What is the Best Business to Start in Nigeria in 2024? |Golden News

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

The Franchise Business

Opting for a franchise can be a wise decision for now. As a franchisee, you collaborate with a company that already has a successful business model. The franchisor should offer expert advice and guidance during the startup and operation of the franchise. While hard work and good management on your part are still necessary, this approach eliminates the need for trial and error, improving your chances of success.

Cash Scarcity : CBN Reveals Those Behind Cash Scarcity, Imposes N150m Fine

How to Land Your First SME Bank Loan

Choosing a known brand and leveraging its reputation during your business launch is another advantage, sparing you from an initial period of uncertainty as you establish your presence in the market. Additionally, you benefit from economies of scale; for instance, franchisors often make bulk purchases, allowing you to obtain supplies at a lower cost compared to individual buyers.

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.

They stand out because:

1. Significant Capital Required: A substantial amount of money is needed.

2. Large Overhead: There are significant ongoing operational costs.

3. Borrowed Capital Must Be Repaid: Any borrowed money must be returned.

4. Large Time & Expense Requirements: It demands considerable time and resources.

5. Management Problems: Challenges include overseeing operations, meeting supervision demands, and difficulties in hiring and retaining competent managers.

If you own a smartphone and a laptop, which is quite likely in today’s world, you’re in the right place! Phixman has revolutionized the concept of ‘repair’ by making it easy, efficient, and accessible to everyone. They excel at making smartphone repairs a breeze. Whether your smartphone or laptop has a damaged screen, missing parts, or any issue affecting its performance, Phixman will fix it for you. They aren’t limited to smartphones; they also repair tablets.

What sets Phixman apart is their ability to handle every brand of smartphone and laptop available in the Indian market with rates and quality that are unmatched. Just give them a call, and their representative will come to your doorstep to collect your device in need of repair.

Unlike other repair shops where you might have to wait for 2-3 days to get your smartphone or PC fixed, Phixman gets it done in a day, and that too under warranty. This includes major brands like Apple and Samsung. There’s nothing they can’t handle when it comes to smartphones and laptops.

List of Profitable Business to Start in Nigeria in 2024?

Nigeria remains a hotspot for entrepreneurs and investors, being the largest economy in Africa and a top destination for Foreign Direct Investment. South African and Chinese companies are eager to invest in Nigeria due to its rapid economic growth.

To boost self-sufficiency and decrease imports, the country needs to enhance its manufacturing and agricultural sectors. Here are some profitable and lucrative business ideas in Nigeria.

1. Mining

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.

2. Setting up a private mini refinery

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.

3. Importation of wears

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.

4. Training centers

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.

5. e-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.

6. Waste Management

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.

7.Alternative Power Installation

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.

8. Food processing

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 Business Landscape in Nigeria

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.

2. Partnership: A business owned by two or more individuals.

3. Companies: Businesses with a share capital of N10 million.

To attract foreign investors, Nigeria has established free trade zones where foreigners can establish businesses without government tax obligations and custom duties. The federal government initiated these zones to stimulate industrial growth and create job opportunities.

Currently, Nigeria has 17 active free trade zones located in states like Calabar, Port Harcourt, and Lagos. The country has formed business partnerships with investors from the United States of America, United Kingdom, Canada, and China.

Summary

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.