While there are many businesses in Nigeria, it is important to search for lucrative and profitable businesses as an intending entrepreneur with low capital. Once you venture into a lucrative business with low capital, you will be able to make a profit with ease, enabling you to scale up your business over time.
Nigeria, as the most populous country in Africa, has numerous lucrative business opportunities for individuals who wish to go into business. So, as a Nigerian, there are a vast array of lucrative businesses that you can venture into, ranging from crop production and storage businesses to the sale of fairly used clothes. However, to achieve success in one of these lucrative businesses, you will need to identify the business needs of your environment and propose solutions to them by starting your own business.
Factors to Consider when Starting a Business in Nigeria
Some of the factors that you should take into consideration when starting a business in Nigeria include:
- Identify the business needs of your immediate surroundings.
- Identify the goods or services that are highly sought-after in your region.
- Locate a strategic place to rent your shop.
- Understand the seasonal changes in your business if it is season-dependent.
Top 10 Most Profitable Businesses in Nigeria with Low Capital 2024
There are lots of profitable businesses in Nigeria that you can start with little capital. The businesses are enumerated below:
1. Crop Production
In Nigeria today, there is an increasing demand for cash and food crops. Hence, crop production is very lucrative and profitable. Since there are lots of fertile lands in Nigeria that are underutilized, starting up a crop production business is cost-effective.
However, before you start a crop production business, it is important to know the kinds of crops that will do well in your region. For instance, crops that yield well in the northern part of the country may not do well in the southern part. So, it is vital to identify the land texture in your region and know the crops that would do well when planted.
Additionally, you also need to know the lifecycle of the crop that you want to produce, since many Nigerian crops are seasonal. Some crops need excess water; hence, they must be planted during the rainy season, while others may not require much moisture. So, you should know the requirements of the particular crop that you want to produce. Some of the crops that you can consider producing include cassava, beans, yams, rice, fruits, vegetables, etc.
The amazing thing about crops in Nigeria is that they are always in higher demand year-round. So, if you plant any crop and nurture it to maturity, you’re definitely going to earn lots of money from it. And guess what? With as little as N50k, you can start producing any crop of your choice.
How to Start Crop Production
To get started, do this:
- Look for a portion of land to use
- Identify the crop that will do well on the chosen portion of land.
- Prepare the land and plant the crop
- Nurture the crop properly by weeding and caring for it steadily.
- Wait for its maturity and harvest your crop
- Sell your crop and make profits.
2. Poultry Business
This is another lucrative business that an intending entrepreneur can still consider. Not only is the business cost-effective, it is also highly profitable. Rearing of birds or fowl in Nigeria has lifted many people from poverty.
Although poultry farming is time-consuming, it is worth it because of its profitability. It is a profitable business that you can start with less than N100,000. What makes this business profitable is that the market price is not fixed; hence, it fluctuates in line with people’s demand, enabling sellers to earn lots of profits.
Just imagine where you buy a day-old chick for around N300, rear it for about 3 months, and resell it at a rate of between N8000 – N10,000 each. This is a whole lot of profit, isn’t it? It is a very profitable business, although you may encounter some losses if you don’t take care of the birds properly. The good thing about the poultry business is that it is not seasonal, so you can do the business anytime of the year.
How to Start Poultry Business
Follow the steps below to start poultry production
- Get a portion of land
- Fence the land and put a small roof on it to protect the birds from adverse weather condition
- Put light source
- Prepare a cage for the birds
- Buy birds and put them in the cages.
- Give them food and water regularly, and ensure that the environment in which you keep them is neat.
- Rear them for about three to four months.
- Once they are mature, sell them and make a profit.
3. Foodstuff Business
Selling food items is another lucrative business that you can earn a living from. The demand for foodstuffs is always on the increase since people eat to live healthy. As an intending entrepreneur, you can start selling food items and make a fortune from them.
There are different food items that you can start selling ranging from rice, beans, yam, garri, semovita, etc. You can start the foodstuff business with any amount of money since there is no fixed price for the business. If you want to make more profit from this business, you can travel to villages where these food items are produced in bulk and buy them at a cheap price while you resell them at a higher price. As I noted earlier, it doesn’t cost much to start this business, and the return on investment is very high.
How to Start Foodstuff Business
Starting a foodstuff business is quite easy. Follow the simple steps below:
- Identify the food items that are scarce in your locality but are highly sought after.
- Rent a shop in a strategic place.
- Buy the food items from wholesalers or go to the nearest village to buy them.
- Stock your shop with food items.
- Start selling the food items and making a profit.
