Reasons Nigeria Is Good For Business highlights some of the positive business factors which paint Nigeria in good for any entrepreneurial decisions. As we know, Nigeria is such a blessed country in the African continent and by its blessings, it is no longer an overstatement that its environment is very conducive for investment.
10 Reasons Nigeria Is Good For Business.
It is true that many have come to associate the name of the most populous black nation on earth with corruption and so many social vices which may not be true, but that does not overrule the fact that Nigeria has the largest population in Africa and a wealth of natural resources to its name. Nigeria is an important market that must not be ignored whenever we are faced with the need to make investment decision.
Undoubtedly, Nigeria is one of the world’s major investment destinations and one of the fastest growing economies in the world. Therefore, it is time for us to dive into the 10 reasons Nigeria is good for business in Africa and the world.
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Population
Already Africa’s most populous country by a long, long way with approximately 186 million inhabitants, the number of Nigerians is set to rise rapidly for the foreseeable future, with experts predicting that it will be the world’s third most populous country by 2050.
There are currently over 4.1 million Nigerian households, or 11% of the total population, are considered middle class and a further 7.6 million households will join them by 2030, according to Standard Bank’s predictions. For businesses looking to expand into Nigeria, this of course means a large (and growing) consumer base with increased spending power. This is one of the 10 reasons Nigeria is good for business.
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Economy
Different policies have also been enacted that seek to revive the agricultural sector among other sectors. These policies which are in full gear, have placed Nigeria’s economic growth above other countries across the world. As part of its dreams to be one of the largest economies by 2050, Nigeria is slightly behind the economies of China and India.
It also tops the list for Africa’s largest economy, given its production of oil and gas which are also the highest in the continent.
Over the last ten years the country has enjoyed an average GDP growth of 6.9% and is now the biggest beneficiary of Foreign Direct Investment in Africa. Nigeria’s GDP is growing at an impressive rate meaning that there are innovative ideas and policies being initiated most especially by the government to aid steady growth.
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Human Capital
Being the 7th most populous country in the world and the most populous black nation on earth, Nigeria has gained to itself the advantage of having some of the best and capable human resources. This, coupled with the fact that its rural-urban population spread is almost even, means that in whatever area you intend to pitch your tent – rural or urban locations, you will find the human capital to meet your target.
Across the United States and other world powers, it is known that Nigerians are not carrying last as they are really succeeding and excelling almost in all fields.
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Natural Resources
According to the Deputy Director, Nigeria Investment Promotion Commission (NIPC), Nigeria is blessed with 84 million hectares of arable land for agricultural cultivation, agro-allied ventures and its value chain businesses. It is currently one of the largest producers of various cash crops. Aside this, Nigeria is proud of both untapped and tapped natural reserves. This is one of the 10 reasons Nigeria is good for business.
In addition, the country has the largest gas reserves in Africa and the 9th largest in the world, in addition to 44 exploitable minerals in proven commercial quantities. Now, that’s enough to turn the heads of a would-be investor as this means that in whatever industry you decide to invest, you can expect to make profits in the medium and long-term.
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Education
If there is any country which is strongly in love with education, yearly crowding for admission and graduation, in and out, it is Nigeria. Nigerians are some of the most educated people in the world. It cannot be doubted that this is true as they form the intelligentsia of the many advanced countries like America, Germany, etc. This is one of the 10 reasons Nigeria is good for business.
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Political Stability
This is one of the 10 reasons Nigeria is good for business. Nigeria is known to be the most peaceful African countries as far as its sociopolitical landscape is concerned since the last civil war 1969. Except for the manageable crisis that stuck up the northern parts of the country, the country therefore defies all economic blackmail on grounds of political crisis, which actually are no grounds at all.
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Financial System
With Nigerian banks being the second largest stock exchange in Africa, Nigeria has built a network of strong financial institutions with the Central Bank of Nigeria both functioning and keeping financial matters running efficiently. LOANS AND GRANTS are certainly up grabs to serious-minded investors and business potentials that one to operate in the country. It is as a result of this a huge possibility to have one’s enterprise easily funded by the financial system available in the country if one has winning products and/or services. It is also one of the 10 reasons Nigeria is good for business.
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Free Market System
Nigeria currently operates a free market economy. This makes the country highly profitable for investors. The Nigerian government has also created a favorable climate for business and industrial ventures through policies that favor private sector participation. The government even went as far as privatizing the only government-owned petrochemical company and sold its interest in eight oil service companies.
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Favorable Tax Incentives on Businesses
The Nigerian government has put in place a comprehensive package of investment incentives to stimulate private sector investment from within and outside the country. Among them are the Companies Income Tax Act which has been amended to encourage potential and existing investors and entrepreneurs; Pioneer status gives industries a five-year tax holiday; and tax relief is provided for research and development. This is one of the 10 reasons Nigeria is good for business.
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Access to Arable lands and Geographical Space
Lastly on the list of the 10 reasons Nigeria is good for business is the access that avails investors’ decision to establish its businesses in a country like Nigeria; Being a country with wider rooms for farming and construction of different business empires following its expanse of business-friendly lands and space.
