The Retail Council of Nigeria was launched in the country’s capital, Abuja.
“The investment in the retail sector is growing and we’ve seen quite a few mainly from South Africa,” Olusegun Aganga, Minister of Trade and Investments told CNBC Africa.
Retail trade accounts for 27 per cent of the world’s GDP thus the impact of retail businesses on the Nigerian economy needs to be emphasised.
“For every investor there’s one major rule. It's money-follows-money, so investors will only come to any country, anywhere in the world, not for any emotional reasons but because they can make high returns on their investments,” he explained.
According to Aganga, this makes Nigeria very viable as the country has all the necessary things to make it happen.
The last report by United Nations Conference on Trade and Development (UNCTAD) ranked Nigeria as number four globally where you can have the fourth highest returns on investments with an average return of 35 per cent compared to the global average of 77 per cent.
“The opportunities here are huge and they are in every market. The key to the growth in the Nigerian retail sector is organisation.”
“What we have done today, establishing the Retail Council of Nigeria is the first step, to get them organised properly and then for us to work together. The Retail Council of Nigeria working with the ministry to remove all the barriers to increase growth,” he said.
Aganga believes that this will attract investors however, the country still needs to educate Nigerians on the skills needed in the retail sector.
“The retail sector is a bridge between producers and consumers, so we are talking about SME’s, we are talking about farmers, we are talking about industrialists, there’s a retail end to it,” he concluded.