In this series, we look at the 10 most profitable businesses in Nigeria. Any of these business ideas can make you rich especially if you do them well.
It is essential to carry out proper business research before investing in any business. This arms the investors with the right knowledge that enables them plan effectively in order to record good success.
There are many advantages of setting up a business in Nigeria, some of which include profit making, meeting the needs of people, providing employment and contributing to the economic growth of the country.
10 Most profitable businesses in Nigeria
Potential investors will find this article useful because it is brief guide on profitable investments in Nigeria. The first area of investment with high return of investment is:
Agriculture remains number one among other most profitable businesses in Nigeria. Nigerians have neglected agriculture for too long, our primary focus has been on the oil and gas sector, we rely solely on oil for growth and development and this explains why we aren’t moving forward as a nation blessed with diverse resources.
Since the government has failed to diversify the economy by investing and boosting agriculture, private investors are encouraged to plunge into this gold mine.
Lots of agricultural products Nigerians consume in large quantities like chicken, fish and rice are exported from other countries because production and supply of these products are limited.
There are different branches of agriculture that guarantee high returns of investments, some of theme include poultry farming which so lucrative that it has attracted lots of investors; Cassava and rice farming because they are the most consumed staple food in Nigeria with a consistently high demand; snail rearing, piggery, fishery and cattle rearing.
2. Oil and gas business
Nigeria is one of the largest producers of oil in West Africa; there is a huge deposit of oil which has provided the most lucrative business opportunities for our government and entrepreneurs alike.
Marketing petroleum products may be capital intensive but it is a very lucrative business that made lots of entrepreneurs millionaires in Nigeria.
One can invest by distributing diesel, kerosene and owning petrol filing stations. This is certainly among the most profitable businesses in Nigeria
3. Real estate
Owning properties is a lucrative business all over the world. It was one of the smartest, convenient and reliable form of investment.
Property appreciates every day in Nigeria, if you purchase a building or a piece of land today and decide to sell it tomorrow, you are likely to make a huge profit margin and even if you decide to sell later, you will be selling at a profit rate of over hundred per cent.
Every investor is encouraged to buy properties, because you cannot go wrong with properties as they do not depreciate in value. Real estate is one of the most profitable businesses in Nigeria.
4. Transport business
Transportation business is among the most profitable businesses in Nigeria. The commonest form of transportation in Nigeria today is transportation by road. People need to move around to survive, especially for business purposes.
Without movement there can be no trade, money and other essential services needed to sustain man. Road transportation is convenient because it is affordable, flexible and readily available.
An investor can decide to invest in intra city or inter city transportation by road and still rake in millions. In cities like lagos, Port Harcourt, and Abuja, transporting residents from one part of the city to another fetches a lot of money daily because of the teeming population.
Generally, transporting traders and their goods from one part of Nigeria to another is a booming business; all that is needed to succeed is effective and efficient management.
5. Eateries and restaurant business
Eateries and restaurant is one of the most profitable businesses in Nigeria. Food is one of the most pressing needs of man, if humans must survive, they must eat. Now it is impossible to prepare your own meals at all times. This makes the demand for food very high.
With the right skill and proper management, you are sure of making millions from owning an eatery. There are different kinds of eateries Nigeria; we have fast foods, mobile food vendors, and roadside food vendors commonly known as bukas.
Fine dining restaurants and ordinary restaurants. A potential investor needs to research to find out which of these he can afford to invest in and go for it. All kinds of eateries are lucrative as far as your management skills are good.
6. Hotels and hospitality business
Hospitality business is one of the most profitable businesses in Nigeria. Hotels in Nigeria are profit making ventures even when poorly managed.
Investing in hospitality business is also capital intensive but if properly managed will yield profits in wide margins that surpasses initial cost of investments.
Hotels generate revenue through multiple ways that include hall rentals for events, costs of rooms and suites, provide catering service alongside hall renting for different events and from sale of liquor amongst many others.
Like most businesses the recipe for succeeding in hotel business is good management and monitoring.
7. Private schools
The decay of government owned schools in Nigeria has aided the rise of many private schools at levels of education. Parents and guardians generally have a preference for private schools because of the evident decay and government negligence of most public schools.
Owning a private school requires expertise and professionalism as the school must be built to meet good educational standards and the expectations of parents who pay so much to get their children educated.
Private schools that are passionately run yield high returns for its owners and unless the government sits up in regards to the poor state of educational facilities in Nigeria, owners of private schools will never run out of business.
8. eCommerce – online store
We live in an era where technology advances daily. The internet is an amazing market place that has made young Nigerians millionaires. We have seen the emergence and prevalence of online shopping malls like Jumia, Konga, PayPorte, jiji and many more.
We have seen many people make fortunes from building and running their blogs and other service rendering sites on the internet, the richest blogger in Africa who happens to be Linda ifeoma ikeji is a Nigerian.
We have also seen an influx of digital marketers who have made good money by advertising online. A proper utilization of the internet will fetch you good money that will gradually grow into an empire.
9. Media and entertainment business
Nigeria is home of entertainment in Africa. The biggest artist, television and radio personalities as well as film makers in africa are Nigerians.
This industry has created lots of employment opportunities and has generated so much revenue. One can invest in film or music production by building studios, tv stations, radio stations and film academies.
10. Exportation business
Nigeria has a huge market for second hand goods because many people prefer to buy fairly used items that are genuine than brand new items that are fake.
Second hand motor vehicle spare parts also have a large market in Nigeria. Before investing in fairly used goods one just decide what exactly they want to sell.
The options include clothes, shoes, phones and laptops and other electrical devices and motor spare parts.
Investors are advised to carry out thorough research, plan carefully and consistently work hard to guarantee good return on their investments.