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The agricultural potential of Nigeria is barely being tapped and this explains the inability of the country to meet the ever increasing demand for agricultural produce. Although the agricultural sector remains a dominant employer of labour, serious investment is needed across the board to enhance production and increase the contribution of the sector to GDP. Investment is required in the following priority activities:

(a) Crop production to achieve food security and to provide industrial raw materials. potentials exist for the following crops:

  1. Cereals: Maize, rice, sorghum, corn, millet, wheat.
  2. Root crops: Cassava, yam, ginger, potato, coco yam.
  3. Legumes: Soya beans, groundnuts, cowpeas.
  4. Fruits: Mango, banana, oranges, guava, papaw, pineapple.
  5. Vegetables: Cabbage, green pepper, carrots, lettuce, spice, onions, melons.
  6. Tree crops: Oil palm, cocoa, rubber, coconut, kola nut, coffee, she nuts, beniseed, cotton, cashew nut, sugar cane.
  7. Commercial growing of flowers and ornamentals and experimental orchards for more temperate fruits-apples, grape vines and pears have been successfully established in the high plateau regions.

(b) Food processing and preservation involving industries that will use agricultural produce as raw materials.

(c) Livestock and Fisheries production which possess great potentials for development. Grazing lands are abundant, facilities for animal feed production are plentiful, and the inland rivers, lakes and coastal creeks are sufficient to augment ocean fishery resources.

(d) Agricultural inputs supplies and machinery, water resources development especially for flood control infrastructure and irrigation.

(e) Commodity trading and transportation.

(f) Development and fabrication of appropriate small-scale mechanized technologies for on-farm processing and secondary processing of agricultural produce.

(f) Development and fabrication of appropriate small-scale mechanized technologies for on-farm processing and secondary processing of agricultural produce.


Foreign and domestic investors are being encouraged through improved fiscal incentives in the Nigeria oil and gas sector. In the Upstream and Downstream sectors, the following are some of the areas where there are pressing needs for investors.

(a) Upstream Activities

  1. Petroleum Exploration and Exploitation.
  2. Search for development of local substitute for such items as Medium pressure valve, pumps, shallow drilling equipment, Drilling mud, bits fittings, drilling cements etc.
  3. Manufacturing of consumable materials in exploration such as explosives, detonators, steel castings, magnetic tapes etc.
  4. Other areas in the services sector of the upstream are: Construction and Installation; Maintenance; Pipelining; Well Services; and Transportation Support Services.

(b) Downstream Activities

  1. Domestic Production and marketing of Liquefied Petroleum Gas (LPG)
  2. Manufacturing of LPG cylinders, valves and regulators, installation of filing plants, retail distribution and development of simple, flexible and much less expensive gas burner to encourage the use of gas instead of wood and other fuels.
  3. Manufacturing of consumable materials in exploration such as explosives, detonators, steel castings, magnetic tapes etc.
  4. Establishment of processing plants and industries for:
    1. The production of refined mineral oil, petroleum jelly and grease.
    2. The manufacture of bituminous based water/damp-proof building materials such as roofing sheets, floor tiles, rubber products and tarpaulin. Building of asphalt storage, packaging and blending plants to handle the product for export.
  5. Establishment of chemical industries such as distillation units for the production of naphtha and other special boiling point solvents used in plant and other food processing industries.
  6. Establishment of industries for processing Linear Alkyl Benzene, Carbon Black and Polypropylene.
  7. Development of Phase II (Phase III to join later) of Nigeria’s Petrochemical Programme.
  8. Participation in all phases of the Nigeria Gas Industry development programme from exploration, gathering, production and processing to transmission.
  9. Establishment of small scale industries to produce chemicals and solvents, for example, Chlorinated methane, Formaldehyde, Acetylene, etc., from natural gas.
  10. Refining: One condition for purchasing Nigerian Crude Oil is the ownership of an efficient refinery. The shelter which the domestic petroleum products market enjoys, almost completely seals the prospects and viability of privately financed refinery for locally consumed petroleum products. However, opportunities exist for the construction of a refinery in bonded premises with adequate export facilities for dedication to the export market. Companies with the technological know-how can undertake turn-around maintenance of refineries. Refineries consume a lot of chemicals and utilize a broad range of spare parts. There is tremendous scope for small scale joint venture manufacturing concerns with foreign technical partners. Such ventures can start warehousing arrangements that will ensure continuity of supply at competitive prices. Other investment opportunities contingent upon refining and ancillary activities are the manufacture of special products such as: industrial and food grade solvents; insecticides; cosmetics; mineral oil and petroleum jelly grease; bituminous-based water/damp-proof building materials such as floor tiles, rubber products, tarpaulin, etc.; and, asphalt storage, packaging and blending plants to handle products for export and local use. Export of refined products surplus also exists as an opportunity in refining.

