Six sectors to watch as Nigeria opens for investment
Once synonymous with volatility, Nigeria is quietly rewriting its economic story. The reforms of 2023–2025, including the removal of fuel subsidies, exchange-rate unification, and aggressive tax expansion, have reshaped Africa’s most populous economy into an investable proposition for long-term capital.
While the country’s tax-to-gross domestic product (GDP) ratio rose to 13.5 percent in 2024, foreign reserves stabilised above $42 billion, with the balance of payments recording a $6.8 billion surplus – the first in nearly a decade. Fitch Ratings revised Nigeria’s outlook to positive, citing credible fiscal management.
With a rebased GDP of N372.8 trillion ($244 billion), Nigeria’s economy now appears more diversified, capturing its fast-growing digital, creative, and service sectors. Investors are again eyeing a market of over 200 million consumers, with a median age under 19, and continental trade access under the African Continental Free Trade Area (AfCFTA).
Read also: We are leading Africa’s new frontier in global investment immigration – Nechi
Below are six sectors attracting capital and offering further opportunities
Sector: Agriculture & Agro-Processing
The key number: According to the Food and Agriculture Organization (FAO) and the African Development Bank, Nigeria accounts for roughly 23 percent of West Africa’s arable land, making it the region’s single largest agricultural base.
Yet, much of this land remains underutilised due to weak infrastructure, limited mechanisation, and climate-related risks.
Who’s investing: Olam, Dangote Industries, Flour Mills of Nigeria, AFEX, Norfund
Investment Case: Agriculture is once again the backbone of Nigeria’s diversification drive. Demand for food and processed goods is surging with population growth, while reforms in land titling and commodity exchanges are unlocking scale.
From cocoa and cashew to rice and cassava, investors are moving beyond cultivation into value-added processing. Nigeria’s agro-processing output grew by nine percent in 2024, according to the National Bureau of Statistics (NBS_. AFEX and Olam Agri are financing smart-warehouse systems that can cut post-harvest losses by 20 percent.
Key opportunities:
Agri-tech: Drone farming, precision irrigation, and digital supply chains are improving yields and efficiency.
Export Processing Zones (EPZs): Lekki and Ogun SEZs offer tax holidays, duty-free imports, and streamlined customs.
Input manufacturing: Fertiliser and seed plants expanding under national policies to cut imports.
States to Watch:
Sources: IAPrecision; Lekki Free Zone Development Company; NEPZA; NSIA; National Agricultural Seeds Council; AfDB (2023–2024); World Bank
Risks: Insecurity in parts of the North, logistics costs, and climate-related shocks.
Read also: Nigerian leaders urged to prioritise infrastructure, human capital investment
Sector: Technology, digital infrastructure
The key number: $1.8 billion expected investment in data centres by 2030 (Frost & Sullivan)
Who’s investing: Microsoft, MainOne (Equinix), Huawei Cloud, Airtel Data Centres, Rack Centre
Investment Case: Nigeria’s digital economy is scaling fast. With over 100 million smartphone users and fintech penetration among the highest in Africa, demand for secure data hosting, AI computing, and fintech infrastructure is soaring.
The government’s Data Protection Act (2024) and National Broadband Plan are catalysing private investment. New data-centre parks in Lagos and Abuja are being designed for low-latency connectivity and renewable-powered cooling systems.
Key opportunities:
Data centres & cloud services: Anchor tenants from banks and e-commerce players ensure predictable cash flows.
Fintech & Payments: Mobile-money adoption above 50 percent offers scale for financial inclusion startups.
AI & cybersecurity services: Emerging need for localised cloud compliance.
States to Watch:
Risks: Power reliability, FX costs on imported equipment, and policy uncertainty around data localisation.
Sector: Renewable Energy
The key number: 22 million households remain off-grid (RMI, 2025)
Who’s investing: Engie Energy Access, Daystar Power, Husk Power, Rensource Energy, IFC
Investment Case: Nigeria’s electricity deficit over 30 GW represents a $20 billion investment opportunity. Solar adoption rose 17 percent in 2025, driven by diesel prices exceeding N1,100/litre. Hybrid solar storage systems are now standard for factories, estates, and data centres.
The Energy Transition Plan targets net-zero emissions by 2060, with off-grid renewable access a key pillar. Investors gain comfort from sovereign-backed guarantees under the World Bank’s NEP (Nigeria Electrification Project).
Key opportunities:
Mini-grids and solar parks: 500+ projects planned across 25 states.
Battery manufacturing: Local assembly plants emerging in Ogun and Anambra.
Green Hydrogen: Early-stage pilots led by the Nigerian National Petroleum Company (NNPC) and the International Finance Corporation (IFC) exploring ammonia export potential.
