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Profitable Business in Nigeria: 13 Profitable Businesses to Consider in Nigeria Today

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Researching that single profitable business in Nigeria today requires a certain skill level, tools and understanding. But to ensure that individuals with the necessary capital and needed commitment invest in a profitable business in Nigeria today, Omobobola Popoola has compiled 13 profitable businesses to consider as of today.

With the current state of the country, having businesses or business ideas which will fetch you a lot of profit is highly welcomed. However, while it is very good to have business ideas, it is imperative that one also knows profitable business in Nigeria to avoid silly waste of money and time.

Some people may have good business ideas, but unfortunately those business ideas are not right for the environment in which they find themselves.

If you are a Nigerian citizen or resident who has just acquired some capital and doesn’t know how best to utilize it, this article is for you. This article will cover profitable businesses that one can dip their toes in, some of them being venturable with only a little capital. These businesses can also be well-executed without a lot of business experience.

Here are some of the profitable businesses you can embark on in Nigeria today, in no particular order:

  1. Selling Mobile Phone Accessories

In Nigeria today, this is a very promising business idea. The boom in technology, coupled with the use of smartphones in the country makes the business viable. As common with technology, some of the accessories that accompany phones malfunction or get worn out from time to time.

Mobile phone accessories like wired earphones and wired chargers are prone to tear and wear, and usually stop working when the wires cut (visibly or not). Other accessories that are popularly in demand are memory cards, removable batteries, screen guards, pouches, etc.

The first thing to do would be to obtain a space where you would be selling the accessories, you can even start with a small space. After that, start to purchase some of these accessories and stock up, while trying to drive traffic for your store.

  1. Rental Services

As it is popularly known, Nigeria is a very party-heavy zone. Hardly any weekend passes by when people are not hosting parties commonly known as “owambe”. These parties also do not come cheap, as the hosts usually spend quite a lot of money, especially if the host is of a high societal status, or if the party is of an extremely large scale.

Party hosts will always need items that they don’t have readily available. You can acquire items like chairs, canopies, cutlery, cooking utensils, etc. and then start contracting them out to those who need them. You can also decide to contract out these items at an hourly use basis. As your business goes on, you can start to determine what people rent the most and tailor your services to those items.

  1. Poultry Farming

This is one potentially lucrative business; it involves rearing and taking care of chickens either for the purpose of meat or for their eggs. These can also be done at the same time, with the layers providing the eggs while other breeds are raised solely for their meat properties.

Chickens are usually used at small gatherings or events, but they are mostly used on big religious occasions like Christmas and Easter.

Millions of naira can potentially be made from this business, but that is largely dependent on the amount of time and money that has been invested into it. With N500,000 and a provided space for the birds, one can purchase the chickens, feeding troughs, chicken feed and so on with the hope of making a lot of money back. This will however only be possible if adequate time and energy are invested in the business.

  1. Fish Farming

This is another animal farming-based business that has massive potential to be lucrative in Nigeria. It may even have more potential than the chicken farming business in the short term.

Fish farming varies, but the most common type of fish farming in Nigeria is Catfish farming. The high demand for fish everywhere in Nigeria makes fish farming a particularly profitable business in Nigeria.

  1. Snail Farming

Snail farming can be said to be underrated by Nigerians at large.  In Nigeria, snail is hardly ever enough as it is a commodity with incredibly high demand yet low supply. This disparity in demand and supply provides the opportunity to make a huge profit from the business.

The farmers involved in this business are also relatively small, and some of them even do the business on a small scale. Investing a large amount of time and energy will definitely yield high returns.

  1. Cooking Gas Business

This is a lucrative and evolving, yet ignored business opportunity in Nigeria. People recognize the lucrativeness of petroleum products, but focus more on petrol and kerosene while ignoring cooking gas.

In this business, you can set up your own establishment where acquire cooking gas and supply to retailers or refill gas for consumers. You can do either of the two, or decide to combine and do both. The business also does not necessarily require starting with huge capital (large scale). You can start small and expand as you continue to grow the business.

  1. Transportation Service Business

Recent security challenges across the country have left a good number of people reluctant to use public transport or comfortable while using it, if they don’t have a choice.

You can decide to set up a private transportation service, with either buses, cars or bikes (depending on the location). This business has high potential for success, as seen with businesses like Uber and Bolt (Taxify).

One way to set yourself apart from the other transport service businesses is tailoring the business to reach some areas where those other businesses would normally not reach. This could even help to grow the business’s customer base.

  1. Hairdressing

Hairdressing is another overlooked business that has the potential to be lucrative. Imagine opening a hair salon in an area that desperately cries out for one, especially when you are particularly good at this craft.

