Discover the fastest-growing industries in Nigeria, as well as what the business landscape within the country is like.
Are you considering a career change in Nigeria and aren’t sure which industry to choose? If you are, then you need to know what the fastest-growing industries in Nigeria are.
In this article, we will explore what those industries are, and how Nigeria GDP is affected.
Why are these industries considered fast-growing?
These industries are where the top income earners in Nigeria will find their success in the future.
We have discovered these industries through research on the Nigerian economy as a whole, and research about the current industries contributing the most to the Nigerian gross domestic product (GDP).
Read on to learn more about these industries and why they are the fastest-growing.
Benefits of working in a fast-growing industry
Fast-growing industries provide benefits to workers that other industries don’t. Here are some examples of those amazing benefits:
- Growth opportunities: These industries undergo changes that challenge their workers, so they provide you with resources to grow. Employers of fast-growing industries understand that their company’s potential is linked to their workers’ consistent growth.
- Secure Jobs: Fast-growing companies have a constant inflow of income because of immense demands for their products/services. These companies are less likely to downsize their workers’ size or go bankrupt.
- Higher wages: Rapidly developing businesses pay their workers better because of large profits from vast customer bases and quick product sales.
How much do Nigerians earn?
The National Salaries, Income and Wages Commission (NSIWC) determines the salary of Nigerians that work in a government institution. The NSIWC set different salary packages for each profession. For instance, medical doctors are paid using the Consolidated Medical salary structure (CONMESS).
However, the minimum wage by law, irrespective of the profession, for the average Nigerian working in a government institution is N30,000. For individuals who work in a private organisation, the average income varies and depends on the agreement between the worker and employer.
Most High-income earners in Nigeria are politicians and skilled workers such as petroleum engineers, bank executives and surgeons.
How well educated are Nigerians?
The literacy level of Nigerians differs depending on geographical location, but the southerners are the most educated set of Nigerians.
Socio-economic and cultural factors of a location affect education in Nigeria, and this causes disparity in the educational level across the geopolitical zones.
The total enrolment rate of Nigerians for basic education is 68%, while the rate for lower secondary school is 54% and 68% for upper secondary school students. About 1.7 million Nigerians have a bachelor’s degree. Some Nigerians who don’t complete formal education attend vocational schools to learn manual skills such as fashion designing, carpentry etc.
A brief look at the Nigerian economy
The Nigerian economy depends on the mixture of private and publicly owned businesses. The current Nigeria GDP fell due to the impact of the Covid-19 pandemic on the economy, and this has reduced the standard of living in the country. The Nigerian government relies on oil revenue obtained from exportation of crude oil and is yet to develop non-oil sectors.
The Nigerian information and communication technology (ICT) sector is booming and has increased the contribution of non-oil sectors, such as the manufacturing sector, to the total gross domestic product of Nigeria during the first quarter of 2021.
The Nigerian government hopes to leverage information and communication technology to aid post-pandemic recovery of the Nigerian economy.
What are the fastest-growing industries in the Nigerian Economy?
The fastest-growing industries in Nigeria will provide many job opportunities as the Nigerian economy bounces back. The latest National Bureau of Statistics report revealed the major sectors that contributed to the recovery of the Nigerian economy during the 2020 recession.
We have collated these industries for you so that you can identify which industry best suits your next career move and plan how to gain the knowledge and skills required to stay relevant.
Information and Communication Technology
Information and Communication technology grew during the first quarter of 2021 by 6.47%. Internet coverage is expanding in Nigeria and most businesses are utilising internet technology to run their businesses. Digital skills for work and life are becoming more and more essential.
The Federal ministry of communication and digital economy through its agencies, has created and implemented policies that promote digital innovations among the youth from different economic sectors, and partnered with private stakeholders to support innovative business ideas.
For instance, the Federal government collaborated with private innovation hubs like Co-creation hub in Lagos to support Nigerian startup businesses who have brilliant ideas without the funds to implement them.
The Federal government began the National Digital Economy Policy and Strategy initiative with the goal of diversifying the economy. It does this by using digital technology and providing internet infrastructure to boost internet coverage in both rural and urban communities. Therefore, if you have brilliant ideas or love technology, this sector is for you.
Manufacturing industries such as the food and beverage industries facilitated the Nigerian economy recovery. There is an increasing demand for foods and beverages because of population growth, rural-urban migration and disruption of the food supply chain. Thus, local food and beverage companies are developing to meet the demands of local food consumers.
Despite being the most affected industry during the Covid-19 pandemic, the real estate industry has upcoming opportunities. As the economy recovers and more local industries emerge, there is a potential opportunity for industrial real estate.
Also, the federal ministry of works and housing launched a year-long project to build 300,000 houses in Nigeria. The goal of the project is to create jobs for artisans and initiate the production of local building materials across the country. This housing project provides opportunities for individuals interested in the real estate industry.
Mining and quarrying
Nigeria has large deposits of natural minerals such as crude oil, coal, limestone, iron ore, and tin that need extraction for the production of finished products like kerosene, jewellery, cement etc.
The mining sector’s contribution to the Nigerian economy has grown in the last 3 years and in the first quarter of 2021, mining and quarrying contributed 9.28% to the gross domestic product of Nigeria.
As part of the Nigerian government’s economic sustainability plan to speed up economic recovery from the Covid-19 pandemic, the Central Bank of Nigeria in December 2020 invested large funds to start a National gold purchase program and a precious metal refining company to create more jobs and boost gold mining in Nigeria.
Why is location a key consideration?
To get started in these fast-growing industries in Nigeria, it is crucial to live in locations where the industry thrives most. For instance, if you are interested in the information and communication industry in Nigeria, Lagos is the best place because it is the hub of multiple innovation centers and agencies funded by the government to support digital startup businesses.
Conversely, Lagos is not suitable for you if you are interested in the mining and quarrying sector. Thus, carry out your research and identify the best location for your industry of choice.
The fastest-growing industries in Nigeria are the current drivers of the Nigerian economy.
The information and communication technology sector provides the most opportunity because of the level of attention and government support it has. Also, other expanding sectors such as the food industry, mining industry and real estate industry have demonstrated growth potential and should be explored.
With one of our online courses, you can build and develop your skills in these essential areas, helping to build your career.