The Nigerian Accountant 2012 - The Institute of Chartered ...

Business
importing rice alone from a nation whose
farm land is not as fertile as ours.
How can a nation so blessed, yet
have people so poor, hungry and
malnourished? How can we invest so
much in the farmland of other nations
while we as a nation allow our farmland
to turn into bushes and forests?
A recent statement by the Executive
Director of the Nigeria Export promotion
Council (NEPC) stated that, “a total of 34
minerals in commercial quantities have
been found in Nigeria, far more than
the value of Oil deposits”. The minerals
include Silver, Tin, Columbite, Calcium
and Lime stones.
In the 1960’s, agriculture provided
employment, income and foreign
exchange earnings for Nigeria. However,
since the discovery of crude oil in
Nigeria, agriculture has been neglected.
Our Importation is far higher than our
exportation. We have gone to the level
of importing common toothpicks! Our
consumption as a nation is far higher than
our production. All these are the signs
that there are many opportunities yet to
be discovered and or maximised in the
Nigerian Economy.
Distinguished Professional colleagues,
with proper strategic planning, cooperation
and understanding, we can create and
take advantage of this large market and
feed not only Nigeria but Africa and the
rest of the world. It is also an indication
that there are many opportunities waiting
to be utilised in the Nigerian economy by
Accountants in the country.
INVESTMENT OPPORTUNITIES AND
SECURITY ISSUE IN NIGERIA
No doubt, Nigeria is an investment
haven with countless lucrative investment
opportunities including oil and gas,
solid mineral, agriculture, tourism,
telecommunication, power and steel,
transportation, trade processing zone,
financial sector, real estate/property,
manufacturing, sport, entertainment,
fashion, etc. It is important to note that the
rate of growth of investment is fantastic
and exponential in any of these sectors.
Investors are at advantage of presenting
their products and services to alreadymade
market taking advantage of the
population of over 150 million.
However, these opportunities are
masked with many shortcomings in
which security is a major part. If there are
security problems in Nigeria, no business
man would stay in the country to explore
opportunities. Companies like MTN, Airtel,
and Etisalat would not have ventured into
security risk and come to this country to
do business. Those who spread rumour
about security and corruption problems in
Nigeria are saying so to stop others from
making money in the country. Figures
don’t lie; they are the biggest testimony
for how conducive Nigerian economy for
business and opportunities are.
In telecommunications, statistics
reveals that mobile phone users in Nigeria
are increasing everyday. With N2,000
you can buy handset and a SIM card and
get connected to mobile network. The
Industry is saturated with foreign Investors
such as the operators (e.g. MTN, Airtel,
and Etisalat) and Vendors (e.g. Huawei,
Erricson, Nokia, Siemens, and Motorola).
This shows that the security issue is not
a means to overlook the opportunities in
the Nigerian economy. Moreover, there is
no where in the world where there is no
security threat.
Nigeria is a developing country
and one of the best places to invest
or build a business is in a developing
environment. Though the risk is high, so
also is the reward. If you are hungry for
entrepreneurship ideas and information,
then sit back and grab a cup of coffee
and listen as I discuss fastest growing
business opportunities in Nigerian
Economy.
FASTEST GROWING BUSINESS
OPPORTUNITIES IN NIGERIA
Agricultural Sector
(i) Catfish and Poultry Farming:
The primary reason I listed catfish farming
as one of the fastest business in Nigeria
is because it’s an emerging industry that
hasn’t reached its peak or full potential.
The major players in this business are
usually regional players. What this means
in essence is that each major player in
the catfish business farming industry is
focusing only on a particular business
terrain within the geographical location of
the farm. So, all you need to do is look
for a region with a growing demand that
haven’t been covered by a major player
and situate your business there.
As for poultry farming, the ban imposed
by the federal government of Nigeria with
respect to the importation of live or frozen
poultry chicken has only helped explode
the demand. When accessing any of these
business opportunities listed above, you
must note three important facts. First,
food is one of the basic necessities of
man, thus making catfish and poultry
farming a huge potential. Second, the
population in Nigeria is estimated to be
over 150 million and still growing. So, that
means a growing demand for food. The
third fact is that even if the local market
with 150 million Nigerians get saturated,
there’s still a growing demand for catfish
all over the world. So do your own indepth
analysis and put your money to
work.
Textile Sector
(i) Importation of Wears:
Importation of clothes (designer wears)
into Nigeria is another fast growing
business opportunity you can tap into, but
you will be breaking the law if you engage
in this business now, because there’s
ban by the federal government on the
importation of wears. I listed this business
opportunity in order for us to know that
there is market for designer wears in
Nigeria. We can produce designer wears
with high quality locally since there is an
existing high demand for it.
(ii) Sewing of Specialised
Uniforms: You can set up a small scale
textile firm that will specialise in sewing
uniforms. The demand for uniforms is on
the increase in Nigeria; from the crèche
to the labour market, uniforms are highly
in demand but it’s advisable you do your
own detailed research before venturing
into the business.
Transportation Sector
(i) Inland Water Way Transport:
Inland water ways is one of the fastest
growing business opportunities in
Nigeria. Infact, I believe the sector is still
not well tapped because I am yet to see a
modern commercial boat or ferry service
system in Nigeria. Though, there are a
few operators in this industry, I am yet to
see the modern facilities being used by
the developed countries. Another reason
inland water way transport business
proves viable is because population in
states such as Lagos, Ogun and Rivers
are rapidly on the rise thereby resulting in
traffic congestion on the roads. Since the
roads are becoming heavily congested,
the next means of transporting the
inhabitants of these heavily populated
states is its water ways. With proper
planning, good management team and
adequate funding, you can break into
this industry and carve a niche for your
business.
(ii) Haulage and Logistics: Haulage
and logistics is another fastest growing
business opportunity in Nigeria. Though
it’s considered a risky business; you
THE NIGERIAN ACCOUNTANT 47
April/June, 2012