  11. Products Marketing: Petroleum product marketing would seem sealed with hardly any opportunity except by way of establishing an independent marketing outfit or aspiring to establish dealership with the marketers.

While indeed those opportunities remain viable, far more challenging opportunities may be explored in the areas of product transportation, by road and coastal tankers. Associated with products distribution and marketing is a chain of manufacturing and maintenance business such as lubricating oil reprocessing, LPG bottles and accessories, oil cans reconditioning, etc.

The nation’s pipeline and depot network consists of 3,001km of pipeline of varying sizes as well as sixteen (16) storage depots. These pipelines and networks traverse the length and breadth of the country. The system therefore must be maintained in a healthy state for effective and efficient distribution of products.

For more information on how to obtain mining lease in Nigeria, click here.


Nigeria is endowed with numerous mineral resources. Recent policy reforms have brought the solid minerals sector to the fore. The emphasis is on encouraging massive foreign investors’ participation in this sector.


Nigeria is endowed with numerous mineral resources. Recent policy reforms have brought the solid minerals sector to the fore. The emphasis is on encouraging massive foreign investors’ participation in this sector.


An estimated reserve of over 100 million tons of talc has been obtained in Niger, Osun, Kogi, Kwara, Ogun, Taraba and Kaduna States. There are only two medium size talc processing plants currently operating in Nigeria and both are located in Niger State. The color of the Nigerian talc varies from white through milky-white to gray. The talc industry represents one of the most versatile sectors of the industrial minerals of the world. The exploitation of the vast talc deposits in Nigeria would therefore satisfy not only local demands but also that of the international markets as well.


There are over 3 billion tons of iron ore found in Kogi, Enugu, Niger, Zamfara and Kaduna States. Iron is currently being mined at Itakpe (Kogi State), which is more or less at the center of the region of crystalline iron deposits. The large deposit of iron ore in Kogi and Enugu States are yet to be fully explored. Itakpe iron ore is being beneficiated to 67% to feed Aladja and Ajaokuta Steel complexes. Besides, there are three inland rolling mills at Oshogbo, Jos and Katsina in addition to some privately owned rolling mills in Lagos and Kano.


There are proven reserves of both alluvial and primary deposits of gold with proven reserves in the shiest belt covering the western half of Nigeria. At present exploitation of alluvial deposits is being carried out mostly by artisan miners in a few places in the country. A number of primary deposits, which are sufficiently big for large scale mechanized mining, have been identified in the northwest and southwest parts of the county. Private investors are invited to stake concessions on these primary deposits. It is interesting to note that the primary deposits are of relatively high grade and at shallow depth. Production costs will easily be as low as about $50 per ounce.


The occurrence of Bitumen deposits in Nigeria is indicated at about 42 billion tones almost as twice the amount of existing reserves of crude petroleum. When fully developed, the industry will no doubt meet local requirements for road construction and also become a foreign exchange earner for the country


The national demand for table salt, caustic soda, chlorine, sodium bicarbonate, sodium hypochloric acid and hydrogen peroxide exceeds one million tones. A colossal amount of money is expended annually to import these chemicals by various companies including tanneries, food beverages, paper and pulp, bottling and other industries including the oil companies. There are salt springs at Awe (Plateau State), Abakaliki (Enugu State) and Uburu (Imo State), while rock salt is available in Benue State. A total reserve of 1.5 billion tones has been indicated, and further investigations are now being carried out by government to ascertain the quantum of reserves.


