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Rising Africa: 10 Lucrative Businesses in Nigeria

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Here is a list of ten of the most profitable small businesses opportunities in Nigeria.

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Published in: Business, News & Politics

Rising Africa: 10 Lucrative Businesses in Nigeria

  1. 1. Poultry Farming • Huge Market- With 100 million Consumers for poultry products • Chickens are ready for Market in 28-30 weeks • Less time span helps investors garner ROI quickly • Loan repayment will be easier as investment mature faster • Chicken is worth 2000-2500 Naira • Egg market meanwhile continues to be attractive
  2. 2. Building Material Supply Business • Nigerian Economy is one of the fastest growing in Africa • The economy is the largest in Africa with GDP worth $510 billion • Construction industry is only 3.2 % of GDP, is to grow the faster • Massive urbanisation will lead to boom in material supply • Focus on marketing aggressively as it can be a highly competitive field • Get good location, and network of suppliers and buyers • Initial investment will be high, with attractive returns
  3. 3. Rice Farming • Huge market- Demand is so high that Government imports rice • In 2013 rice importation bill was at N75 billion • Rice consumption increased in last 2 decades • Government policies like NFSP to support rice production in Nigeria • Huge thrust given to Agribusiness sector • Takes less than 4 months for harvesting hence quick returns • Rice is a high yield crop and requires not much expertise • Rice is a fast selling product hence its called 'Get Rich Quick Farming'
  4. 4. Oil & Gas Business • Huge international market- Demand for oil & gas is high • This is a risky but high return business • Multiple opportunities – Oil Drilling & Exploration – Equipment leasing – Filling stations – Oil & Gas consulting – Contract basis Petroleum supply – Oil & Gas services-safety, monitoring, installations etc. • Huge potential due to the large oil reserve found in Nigeria
  5. 5. Hotel Business • This industry is understood by analyst to be profit making • Nigeria witnessing economy growth and political stability • Above factors will lead to increase in tourism and other travels • For tourists Nigeria is becoming a choice destination in Africa • Now hotels can be classified in terms of location, quality and size • Some examples are Airport hotel, business hotels, Condo hotels, Conference hotels, Resort hotels , Suite hotels • Entrepreneurs have to decide on hotel type based on initial capital and operational constraints they foresee
  6. 6. Property Investment • Government announced plans to build several cities in the next few years • The focus on infrastructure development will boost property rate • There are plans to develop satellite cities around FCT • Increasing demand for high-end office space, retail space and affordable residential housing • The growing expatriate population and the emerging middle class is boosting the demand • As Nigeria’s economy grows, lucrative investment opportunities for property investors are going to rise
  7. 7. Internet Based Companies • This is one way to get maximum return on investment • The market here can be domestic as well as international • The reach of internet makes this business an attractive proposition • To start with you have to identify a business problem • Once identified next step would be find a web based solution • Here are some examples of internet based businesses – Website designers – E-commerce – Promoting copyright products – Social media marketing
  8. 8. Water Purification • The government has failed to deliver basic drinking water to each household • Nigeria is seeing a steady increase in population • One can foresee a huge demand for water purification business • Currently 2 ways of delivering are through bottles and sachets • Sachets seems to be more affordable for the poor • Whether bottle or sachet can be decided based on capital availability • The setup capital will be between 5 million to 10 million Naira • Getting loan will be easier for this business
  9. 9. Furniture Business • As economy is growing the middle class is also rising • Lot of offices and houses are coming up in urban areas • These spaces will need furnishing • Nigerian furniture is more affordable than imported designer furniture • Entrepreneurs should focus on Nigerian furniture market • Analyst say N200,000 is the minimum capital requirement to start • Ibukun Awosika - the founder of Quebees Ltd, and Chair Centre Ltd is a great example to emulate • 3 major requirements are Raw materials, Carpenters and Showrooms
  10. 10. Restaurant Business • Entrepreneurs can target small scale restaurants to start with • Small scale restaurants will require low startup capital • One can say that this business will withstand any economic crisis • Industry experts say that with N300,000 you can start a local restaurant • The profit returns are also high in this industry • Minimum requirements here are, – Location – Utensils and other instruments – Furniture – Excellent cook
  11. 11. References • http://www.wealthresult.com/ • http://telegraphng.com/ • http://pointblanknews.com/ • http://business-matter.com/ • http://www.tradeinvestnigeria.com/ • http://www.nigeriawebsuccess.com/ • http://pixabay.com/ for images
  12. 12. Mara Foundation’s Ambition We enable, inspire and empower ambitious entrepreneurs in Africa. With the support of our Mara Mentors we will: Inspire millions of young people in Africa to become entrepreneurs. Teach entrepreneurs new skills. Enable entrepreneurs to turn business ideas into a reality. Guide business owners to grow businesses and hire (more) employees. Empower entrepreneurs by providing a platform to showcase their business and build their network.
  13. 13. THANK YOU Website: mentor.mara.com App: iTunes, Blackberry, Android, and Nokia. Customer Support: support@mentor.mara.com Mara Foundation is supported by a number of partners, including:

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