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Profitable Small Business Ideas For Nigerians - Business - Nairaland

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Smart/great Business Ideas This 2014 / List OF 40 Profitable Small Scale Businesses In Nigeria You Can Start / 5 Profitable Small Business Ideas In Nigeria (1) (2) (3) (4)

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Profitable Small Business Ideas For Nigerians by Tolite22(m): 11:19am On Dec 09, 2013
I'm in love with small business ideas. I follow them very closely, especially the obvious and interesting ones around us that many of us never seem to notice and often take for granted. I have been compiling a list of business ideas for some time now and would love to share the top 10 on my list with you.

Every day for the next 10 days (Saturday and Sunday not included), I shall be sharing one lucrative business idea with a high success potential in Nigeria. In addition to my personal analysis of each idea, I shall recommend rich and freely available articles on the internet that are packed-full with information on each of these ideas so that you can verify for yourself. Where necessary, I shall also share some inspiring stories of entrepreneurs who have become successful running businesses that are based on these ideas.

Just to be clear, I will not be selling e-books or any 'paid for' material. I will not be sending any 'private' information to any email addresses, so don't ask for it. Any information or questions will be shared openly on this forum. I believe the world will be a much better place when more people can give freely and ask for nothing in return.

I hope somebody finds the boldness and inspiration they need to take action after they encounter these ideas.

Get excited and see you tomorrow!

22 Likes

Re: Profitable Small Business Ideas For Nigerians by IRIENBOY(m): 8:55pm On Dec 09, 2013
Ok

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Re: Profitable Small Business Ideas For Nigerians by libertyfather(m): 10:56pm On Dec 09, 2013
Ok

1 Like

Re: Profitable Small Business Ideas For Nigerians by Annie09: 10:58pm On Dec 09, 2013
Following
Re: Profitable Small Business Ideas For Nigerians by woomiewoomie(f): 11:01pm On Dec 09, 2013
Waiting
Re: Profitable Small Business Ideas For Nigerians by ComboFiend(m): 9:38am On Dec 10, 2013
Waiting...*Eating Gala*

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Re: Profitable Small Business Ideas For Nigerians by Tolite22(m): 10:09am On Dec 10, 2013
DAY 1

Small Business Idea #1 - Primary and Secondary Education

Education is a very lucrative industry because it is a basic need for many people. Parents want the best for their children and know that education is the only way to guarantee their survival and success in the future. Even poor families in Nigeria are making huge sacrificies to send their children to school. For many of these people, education could be their only bridge out of poverty.

The problem is private schools in Nigeria are often too expensive and the quality of education in government-owned schools is too poor to make any useful impact. Is there really a way to provide primary and secondary education to millions of poor and middle class children in Nigeria and still make a profit?

It appears there is. In Ghana and Kenya, there is a trend of low-cost private primary schools targeted at children of low and middle income parents. For less than $1 (160 Naira) a day as school fees, both Omega Schools (Ghana) and Bridge International Schools (Kenya) provide school uniforms and lunch in addition to tuition. This sounded impossible to me the first time I stumbled on it. 160 Naira as school fees?

As I type these words, Omega and Bridge International schools have enrolled thousands of poor children in both countries and business is booming! I would be much surprised if these low-cost private school chains do not start up in Nigeria very soon. They are cheap to start and run, very profitable, target a large and ignored market (poor people) and, above all, they solve a very serious social problem.

Further reading
To find out more about how you can start something in the education business, I strongly recommend the following information-packed articles:

The business of Education in Africa – 7 lucrative opportunities you can exploit in this huge and growing market - http://www.smallstarter.com/browse-ideas/education-and-training/7-education-and-training-business-ideas-for-africans

$5 School Fees – How this private school makes money from teaching poor kids in Kenya - http://www.smallstarter.com/get-inspired/bridge-academies-kenya

Amazing! How this low-cost private school chain is educating poor children for profit in Ghana - http://www.smallstarter.com/get-inspired/omega-schools-ghana

What do you think about this small business idea? Let's ask, share and brainstorm. You'd be amazed at what we could come up with.

