What Business are in High Demand in Nigeria?
Want to know What Business are in High Demand in Nigeria? You have to understand that starting a business in Nigeria comes with its fair share of challenges, given the economic and political complexities.
Aspiring entrepreneurs should be cautious not to adopt misleading ideas, especially when it comes to new media and technologies. Sustainability on a larger scale is crucial.
In the face of Nigeria’s economic and political issues, the key to success lies in offering solutions. The future of business in Nigeria belongs to those who can simplify and improve the business process.
Whether through products or services, the focus should be on helping investors save money from the get-go and continue to cut costs until they start seeing tangible returns.
In simpler terms, for startups to thrive in Nigeria, they need to be problem solvers. By finding ways to make business easier and more cost-effective, entrepreneurs can navigate the challenges and build sustainable ventures in this demanding economic environment.
1. Tech
Nigeria is gearing up for the tech revolution, as evident from the recent visit of Facebook’s founder and CEO to Lagos.
With a thriving digital economy and a hunger for technology, investing in incubation hubs and tech centers seems to be the way forward.
Plus, being one of Africa’s biggest tech consumers, there’s a rising demand for after-sales repairs and maintenance services.
In this tech-driven landscape, here are some practical online business ideas that could flourish in Nigeria:
- E-commerce: Open an online store selling popular items like fashion, electronics, beauty products, and home essentials.
- Digital Marketing: Provide digital marketing services to local businesses, helping them establish an online presence and reach a broader audience.
- Online Education: Create and sell online courses or tutoring services on subjects like technology, business, or language learning.
- Freelancing: Offer your skills as a freelancer in areas such as writing, graphic design, programming, or social media management.
- Food Delivery: Launch a platform for ordering and delivering food from local restaurants to customers’ doorsteps.
- Agricultural Products: Develop an online marketplace connecting farmers with consumers for buying and selling agricultural products.
- Health and Wellness: Set up an e-commerce store selling health and wellness products or provide online fitness and wellness coaching services.
- Real Estate: Build a website for listing and renting/selling properties, tapping into the growing real estate market.
- Fashion and Accessories: Design and sell unique fashion items, clothing, or accessories through an online store.
- Mobile Apps: Develop and launch mobile apps addressing specific needs in the Nigerian market, such as transportation, entertainment, or finance.
2. Real Estate:
With the population steadily rising, housing is in high demand. Mortgage facilities are scarce, making large-scale housing projects a golden opportunity for investors. The growing middle class adds to the market potential, making real estate a lucrative venture.
3. Photography:
Despite challenges, people in Nigeria always find reasons to celebrate. Whether it’s weddings, birthdays, or other events, photography is a great business. Whether part-time or full-time, being a photographer can be a cool and profitable way to earn money.
4. Bush Bar:
A simple yet effective idea is to create a “Bush Bar.” With minimal setup costs, this outdoor bar attracts people looking for a casual place to enjoy drinks. It’s a hit with the locals, offering a low-cost investment opportunity.
5. Catfish Supplies:
The demand for catfish is high, especially in entertainment spots. Setting up a catfish farm locally can tap into this demand, reducing the need for imports from the West.
6. Restaurants:
Given the population’s eating habits, restaurants, ranging from posh to neighborhood setups, thrive. Establishing a restaurant along the food supply chain can be a lucrative business, meeting the diverse needs of consumers.
7. Healthcare:
With a growing population and a sizable middle class without health insurance, investing in healthcare is a smart move. From pharmacies to multi-specialist hospitals, there’s ample opportunity to provide essential services.
8. FMCG (Fast-Moving Consumer Goods):
The FMCG sector, including items like soaps, toothpaste, and alcohol, thrives in a populous environment. Opening a shop and selling these everyday goods can create a sustainable business ecosystem.
9. Logistics/Transportation:
The logistics and transportation sector, a multi-billion Naira industry, offers substantial employment opportunities. With an upwardly mobile youth force, this sector is particularly promising, especially in cities like Lagos.
10 Professional Clothes Hiring:
Not everyone can afford new clothes for every occasion. A professional clothes hiring business meets this need, allowing people to rent well-fitted clothes for various events. It’s a practical and cost-effective solution.
Factors You Should Consider Before Starting a High Demanding Business in Nigeria?
Nigeria, as a developing country, has a wealth of mineral resources, but we face significant challenges due to improper management, especially in Maintenance and Storage. These issues often lead to wastage, hindering our progress.
For anyone dreaming of being the “next big thing,” it’s important to consider and address these challenges. Here’s why:
What are the Problems Facing Businesses in Nigeria Especially High Demanding Business in Nigeria?
Nigeria, being the most populated nation in Africa, has seen steady economic growth in recent years, with over 80% growth in the economy due to GDP restructuring.
However, for entrepreneurs and investors looking to do business in the country, there are several challenges to be aware of. Here are the main issues:
1. Lack of Infrastructure and Enabling Environment:
The Nigerian business environment lacks essential amenities and infrastructure crucial for business development. Entrepreneurs often find themselves having to provide their own buildings, water supply, and logistics. This results in increased costs and longer startup times. Overcoming this challenge requires careful planning and budgeting for these necessities.
2. Poor Power Supply:
Power outages are a major issue affecting businesses, from large corporations to small enterprises like barbers or tailors. The solution often involves investing in costly alternatives like solar plants or generators, leading to increased expenses for the business. To overcome this, businesses need to factor in alternative power sources in their budgeting and explore energy-efficient technologies.
3. Poor Transport Network:
Inadequate transportation infrastructure poses challenges in getting goods from warehouses to consumers. Bad roads can lead to delays and damage to goods in transit. Businesses should plan for these challenges by optimizing their supply chain, considering alternative transportation methods, and staying informed about the state of transportation infrastructure.
4. Poor Access to Funds:
Securing financing is a significant hurdle for many entrepreneurs in Nigeria. Banks may be hesitant to lend to startups, citing lack of experience or trust. Overcoming this challenge involves thorough business planning, seeking alternative funding sources, and exploring government-backed financing programs. Entrepreneurs should also carefully evaluate loan terms to ensure they align with the business’s financial capabilities.
5. Not Enough Government Support:
Registration processes, high taxes, and administrative bottlenecks can hinder business startups. Entrepreneurs should navigate these challenges by seeking guidance from business registration experts, exploring available government support programs, and staying informed about tax incentives or exemptions. Building a network within the local business community can also provide valuable insights.
