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10 fastest growing business opportunities in Nigeria

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There are profitable business opportunities available to any smart investor in Nigeria, and these opportunities can be found both online and offline. Online business opportunities imply the use of the internet to create and facilitate such business ventures; on the other hand, offline business ventures involve providing physical products and services for clients. Right here, I will be profiling 10 fast growing business opportunities available for Nigerians.

Tutorial centres

Aspiring to start a tutorial centre is a wonderful idea, as it is a lucrative business considering the fact that Nigerians are increasingly getting conscious of the importance of education for their kids. An educational tutorial centre for JAMB, WAEC, NECO, ICAN and even adult literacy classes would surely bring in a steady stream of income to the savvy investor.

Waste Management business

Government has failed woefully to eradicate waste from the environment and this in itself has presented an opportunity for inventive individuals with an opportunity to turn waste to wealth by going from home to home with the sole purpose of evacuating refuse via waste carts or pickup vans as the case may be, at an agreed fee.

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Solar energy solution

Solar business is becoming a buzz in Nigeria considering the fact that more than 90 million Nigerians are still living without power and most citizens still rely on costly generators to access electricity. The solar energy is an alternative renewable energy technology which is off grid in design and can be installed for clients based on budget. It is cheaper, cleaner and has a low cost of maintenance. With a small budget of N90, 000 one can get a 180 Watts solar energy system. The market is enormous considering the fact that electricity is the livewire of any nation’s economy.

Setting up a private school

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It is common to see private schools at every street in Nigeria, considering the fact that public schools have not really offered the standard of education required. Most private schools start with crèche, nursery, primary and then the secondary arm. Nigerians desire the best quality education for their kids and are prepared to spend as much as they can afford in the education of their children. I have seen schools move from rented apartments to their permanent sites within the space of 4 years. This in itself is a testament to the lucrative nature of the business.

Setting up a travel agency

The rate at which Nigerians travel out of the country is mind boggling. Some months ago, I was at the immigration office in Benin and was amazed at the number of people waiting to collect their passports. It was an indication of the state of the nation. Travel agents help to facilitate passport and visa procurement, hotel bookings in countries of destination, and tour arrangements for clients, at agreed fees.

Recruitment Agency

With the high unemployment rate in Nigeria climbing to more than 40 million of our 180 million population figures, the need for jobs in Nigeria has become very dire. In big cities like Lagos, Abuja, Port Harcourt, Ibadan, Benin, Onitsha, and Aba, there are hundreds of recruitment agencies who help to secure jobs for job hunters at set fees. Most of the job recruitments usually take place online and applicants are expected to register with these agencies.

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Transportation business

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Transportation business is another huge money spinner. There are serious demands for these services daily by clients who travel regularly to buy goods and make business appointments with suppliers and other customers. These transporters also run what I call charter services. Clients make special arrangements with them to be picked up daily. These transporters can register their vehicles with well-known transportation companies to enhance their patronage. Some transporters have built their own houses and sponsored their kids through the university via this lucrative business.

Sports betting centre

These are silent money making machines, especially among youths who are sports betting fanatics. There are so many sports betting companies available in Nigeria today –  Nairabet, Merrybet, Surebet247, Lionsbet and Baba Ijebu. These bookies even provide agents with free banners and equipment to help them market their betting services. Most sports betting centres supplement their earnings by using the free space available as football viewing centres.

Pharmacy/ Chemist store

2 weeks back, I visited a local pharmaceutical store close in the neighbourhood, and was surprised to see over 8 persons waiting to be attended to. It was a sight that gave me an insight to the profitable nature of the business. The shop owner who is an Igbo man is not a doctor, but a trained nurse and he runs the business with his wife who is also a trained nurse. They have since completed their one storey apartment and are living comfortably. To be successful in this business, ensure that you stay away from selling fake drugs and be well trained before setting up your own ‘chemist’ shop.

Drinking spot

Nigeria ranks among the highest consumers of liquor in the world with drinking bars and parlours located at every nook and cranny in the country. Despite the usual complaint of economic crunch nationwide, one would still see night crawlers at these joints drinking with friends and colleagues. To spice up the business, the owners arrange for suya spots around the drinking bars.

 

 

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Chacha Wabara-Ogbobine is a Legal practitioner with over 9years post call experience. A research Consultant, professional writer and a blogger at heart,owner of four thriving websites with well over 10years of experience. Totally in love with keeping fit and coaching weight loss enthusiasts. I love my quiet time, being with my kids, watching TV series for hours on end.

Companies

ABC Transport to raise N1.4 billion through rights issue

ABC Transport Plc has secured the approval of its shareholders to raise additional capital through a rights issue.

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The Board of Directors of ABC Transport Plc has secured the approval of its shareholders to raise additional capital through a rights issue from existing shareholders.

This disclosure was made by the board of ABC Transport in a notification issued by the Company’s Secretary, Onyekachukwu C. Chigbo, after announcing shareholders’ resolutions at its 27th Annual General Meeting (AGM), held on Friday 27th November 2020.

According to the information contained in the notification, the rights issue is N1.4billion, which could be raised via the issuance of shares and debt securities as determined by the Directors of the firm.