You can start with a small shop, and with proceeds made expand into a much bigger salon in the future.

  1. Photography

Photography is fast becoming a highly lucrative business in the country. You can decide to be an event photographer, covering events or provide services to individual customers who want photoshoots.

The fastest way to get the most out of this is to identify a niche; an area of photography where you want to focus on. This could be heavily influenced by interest or ability.

  1. Cake Making

Pastries are becoming highly coveted products in Nigeria. From roadside puff puff  to the meatpies sold in stalls, and even to the doughnuts sold in restaurants, these baked goods are capturing the hearts of Nigerians.

Of all these baked goods, cakes are arguably the most lucrative and inviting. The sheer effort that is put into making them deserves much higher prices than the other baked goods.

The scale on which the business is being done will also determine how much capital is to be invested into the business. Cake bakers could provide their services at almost all events, including birthdays, anniversaries, weddings, etc. These events would pay considerably more than regular customers.

  1. Petrol Station

The cooking gas business has been mentioned earlier in this article, and it would not be right to gloss over the petrol station business. Oil and gas is generally a lucrative business, as Oil is Nigeria’s op export product.

While the petrol station business requires millions of Naira to start, it is almost always guaranteed that the money will be made back. The amount of cars in Nigeria, and which depend on petrol as fuel is enough to ensure that you never run out of customers.

Also, the poor electricity supply in virtually all parts of the country has highly encouraged the use of generators by Nigerians. Most of these household generators are also fueled by generators. This hish usage of petrol, partnered with establishing the station in a populated area is sure to make a lot of income in both the short and long run.

  1. Football Viewing Centre

Nigerians, both male and female have a strong love for football. This strong love for the sport would make any provided avenue to watch while at the same time interacting with like minds who also love the sport.

The high recurring bills slapped on TV services like DSTV have forced many lovers of the “beautiful game” to run to viewing centres around them to watch the sport. The three main ingredients required to start this business are a decoder, a big television and space.

This business is even further boosted by the fact that multiple competitions now take place simultaneously, giving the people multiple opportunities to come into the centre, and also giving the owner multiple opportunities to rake in solid income from it.

  1. Waste Management

The collection and disposal of waste in (populous) areas in Nigeria is incredibly sub-par. This is why a lot of gutters in many major cities are usually filled with trash items like empty plastic bottles, empty biscuit wrappers, empty water sachets, etc. These items eventually clog up the drainage system, causing flood sometimes.

Nigerians are yet to properly absorb the practice of proper waste disposal. Although states like Lagos are taking steps towards proper waste management, individual Nigerians are still yet to learn waste disposal.

Within the waste management space, there are different business which you could start and make very good income from. You can be involved in recycling waste such as bottles, or even tissue paper. You can also provide garbage collection and disposal services, organic fertilizer production, etc.

The lack of many players in the space could lead to high payments for services.

 

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SMEs

Microsoft Strengthens Partnership With AFDB, to Develop Youth Entrepreneurship Ecosystems in Africa

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American multinational technology corporation Microsoft has strengthened its partnership with the African Development Bank (AFDB) to provide support to Africa’s youth entrepreneurs under the bank’s Youth Entrepreneurship Investment Banks (YEIB) Initiative.

Through its African Transformation Office (ATO), Microsoft will partner with AFDB to develop entrepreneurship ecosystems in Africa through the creation of jobs and dramatically scaling impact in Africa through digital inclusion.

The partnership will see to the establishment and growth of national-level institutions, leveraging public-private collaboration model to ensure entrepreneurs get the required technical and financial support while building their capacity.

Microsoft reinforced its partnership with AFDB to develop Africa’s entrepreneurship ecosystem because it believes youth empowerment in the region will bolster solutions to unemployment if there is affordable access to finance, and quality business development services.

Commenting on its reinforced partnership with AFDB, General Manager of Microsoft Africa Regional Cluster, Wael Elkabbany said: “We believe much can be done to help foster youth entrepreneurship by collaborating with the African Development Bank, driving greater economic inclusion for this key segment of the population, and ultimately building a more prosperous society.”

”Already we’ve seen considerable success partnering together on initiatives such as Coding for Employment, which set out to create over 9 million jobs and reach 32 million youth and women across Africa in just 10 years.”

Also, the African Development Bank (AFDB) Vice President for Private Sector, Infrastructure and Industrialization Solomon Quaynor said “The strengthening of our partnership with Microsoft on the Youth Entrepreneurship Investment Banks (YEIB) is an important development in our journey towards harnessing Africa’s demographic dividend and facilitating the creation of millions of jobs for young Africans by 2025.