Gypsum is an important input for the production of cement. It is used for the production of Plaster of Paris (P.O.P) and classroom chalk, etc. A strategy for large-scale mining of gypsum used in the cement industries is urgently required to sustain existing plants and meet future expansion. Current cement production is put at 8 million tons per annum while the national requirement is 9.6 million tones. About one billion tons of gypsum deposits are spread over many states in Nigeria.


An estimated 10 million tons of lead/zinc veins are spread over eight States in Nigeria. Joint venture partners are encouraged to develop and exploit the various lead/zinc deposits all over the country.


These are the main constituents of the mud used in the drilling of all types of oil wells. The Nigerian baryte had specific gravity of about 4.3. Over 7.5 million tons of baryte have been identified in Taraba and Bauchi States. Large bentonite reserves of 700 million tons are available in many states of the Federation ready for massive development and exploitation.


Nigerian Coal is one the most bituminous in the world owing to its low Sulphur and ash content and therefore the most environment friendly. There are nearly 3.00 billion tons of indicated reserves in 17 identified coalfields and over 600 million tons of proven reserves.


Gemstone mining has boomed in various parts of Plateau, Kaduna and Bauchi States for years. Some of these gemstones include Sapphire, Ruby, Aguamarine, Emerald, Tourmaline, Topaz, Garnet, Amethyst, Zircon and Flourspar which are among the world’s best. Good prospects exist in this area for viable investments.


An estimated reserve of 3 billion tons of good kaolinitic clays has been identified.


Large deposits of Tantalite are known to occur in Nasarawa, Gombe and Kogi states as well as the Federal Capital Territory. The deposits are both alluvial and primary in the numerous pegmatite bodies that infest these areas. Grades of well over 50% Ta2O5 are found. Private investors are invited to stake concessions for the development and exploitation of tantalite in these areas.


Given the large deposits of brown coal in the tertiary sediments east and west of River Niger; Nigeria can cash in on foreign investors’ technology to produce coal pellets for industrial use, coal briquettes for domestic use; that is, to replace firewood.


  • 3-5 years Tax Holiday.
  • Deferred royalty payments
  • Possible capitalization of expenditure on exploration and surveys.
  • Extension of infrastructure such as roads and electricity to mining sites, and provision of 100% foreign ownership of mining concerns.

    Investment Opportunities exist for hydro-power generation in Mambilla Fall, Adamawa State and Agbokin Fall in Cross-River State. Government will readily negotiate a Memorandum of Understanding (MOU) with any foreign energy company to cover the following areas:

    1. Development of energy resources and infrastructures
    2. Management of energy infrastructures
    3. Commercialization of energy
    4. Training; and
    5. Exchange of Information and experience
    It is expected that further discussions will center on:
    1. Construction and management of power stations by private companies
    2. Production of Steam and gas turbine spare parts
    3. Repairs and testing of power transformers
    4. Development of wind turbines for generation of electricity
    5. Manufacture of distribution transformers and line hardware
    6. Technology transfer through joint erection of new power plants
    7. Training of staff in computer based maintenance system etc


    Plans are underway to revitalize the steel sector. As a first step to reviving the sector, technical audit and cost estimate for completion of Ajaokuta Steel Project are being considered. The Government is also planning to revitalize the Delta Steel Company and three in-land Steel Rolling Mills in the country with a view to making them function effectively. Staff training and development is also being given attention because local skilled manpower availability can motivate an investor into the industry. These are aimed at putting the sector in a state of readiness for foreign investment. In consonance with the nation’s technical and economic co-operation policies for this sector, some areas of joint co-operation have been identified, and investors will be encouraged to invest in the sector. Discussions will centre on joint venture commercial operation of the completed units of the Ajaokuta Steel Project. Investors will be encouraged in the following areas:

    1. Iron Making Plant with capacity to produce 1.35 metric tons of billets
    2. Billet Mill with capacity to produce 795,000 tons of billets per annum
    3. Light Section Mill with capacity to produce 400,000 tons of bars per annum
    4. Medium Section Mill with capacity to produce 130,000 tons of wire coils per annum; and
    5. Engineering Workshops comprising:
      1. The Power Equipment Repair Shop
      2. Forge Fabrication and Rubberizing Shop with capacity to produce 4,200 tons of fabricated structures


