37 Most Lucrative Small Business Ideas in Nigeria (2023)
Are you tired of working for someone else and never making enough money? Do you dream of escaping that cycle and taking charge of your own destiny? Do you want to become your own boss? If the answer is a resounding "yes," then you're in for a treat. Allow me to introduce you to Tunde, an enterprising soul with a pocketful of dreams and a burning passion for financial freedom. Armed with just 200,000 Naira, he went on a quest to find the most lucrative small business ideas that could pave the way to prosperity.
Now, let's dive into the world of possibilities that Tunde explored. What are the top small business ventures that can turn your modest investment into a successful venture? How can you navigate the Nigerian market and find the perfect opportunity that aligns with your interests and budget?
Join me as I reveal a secret list of lucrative small business ideas in Nigeria that you can start with limited funds. Get ready to discover new horizons, and empower yourself with the 37 most lucrative small business ideas to start in Nigeria. Let's get started.
Why Should I Start a Small Business in Nigeria?
There are many great reasons to start a small business in Nigeria. One of them is that Nigeria has a huge population - more than 200 million people! That means you'll have plenty of potential customers for your products or services.
But wait, there's more! Here are some other good reasons to start a small business in Nigeria:
Vast Market Potential:
Nigeria is home to over 200 million people, making it the most populous country in Africa. This large consumer base presents an immense market for small businesses to tap into. Whether you sell products or services, the large Nigerian market can help your business grow and make a lot of money.
Entrepreneurial and Innovative Culture:
Nigeria has a strong culture of entrepreneurship, where people are resilient and creative. It ranks high in global reports on entrepreneurship, showing that people there are good at coming up with new ideas and making small businesses successful. As an entrepreneur in Nigeria, you will be part of a lively community that loves new ideas and celebrates innovation.
Rapid Technology Growth:
Nigeria is experiencing a lot of progress in technology and digital innovation. It is no surprise that most people refer to our tech sector as "Africa's Silicon Valley." Many tech companies including yours truly have seen a flurry of significant strides and investments. This tech boom offers aspiring entrepreneurs exciting opportunities to capitalize on the growing digital market. The increasing adoption of mobile technology and internet penetration has created a conducive environment for e-commerce and online businesses to flourish.
Embrace the thriving market, creative business culture, and technological advancements in Nigeria. Start your small business journey with these lucrative small business ideas, and find endless possibilities ahead.
What Are The Most Lucrative Small Business Ideas in Nigeria?
Let us get right to the top lucrative small business ideas in Nigeria.
1. Offer Catering Service
Do you love to cook? Launching a catering business may be the perfect small business idea for you. You can cook from home and cater to other local events. This is a lucrative business idea that you don't need a huge capital base to start. Besides the cost of food items, you may have to also hire a few employees as you begin to book more events. Your bill and service charge should cover these expenses.
2. Start a Palm Oil Storage Business
Leveraging the palm oil trade can unlock a lucrative small business opportunity in Nigeria. Here's how: From February to April, when palm kernel prices dip, buy palm oil at a lower cost. Then, stow it away until July, the peak season, when demand surges. By reselling the stored palm oil during this high-demand period, you can enjoy substantial profit margins ranging from 50% to 60%. This strategic approach taps into the seasonal fluctuations of palm oil prices, allowing you to maximize your investment.
Embracing small business ideas like this is very simple. It is about understanding the market dynamics and timing your actions right. With careful planning and attention to price trends, you can create a sustainable source of income. This small business idea shows how a simple strategy and knowledge of local market patterns can bring impressive returns.
3. Transport Business
Many organizations in Nigeria need transportation but cannot afford to buy vehicles. Buying a bus (or several buses), can make you the go-to transportation service. Schools, religious organizations, and non-profits could outsource their transportation and logistics to you. Focusing on a sector, like education or e-commerce delivery is a good idea. You specialize, serve a lot of schools and retailers, and grow a lucrative small business.
4. Establish a Security Agency
Security is not the sole responsibility of the government. The need for excellent security services in Nigeria is on the rise. You can set up an agency, recruit professionals or become a bodyguard. Another option is to import and sell security products.
5. Invest in Property
Property investment takes more upfront capital than some other small business ideas in Nigeria. But if you have the capital, you should definitely look into purchasing land or property in Lagos. The returns can be as much as 100%-200% profit when you resell the property. You can also lease office buildings or homes and make a reasonable passive income each month.
6. Copywriting Business
The demand for great copywriting has grown significantly as businesses realize the importance of compelling content. Copywriters are sought after to create persuasive ad copies, speeches, email campaigns, and more.
