Nigeria is a country with over 200 million people. It has the 7th largest economy in Africa and the 19th largest globally. With such economic power, it’s no wonder that there are so many profitable businesses to invest in Nigeria.
In this blog post we will explore 10+ profitable business opportunities you can look into investing in Nigeria today!
Nigeria is a country of many opportunities, from the rich to the poor. The business world in Nigeria is ever changing and it’s important to stay up-to-date with what’s trending. Some businesses are very low risk such as real estate and some require upfront investment like internet cafes or car dealerships.
It all depends on your personal preference and how much you’re willing to spend in order to start making money! The following blog post will be exploring 5 profitable businesses that anyone can invest in Nigeria:
10+ Profitable Businesses To Invest In Nigeria
1. Microfinance Business
Micro finance is one of the easiest businesses you can start in Nigeria and it’s very profitable. This business doesn’t require a lot of investment to start, all you need is N50,000 and you’re ready to bring in profits! So how does this work? Let me explain:
How does microfinance work?
Imagine you have a family member who’s in school. You want to give them some money but you don’t want them to waste it on unnecessary things, so you go out and buy over N1 million worth of goods (eg laptops, books) and loan these items to your loved one.
This after the school term has ended, you will deduct the amount of money your family member has spent from the loaned items and return them to you. This is what microfinance is all about!
Why this business works:
Micro finance can be very profitable as long as you manage it correctly. It’s a low risk business that doesn’t require a lot of investment to start, making it an ideal business for anyone who’s just starting out.
Managing your profits will depend on how you run your business and the reputation you’re trying to build!
2. Car Dealership Business
Car dealerships are a great source of revenue if managed properly! It’s important to keep in mind that car dealerships are a high risk business as they involve working with people and you also have the price of the cars to worry about.
Don’t be discouraged if your first few car dealerships did not do well, try again after getting more experience!
Why this business works:
Car dealership businesses attract both foreigners and locals alike. There’s a lot of legal work involved with this business such as being a registered dealer and having the necessary certifications. It’s important to have a good for customers to trust you. If you manage your car dealership well, it’ll be very profitable!
3. Event Planning Business
Event planning is one of the most popular businesses among millennials these days, no matter what level of education you have!
If you’re good at creating events, why not make a career out of it? Event planning is one of the most profitable businesses in Nigeria and it’s definitely something I recommend if you want to improve your social skills.
How does this work?
Event planners charge clients either a fixed price or a percentage of the overall revenue made from an event. If you’re really serious about this business, I recommend attending different events around your city and asking the organizer how much they paid for their event.
Then, you can go home and do some research on how much it would cost to organize a similar event in terms of venue rental, food/drinks, decor and entertainment. Remember to add your own pricing to each category so you’ll get a rough estimate of how much profit you stand to make from the event!
Why this business works:
Event planning requires passion, creativity and great social skills in order to be successful. You can start small by hosting events at home or joining certain groups online.
4. Fisherman Business
If you know how to swim, you can start a fisherman business! It’s a very profitable business if done right because it has a lot of legal advantages such as being able to get fishing license and also tax deduction on the cost of your equipment. The only downside is that it costs money to build your business, making it a higher risk business.
How does this work?
Fisherman businesses allow you to charge per fish sold or a percentage of your catch. It’s important to keep in mind that there are different types of fishing licenses and not all of them will cost the same amount!
Why this business works:
The fisherman business is a risk business because it involves a lot of money and time. It has the potential to earn you millions of naira if done right though!
5. Money Lending Business (aka “Loans”)
This is one of the most common ways people make money in Nigeria because everyone can use some extra cash from time to time. If you have money to lend, there is a good chance that someone will be willing to borrow it from you.
How does this work?
Money lending business works exactly like the name implies, if someone needs extra cash and can’t get a loan from a bank, they might go to the local lender who has an interest rate higher than the bank does.
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Why this business works:
This businesses requires very little capital to start and can be started online if you want to minimize your overhead costs. It’s also the fastest way to make some extra money! (Disclaimer: Don’t loan too much money at once, more than two million naira in total is a bad idea because it can be hard to get your money back if they run away.)
6. Repair Shop Business (aka “Computer Fixing/Installing”)
This is another common business for young people in Nigeria because almost everyone owns a smartphone or computer these days! If you’re good at fixing or installing computers, you might as well make profit off of it.
How does this work?
Repair shops charge clients either a set fee or an hourly rate to fix their computer. The more experience you have and the better equipment you use, the higher your price will be!
Why this business works:
Computer repair businesses require little capital to start but most of the t ine, it also requires excellent social skills in order to be seriously successful.
7. Laundry Services Business (aka “Laundromats”)
Laundromat businesses allow you to charge your clients per kilogram of clothes cleaned or a flat fee. You can either found your own laundromat or purchase an existing one from a previous owner.
How does this work?
Laundromats charge clients on a per kilogram basis because the price of washing machines has gone down in recent years while the cost of living remains the same, so a lot of people don’t want to do their laundry at home anymore and they prefer to visit laundromats!
Why this business works:
This business will require you to invest a lot of money on new washing machines and other equipment before you can start your own. It’s the most risky business idea in this article because it requires so much capital to get started!
8. Hair Salon Business (aka “Barber Shop”)
Hair salons are one of the most common businesses in Nigeria and other African countries given how trendy it has become over the years. If you have a talent for hair styling, you can start your own hair salon business easily!
How does this work?
Hair salons make money by charging customers per haircut or selling them products to care for their hair. The most successful hair salons have built their reputation and advertise a lot!
Why this business works:
This is one of the easier businesses to start because you can either start your own or purchase an existing hair salon from someone else. It’s easy to get started but will take hard work in order to be successful!