    The Aluminum Smelter Company of Nigeria, ALSCON, is a joint venture project in which Nigeria owns 70% of the equity shares, while the remaining 30% is shared between AG Ferrostaal of Germany with 20% shares and Reynolds Inc. of United States with 10% shares. The present administration is making efforts to ensure that the aluminum smelter plant is properly funded. It has given invitation to private investors to invest in the company and /or take part of Nigeria’s 70% shares. The plant is one of the best and biggest in the world with the most modern technology. A number of countries have signed or are negotiating trade and economic cooperation agreements with Nigeria. Since the essence of these bilateral agreements is to foster unity: boost economic growth and technological co-operation, foreign investors should take advantage of existing bilateral ties and harken to the call to invest in the ALSCON project as in other projects in the power and steel sectors.


    The deregulation of the telecommunications sector in 1992 through Decree 75 was to allow for private sector participation in the sector and expand the nation’s communication facilities. The Nigeria Communications Commission (NCC) was established consequently to regulate the performance of the sector. The liberalization thrust was further strengthened by the Nigeria Communications Commission (Amendment) Decree No. 30 of 1998 which deleted those provisions in the first decree that inhibited competition in the sector thus enhancing the expected role of private sector enterprises.
    The functions of Nigerian Communications Commission include:

    1. Regulating the privatized sector of the telecommunications industry
    2. Facilitating entry into the telecommunications market by private entrepreneurs
    3. Creating a regulatory environment for the supply of telecommunications equipment and facilities
    4. Issuing of telecommunications licenses
    5. Promoting fair competition and efficient market conduct among all players in the telecommunications industry
    6. Arbitrating disputes between participants in the telecommunications industry and protecting consumers against unfair practices



      The telecommunications industry in Nigeria is far from being developed. There is a dearth of infrastructural facilities and this has placed a constraint on the provision of services to existing and potential customers. There is therefore an urgent need to expand the infrastructure in this sector if it is to effectively play its role in the economic, social, political, cultural and, in fact, overall development of the Nigerian society and properly integrate it into the international community. Such desired expansion cannot be achieved under the present dispensation where the needed equipment are usually imported with attendant problems of foreign exchange procurement, freighting cost, long delivery period etc. There is therefore no other realistic option than the local manufacture of these equipment and spares.


      Local manufacture of switching and transmission equipment is required since no single company exists in Nigeria or even neighbouring countries for this purpose. Hence any company that goes into the venture will have its market beyond the frontiers of Nigeria.

    3. CABLES

      In Nigeria, there are three companies engaged in the production of telecommunication cables using imported copper and other local resources like poly vinyl chloride materials for insulation. There is no company that is currently producing fibre optic cables in the country. The copper cable producing companies are producing only low pair capacity of 50, 100, 200 pairs. There is need for a plant that will produce high pair capacity cables that will enhance massive provision of lines to the teaming population.


      With Nigeria’s population that is over 108 million people, an installed telephone capacity of about 700,000 lines and a telephone penetration of 0.65 lines to 100 persons, it is abundantly clear that telephone service to the populace is grossly inadequate. Even with the Government introduction of competition in the sector and the subsequent licensing of Private Telecommunications Operators. (PTOs), the market has not experienced any noticeable change. Although some of the PTO’s have commenced operation for over two years, they have not been able to collectively introduce up to 100,000 telephone lines into the country’s telecommunications network.
      Hence, the sector is still a virgin land for investors wishing to provide and operate private network links employing cable, radio communications, data services, Internet Business and Satellite communication, Payphone services and Cellular radio phone services.


      Apart from the absence of local manufacture of equipment and inadequate services, another major problem that has seriously affected the growth of the industry is insufficient financial resources. The industry is a capital intensive one and the banks in the country appear no to have strong financial muscle to handle massive investment in the sector. The industry has not also attracted individuals’ cooperative initiative probably as a result of the low level of income per capita in the economy. Hence joint venture partnership between foreign investors and Nigerians will be a veritable source of investment capital for the sector. At present, there is no joint venture enterprise in the sector.