“The initiative places much-needed focus on youth entrepreneurship, which is key to achieving our ambitious employment targets.”

This partnership seeks to support the establishment of national-level institutions through a public-private collaboration model to scale up technical and financial support for youth entrepreneurs to build their capacity.

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USAID Trade Hub Partners ShEquity to Support Over 100 African Women Entrepreneurs

USAID, ShEquity to invest and support more than 100 high-potential women-owned businesses with a sum of $1.2m

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United States Agency for International Development (USAID)’s Trade Hub, West Africa Trade & Investment Hub has partnered with an African Investment Hub, ShEquity to invest and support more than 100 high-potential women-owned businesses with a sum of $1.2m.

The businesses targeted will operate in one of six key sectors: agribusiness, healthcare, tech-enabled solutions, renewable energy, mobility, and fast-moving consumer goods.

“Women entrepreneurs are integral for Africa’s success, as they operate more than 40 percent of small and medium-sized businesses on the continent. However, African women entrepreneurs face the hurdle of collectively growing these businesses due to $42bn less in financing than their male counterparts,” Founder and Managing Director of ShEquity, Pauline Koelbl stated.

Koelbl added that if Africa is to reach its full economic potential, smart investment for African women entrepreneurs needs to be dramatically increased. “The lack of financing, combined with insufficient business support, put potential women entrepreneurs and those seeking to expand their already successful businesses in a growth deficit or low-income trap, widening the gender gap and reinforcing negative biases,” he said.

The partnership between ShEquity and USAID Trade Hub will focus on challenges facing Africa by bringing cash investment, structured technical support, and access to high-value networks.

As for ShEquity, it will generate at least $15m in private funding that will in turn be used to “invest, upscale and accelerate women-owned or led businesses operating in Nigeria, Benin, Burkina Faso, Côte d’Ivoire, Ghana, Mali, and Niger.”

Also, through this partnership, ShEquity will provide business development services and technical support to 120 women-owned or led businesses in the target markets and also select 12 high-growth, high-impact businesses that will each receive at least $50,000 in venture capital funding.

The combined investments in the 12 selected companies are expected to create at least 200 jobs and benefit around 20,000 people economically either directly or indirectly, along their respective value chains, through 2024.

According to Koelbl, ShEquity’s current portfolio of companies has impacted more than 13.5 million people across Sub-Saharan.

Koelbl stated: “We are excited about the future, as we hope to see more action towards democratizing access to capital and closing the gender funding gap in Africa. Backing female-led funds is the best strategy to address gender funding gap because of its trickle-down effect: more diversity in capital allocators translates into diversity of businesses getting funded,” he continued.

The USAID Trade Hub’s partnership with ShEquity represents its commitment to ensuring more women in West Africa have the access to finance, resources, and knowledge needed to grow their businesses and speed economic development in the region.

ShEquity has since invested in eight businesses in Sub-Saharan countries. Since the launch, ShEquity has been investing as a special vehicle purpose and is now in the process of formalizing into a venture capital fund structure.

 

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Bank of Industry Disburses N213.63bn to Over 30,000 Businesses in 2021

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The Bank of Industry (BOI) has revealed that it disbursed a total of N213.63 billion to 30,406 businesses in Nigeria in the 2021 financial year.

The Managing  Director of BOI, Olukayode Pitan disclosed this at the 62nd Annual General Meeting (AGM) of the bank on Thursday in Abuja. He said that the bank was able to successfully scale up its developmental impacts in 2021 despite the challenges and limitations caused by COVID-19.

Pitan said “at the peak of COVID-19 in 2020, the bank took steps to support customers with a two per cent reduction in interest rates for a year alongside an extension of loan tenors and moratoriums. He said that the operating environment improved in 2021 and that is the reason they have decided to extend the incentives until March 31, 2022.”

He added that all ongoing projects were reviewed to assess emerging risks and opportunities and also additional support was provided.

“In the year under review, the bank disbursed a total of N213.63 billion to 30,406 Nigerian enterprises through both direct and indirect methods. This represents a 47.3 per cent increase over disbursements in 2020.

“The 2021 disbursements include N2.99billion to 22,120 farmers through our smallholder  farmers on  lending product and one billion Naira to 4,000 micro-retailers through our MSMEs distributor finance programme.

“At BoI, we have since taken measures to ensure that our systems, processes and people are continuously equipped to meet the evolving business environment.

“Today, we are a more agile and adaptive institution,  able to provide the necessary developmental support for Nigeria’s real sector in an ever-changing economy.

“Our commitment to building a resilient organisation that can respond to the needs of our customers and operating challenges is unwavering.

“We strongly believe that we can achieve this with the continuous support of the stakeholders.” he further said. 

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