See you tomorrow with another interesting business idea! wink

4 Likes

Re: Profitable Small Business Ideas For Nigerians by Tolite22(m): 1:38pm On Dec 11, 2013
DAY 2

Small Business Idea #2 - Cassava farming for food and starch production

Don't laugh. I too was surprised that our local and taken-for-granted cassava crop could make my Top 10 list of lucrative small business ideas. For those of us who don't yet know, it appears that 'levels have changed' for cassava in Nigeria.

When most Nigerians think about cassava, smelly fufu and poor man's garri easily come to mind. I need to ask you a small question: Have you been following the price of gari over the past year? Although Nigeria is now the world's largest producer of cassava, how come the price of our 'ordinary' and locally-produced gari has been rising in price (and almost competing with rice, an imported product)? How come our 'ordinary' gari will soon be priced out of the reach of poor people? I'll tell you why...

You see, while Nigeria is the world's largest producer of cassava tubers, countries like Thailand and Indonesia dominate the export market even though they produce much less than we do. How come? Well, raw cassava usually doesn't last long once harvested and without processing, they spoil. These Asian countries have the processing capacity that we don't have. That's right; because of our diminished processing capacity, Nigeria literally eats nearly all of its harvested casssava, anything left goes to waste. For many years, gari has been the only and most common form of processed cassava in Nigeria. But all that is now changing.

Early this year (or last year I think), the Lagos State Government opened a starch production facility in Araga, somewhere in Epe. In Ososa (near Ijebu Ode) there is another 90,000-ton/year starch production plant run by a Thailand-based company in partnership with Nigerian investors (and financed by GTBank). These are just a few. It appears that the global demand for starch (which is widely used in food processing, paper, textile industries) is growing very fast. Because of the growing local demand for cassava as raw materials for these starch production plants, cassava farmers are increasingly diverting their harvests to these factories thereby reducing the quantity of cassava available for foods such as fufu and gari.

This is just one of the reasons why a bucket of gari which sold for about N400 eighteen months ago now sells for N500 - N550 in the local markets. Gari prices (although cyclical) will surely continue to rise as more starch production factories set up in Nigeria and more alternative uses are found for cassava. I contacted both facilities and they confirmed that they don't operate as often as they want because they can't find enough cassava raw materials to buy. They need about 300 tonnes of cassava (that's 300,000kg) everyday to produce at full capacity and the current supply is not meeting up!

An average hectare of land produces between 15 to 25 tonnes of cassava at harvest (after 9 to 12 months after planting). Depending on the time of year, cassava prices fluctuate between N10,000 and N20,000 per tonne. In some of the interior areas and villages with good arable land, a hectare leases for N10,000/year (I was shocked and then amazed too!). Add in cheap local labour, cost of fertilizers and herbicides and you should be good.

When you factor in other growing alternative uses for cassava, the full picture starts to emerge. Local demand for cassava flour by bakeries and biscuit manufacturers (which they now use as a low-cost supplement to wheat flour) is growing. China is importing more cassava chips from Nigeria to produce animal feed that its growing livestock industry hugely depends on. The Nigerian Federal Government's Agricultural transformation agenda is also boosting the cassava industry.

You don't have to believe everything I've said. Just keep watching the price of garri for another 12 - 24 months and you'll be convinced. I just hope it won't be too expensive for you by then (LOL!)

Some very interesting articles you should read about cassava production are:

Thai Farms International: Current Cassava Tuber Pricing - http://www.tfinigeria.com/pricing.aspx

Gari and Cassava production – A small business that can change your life! http://www.smallstarter.com/browse-ideas/agribusiness-and-food/gari-and-cassava-production

Faustina Sakyi – The Ghanaian Cassava farmer who turned her world around http://www.smallstarter.com/get-inspired/faustina-sakyi


What are your thoughts? Share, support, criticise and ask your questions.

