Last Updated on: 26th April 2020, 04:16 pm
Have you ever wondered what the most profitable businesses to start in Nigeria are? Maybe you wish to start a business, but you want to sure about what works and what doesn’t in Nigeria.
There are lots of businesses out there. Some of them are untapped in this part of the world. Some are more profitable than others. Therefore, it is quite important to carry out proper research before starting a business. This will enable you to have an ample understanding of the amount of profit you’ll make when you dive in.
In this post, I’ll share with you 7 Most Profitable Businesses to Start in Nigeria. If you are new on this blog, please consider subscribing here to get notified as soon as we publish useful content like this.
7 Most Profitable Businesses in Nigeria
1. Food Services
Food is one of the major needs of mankind. People will always eat no matter how rough the economy gets. A food business is a very sustainable business. It is also easy to start, depending on your intention. It is a booming business in every part of the country. At least 40% of adults eat in restaurants daily. This should tell you how viable the food industry is.
Even if you are not directly involved in the cooking process, being a supplier of the raw materials (for cooking) could earn you a decent income. Most people have made a good fortune from the food industry.
Let’s take Lagos for an example. It is very common for people to leave their houses very early in an attempt to escape traffic congestion. Most of these people do not have the time to prepare and eat meals at home.
This is where the restaurants come in. They serve different delicacies to this category of people, saving them from the stress of cooking their own food. By so doing, it becomes a win-win situation. They provide food for people and these people pay them money.
It is worthy of note that the location of a food business also affects how profitable the business would become. A food business is more profitable in urban areas and cities than in rural areas and villages.
These days, most people have taken their businesses online. I was impressed when I observed one of my Facebook friends that runs a restaurant posting her meal menus online. This single act has brought her a lot of customers, and she is becoming more and more popular because she gave her food business an online presence.
Even in the future, the food business will never lose its value. This is because humans need to eat to survive.
2. Real Estate
This is another profitable business in Nigeria. Housing has been a major challenge in the country for decades. Some people have seen this need and decided to tap into the lucrative niche.
Real estate involves the purchasing of lands and development of the same, for the purpose of selling or renting at a reasonable profit margin. This is a very lucrative business, especially in urban areas and cities. This business has fetched people millions of naira especially those that are in it full time.
Most people prefer buying already built and furnished houses instead of wasting time or passing through the stress of building one themselves. Also, people need office spaces for business, and if you can provide one for them in a comfortable location, they’d gladly pay you for it.
Real Estate business has become like a trend in cities like Lagos and Abuja. There are even companies that are solely into real estate development and they are making a ton of money.
People flock to cities in search of greener pastures. When they eventually succeed, they’ll prefer living in a place that is comfortable and close to their workplaces. This makes real estate (development) one of the most profitable businesses to start in Nigeria.
This business is very lucrative. It involves the importation of goods and selling them in Nigeria for a reasonable profit. Thanks to the Internet, it has become fairly easy for anyone to venture into the mini-importation business.
Websites like Amazon, AliExpress, and Alibaba are leaders in the mini-importation world. You can easily import items like computers, clothes, shoes, gadgets, phones, etc. and sell them for huge profits.
I had been into this business for some years. I would order for items like watches and flash drives on AliExpress. After receiving the items at the local post office, I would normally sell them to friends or on online platforms like Jiji, Jumia, and Konga. I made cool cash from this business.
This is a short form of Web Log. It involves writing articles, commentaries, description of goods or services or the likes and posting them on the Internet. This business doesn’t require a huge capital investment. It is one of the easiest ways to make money online. It requires just a phone or computer and an Internet connection. This website you are surfing is a typical example of a blog. You are here to read useful content and somehow, the owner of the website will make money.
You might wonder, how do people make money from blogging in Nigeria or what makes blogging one of the most profitable businesses in Nigeria? The answer is simple. A blog generates income through advertisements, sponsored posts, sales of products (physical or digital), referrals, etc.
Even top newspaper companies like Punch, Vanguard, etc. have resorted to blogging since they realized its potential for making them huge profits.
The key is to post useful content, get traffic and engagements, and monetize the blog and who knows! You could become like Linda Ikeji, making millions monthly.
5. Building Private Schools
School education is a necessary door that every student must pass through. No matter how many schools exist in a town, there will always be room for another one especially if it comes with high standards of learning coupled with a conducive environment.
Every good parent wishes his/her children to become useful in the future. As such, qualitative education for their children is one of their top priorities. For those that can provide these education services through schools, the sky is only a starting point for them when it comes to making money.
Most parents are willing to pay huge amounts of money just to give their children a qualitative education. Also, for those parents that love prestige and high social status, expensive private schools are definitely the pick for their children.
There are some schools in Lagos and Abuja that costs as much as half a million naira per term, yet people are still sending their wards there. This proves without a doubt that investing in private school education is very profitable, especially in urban areas and cities.
6. Transport Services
If I told you this is one of the most profitable businesses to start in Nigeria, I’m sure you wouldn’t doubt it. Little wonder new transport companies are springing up in almost all states of the federation. Thanks to the search for greener pastures, many people have become frequent travellers. From students to workers to business people, everyone seems to be travel year in, year out.
Transport services have now grown beyond just carrying passengers. Now, there are even transport companies who incorporate the transportation of goods into the list of services they render. This makes this business very lucrative. I cannot count the number of times I have travelled in the last few years.
These days, it is even easier to book and receive travelling tickets online, as most companies have embraced online payments. This has increased the number of bookings for them and generated more profit for them.
And how about Uber, O-ride, Bolt and the likes who have stormed the country recently with their seamless passenger transportation services? They have apparently seen that the transportation industry is an evergreen niche and joined the competition in a very advanced manner that involves using phones and gadgets to book rides within and outside cities.
If you are thinking of starting a business, consider starting a transport company.
7. Poultry Business
This business involves the rearing of birds for meat, eggs, feathers, and manure. Many people have invested and enjoyed the dividends of this business. Even a former President of Nigeria, Chief Olusegun Obasanjo has a poultry farm and is making millions from it.
Over 80% of the Nigerians (especially pupils and students) eat or have eaten chicken meat and eggs. And yes! How many Nigerian parents haven’t served their family with chicken and/or eggs especially during festive seasons? In fact, it has become a trend in the country for people to serve chicken meat during occasions and special events.
The poultry industry is a very large one and isn’t reserved for only the retailers and consumers. How about the veterinary meds, the poultry feed producers and the scientists that come up with innovations in this industry?
Poultry business is a very profitable business. It is easy to start with low capital investment. It isn’t seasonal like some businesses, and this makes it very lucrative.
Do you know of other profitable businesses to start in Nigeria?
Have you had any experience with the businesses listed above?
Kindly share your contributions and suggestions in the comment section below.
To your success!