Starting a copywriting business requires a good level of writing skills, creativity, and the ability to understand clients' needs. You can offer your services as an individual copywriter or build a team of talented writers. Developing a strong portfolio and delivering quality content will help you attract clients and establish a reputable brand.
7. Open a Daycare Center
Nigeria's demand for reliable daycare centers presents a unique small business opportunity. Many of these centers don't meet the high standards that parents expect. This gap in quality childcare services creates a promising avenue for entrepreneurs. You can easily start this if you have creativity, a love for children, and access to a clean and secure environment.
Embarking on this venture doesn't necessitate intricate skills or elaborate setups. What matters is your passion for providing a safe and enriching space for children to learn and play. This small business idea's foundation lies in understanding parents' specific needs and concerns. Plan smart, keep kids safe, teach creatively, and create a daycare that parents love and where kids thrive, bringing you joy.
8. Offer Web Development Services
The technology market is expanding. The United States also outsources many web-related jobs to other countries. You can learn web design and coding online and then offer web development services from home. This is one industry where you can make very good money if you're techie.
Related: Branding Tips For Small Businesses
9. Sew Specialized Uniforms or Special Items
The need for specialized uniforms in Nigeria is huge. In Lagos, there are over 500 schools and businesses with this need. There are also military and paramilitary groups with such a large demand. Sewing specialized uniforms for these groups will keep you busy for a while.
10. Poultry Farming
The agricultural sector has always been a gold mine for entrepreneurs. Poultry farming, in particular, is a profitable venture with a steady market in Nigeria. The demand for chicken, turkey, eggs, and other poultry products is constantly on the rise.
To start a poultry farm, you will need to invest in suitable housing, feeds, and the right breed of chickens or turkeys. With proper management and a specific target market, you can generate significant profits from poultry farming.
11. Rental Services
The rental services industry is a broad one in Nigeria, encompassing car rentals, event rentals (such as canopies and chairs), and even house rentals. The demand for rental services is high, especially in major towns where events take place regularly.
Starting a rental services business requires strategic planning. If you focus on renting out canopies, tables, and chairs, you can cater to the needs of individuals and organizations hosting events. Choose a suitable location and establish a strong network to ensure a steady stream of customers.
12. Snail Farming
Snail farming is a lucrative small-scale business with a high demand for snails in Nigeria. Snails are consumed in large quantities, with the country alone consuming about 7.5 million kilograms of snails annually.
Starting a snail farm is relatively easy and requires minimal investment. You can start with a small number of snails and gradually expand your business as they reproduce. With the right housing and feeding conditions, snail farming can be combined with a regular job, making it a flexible and profitable venture.
13. Sports Viewing Center Business
Sports viewing centers have become a popular business opportunity in Nigeria. Many individuals in villages, towns, and cities do not have direct access to sports channels and rely on viewing centers to watch their favorite games.
To start a sports viewing center, you will need a suitable site, a well-equipped structure, comfortable seating, and the necessary gadgets for showing games. Over time, you can build a loyal customer base and create a thriving business.
14. Makeup Business
The beauty industry has evolved significantly, with makeup becoming more than just a beauty item. It is now considered a form of creative art and an essential component for various professionals, such as models, artists, photographers, and actors.
Starting a makeup business allows you to provide makeup services for special occasions like weddings and birthday events. Additionally, you can offer makeup training classes to generate extra income. With the right skills and a passion for beauty, you can turn your love for makeup into a successful business venture.
15. Laundry Service
The laundry service business is a profitable small-scale business that requires minimal technical skills. In a fast-paced society, many people have little time to spare for laundry, making laundry services in high demand.
To start a laundry service, find a favorable location in a busy area, especially near offices where professionals have limited time for laundry. Start with a small team and gradually expand as your customer base grows. Providing quality service and timely delivery will help you build a loyal clientele.
16. POS Business
The Point of Sale (POS) business provides a fast and convenient alternative to traditional banking. Instead of queuing for hours at the bank or ATM, people can now conduct basic financial transactions at a POS machine, saving them time and effort.
Starting a POS business involves setting up stands or shops in strategic locations. By offering quick withdrawals and other financial services, you can attract customers and earn a fee on each transaction. Establishing a chain of POS stands across different areas can further expand your business and increase profitability.
17. Hair Dressing Business
Hairdressing is an evergreen small-scale business opportunity. People always strive to keep their hair in the best shape possible, making hairdressing services in high demand.
To open a hairdressing salon, you need to be a professional hairstylist or employ skilled hairstylists. Offering quality hairdressing services and recommending hair care products to clients can help you build a loyal customer base. Additionally, you can train apprentices and sell hair products for extra income.