See you tomorrow with another interesting small business idea!

wink

7 Likes

Re: Profitable Small Business Ideas For Nigerians by smithsammy(m): 3:04pm On Dec 11, 2013
it is a great job u are doing here @op. u may not know how many lives u are going to change with this salient information. planning to buy an acre of land in osun for banana plantation. pls do u av any advice u can give on banana plantation business

1 Like

Re: Profitable Small Business Ideas For Nigerians by newacca: 3:19pm On Dec 11, 2013
Following.
Re: Profitable Small Business Ideas For Nigerians by Tolite22(m): 8:59pm On Dec 11, 2013
smithsammy: it is a great job u are doing here @op. u may not know how many lives u are going to change with this salient information. planning to buy an acre of land in osun for banana plantation. pls do u av any advice u can give on[b] banana plantation business[/b]

Thanks Smithsammy for your kind feedback. Your banana production idea is a good one. I'll just outline my opinions about the business below:

Upsides
- Bananas have the amazing ability to grow all year round. There's no definite banana 'growing season'.
- Bananas replace themselves. You only plant the suckers once and they multiply naturally thereafter.
- Steady market: bananas are always in high demand all year round in Nigeria.
- Short maturity period. Bananas take between 9 to 12 months from planting to maturity.

Downsides
- The export potential of bananas from Nigeria is limited due to strict international rules around packaging, storage, transportation etc.
- Banana cultivation is usually labour intensive. The trees need to be supported so they don't fall under the weight of the fruits.
- Ripe bananas have a short shelf life and many of it may not make it to market due to poor storage, transport etc.

These are just my balanced opinions about the banana business. I hope you find them useful. Suggestions are welcome from other readers. cool

3 Likes

Re: Profitable Small Business Ideas For Nigerians by Tolite22(m): 4:54pm On Dec 12, 2013
DAY 3

Small Business Idea #3 - Human and Cargo Transport (by road)

Across the world, there are two major factors responsible for the growth of road transportation - a large/growing population and increasing economic activities.

Nigeria's population (currently at over 170 million) is the largest in Africa and is projected to grow to 250 million by 2040. According to a recent Reuters article (see link below), over 11,000 new children are born in Nigeria every single day. The larger the population, the higher the volume of physical human movement. People are always on the move - going to the office, school, business, market, recreation etc. (Sorry, I forgot to mention 'hustling').

Whether it's daily commute to work or long distance travel (such as interstate), the number of people moving around everyday in Nigeria is astounding! The number of motorcycles (although banned in several cities), taxi cabs and buses is increasing to cater to the growing demand for road transportation. This demand is so high that the government alone will be unable to handle the current and future levels. There is more than enough room for entrepreneurs and private businesses to 'help'.

Although GDP (Gross Domestic Product) is the usual way to measure the size of a country's economy, I personally do not think that it makes any sense to the common man. So, how can you visibly notice the fast rising level of economic activities in Nigeria? I like to look at the number of haulage trucks carrying goods within and outside Lagos. Agricultural products, imported goods from Apapa ports, construction materials (wood, steel rods, sand, cemnet blocks and aggregate), food, petroleum products and several other goods that are transported across Nigeria everyday are a huge and growing opportunity for entrepreneurs to enter the business of transporting goods across Nigeria.

Road transport is the cheapest and easiest way to enter the transport business in Nigeria. All the other options are not ripe for the picking for various reasons: Air transport is capital intensive and out of reach for many (small scale) entrepreneurs. Water transport is picking up but is still a poorly developed means of transportation in Nigeria. Rail? Let's not even go there.

On a final note, I have the following advice for anyone who fancies the road transport business in Nigeria:

- The transport business is not as capital intensive as many people think. Start with one motorcycle, one taxi, one bus or one truck. Start small but dream big.
- Devise a win-win strategy that will help to keep your drivers in check (drivers are crucial to the success of any road transport business and can make or wreck it!)
- You can either hire a driver and pay him a daily/weekly/monthly salary or you could ask for a minimum return at the end of every day.
- Hire/Purchase Agreements seem to work as the best arrangement between vehicle owners and drivers
- If you can afford it, install a tracking device/equipment on your vehicles. It's usually worth the investment.
- Vehicle insurance and regular maintenance are some of the most important aspects of the road transport business that are often taken for granted. Don't make the same mistake.
- Police, FRSC and all sorts of federal, state and local government revenue-collecting agencies can frustrate your road transport business. Make sure you get all the necessary permits, tickets and licenses.

