What is the Best Business to Start in Nigeria in 2024?

What is the Best Business to Start in Nigeria in 2024? A successful business idea in 2024 should use technology to meet current market needs. This could involve unique applications of artificial intelligence or big data, addressing societal concerns like sustainability or remote work. It must be financially viable, scalable, and adaptable to changing market conditions, allowing for adjustments in business models or product offerings. 

In Nigeria, you can run successful businesses such as transportation (interstate or intrastate), executive transport services, or even food businesses selling raw materials or cooked food. Event management is also lucrative, with wedding planners organizing high-profile weddings for elites earning substantial income. Various options include investing in real estate, like buying land to construct a shopping complex with rental shops or building an events center for rental purposes.

The possibilities are diverse, providing opportunities for different entrepreneurial ventures and the ability to leverage emerging technologies is also necessary for long-term success. Achieving profitability in a business depends on the efforts of the investor, entrepreneur, or business owner. For your business to be considered successful, it’s essential to dedicate time and hard work to it. Success is a result of the commitment and energy you put into your business endeavors.

Next comes the task of securing a bank loan, and banks generally favor lending to franchisees associated with a reputable franchise with a strong track record. According to lenders, the performance of a proven franchise operation is usually more predictable and, based on statistical evidence, entails less risk than that of an independently owned business.

The franchise business is currently thriving, and my recommendation for the best franchise in this period is a company that consistently achieves success through its work ethic and commitment to meeting customer needs on time. A highly appealing option is Phixman, a noteworthy firm in India.

Nigeria, rich in resources like Limestone, Coal, Iron ore, and Bitumen, offers opportunities in the mining industry. The government, aiming to boost this sector, implemented policies such as duty-free importation of mining equipment in June 2013. Additionally, efforts are underway to engage dormant investors holding mining licenses. With financial capacity and a team, entering this sector by registering with CAC presents a potential for growth.

Exploring business opportunities in the oil and gas sector, building a private refinery for crude oil refining is a promising venture. In 2023, the federal government began the partial removal of fuel subsidies, signaling a move towards complete removal. This shift means petroleum product importers will compete, ending the practice of subsidized sales. Given that 80% of Nigeria’s petroleum products are imported, entering the refining business presents substantial potential.

Clothing remains a fundamental necessity, and there’s a rising trend in the market for “Used clothes” or “Okirika,” driven by economic challenges. People opt for second-hand clothes in the face of financial constraints. However, there’s still a demand for new clothes across various demographics. You can explore sourcing materials from international markets like China, Hong Kong, Italy, France, Dubai, and India to start a profitable clothing business for men, women, and kids.

In Nigeria, where millions take exams annually, there’s a lucrative opportunity in providing training and tutorials. Position yourself as a training provider for various needs, such as skill and vocational acquisition, corporate management skills, and exam preparations like CCNA, CCNP, ITIL, and general IT topics. Capitalize on the demand for educational support and make money in this niche by offering valuable and targeted training services.

In Nigeria, the growing tech scene presents an opportunity for entrepreneurs to offer e-services. If you’re tech-savvy, consider setting up shop to provide services like web design, web hosting, app development, digital marketing, SEO, banner design, bulk SMS, and online registration for exams such as JAMB and WAEC. Leverage the increasing demand for online solutions and capitalize on the digital landscape to offer valuable services to clients in Nigeria.

Waste management is a promising business in Nigeria, given the current lack of widespread proper waste disposal practices. Lagos and other states are making efforts to promote better waste management. Opportunities in this niche include waste recycling, disposal services, junk hauling, and organic fertilizer production. Starting a business in waste management not only contributes to environmental sustainability but also taps into a growing market with various potential ventures.

In Nigeria, the growing demand for alternative power sources, such as solar energy, windmills, and inverters, presents a lucrative opportunity. Despite government efforts to deregulate the power sector, challenges persist. Entrepreneurs can tap into this demand by importing and retailing power generation equipment or focusing on installation services. The need for reliable and sustainable power solutions remains high, making the alternative energy sector a promising venture for those looking to contribute to addressing power challenges in Nigeria.

The food processing industry in Nigeria offers various lucrative opportunities by transforming raw food materials into finished products. Entrepreneurs can explore businesses like tomato puree production, frozen food production, yogurt production, vegetable oil production, garri processing, oil palm processing, groundnut processing, fruit juice production, rice milling, and more. This sector provides a diverse range of options for those looking to venture into food processing, contributing to both economic growth and meeting consumer demands for processed food products.

The Corporate Affairs Commission is a federal organization in charge of business registration in Nigeria, catering to businesses of all sizes. The majority of businesses in Nigeria fall under the categories of small and medium-sized enterprises (SMEs).

For those interested in doing business in Nigeria, various business forms are available, and this guide outlines the options available for entrepreneurs.

1. Sole Proprietorship: A business owned and operated by a single person.

In 2024, successful businesses in Nigeria leverage technology for sustainability and adaptability. Opportunities span transportation, food services, real estate, and franchises, with Phixman recommended for its consistent success. Diverse sectors like mining, private refinery, clothing importation, and waste management offer profitable avenues. Navigating the business landscape involves choosing suitable business forms and capitalizing on free trade zones to attract foreign investment.