18. Barbing Salon Business
Barbing, like hairdressing, is another thriving small-scale business opportunity. Men need regular haircuts and grooming services, making barbing salons a necessity in every neighborhood.
To start a barbing salon, you need to acquire the necessary skills or hire skilled barbers. Providing quality services, selling grooming products, and offering training can help your barbing salon stand out and attract a loyal clientele.
19. Ice Block Production
In Nigeria, where power supply is often unreliable, ice blocks are a necessity for cooling food and drinks. Ice block production is a steady business with a high demand, especially in areas with limited access to electricity.
To start an ice block production business, you will need to invest in the necessary equipment, secure a suitable factory site, hire staff, and arrange for efficient delivery. Providing quality ice blocks at competitive prices will help you establish a strong customer base.
20. Catering Services
Catering services go hand in hand with event management. Weddings, seminars, and other events require delicious meals and professional catering services.
To start a catering business, you need to have excellent cooking skills and a wide network of suppliers. Building a reputation for delivering top-notch service and creating mouthwatering dishes can help you secure contracts for various events. Embracing digital platforms to showcase your work and widen your reach is also crucial for success.
21. Pure Water (Sachet Water) Production Business
Pure water, also known as sachet water, is an essential commodity in Nigeria. It is a cost-effective and convenient option for clean drinking water, making it a staple in households, offices, and events.
To start a pure water production business, you will need to obtain the necessary permits and licenses, invest in water treatment equipment, and secure a reliable distribution network. Ensuring strict adherence to quality standards and providing prompt delivery will help you build a reputable brand.
22. Photography Business
Photography is a fun and profitable small-scale business that can be started with minimal investment. In today's digital age, the demand for professional photographers is high, with individuals and businesses seeking captivating images for various purposes.
To start a photography business, invest in a good camera, learn the art of photography, and offer your services to clients. You can specialize in events, portraits, landscapes, or even sell your images online through platforms like iStock Photo and Etsy.
23. Social Media Marketing Business
With the increasing popularity of social media, businesses and brands are looking for ways to maximize their online presence. Starting a social media marketing business allows you to help businesses reach their target audience and achieve their marketing goals.
To succeed in this business, you need a good understanding of various social media platforms and the ability to create engaging and effective campaigns. By providing innovative marketing strategies and managing social media accounts, you can help businesses grow their online presence and generate more leads.
24. Road Transport Business
The road transport sector in Nigeria is a thriving industry, with millions of people relying on road transportation for their daily activities. Starting a road transport business allows you to cater to the transportation needs of individuals and businesses.
The scope of your road transport business can vary depending on your capital level. You can choose to focus on intra-state movement within a city or expand to inter-state transportation. Providing safe and reliable transportation services and building a strong network of drivers and vehicles will contribute to the success of your business.
Blogging is a creative and profitable small-scale business that allows you to share your passions, knowledge, and expertise with the world. It is a platform where you can engage with a global audience and generate income through various monetization strategies.
To start a blog, choose a niche that you are passionate about and create valuable and engaging content for your target audience. Consistency, quality, and building a strong online presence are key to building a successful blog.
25. Ice Cream Production Business
Ice cream remains one of the most popular snacks and confectioneries worldwide. In Nigeria, the demand for ice cream is high, with adults and children consuming it regularly.
To start an ice cream production business, you will need to invest in the necessary equipment, secure a steady distribution system, and create unique flavors to cater to different tastes. Building a reputable brand and delivering high-quality ice cream will help you capture a significant share of the market.
26. Tiger Nut Drink Production
Tiger nut drink, also known as "kunun aya" in Nigeria, is a natural and nutritious beverage made from tiger nuts. It is rich in nutrients and offers numerous health benefits, making it a popular choice among consumers.
Starting a tiger nut drink production business allows you to tap into the growing market for healthy and natural beverages. You can distribute your product to eateries, local food stores, and supermarkets. Providing a quality product and effective marketing will help you build a loyal customer base.
27. Hibiscus Drink Production
Hibiscus drink, popularly known as "zobo" in Nigeria, is a refreshing and healthy drink made from dried Roselle plant flowers. It is sugar-free and offers various health benefits, making it a favorite among children and adults.
Starting a hibiscus drink production business allows you to produce and distribute this popular beverage. With the right marketing strategy and distribution channels, you can establish a strong presence in the market and cater to the growing demand for healthy drinks.
28. Scrap Metal Collection Business
Collecting and recycling scrap metal is not only profitable but also contributes to environmental sustainability. The scrap metal collection business involves gathering scrap metal materials and selling them to recycling companies.
To start a scrap metal collection business, you will need to invest in the necessary tools and equipment, such as trucks and magnets. Building a network of collectors and establishing relationships with recycling companies will help you maximize your profits.
