Most of the sectors of the whole African continent face huge challenges nowadays for several different reasons including the spread of the pandemic. It’s expected that the economic crisis in the continent will continue and Africa will recover slower than it was previously predicted. However, the overall situation on the continent is not that bad because some countries raise some hope for the economy and Nigeria is one of these countries.
Currently, Nigeria is considered Africa’s biggest economy. Recently the same was believed about South Africa but according to BBC new data shows that Nigeria overtook its place and this is why some people believe that Africa’s chances of prosperity completely lie in the hands of this country. Today Nigeria is relatively stable compared to its neighbors like Cameroon or Chad and is often referred to as a primary destination for foreign direct investments (FDI) into the continent.
The economic growth in Nigeria
No doubt that the economy in Nigeria is thriving at the moment. It is towards the world’s leading oil-producing countries and the first one in the African continent which is why the economy of Africa greatly relies on Nigeria. But oil is not everything that makes Nigeria’s economy grow and the country also has a solid mineral sector with numerous natural resources spread across the country which makes Nigeria one of the richest places among developing countries.
Many things have a great impact on the level of foreign direct investment in Nigeria and one of these factors is the large consumer market. The government tries hard to encourage more investment and for this, they provide some stimulus related to exports and taxes. Therefore, if Nigeria succeeds, not only is it good for the continent’s economy, but also for many different sectors of the country and of the continent. Specifically, if politics are stable there will be more opportunities for success because the economy won’t be disturbed, and freedom of the market will be allowed.
Entrepreneurship in Nigeria
The primary example of Nigeria’s success is the evolving entrepreneurship in the country. The high level of poverty and unemployment made people in Nigeria start to look for something different and as a result, many Nigerians started getting involved in entrepreneurship the Majority are operating in Lagos, the former capital city and the reason for this evolving tendency can be attributed to the economic growth and political stability.
There are many famous entrepreneurs in Nigeria and some of them even made billions by starting with just small businesses. For example, according to Forbes, Aliko Dangote is the richest man in Africa now who owns 85% of publicly-traded Dangote Cement. He started with just a small trading company, but his cement firm quickly rose and helped him become a billionaire. Now the company produces almost 46 million metric tons annually and operates in ten different countries across Africa. And this is not the only example of successful entrepreneurship in Nigeria. Most of the successful entrepreneurs are involved in the trading industry and another great example to make you believe the power of setting up a small business here is how forex brokers in Nigeria operate compared to other countries in the region. The exchange rate of the national currency Naira is pretty much favorable these days and as a result, it’s not surprising that many traders are benefiting from taking part in the forex market. Besides, there are fewer restrictions as forex trading is legal in the country, regulated by the central bank. Therefore, traders in Nigeria have a lot more opportunities compared to other African countries.
This is why not surprisingly there are many popular Nigerian forex traders whose success stories have inspired many people across the continent. Ajidahun Afioluwa is among them. Of course, he got rich neither quickly nor easily, and at first, he faced many challenges including money loss but he didn’t quit and continued moving forward. Finally, he managed to minimize losses and became one of the most successful traders in the African continent. From this example, you can see that achieving success is only about choosing the correct strategy. You just need to motivate yourself not to give up and, in the end,, the success will come. And having such kind of role models is one of the reasons why entrepreneurship in Nigeria is quickly evolving.
Advantages of Nigeria
Nigeria is Africa’s most populous nation with over 180 million residents. The nation has several benefits in different spheres of human resources and also, the politics in the country has been relatively stable throughout the years and there is an excellent environment for investment. The country frequently attracts investors nowadays and in fact, according to the World Bank, Nigeria has greatly improved its spot in the list of the “ease of doing business” index which means that it’s a destination where establishing a business is an easy task. Although currently, it is in 145th place and of course, the country definitely needs the revision of reforms in various fields, still, people take advantage of the current atmosphere and lots of startups are launched these days in Nigeria.
Another great advantage of Nigeria is definitely agriculture. The government tries hard to diversify the economy and invest in different areas not to rely only on the oil industry. Although producing oil today is an influential and thriving business, diversification is really important in order to avoid an economic crisis because once something happens to oil, the whole economy of the country will face dangers. For this reason, the government has made great efforts lately in the way of diversification and they introduced Anchor Borrowers’ Program in 2016. It’s a multi-billion dollar scheme that has an important impact on the economy and helps it rise. The main aim of this program is to help small farmers increase the capacity of their production which is essential for the whole economy of the country.
Technologies also evolve in Nigeria. Especially telecommunications has seen a great boom in the last few years. As the Nigerian Communications Commission suggests, today there are more than 150 million subscribers across service providers, and the use of mobile phones increases as well, favorably for foreign and local investors.
Considering all these successful sectors in Nigeria, no wonder why it is often referred to as one of the most prosperous countries in the African continent with the potential to influence other African nations. This is why Africa’s success strongly depends on Nigeria.
