5 Fastest Growing Industries in Nigeria 2021
What are the fastest growing industries in Nigeria in 2021? Nigeria’s real GDP growth rate in the first quarter of 2021 was 0.51 percent. This comes after Nigeria emerged from recession with a 0.11 percent GDP growth rate in the fourth quarter of 2020. It would be advisable to familiarise yourself with the Nigerian fastest growing industries in Nigeria today for several reasons.
Nigeria’s fastest growing industries are expected to create a large number of job opportunities when the country’s economy recovers. They are also in the best positions to raise communal income and improve the standards of living in Nigeria today. The National Bureau of Statistics report shows the sectors with major contributions to the Nigerian economy during the 2020 recession.
The Fastest Growing Industries in Nigeria 2021
Our list reveals the fastest growing industries in Nigeria in 2021. Use this information to figure out which field is best for your next career move. It will also help you to acquire the information and skills you’ll need to stay relevant.
The Information and Communication Technology (ICT) Sector.
The Nigerian Information and Communication sector includes six activities:
- Telecommunications and information services
- Publishing
- Motion pictures
- Sound recording
- Music production
- Broadcasting.
The sector grew at a real-term rate of 6.47 percent in the first quarter of 2021. In comparison to the rate in the same quarter of 2020, there was a 1.18 percent drop. The sector expanded at a rate of -14.80% in real terms in the third quarter. Furthermore, the industry contributed 14.91 percent to aggregate real GDP in Q1 2021. This is up from 14.07 percent in the same quarter last year, and lower than the previous quarter’s 15.06 percent.
The information, communications, and technology sector (the “tech sector”) is currently one of Nigeria’s fastest growing industries. Despite the pandemic, the sector is expected to contribute 15% of the country’s GDP in 2020, second only to agriculture. This continued a five-year trend, with the industry rising at an annual rate of 18 percent between 2016 and 2019.
With 90 tech centers and a growing and dynamic client base, Nigeria is now the largest ICT market in Africa. More than 180 million individuals (72 percent of the population) currently have access to a mobile phone. Experts expect internet penetration to rise to 65.3 percent in 2025, up from less than 2% in 2001. The country is home to the world’s largest tech companies, including IBM, Microsoft, Google, and Cisco. Even Twitter, which is now blocked in the country, realizes the market’s importance. According to Jobberman, the sector is on course to contribute US$88 billion to the economy by 2027.
The internet is becoming more widely available in Nigeria, and most businesses are using it to manage their operations. Digital skills are becoming increasingly important in both work and life. Through its agencies, the Federal Ministry of Communication and Digital Economy has developed and implemented policies to encourage digital innovation. It is also partnering with corporate partners to assist new business concepts especially among youth in different sectors. For example, the Federal government partnered with private innovation centers such as Lagos’ Co-creation Hub. The aim was to help Nigerian startups with great ideas but little money to put them into action.
The Federal Government launched the National Digital Economy Policy and Strategy project to diversify the economy. It accomplishes this through enhancing internet coverage in both rural and urban areas, digital technologies, and providing internet infrastructure. As a result, whether you have amazing ideas or a passion for technology, this is the field for you.
The Energy and Power Sector
Nigeria’s power sector, which includes electricity, gas, steam, and air conditioning, is among the most successful during the post-pandemic period. According to the Gross Domestic Product (GDP) report, the sector grew by 78.16 percent year over year in Q2 2021. This growth rate is the greatest of any sector during the review period.
Research shows that expansion in trade, telecommunications, road transport, energy, crop production, and food production contribute to Nigeria’s non-oil industry. Compared to a 2.78 percent contraction in the same period in 2020, the industry expanded 56.58 percent year over year. Nonetheless, the Nigerian power outage problem is a significant enough gap that needs fixing. Those who invest in a solution to this problem might make a lot of money. Analysts are also pessimistic about the sector’s capacity to maintain its rapid expansion.
Sewerage, Waste Management, and Remediation (Water Supply, Sewerage, Waste Management, and Remediation)
This sector is also one of the fastest growing industries in Nigeria today. In Q1 2021, the Water Supply, Sewerage, Waste Management, and Remediation industry increased by 14.75 percent. This growth rate is quite high when compared to 1.92 percent in Q4 2020 and -0.18 percent in Q1 2020. The sector has been on the rise, with a modest drop to 1.94 in 2020 Q4 from 2.1 the previous quarter. This industry shows signs of revitalization as the pandemic regulation fades and the economy returns to normal.
The Manufacturing Sector
The resurgence of the Nigerian economy was aided by manufacturing businesses such as the food and beverage industries. As a result of population expansion, rural-urban migration, and disruptions in the food supply chain, there has been an increase in demand for foods and beverages. Thus, local food and beverage businesses are growing to satisfy the needs of local consumers. In the second quarter of 2021, Nigeria’s manufacturing sector saw real GDP growth of 3.49 percent. This growth is quite high in comparison to a decrease of 8.78 percent in the same period of 2020.
Quarrying and mining
Nigeria has vast reserves of natural materials such as crude oil, coal, limestone, iron ore, and tin. We extract them to produce finished goods such as kerosene, jewelry, and cement. The mining sector’s contribution to the Nigerian economy has increased in the last three years. Mining and quarrying accounted for 9.28 percent of Nigeria’s gross domestic product in the first quarter of 2021.
According to reports, in the first quarter of 2021, the Mining and Quarrying sector grew by –2.19 percent. The industry growth rate was lower by –6.77 percent when compared to the same quarter of 2020. However, it was higher by 16.25 percent when compared to the fourth quarter of 2020. The growth rate was 31.15 percent quarter over quarter. Mining and Quarrying contributed 9.28 percent to real GDP in the quarter under review. This was lower than the 9.54 percent recorded in the same quarter of 2020. However, it was higher than the 6.09 percent recorded in the fourth quarter of 2020.
The Central Bank of Nigeria invested large funds in December 2020 to start a National gold purchase program. It did this to create more jobs and boost gold mining in Nigeria. This was part of the Nigerian government’s economic sustainability plan to speed up economic recovery from the Covid-19 pandemic.
Conclusion
There you have it for the fastest growing industries in Nigeria 2021. In real terms, these are industries where profits are now growing at very high rates. These industries are enticing to investors and their economic expansion offers a variety of opportunities. They have the potential to attract major investment into these industries. Shareholders and investors can adjust their portfolios to take advantage of the rebound. Perhaps most importantly, each of these industries offers additional chances for job development and new job creation.
