Most viable sectors for sustainable business development in Nigeria

In Nigeria, the key to achieving sustainable economic growth lies in the private sector, according to acting president Yamir Shabajo. To drive consistent growth, businesses must adopt sustainable practices. Dio Adroja, the special advisor to the Executive Director for Business Development at Diamond Bank, sheds light on the sectors that offer the most potential for sustainable business development. Adroja highlights agriculture, health, and education as the fundamental pillars of Nigeria's economic development. In the agricultural sector, the low barriers to entry make it attractive for startups, with government support further boosting growth prospects. Notably, over 70% of Nigeria's top non-oil exporters hail from the agricultural sector, indicating its significance in export activities and import substitution. Despite initial concerns about market knowledge and lending risks, recent initiatives like the Anco-Borin scheme have facilitated access to funding for small-scale farmers, driving positive change in the sector. In the health sector, Adroja underscores the low operational costs and growing private-public partnerships as key drivers of sustainable business development. With health spending reaching $304 billion this year, the sector's reliance on out-of-pocket expenses and insurance schemes presents ample opportunities for growth. Similarly, the education sector stands out for its resilience to foreign exchange fluctuations, attracting significant government and private investments. With Nigeria investing an average of 2 trillion Naira annually in education and a 46% increase in government allocations this year, the sector is poised for expansion and innovation. The integration of technology, such as online learning platforms, further diversifies revenue streams and enhances the sector's value chain. While banks traditionally favored sectors like oil and gas, Adroja notes a shift towards supporting agriculture, healthcare, and education. The emergence of specialized teams within banks reflects a strategic pivot towards SMEs and sustainable industries. As banks recognize the potential in these sectors and prioritize retail banking, opportunities for collaboration and investment are expected to grow. Adroja encourages businesses to adapt to the evolving landscape and leverage the changing dynamics to fuel sustainable growth. In conclusion, Nigeria's journey towards sustainable business development relies on fostering a supportive ecosystem for key sectors like agriculture, health, and education. By embracing innovation, enhancing access to finance, and nurturing public-private partnerships, the country can unlock new opportunities for economic advancement. With a strategic focus on sustainability, Nigeria is well-positioned to drive long-term growth and prosperity.