However, the rights issue is subject to the approval of regulatory authorities.

What this means

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. This type of issue gives existing shareholders the “rights” to purchase new shares at a discount to the market price on a stated future date.

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However, shareholders are not obligated to exercise this right.

In this regard, the company may decide to use the additional capital raised from these offerings to existing shareholders to acquire assets, make a take-over, repay debts or save itself from bankruptcy.

This is expected to strengthen the company’s balance sheet, free up capital for the management to execute revenue, and profit optimizing projects, plans, and strategies.

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What you should know

  • It is important to know that the board decided to raise additional capital after it had secured shareholders’ approval to increase the company’s authorized share capital from N1billion to N2.5billion by the creation of 3billion additional shares of 50 kobo each, ranking pari-passu in all respects with the existing shares in the Company’s equity.
  • In this regard, clause 6 of the Company’s Memorandum of Association and clause 5 of the Articles of Association respectively, will be amended to reflect the increase in the Authorized Share Capital.
  • This amendment will be done by deleting the words, “the authorized Share Capital of the Company is N1billion divided into 2billion ordinary shares of 50 kobo each,” and substituting therewith the words “the authorized Share Capital of the Company is N2.5billion divided into 5billion ordinary shares of 50 kobo each.”

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Stock Market

GTBank, Nigerian Breweries, CAP drop, investors lose N42 billion

The market breadth closed negative as AIICO led 19 Gainers as against 22 Losers topped by NNFM at the end of today’s session.

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Nigerian Breweries brings the Bears to party, Investors down N20.5 billion 

Nigerian bourse ended Wednesday’s trading session on a bearish note.

The All Share Index dipped lower by 0.26% to close at 35,056.82 points as against the 0.30% gain recorded yesterday. Its Year-to-Date (YTD) returns currently stands at +30.60%.

  • Nigerian Stock Exchange market capitalization now stands at N18.323 trillion. Investors lost N42 billion in the mid-week trading session.
  • Nigerian trading turnover at Wednesday’s trading session, however, printed positive as volume ticked by 19.72%, as against the 25.83% drop recorded on Tuesday.
  • ACCESS, FBNH, and ZENITHBANK were the most active to boost market turnover.
  • The market breadth closed negative as AIICO led 19 Gainers as against 22 Losers topped by NNFM at the end of today’s session – an unimproved performance when compared with the previous outlook.
  • CAP leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.

Top gainers

  1. AIICO up 9.90% to close at N1.11
  2. CUTIX up 7.14% to close at N1.8
  3. UBA up 5.49% to close at N8.65
  4. STANBIC up 3.90% to close at N44
  5. MAYBAKER up 2.94% to close at N3.5

Top losers

  1. NNFM down 9.67% to close at N6.26
  2. NB down 7.05% to close at N56
  3. CAP down 6.98% to close at N20
  4. GUARANTY down 2.57% to close at N34.1
  5. FLOURMILL down 2.17% to close at N27

Outlook
Nigerian Stocks ended the third trading session for the week on a bearish note.

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  • Selling pressure was significantly seen in blue-chip stocks like GTBank, Nigerian Breweries, CAP, Flour mills, as investors began a significant amount of profit-taking across the market spectrum.
  • Nairametrics envisages cautious buying, as institutional investors reduce some of their long positions amid growing uncertainty playing out in Nigeria’s currency market.

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Currencies

New CBN Circular: CBN confirms only Banks can pay IMTO dollars

CBN issues update on how dollar transfers from friends and family living abroad should be paid

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Forex: U.S dollar gains strength, global geopolitical climate worsens

The Central Bank of Nigeria has issued an update to its recent circular on the management of remittances from diaspora Nigerians. In a circular posted on its website, the apex bank instructed banks to transfer all diaspora remittances to the domiciliary accounts of the beneficiaries or pay the customers in foreign currency.

On payment of foreign transfers

  • It also clarified that the choice of how the money should be paid, whether transfer or dollar cash withdrawal is the choice of the beneficiary of the remittance.
  • The circular also instructed the IMTOs to ensure the foreign currency is deposited into their corresponding deposit money bank accounts. It also confirmed banks are to pay the dollars to the beneficiaries either via transfers to domiciliary accounts or in cash.

In another circular seen by Nairametrics but issued to deposit money banks, the CBN closed all Naira ledger accounts opened specifically for the purpose of receiving IMTO (foreign transfers from diaspora Nigerians) with immediate effect.

What this means: This spew of circulars follows another one issued on Monday by the apex bank which effectively instructs banks to pay foreign remittances in dollars and no longer in naira.

  • This move has strengthened the exchange rate in the black market with the dollar selling for N470/$1 before weakening again to N480/$1 in the evening of Wednesday.
  • Analysts, including Nairametrics, believe the series of circulars by the central bank is aimed at reducing the disparity between the black market and official I&E windows.
  • According to the theory, if more Nigerians are able to sell their dollars at the rate that they want then this could create more liquidity thus reducing the exchange rate disparity.

What you should know: Before now, inflow through IMTO such as Western Union was paid to beneficiaries in Naira. However, the CBN now wants this payment to be made in dollars.

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