Doing Business In Nigeria Newsletter

Dear reader,

FEATURED

Top 3 Sectors To Invest In Nigeria In 2025

If you're looking for opportunities to invest in Nigeria, you are in just the right place.

In this newsletter, we will explore three sectors that we believe hold the most potential for investors looking to Nigeria for profitable investment opportunities in 2025.

Although the Nigerian economy is going through a challenging phase with inflation at 34.8 percent, regardless, the country still offers dynamic opportunities for investors willing take the risk to invest and reap stellar rewards.

Below, we break down the top three sectors primed for high returns in 2025, based on data, government initiatives, and market trends.

1. Agribusiness

You might be thinking, 'I have heard this before', which would be true but with the global shift towards modern and sustainable practices, the Nigerian agricultural sector still represents a good investment opportunity.

Currently, agriculture contributes 25% of Nigeria’s GDP and employs nearly half of its workforce. Despite this, food imports cost $22 billion annually, creating a gap in local demand.

The rise of agritech is transforming how agricultural practices are conducted in Nigeria. With the introduction of innovative technologies, such as precision farming, drones, and data analytics to enhance productivity and efficiency in the sector.

By investing in the various facets of agribusiness, investors can take advantage of the current gaps in demand in the local market either by directly investing in local farms, or investing in agribusiness support services to meet the demand for modern tools and technologies while addressing the critical issues of food waste and supply chain inefficiencies.

Key Opportunities

• Agro-processing: Demand for value-added products like cassava flour, palm oil, and packaged foods is surging. For example, a Nigerian firm producing kilichi (shredded meat) and kulikuli (groundnut cookies) achieved a valuation of ₦3 billion through exports to the UAE, U.S., and Europe.

• Agri-tech: Startups like Farmcrowdy and Thrive Agric are digitising supply chains, offering investors scalable solutions in precision farming and market access.

• Agribusiness Services: With more farmers looking to take advantage of modern technologies to boost yield and efficiency, there is a gap in the market for businesses that provide agriculture operations support services.

• Export Potential: Nigeria’s agricultural exports to the EU and U.S. are rising, driven by compliance with international standards and the African Growth and Opportunity Act (AGOA).

2. Technology and Innovation

Thanks to its youthful and tech-savvy population, Nigeria’s tech ecosystem is Africa’s fastest-growing, attracting $2 billion in foreign investments in 2024. While it suffers from challenges like lack of infrastructure and challenging business climate, it has has made significant contributions to the Nigerian economy,  in terms of job creation, innovation, and Foreign direct investment.

The success of companies like PiggyVest, Flutterwave, Moniepoint, Moove, ULesson, LifeBank and Paystack have demonstrated the sector’s immense potential.

Key Opportunities

• Fintech: Mobile money adoption is accelerating, with platforms like Moniepoint achieving unicorn status after a $110 million funding round. Nigeria’s fintech total transactions value is projected to grow at annual growth rate (CAGR 2025-2029) of 22.62%.

• E-commerce: Nigeria is the 38th largest market for e-commerce, with an estimated market size of US$8.53 billion in 2024, and is expected to reach US$14.92 billion by 2029.

• EdTech: Apart from the 20 million out of school children in Nigeria, there is a rising demand for educational upskilling in emerging sectors like Artificial Intelligence, Software programming and other specialised skill areas. Current startups that have risen to the opportunity in this sector so far include ULesson, Edukoya and Altschool Africa.

3. Renewable Energy

Nigeria faces a 200 GW energy deficit, with only 43% of the its over 200 million population currently lacking access to electricity. The government aims to boost renewable energy via the Renewable Energy Master Plan target 30% renewable energy by 2030, backed by tax incentives and international climate funding, creating a $20 billion market opportunity.

Key Opportunities

• Solar Energy: Nigeria has over 10,000 mini-grid sites but with only 125 operational and Solar energy, offering 5.5–7 kWh/m²/day irradiance (among the highest globally), positions Nigeria as a solar powerhouse. This presents an enormous opportunity for private investors. This opportunity is further sweetened by government subsidies and rapidly solar adoption rate thanks to increasing electricity costs.

• Bioenergy: Nigeria generates 32 million tons of agricultural waste/year. Investing in Biogas plants for farms/industries and briquette production can offer clean industrial and cooking fuel alternative.

Investing in Nigeria in 2025 requires balancing risk and reward.

By identifying that most appeals to you and conducting your due diligence on the opportunity, you are better positioned to make profitable investment in Nigeria.

GROWTH STRATEGY

How To Build A Subscription-Based Business

Are you looking to build a profitable subscription-based business model for your small business? Look no further!

In this article, we will explain the steps to creating a successful subscription-based business that generates consistent revenue and builds a loyal customer base.

GROWTH FINANCING

3 Ways To Raise Funds From Friends And Family

You might be tempted to overlook family and friends as a primary source when raising funds for your small business. But if you look around, you\’d be surprised by the sheer number of big businesses that raised their first funding round through family and friends.

In this article, we will share with you three proven strategies for tapping into the most valuable source of investment – your friends and family. With their support, you can turn your entrepreneurial dreams into reality.

SYSTEMS AND PROCESSES

How To Spot And Fix Inefficiencies In Your Business Processes

Do you feel like your business processes are hindering your company’s growth? Are you finding it difficult to identify and resolve inefficiencies within your operations?

In this article, we will discuss practical tips and strategies to help you identify the bottlenecks and streamline your business processes.

SME TV

MARKET ENTRY

Get actionable insights on the Nigerian market.

Our research team provides specialised reports, market analysis and competitor intelligence to help you make informed decisions about entering and operating in the Nigerian market.

We connect you with local partners, distributors and suppliers, so you can maximise your chances of success.

BOOKS

The Small Business Handbook

Get your hands on The Small Business Handbook today and unleash the full potential of your business!