Nigeria investors target SMEs, creative sector for billion-dollar growth
Investors at a United Bank for Africa panel in Lagos identified financial inclusion, SMEs and the creative economy as the sectors most likely to yield Africa’s next billion-dollar companies, provided founders prioritise consumer data over flashy pitches.
United Bank for Africa (UBA) convened investors and entrepreneurs in Lagos to outline where the continent’s next generation of billion-dollar companies will emerge. Panellists at the quarterly UBA Business Series narrowed the field to four key areas: financial inclusion, the creative economy, sports, and small and medium enterprises.
For market participants, the consensus signals a maturing investment thesis in Africa. Rather than chasing imported technology models, capital is increasingly expected to flow toward businesses that solve local consumer pain points. The panel agreed that scalable success depends on a company's ability to mine customer data and adapt to specific African realities.
Femi Aluko, CEO of food delivery startup Chowdeck, provided a concrete example of this strategy in action. By analysing purchasing patterns on his platform, the company identified unmet demand and launched a new venture called Chowstore. “Customers constantly tell you what they need. If you listen carefully, they will show you what to build next,” Aluko said.
The creative sector, often viewed by traditional finance as high-risk, was highlighted as a prime area for billion-dollar valuations. Rapper and entrepreneur M.I Abaga argued that artificial intelligence is accelerating this expansion rather than threatening it. “Technology has always been part of creativity. AI gives African creators the opportunity to compete globally, solve bigger problems and build businesses that serve international markets,” he noted.
Abaga added that the digital era has fundamentally altered how creators reach audiences, building direct community relationships. This shift is creating new demand for robust financial and business support systems within the creative sector. Consequently, financial institutions and investors are recognizing these platforms as investable infrastructure rather than mere entertainment.
Ashim Egunjobi, co-founder of Octerra Capital, offered a pragmatic note for allocators weighing these emerging sectors. He emphasised that successful investing requires looking past polished pitch decks to back resilient founders. “Building is not reserved for the smartest person in the room,” added moderator Adaora Mbelu.
“It is about being observant enough to understand people, behaviour and context. The greatest opportunities often emerge from paying attention to what others overlook,” she said.