9. Cafe (aka “Restaurant”)
If you love to cook, why not turn that passion into profit? Starting a cafe or restaurant is one of the highest paying businesses in this list. If done right, you can make millions from your restaurant!
How does this work?
Cafes and restaurants sell their dishes at a high price and charge customers for their drinks separately. They also sell advertisement space on the outside of their building, if you’re lucky well-known restaurant, it could fetch millions of naira in advertising revenue!
Why this business works:
Restaurants require minimal capital to get started but can be financially rewarding! You will have to put in a lot of hard work and advertising money to make this business successful if you want to get your return on investment.
10. Gardening Service Business (aka “Landscaping”)
Are you good at gardening? Do you enjoy taking care of plants and flowers? If so, there’s a high demand for gardeners who specialize in maintaining company gardens, school gardens, churches and other private properties!
How does this work?
Gardening service businesses charge clients per hour or month based on the size of their garden. You can either do gardening services independently or become a part of a landscaping company. If you’re strategic about where your business is located, you can make a lot of money!
Why this business works:
Gardening service businesses don’t require much capital to get started, but you will need some to purchase the tools necessary for your job. It’s easy to start and easy to scale up! However, it is hard work, so you’d have better luck getting rich by starting your own landscaping company.
11. Bookstalls Business (aka “Bookshop”)
Do you love reading? Are you a bookworm or an aspiring writer? If so, why not turn that passion into profit and start your own book business? Bookstores are one of the most successful businesses in Nigeria!
How does this work?
Bookstores make money by selling books and magazines to clients. They also sell advertisement space on the outside of their building if they’re located area, which can be very lucrative!
Why this business works:
This is a good business idea for book lovers because it won’t take much capital to start your own bookstore. You will have to work hard and if you want your bookstore to be successful!
12. Workshop Business (aka “Garden Center”)
Do you enjoy building things? Are you a carpenter or an engineer start their own workshop? If so, this might be the right business idea for you! It’s a bit more difficult to start, but if you operate a garden center, you won’t be short of clients!
How does this work?
Garden centers make money by selling plants and gardening tools to their customers. They also charge clients per hour for using workshop space when they need it. They can even provide consulting services to help people build modular homes and other construction projects.
How this business works:
Garden centers require a lot of capital to get started because you need to purchase the necessary tools for the job, but once it’s up and running, it will start generating income right away! You’ll work hard in order to be successful if you want your workshop to be attracting clients.
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13. Used Goods Business (aka “Thrift Store”)
Do you love to organize stuff? Are you an auditor? If so, why not start a business that sells used items for resale? You can sell almost anything in Nigeria; there’s always a high demand for second hand goods like clothes, electronics, and school supplies!
How this business works:
Used goods businesses make money by selling second-hand items to their customers. You can buy used goods for cheap and retro them up a bit to make them look like new before selling them to your clients. The hard part is finding the items you need so that you’ll have something to sell in your shop.
How this business works:
You can start a used goods store with just N5,000, but you’ll have to be very organized and patient in order for your business to work out. You should maintain an excel spreadsheet of inventory and do cash flow projections so you’re able to make educated decisions about how much money you need to stay in business.
14. Event Planning Business (aka “Event Management Company”)
Are you a manager or an event planner? If so, why not start your own event planning company? You can organize weddings, birthdays, corporate parties and even funerals! This is a great business idea for people who like planning events because it won’t take much capital to start your own event planning company! How this business works: Event management companies make money by charging clients for their services. They can also charge a booking fee or ask for a donation from the client. If you’re an event planner, it’s crucial that you keep organized and be on time with your clients.
How this business works:
Event planning companies require a lot of capital to get started because you’ll need to rent specific event equipment such as tents, tables and chairs.
Event planners also make money by charging their clients booking fees or donation from the client. It’s crucial that you keep organized and be on time with your clients!
15. Furniture Business (aka “Refinishing Furniture”)
Do you love woodwork? Are you a carpenter? If so, why not start your own furniture business by refinishing used furniture and selling it to local clients! This is a great business idea for people who like woodwork because all you’ll need to start it is a brush and some refinishing supplies.
How this business works:
Furniture businesses make money by selling repaired furniture to their clients. You can purchase used furniture from thrift shops, restore them and sell them at a higher price than what you bought for! If you’re who likes woodwork, it’s crucial that you find cheap furniture because it can be very time consuming to sand and paint used furniture.
How this business works:
You’ll need to save up a lot of capital in order to buy all the equipment you’ll need to run your tile installation company, but once you’re set up, getting clients should be easy! Just find a few clients to work with and you’ll be able to turn your tile installation business into a lucrative source of income!
16. Photographer Business (aka “Event Photographer”)
Do you love taking photos? Are you a digital media expert? If so, why not start an event photography company that will allow you take pictures for money? This is a great business idea for people who are passionate about photography because it will allow them to take pictures of whatever they want and make money!
How this business works:
Event photographers make their money by selling the rights to their photos. They charge an hourly rate or quote based on the cost of printing and finishing your photo orders. It’s crucial that you’re willing to work extra hours in order for your photography business to grow.
Conclusion
The business listed above are just a few of the many businesses Nigerian entrepreneurs can invest in. Hopefully this list has given you some ideas of what to do with your money, and if not, feel free to contact us for more information on how we can help you make profitable investments.
After all, Nigeria is one of the fastest growing economies in Africa today so even though investing here may seem risky at first glance it’s actually worth looking into!
Are there any other types or kinds of businesses that Nigerians should be aware of? We would love to hear from our readers about their thoughts and experiences with these different ventures.