    1. Any company, person or group of persons wishing to carry out approved activity within a zone shell apply to the Nigerian Export Processing Zones Authority (NEPZA) using the prescribed forms and shall submit such documents and information in support of the applications. The forms shall specify the application fees and such other details as the Authority may stipulate from time to time. A feasibility study in respect of the investment project which the applicant wishes to undertake in the zone shall be attached as an annex to the application and shall contain the following among others: project description; market survey; funding proposals; financial projections; environmental impact statement and control measures.

    2. Application to undertake approved activity in the zone duly received, shall be considered by the Authority within 30 days of receipt and the Authority shall notify the applicant in writing of its decisions to grant the said approval or otherwise. The approval shall be subject to such terms and conditions as may be imposed by the Authority.

    3. If the application is approved, the investor may proceed to carry out the following:
      1. Apply for company registration
      2. If outright purchase of factory building is desired -
        - Payment of 10% deposit of the selling price of the standard factory building within 3 months of approval
        - Payment of the balance 90%, 5 months after
      3. Renting of factory building - Down payment of one year rent required not exceeding 3 months after signing the rental contract. Thereafter, rental charges shall be paid in the first quarter of every year.

    4. Leasing the standard factory
      - Payment of 40% lease value on approval
      - Payment of 30% at the end of the 5th year
      - Payment of 30% balance at the end of the 10th year.

    5. Leasing of serviced plots
      - Down payment of 40% on completion of factory building
      - 30% at the end of the 5th year
      - 30% at the end of the 10th year
      Construction must be completed within a period of one year which can be extended for another 6 months.
      A plan of the building shall be submitted to the Authority for approval. The land lease contract shall be signed within 2 months after allocation of land. The area occupied by such building shall be between 60%-70% of the leased land and construction shall start within 3 months after signing the lease contract.

    6. With condition(s) in (iii) fulfilled, the investor may proceed to carry out the following:
      Remittance of Investment Capital through banks in the zone and notify the Authority on arrival.

    7. When the factory building is ready, investor(s) may bring in machinery for installation and workers employed. Therefore, the Authority shall be required to carry out pre-inspection, and if found satisfactory, a certificate to commence production will be issued.

    8. The company shall apply to the Authority for assessment of invested capital for later repatriation purposes. This is applicable to companies which are 100% foreign owned and those with part foreign equity participation only.


    1. Industries must be guaranteed to be environmentally friendly.
    2. At least 75% of total products to be exported.
    3. Maximum of 25% of products can be exported to the customs territory on payment of appropriate levies and duties.
    4. Minimum investment capital outlay is 500,000 US Dollars or its Naira equivalent.


  • - Electrical and Electronic Products
    - Leather Products
    - Plastic Products
    - Petroleum Products
    - Rubber Products
    - Cosmetics
    - Garments
    - Chemical Products
    - Metal Products
    - Educational Materials and Equipment
    - Communication Equipment and Materials
    - Sports Equipment and Materials
    - Machinery
    - Handicraft
    - Optical Instruments and Appliances
    - Medical Kits and Instruments
    - Biscuits and Confectionaries
    - Printed Materials, Office Equipment and Appliances
    - Paper Materials
    - Food processing
    - Pharmaceutical Products.

    The Federal Government of Nigeria in its determined efforts to develop and promote tourism into an economically viable industry had in 1991 evolved a tourism policy. The main thrust of the policy is to make Nigeria a prominent tourism destination in Africa, generate foreign exchange, encourage even development, promote tourism-based rural enterprises, generate employment, accelerate rural-urban integration and foster socio-cultural unity among the various regions of the country through the promotion of domestic and international tourism. It also aims at encouraging active private sector participation in tourism development.

    The following special investment potentials exist within the country:

  • - Overland Safaris
    - National Parks
    - Game and Gorilla viewing
    - Deep Sea Recreational Fishing
    - Lake and River Fishing
    - Archaeological Tours
    - Beach Resorts and Hotels
    - Transportation-Water, land and sea
    - Surfing and snorkeling
    - Theme Parks and Exposition Centres
  • For more information on how to obtain mining lease in Nigeria, click here.