29. Fashion Boutique Business
The fashion boutique business is a signature industry in most Nigerian towns and cities. Despite existing competition, there is always room for new entrepreneurs to make their mark in the industry.
To succeed in the fashion boutique business, focus on offering trendy and fashionable items that resonate with your target market. Establishing a strong online presence and leveraging social media platforms can help you reach a wider audience and boost your sales.
30. Sports Betting Business
Sports betting has become a popular form of entertainment and an opportunity for entrepreneurs to make profits. Nigerians, like many people around the world, enjoy betting on their favorite sports events.
Starting a sports betting shop or a chain of bet shops allows you to tap into the lucrative sports betting market. While this business comes with risks, it offers endless possibilities for growth and profitability.
31. Beer Parlour Business
After a long workday, many Nigerians like to unwind at beer parlors, enjoying a few bottles of beer and local delicacies. Starting a beer parlour business allows you to cater to this need for relaxation and socializing.
To start a beer parlour, secure a suitable location, create a cozy ambiance, and offer a variety of beers and snacks. Providing excellent customer service and promoting a friendly atmosphere will attract customers and keep them coming back.
32. Frozen Foods Business
The frozen foods business is a lucrative venture in the food processing industry. Frozen foods, such as fish, meat, chicken, turkey, and vegetables, are in high demand in Nigeria.
To start a frozen foods business, you will need to invest in a reliable supply chain, secure storage facilities, and establish relationships with retailers and food vendors. Providing high-quality frozen foods and ensuring timely delivery will help you build a strong customer base.
33. Egg Distribution Business
Eggs are a nutritious food staple that is consumed by people of all ages. Starting an egg distribution business allows you to supply eggs to retail shops, restaurants, and food vendors.
To succeed in the egg distribution business, you will need to establish relationships with poultry farmers, ensure timely delivery, and provide competitive pricing. Offering fresh and high-quality eggs will help you build a strong reputation and attract loyal customers.
34. Logistics and Delivery Business
The rise of e-commerce has created a significant demand for logistics and delivery services. Many businesses now rely on delivery personnel to transport their products to customers in a timely and efficient manner.
Starting a logistics and delivery business requires careful planning and investment in transportation vehicles and logistics management systems. Building a strong network of reliable drivers and providing excellent customer service will help you thrive in this competitive industry.
Sha don't start shipping from the U.S. and U.K. to Nigeria and put us out of business o.
35. Pastries Production Business
Pastries, such as pies, croissants, muffins, and doughnuts, are a popular choice for snacks and desserts. Starting a pastries production business allows you to cater to the demand for these delicious treats.
To succeed in the pastries production business, you will need to develop unique recipes, source quality ingredients, and invest in baking equipment. Building relationships with retailers and promoting your pastries through digital platforms can help you reach a wider audience and boost sales.
36. Dropshipping Business
Dropshipping is a business model that allows you to sell products without having to hold any inventory. Instead, you partner with suppliers who handle the fulfillment and shipping processes.
To start a dropshipping business, you will need to identify a profitable niche, build an online store, and establish relationships with reliable suppliers. Promoting your products through social media and online advertising can help you attract customers and generate sales.
Lucky for you we have a detailed guide that works you through starting your dropshipping business and even earning 7 figues in no time!
37. Mini-Importation Business
Mini-importation is an online-based business that involves importing and selling goods in your country of residence. It offers opportunities to provide consumers with quality products at competitive prices.
To start a mini-importation business, you will need to identify reliable foreign online stores, choose quality products, and navigate customs regulations. Developing a strong network of suppliers and ensuring timely delivery will help you succeed in this business.
In Nigeria, the opportunities for small-scale businesses are endless. Whether you choose poultry farming, rental services, or photography, success is within your reach. Embrace your entrepreneurial spirit, identify your passion, and start your journey towards building a thriving business. With dedication, hard work, and a customer-centric approach, you can unlock the doors to entrepreneurial success in Nigeria's dynamic business landscape.
As you grow through referrals and sales, Heroshe has your back. Ship your items from the U.S. and U.K. to Nigeria and Ghana for only $8 per pound with no hidden fees. You can buy quality products from websites like Amazon, eBay, get products delivered to your doorstep, and resell to clients without stress!
To begin, you can watch our video explaining the process or sign up right away. And if you are looking to scale up to mini importation, we have a comprehensive guide available for you to read and get started.
These are only thirty-seven out of the long list of lucrative small business ideas to start in Nigeria. Find a lot more valuable insights on the Heroshe blog. Don't miss out—subscribe now for in-depth advice on growing your small business!