Akwa Ibom, Kano, Ogun, Nasarawa, and the Onitsha to Port Harcourt corridor are areas in Nigeria outside the main commercial centers of Lagos and Abuja that offer opportunities in Nigeria at sub-national level for investors as there is a lot of entrepreneurial activity going on in those states which most analysts overlook.
This was disclosed by Cheta Nwanze, the Lead Partner at SBM Intelligence, at the 2023 Nairametrics Economic Outlook.
Mr. Nwanze also stated that there are immense opportunities in the area of agricultural technology in Nigeria as people would always need food taken to them cheaply and efficiently.
Opportunities in sub-nationals: Cheta noted that all states in Nigeria offer economic opportunities; however the real question is which states presently are more investor friendly, he added:
- “I would say in terms of infrastructure to general environment towards business, it’s hard to move past Lagos as it covers the bulk of Nigeria’s commercial activity
- “There is Ogun state, it enjoys proximity to Lagos, because of that, it takes a lot of service from Lagos, as people commute to Lagos from Ogun, and the state government put in place to put in place policies, like manufacturing.”
Kano and South East: he also revealed that the Nigerian State of Kano in Northern Nigeria has a huge entrepreneurship community, especially in tech, adding that the South Akwa Ibom has also grown consistently into a well-governed state and also houses a thriving tech scene, he said:
- “Kano, the second largest state in terms of population and historically the commercial center of the north and a lot of economic activity is going on, people gravitate towards Kano.
- “There was something we did across the country and found a lot of tech entrepreneurship happening in Kano, almost hidden away from the outside world.
- “When you go towards the South East and South South, it won’t be fair to pick a single state, as there is an entire cluster from Onitsha to port Harcourt, which should be an hour’s drive with good roads, and in that area, covers Anambra, Imo, Abia and Rivers state with a long of entrepreneurial activity going on, problem is that the state governments have not gotten their acts together, and as a result, people tend to hide from state governments, but there is a lot of activity going on.
He added between Lagos and Onitsha alone, there is $3 billion worth of trade every year which we have not captured, adding that Nigeria needs better integration between Lagos and Onitsha for improved economic growth, and the fastest way is rail.
Opportunities in Akwa Ibom: Cheta noted that Akwa Ibom despite being one of the best-governed states in Nigeria since 199, has been overlooked by many despite having a thriving tech scene with good infrastructure, he said:
- “There is Akwa Ibom, a hidden gem in Nigeria, it’s a state that people tend to overlook, but they have been quietly consistent since 1999, I would go so far as say it’s the best-governed state in Nigeria since 199 when you look at the overall picture, as they have done a good job taking advantage of the oil industry and the growing infrastructure is good with a huge tech community,
Other opportunities: Cheta noted that the states surrounding the Federal Capital, Abuja provides opportunities for investors as it houses commuter towns, especially in Nasarawa, he urged that food and agricultural technology should not be overlooked by investors in Nigeria, he said:
- “Going back to Abuja itself, then there is an orbit around Abuja, and the state taking advantage of is Nasarawa, it would have been nice to Kaduna, and insecurity has affected and limited its potential, as it should be the one to take advantage of Abuja’s growth,
- “Nasarawa has seen a burst of entrepreneurial activity, especially in the commuting town of Mararaba.
- “Other opportunities in Nigeria, it’s difficult to look beyond agricultural technology as we need to figure out to get food to people, cheaply and efficiently.”
In case you missed it
Cheta Nwanze, at the webinar, also noted that despite the trend portends negative consequences in the short term due to a skilled class of Nigerians leaving, it will become very beneficial to the economy in the long term through remittances and foreign policy collaborations with politicians of Nigerian blood in the West., he said:
- “It is very possible to say japa is useful for better jobs. In the short to medium term, the japa wave will hurt Nigerians. In the long term, it can be a net positive through remittances. People are leaving families behind and they still have an emotional attachment to Nigeria useful in terms of sending money back and building the economy.
- “It is neither good nor bad. It would be the result of what we think of it. If we can take advantage of the increasing diaspora, as they get more influential, including policy, for example, we have Kemi Badenoch in the UK parliament, has Nigeria bothered to engage with her? The UK just gave us more preferential tariffs, how can Nigeria take advantage of them, these are the questions we need to answer.”
You may watch a recording of the Nairametrics Economic Outlook on YouTube below.