States to watch
Risks: Grid integration delay, enforcement gaps in power-purchase agreements. Currency volatility raises import costs for panels and batteries, while delayed tariff enforcement in rural electrification remains a concern.
Read also: Nigerian leaders urged to prioritise infrastructure, human capital investment
Sector: Infrastructure, construction
The key number: African Development Bank (AfDB) puts infrastructure gap in Nigeria at $3 trillion.
Who’s investing: China Civil Engineering Construction Corp., Julius Berger Nigeria, InfraCredit, Africa Finance Corporation
Investment case: Infrastructure is Nigeria’s ultimate multiplier. Roads, ports, and housing drive competitiveness and unlock industrialisation. Public-private partnerships are accelerating under the Infrastructure Corp of Nigeria (InfraCorp), which targets $38 billion in projects by 2030.
Key opportunities:
Transport Corridors: Lagos-Calabar coastal highway, Ibadan-Kano rail, and airport modernisations.
Affordable Housing: 17-million-unit deficit offers consistent returns via rent-to-own models.
Smart City Projects: Lagos and Abuja exploring digitised utilities, waste management, and e-governance.
States to watch:
Lagos is advancing its infrastructure with major projects such as the Fourth Mainland Bridge and Lekki Deep Sea Port. Ogun’s Gateway Agro-Industrial Corridor is driving housing and road development. Abia is developing the Aba Smart City with international support, while Kaduna dedicates the highest share of its capital budget to infrastructure in Nigeria.
Risks: Land-title disputes, bureaucratic delays, and inflationary input costs.
Sector: Oil, gas & petrochemicals
The key number: Dangote Petroleum Refinery has 650,000 barrels/day refining capacity
Who’s investing: Dangote Industries, Chevron, TotalEnergies, NLNG, Waltersmith Petroman
Investment case: The post-subsidy era has repositioned Nigeria from an importer of fuels to an emerging regional exporter of refined products. The $20 billion Dangote complex is already refining gasoline for export to West Africa and other markets.
Natural gas is the new frontier: Nigeria holds Africa’s largest reserves (200 Tcf) and is expanding domestic pipelines under the Decade of Gas plan. Modular refineries and petrochemical plants are drawing midstream investors seeking dollar-indexed returns without upstream volatility.
Key opportunities:
Gas logistics and storage: Floating LNG and compressed gas terminals.
Petrochemicals: Feedstock supply to plastics, paints, and fertilizers.
Decarbonisation plays: Gas-to-power and carbon capture pilots.
States to watch
Lagos is driving energy-sector growth with the Dangote Refinery and Lekki Free Zone. Rivers is expanding LNG output through NLNG Train 7, while Delta is growing midstream capacity via Waltersmith’s modular refinery. Also, Akwa Ibom’s Ibom Deep Seaport is set to support LNG exports.
Risks: Contract enforcement, vandalism, and funding constraints for smaller players.
Sector: Manufacturing, industrial parks
The key number: Eighteen percent potential contribution to GDP by 2040 (PwC Nigeria)
Who’s investing: Unilever, BUA Group, Lafarge Africa, Nestlé, Stellantis
Investment case: Nigeria’s manufacturing renaissance is tied to AfCFTA and special economic zones (SEZs). Firms are localising production to hedge FX risks and tap regional markets. The Lekki Free Zone now hosts over 50 multinationals with logistics integration to the deep-sea port.
Automotive assembly, fast-moving consumer goods, and pharmaceuticals lead the charge. Fiscal incentives, including 10-year tax holidays and duty-free equipment imports, are strengthening margins.
Key opportunities:
Automobile Assembly & components for continental export.
Pharmaceuticals and chemicals: Substitution for $3 billion in annual imports.
Textiles and agro-allied manufacturing in Kano and Aba clusters.
States to watch:
Lagos is seeing a strong industrial growth with the Lekki Industrial Zone expanding and the Stellantis car assembly project underway. Ogun’s Sagamu corridor accounts for a significant share of Nigeria’s manufacturing output. Kano is reviving its textile sector under the AfCFTA, creating thousands of jobs, while Abia’s Aba leather and garment cluster is boosting exports.
Risks: FX volatility, infrastructure gaps, and competition from cheap Asian imports.
The investor’s lens
Nigeria’s opportunity sits at the intersection of reform credibility, demographic scale, and industrial ambition. Its frontier premium remains, but so does its yield.
For investors, the differentiator is discipline over optimism. Structured capital, milestone-based funding, and risk-sharing with local partners now define the smarter money entering the market.
As one project financier told BusinessDay:
“You can’t wish away Nigerian risk, but you manage it. When you get it right, the returns are continental in scale.”
Nigeria is transitioning from a reform story to a results story. For capital with patience and precision, this is Africa’s most investable frontier not because it’s easy, but because it’s changing.
