the money market includes bonds and treasury bills.

 

 Bonds

Investing in Nigerian bonds will be a profitable investment this year because of the generous interest rates. However, you need to have a clear and objective financial strategy. As with all things money, there is need for you to clearly outline the path the funds to be invested will take and what your expected yield turn out to be.

They are the safest investment instrument for investors including banks and investment outfits and insurance companies.

 

Stocks

Right now, many people are waiting for the stock market to recover but smart investors have made their profits by buying great stocks that are currently undervalued and using a Naira-cost averaging strategy. This means they keep investing a particular amount of money into stocks on the Nigerian Stock Exchange come rain or shine.

 

However, we recommend seven timeless investment advice:

  1. Invest ONLY in the businesses you can explain to anyone because you understand them.
  2. Invest for the long-term. We recommend a minimum of 10 years.
  3. Use Naira-cost indexing as your investment strategy. This means you dedicate a minimum amount of money to invest in the Nigerian Stock Market on a monthly basis, come rain or sunshine.
  4. Invest in the Nigerian Stock market rather than day-trade in it.
  5. Invest in Companies that have been around for at least 20 years. That says they have been consistent.
  6. Invest in Companies that are profitable and have debt to equity ratio of 1:1
  7. Invest in Companies that offer products or services people use daily.
  8. Invest in Nigerian Blue Chip companies

 

Where to invest in Nigeria in 2017 – Mining

The mining sector is currently on the Federal government’s exclusive list. By removing mining from the exclusive list, state governments will be able to explore and develop their respective natural resources and foster interstate partnerships.

It will boost their Internally Generated Revenue and will in the long run reduce dependence on revenue allocation from the federal government.

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