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12 Best Investment Opportunities for Foreign Investors in Nigeria

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Nigeria as a nation is the best lucrative country for major investments. Nigeria has the highest number of natural resources like Gold, timber, millet, ore etc. With this, investment is made easy.

Typically, who are foreign investors?. 

A foreign investor is a physical person of foreign nationality or any judicial person registered outside, who or which respectively has invested foreign goods and equipment in a particular stock, good or services.

Foreign investments, however, is an investment in domestic companies and assets of another country by a foreign investor. Marketable loans are another category of foreign venture and involve bank loans handed out by domestic banks to businesses in foreign countries or the governments of those countries.

Nonetheless, foreign investments have the following types;

Foreign Direct Investment (FDI): FDI is an investment made by a firm or person who is an entity in one nation, in the form of governing ownership in business interests in another country. FDI could be in the shape of either establishing employment or by entering into joint ventures by mergers and acquisitions, building new facilities etc.

Foreign Portfolio Investment (FPI): Foreign Portfolio Investment (FPI) is an enterprise by foreign entities and non-residents in “india” securities comprising shares, government bonds, corporate bonds, convertible securities, infrastructure insurances etc.  The goal is to safeguard a controlling dividend, at an investment that is lower than FDI, with flexibility for entry and exit.

Foreign Institutional Investment (FII): Foreign Portfolio Investment (FPI) is an investment by foreign entities in securities, real property and other investment assets. Investors encompass joint fund companies, evade fund companies etc. The intention is not to take a controlling interest, but to diversify the portfolio ensuring hedging and to gain high returns with quick entry and exit.

Majorly, it should be noted that foreign investors have lots of investment opportunities in Nigeria.

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12 investment opportunities for foreign investors in Nigeria

Foreign investors are always happy after investing in Nigeria cause;

  • Partially privatized Economy
  • An advantageous Tax system
  • Low-cost labour

Now, foreign investment opportunity includes;

Agriculture: Agriculture is one of the major investments a foreign person can invest in, in Nigeria. Agriculture has taken its dominance. Nigeria’s farming contribution to the GDP (Gross Domestic Product) gives rise to the biggest scale in the nation. However, major investments in agriculture are; 

  • Cassava Farming.
  • Poultry Farming.
  • Rice Farming.
  • Snail Farming.
  • Catfish Farming.
  • Maize Farming.
  • Pig Farming.
  • Honey Bee Farming.

ICT (Information And Communication Technology):  ICT investment is defined as the acquisition of equipment and computer software that is used in production for more than one year. An example of investment in ICT is a digital skill. With a digit skill, you can earn passively.

Manufacturing: manufacturing includes automotive companies, bakeries, shoemakers and tailors, as they all create products, rather than provide services. However, for example, logging or mining are not manufacturing, as they do not change goods into new products.

Private education: education is the key to good living. including in the education can bring you a massive profit in the long run. A student studying in school is investing in himself for a better future. Everyone is craving a better education. The foreign can invest in education not by studying but sponsoring schools and educative programs

Real estate construction: This is a fast and reliable investment. It involves the purchase, management and sale or rental of real estate for profit. Improvement of realty property as part of an actual estate investment technique is generally contemplated to be a sub-speciality of real estate investing called real estate development.

Power: Investment power means the power to sell, sign, transfer or otherwise dispose of the securities, whether by contract or another oral or written arrangement.

Oil and natural gas: long-term investments in oil and gas companies can also be highly profitable. Investors should fully grasp the risks before making investments in the sector. Although, its risk factor includes; commodity price volatility risk, cutting of dividend payments for those companies that pay them, and the possibility of an oil spill or another accident during the production of oil or natural gas.

Transportation: Highways, streets, railroad lines, transit systems, ports, and other transportation fixed assets enable the movement of people and goods. Investment in transportation fixed assets helps build and maintain these critical resources. Investment in transportation boosts productivity and the wealth-generating potential of the entire economy. It also increases personal mobility and quality of life. The key benefit, however, has nothing to do with “job creation” in the construction trades.

Media and entertainment: Entertainment industry investments offer an opportunity for great personal satisfaction. Finally, despite the high cost of entertainment offerings such as motion pictures, investors can participate at very low levels of investment.

Health care: The healthcare sector is made up of many different industries—from pharmaceuticals and devices to health insurers and hospitals—and each has different dynamics. Investments in this sector are affected by many variables, including positive trends related to demographics and negative trends related to reimbursement

Environmental sustainability:  Sustainable investing, also called socially responsible investing or ESG investing, is a means of investing in which an investor strongly considers environmental, social, and corporate governance (ESG) factors before contributing money and resources to a particular company or venture. enables individuals to select investments based on values and personal priorities.

Natural resources: The pool of investable natural resources is growing as the world population requires more and more of these resources. Investment options for natural resources ;

Direct investment: This approach works well for smaller investments in precious metals, but it quickly becomes impractical when speaking about the timber, natural gas, and other resources that require large storage facilities, which come with associated cost

Exchange-Traded Funds: natural resource ETFs are just another example of how ETFs can help an investor gain broad market exposure with just a few investments.

Stocks: These include mining stocks, forestry stocks, oil exploration stocks, etc.

Future and options: a contract-based approach to trading resources allows investors to leverage their dollars in a shorter time frame than storing a physical resource for months and months on end.

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