4. Pure Water Business
Another profitable business with low start-up capital is the pure water business. The business involves buying sachets of water (aka pure water) from wholesalers and reselling them at a higher price.
Depending on your location, you can decide to rent a shop and start the business or use a truck to carry the sachet water around while interested individuals buy from you. This business is very profitable, and the start-up capital can be less than N100,000 if you want to start it in a small way. This business is very lucrative, especially during the dry season, when people normally feel thirsty. To increase your sachet water sales, you may need to buy blocks to cool the water if you can’t afford a refrigerator to keep them cold. If your pure water is always cold and you’re store is located in a strategic place, then there is a likelihood that you are going to make more sales.
5. Restaurant Business
The sale of food is another lucrative business with low capital that is very profitable in Nigeria. Since some people find it easy to prepare their own food for various reasons, the restaurant business has become the main source of income for those who engage in it.
Although you don’t need to break the bank before starting the business, it is a bit stressful to run and maintain a restaurant business. Hence, before you engage in it, it makes sense to survey the business very well to ensure that you will cope with the stress that may emanate from it.
Additionally, starting this business requires you to be knowledgeable in cooking different varieties of native soups like egusi soup, oha, ewedu, draw soup, etc. Not only that, you should also know how to cook different kinds of rice, like jollof rice, fried rice, and any other native delicacy that is widely consumed in your region.
To make more sales and build a large customer base, ensure that your food is always yummy and delicious. Once you are able to have a large number of returning customers, you are definitely going to make more sales, which will increase your profits.
6. Provision Store Business
Provision stores are another lucrative business that can be started with little capital. The business involves buying provisional items like bread, biscuits, soft drinks, etc. from large wholesalers and reselling them at a higher price. However, to make more profit from this business, you will need to rent a store in a very busy area where there is enough human and vehicular movement.
Before starting this business, you will need to survey your immediate surroundings to identify the provisional items that are highly sought after so that you can buy and resell them to make your profits.
However, if you’re a mother with children, you may need to employ control measures that will stop your kids from consuming the items on a regular basis so that they won’t finish eating them, which may lead to reduced profit.
7. Dry Cleaning Business
Another lucrative business that you can start with low capital is the dry cleaning business. This business is highly lucrative since some people find it difficult to do their laundry. So, if you are detailed-oriented in washing, drying, and ironing clothes, then it won’t be a bad idea to start a dry cleaning business.
Although the business may require lots of capital for professional laundrers, you can still start the business with less than N100k, especially for beginners, and scale up the business over time. To start this business, you will need to get some laundry items, like washing machine, pressing iron, detergent, etc. You will also need to rent a house in a busy environment where people can locate you with ease.
8. Rice Storage Business
The rice storage business is an excellent business that you can start with less than N100k and earn a fortune from. Unlike other aforementioned businesses that may be time-consuming, the storage business is not time-consuming since you can just spend a few days during the rice harvesting period to buy the quantity of rice that you need and then resell it when the price goes up.
To make more profits from this business, you need to know the rice harvesting season since rice production is seasonal. Once you know these seasons, you will be able to buy rice during that period at a very cheap rate. In most parts of Nigeria, rice harvesting normally starts from September to December, depending on when the rice was planted. If you buy rice within this period, there is a high probability that the price will increase during the rainy season, like from April to August. This business is very profitable, and it is idle for someone who needs a second source of income.
There is no special skill required to start this business; just know how to negotiate prices and know the different rice species, and you are good to go. You can buy and store the rice in your house and resell it when the price goes up. Rice is highly sought after in Nigeria; hence, there is a tendency that the prices will keep going up, especially now that the board is closed.
9. Okrika Business
Selling fairly used clothes is another profitable business that pays handsomely, and you can start with as little as N50K. This business is thriving in Nigeria because low-income earners can’t afford new clothes, so they resorted to buying Okrika clothes. This business requires very little capital to start because you may not necessarily need a shop to start it, and there is no skill required to start it.
To start this business, just link up with individuals who are already into the business so that they can guide you on where to get the fairly used cloth at a cheap rate. If you don’t have money to rent a shop, you start selling your clothes by the roadside. With time, you can scale up your business and rent a shop for your okrika materials.
10. Event Planning
If you have organizational skills, then the event planning business can put good food on your table. It is a profitable business that you can start with a small amount of capital. You don’t need to spend much to start this business; all you need to do is create awareness of your business so that you will be visible to people who need your services. You can create awareness by printing fliers and running advertisements on different social and electronic media.
Once people know about your services, you will get offers from people preparing for special functions like weddings, special anniversaries, burials, etc. to help plan for their events, and you will be able to make your fortune from it.