Despite the pandemic induced recession, Nigeria recovered its economic growth and remains the largest economy in Africa. Being the most populous country on the continent, Nigeria represents a significant consumer market for investors and traders. A very young country with 70% of the population under 30 years old, Nigeria offers a low-cost labour pool and is currently focused on the upskilling of its talented workforce. An abundance of natural resources strengthen Nigeria’s economic position, along with mostly duty-free trade with other member countries of the Economic Community of West African States (ECOWAS). Nigeria’s geographical location, 4 international airports and major seaports contribute to it being the economic hub of West Africa and connect it to global trade routes.
Nigeria’s investment landscape is marked by the potential of expanding markets, the presence of an ambitious youth workforce, and the availability of ample natural resources.
Dutch companies recognized this potential, which lead to the presence of large companies like Friesland, Campina and Philips in Nigeria, and to strong, established economic relations with the country. These ties are only growing, as reflected in recent developments such as Invest International’s Dutch Desk in Lagos. The Dutch government aims to assist Nigeria in its plan for economic diversity with a focus on agriculture, horticulture and renewable energy. Other high potential sectors include food security, agri-logistics, fast consumer goods, retail growth and the service sector (ICT, energy, power generation, distribution and pricing). Nigeria has also surpassed South Africa as the biggest e-commerce market of Africa, and has a prominent advertising and media market.
The growth of these sectors in combination with the high population growth rate, an abundance of natural resources and low-cost labour pool, makes that Nigeria offers ample opportunities for investors.