Investment Opportunities in Nigeria

Nigeria is in the fortunate position to offer investment opportunities to both local and international individual persons and companies. One way is to provide tax holidays to “pioneer companies,” who are engaged in the production of export goods, establishing new industries, or expanding production in vital sectors of the economy. Pioneer companies that are eligible under the Industrial Development (Income Tax Relief) Act can enjoy an income “tax holiday” for a period of up to five years. In addition, pioneer companies enjoy other benefits such as the exemption from withholding tax on dividends paid out of pioneer profits. Therefore, lucrative potential returns awaits those looking to invest in Agriculture, Manufacturing, ICT, Oil and Gas, Private education, Solid Minerals etc.


Investment is required in the following priority activities:

  1. Crop production to achieve food security and to provide industrial raw materials. Potentials exist for the following crops:
    • Cereals: Maize, rice, sorghum, corn, millet, wheat.
    • Root crops: Cassava, yam, ginger, potato, coco yam.
    • Legumes: Soya beans, groundnuts, cowpeas.
    • Fruits: Mango, banana, oranges, guava, papaw, pineapple.
    • Vegetables: Cabbage, green pepper, carrots, lettuce, spice, onions, melons.
    • Tree crops: Oil palm, cocoa, rubber, coconut, kola nut, coffee, she nuts, beniseed, cotton, cashew nut, sugar cane.
  2. Food processing and preservation involving industries that will use agricultural produce as raw materials.
  3. Livestock and Fisheries production. Grazing lands are abundant, facilities for animal feed production are plentiful, and the in-land rivers, lakes and coastal creeks are sufficient to augment ocean fishery resources.
  4. Agricultural inputs supplies and machinery, water resources development especially for flood control infrastructure and irrigation.
  5. Commodity trading and transportation.
  6. Development and fabrication of appropriate small-scale mechanized technologies for on-farm processing and secondary processing of agricultural produce.
  7. Exploitation of timber and wood processing activities. A wide range of wood resources abound.


Nigeria’s population is an estimated 200 million people. This suggests a massive potential workforce as well as a consumer base. For a manufacturer this is an ideal scenario, not only do you have potential customers, but you also have potential employees.The Nigerian government is eager to expand the manufacturing capability in the country, and to that end, they are offering incentives for manufacturers that are able to locally source their raw materials, for example, agro-allied manufacturers processing foodstuffs such as fruit juices and vegetable oils. Any manufacturing industry that provides multiplier effect solutions for the economy is also looked upon favorably. An example of this would be machine tools, flat sheet metal, and spare parts manufacturing. Also, any investment in research institutes, especially those that focus on adaptive research and commercialization of local inventions, is looked upon favorably by the Nigerian government.


Nigeria is one of the fastest growing internet users in the world. According to Statista, a global statistics company, there are approximately 76.2 million Nigerian internet users as of 2017. This is an increase of nearly 50 percent from the 2013 figure of 51.8 million. There are millions of Nigerians who are interested in involving themselves in Information Communications and Technology Services (ICTS). This new economy does not require someone to be in a specific location to provide the service needed, rather they can be located anywhere in the world.


The need for skilled tradespersons, computer programmers, and agricultural workers will only increase in demand as Nigeria transforms its economy and becomes an international economic power. At present, there is an opportunity for private education to offer specific programmes that are in demand in the country. Nigeria is a country with vast underemployment and by offering distance learning or night schools, there is potential for strong investment returns in for-profit education.



The Nigerian Oil and Gas reserves have grown tremendously since the discovery of hydrocarbon in 1956 in Oloibiri. The growth was from a modest figure of 0.184 billion barrel of oil and 2.260 billion cubic feet of gas in 1958 to 25.93 billion barrels of oil, 3.80 billion barrels of condensate and 158 trillion cubic feet of gas, as at December 2000.

The reserves increase was achievable because of two main factors namely:

Firstly the introduction of various incentives by the Government for increasing oil reserves and gas utilization. In order to increase oil reserves, a Memorandum of Understanding (MOU) was negotiated and agreed to guarantee a notional profit margin of US $2/bbl. This was revised to include the Reserves Addition Bonus clause, which qualify the operator for a tax credit for additions to reserves that exceeds its production for a year.

Secondly, opening up of other basins, which are blocked into concessions and awarded to competent entrepreneurs for exploration and development (Fig. I). The basins are Benin, Anambra, Benue Trough, Chad and the Deep and Ultra-deep offshore area of Nigeria. The first four of these basins are relatively un-explored while the Deep and Ultra-deep offshore are now partially explored. The opening-up increased the number of companies exploring for hydrocarbon in Nigeria from just a few to 59 with 46 of them discovering oil, gas and/or condensate in significant qualities. This brought about the conversion of 91 of 177 Oil Prospecting Licenses (OPLs) to Oil Mining Leases (OMLs). Seventeen of these companies have gone into actual production. In the deep and ultra-deep offshore terrain, 12 companies have discovered oil and gas in commercial quantities. This encouraging result made the Government to open up 22 new blocks to interested entrepreneurs for competitive bidding process in year 2000.

Some of the major activities in which investment opportunities abound include.

  1. Surveying; Civil Works
  2. Seismic Data Acquisition and Interpretation.
  3. Geological Activities; Drilling Operations
  4. Crude Oil Transportation and Storage
  5. Exploration and Production


Investment Opportunities in the Downstream sector are:

  1. Domestic Production and Marketing of Liquefied Natural Gas (LPG).
  2. Domestic Manufacturing of LPG cylinders, valves and regulators, installation of filling plants, retail distribution and development of simple, flexible and less expensive gas burners to encourage the use of gas instead of wood.
  3. Establishment of processing plants and industries for the production of: refined mineral oil, petroleum jelly and grease.
  4. Bituminous based water/damp proof building materials e.g. roofing sheets, floor tiles, tarpaulin
  5. Establishment of processing plants and industries for the production of: refined mineral oil, petroleum jelly and grease.
  6. Bituminous based water/damp proof building materials e.g. roofing sheets, floor tiles, tarpaulin.
  7. Building of asphalt storage, packaging and blending that may export these products.
  8. Establishment of chemical industries e.g. distillation units for the production of Naphtha and other special boiling point solvents used in food processing.
  9. Linear Alkyl Benzene, Carbon Black and Polypropylene producing industries.
  10. Development of Phase II (Phase III to commence later) in Nigeria's Petrochemical Programme.
  11. The NLNG Projects.
  12. Small-scale production of chemicals and solvents e.g. chlorinated ethane, Formaldehyde, Acetylene etc. from natural gas.
  13. Crude oil refining with efficient export facilities.
  14. Opportunities in Ancillary Activities . Other investment opportunities contingent upon refining and ancillary activities are the manufacture of special products that include the following:
    • Industrial and Food grade solvents
    • Insecticides
    • Cosmetics
    • Mineral Oil, Petroleum Jelly and Grease
    • Asphalt storage, packaging and blending plants.




Private Education

Oil & Gas