After conducting extensive research, getting opinion from experts and from personal experience, I can convincingly list some major industries of Nigeria’s economy that are growing fast and worth every entrepreneur and investor’s capital.
Interestingly, these industries cut across the 3 main economic sectors: Primary, Secondary & Service/Tertiary. The industries are large and they accommodate several sections under their arms. I would say at the moment, Agriculture, Construction & Real Estate and IT, are the real factors to propel Nigeria’s economy into greatness and competitive advantage in the future. This is beyond predictions, but an assertion that has already being occurring.
It is no longer a topic of discussion that the mainstay of the Nigerian economy used to be Agriculture, before the discovery of oil in 1956. Some experts would take on debate, that oil discovery in Nigeria has caused more harm than good to Nigeria’s economy and their argument may not be found baseless.
The economy has experienced different phases of high and low times, and during the recent economic recession, government and the people started to wake up to the call of economists and experts who have warned on the negative economic consequences of relying solely on oil as main source of revenue generation for the economy.
The warning was scary, but the reality was even brutal and I hope we learn from the experience of the crash in global oil price. Hopefully, the experience of the economic recession will prepare us to mitigate another looming danger, which has already been predicted, and may be peculiar to Nigeria’s oil industry and perhaps few other oil producing countries.
However, the motivating event is that we are beginning to see revolution in Agriculture, Real Estate and lately, IT (Thanks to the resilience of the Nigerian youths, championing the cause through the emergence of e-Commerce, e-learning and digital media) Optimistically, focus on these areas of the economy by the government, individuals, private companies and investors; would facilitate developmental growth in other areas and industries of the economy.
As an individual or entrepreneur, if your ambition is to make significant economic impact in any of the mentioned industries, you need to realize that it requires huge capital to achieve and sustain this goal. This may be disappointing to those who aim at becoming big players in the industries, but it is appropriate to be realistic in our approach, for us to possibly achieve our objective.
While my realist personality tells me that the industries are capital intensive, the optimist in me says it is possible to penetrate into these industries by establishing a career or venture in any of the subsection of these industries severally; grow bigger with time, and subsequently join the big league of such industry.
In this post, our emphasis will be on Real Estate and how we can take advantage of its broadness. Listing out some professions and career, and their roles under the industry will do more justification to my viewpoint:
Land is a key factor in the real estate industry. Professionals who are responsible in the procurement of land for property development are the first set of people who have the opportunities of investing in the industry.
Surveyors help in inspecting condition of land, valuing and mapping out the areas bordering acquired land for real estate purpose. In Nigeria, it is not unpopular to see property investors and surveyor go into agreement to reward surveyor with parcels of land for professional service rendered, instead of the usual professional fee.
Lawyers work in the legal aspect of giving guidance and advice on making contracts and procuring related legal documents. Lawyers charge 10% legal and agency fee to facilitate land acquisition in Nigeria. Depending on the scope of the deal and the status of the legal practitioner, it is not also uncommon for property investors to come to term with lawyer, to trade some of the proposed land or other acquired land of the investor for the agency and other professional fee. On the other hand, advising a lawyer to check the genuineness of the offer is like selling ice to the Eskimo.
Land, without adding any value to it aside the procurement documents, has the potential of bringing back ROI (return on investment) beyond 100 percent of capital invested, in places like Nigeria. Acquiring land, especially in urban areas, is a lucrative strategy towards investing in real estate in Nigeria. As a matter of fact, some investors prefer to adopt this model as a niche in real estate. They have the view that it is easier to invest in land, flip it, and recuperate invested capital plus the profit within a very short time.
Flipping of land(buy low and sell high) is just a tip of the iceberg among the opportunities abounding in the Nigerian real estate industry. I would say it is just a starting point.
Construction and development of properties is a large section of the real estate industry that is economically viable. It is a process that requires skills, techniques, expertise and manpower. A lot of people and businesses are involved in the process of real estate development. These people are those who contribute to the industry through their know-how, business acumen, capital, time etc and they come from different career and professional background.
The next post will be more interesting. I will be discussing in details, how you can explore the opportunities in the real estate industry whether as an investor, professional, entrepreneur or just someone who want to contribute remarkably to the economy.
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He is an entrepreneur, writer, barber and interior designer. Abiodun discusses and writes about entrepreneurship, leadership, business and economy.
He has interest in luxury, art, fashion, travel and technology.
Abiodun is passionate about sport, particularly football (soccer) and boxing.