To find more information about human and cargo transportation, I would recommend that you read the following articles:

Moving people around - 5 Profitable businesses you can start to solve Africa’s human transportation problems http://www.smallstarter.com/browse-ideas/transport-and-logistics/human-transport-business-in-africa

Trucking and Haulage: How to make money from Africa’s large and expanding transport market http://www.smallstarter.com/browse-ideas/transport-and-logistics/trucking-and-haulage

Reuters Article - Will Nigerian boom babies feed prosperity or entrench poverty? http://www.reuters.com/article/2013/04/09/us-africa-summit-population-idUSBRE9380DH20130409

I hope you found this small business idea useful and informative. Any thoughts or suggestions? Please share...

See you tomorrow! cool

3 Likes

Re: Profitable Small Business Ideas For Nigerians by Tolite22(m): 1:00pm On Dec 13, 2013
DAY 4

Small Business Idea #4 - Waste

When I started this thread a couple of days ago, I told you that some of the best and most promising business ideas in Nigeria are right under our noses and are too often taken for granted. Waste is one of the under-explored opportunities in our country. We are very good at producing tons of waste everyday but just a few smart entrepreneurs are exploiting the remarkable potentials of the waste business. To you, it's just poo. To these entrepreneurs, it's a load of 1,000 Naira bills.

There a two main ways to make money in the waste business and we'll touch on each of them a bit. They are waste collection and waste recycling.

Waste collection
We have a terrible habit of disposing waste improperly in this country. Whether it's the waste we carry in our bellies, empty 'pure' water sachets and bottles or the kitchen waste that fills up our garbage bins, poor disposal of waste is a huge problem for our personal health and the beauty of our physical environment. This is where the waste collection opportunity comes in. State governments and private businesses are now in the business of getting paid for collecting waste from our homes, markets and offices. It's an opportunity that is still in its infancy but is sure to grow into a billion naira industry given the tons of waste produced across Nigeria everyday.

The waste collection success story I would like to share today is Nigeria's own DMT Mobile Toilets. If you live in Lagos, it's very likely that you would have seen their trademark mobile toilets that look like telephone booths in motor parks, recreation spots and other public places. The business also provides VIP mobile toilets for events (weddings, parties and other outdoor events). With millions of 'well-fed' Nigerians roaming the streets of Lagos everyday, business is looking good for this business which sells each of its mobile units for N150,000 and above. And every where I look, DMT's business is definitely booming. Nobody else could have put it better than the late founder of this business (Otunba Gaddafi) who says 'poo Business in Nigeria is serious business'. I strongly agree with him; the facts speak for themselves!

To inspire yourself with the full and amazing success story of DMT Mobile Toilets, you should read the following article:
poo business is serious business’ – an amazing mobile toilet success story from Lagos, Nigeria http://www.smallstarter.com/get-inspired/dignified-mobile-toilets-lagos


Waste recycling.
Fast depleting natural and mineral resources around the world and a growing consciousness to save the climate and our environment are some of the strong factors behind the growing trend of recycling more of the waste that we produce. Metal, plastic, paper and even human waste (which is converted to compost and biogas) are increasingly recycled and reused. This is already an established practice in the developed world but is just catching on in developing countries like Nigeria.

My favourite example of a successful recycling business was founded by Lorna Rutto, a 27-year old Kenyan lady who quit her banking job to start a plastic waste recycling business. Her company, Ecopost, uses plastic waste collected from dump sites and garbage cans across Nairobi (Kenya's capital city) to manufacture fencing posts. These posts, which are used to fence houses and forest reserves, are becoming a preferred alternative to timber. So far, her innovative business has created over 7,000 fencing posts, 500 new jobs, generated more than $150,000 in yearly revenues, saved over 250 acres of forests and removed more than 1,000 tonnes of plastic waste from the environment.

You can read the full inspiring story of how she achieved this remarkable success, by following the link to the article below:
Lorna Rutto – The innovative entrepreneur who creates wealth and jobs from plastic waste http://www.smallstarter.com/get-inspired/lorna-rutto

To remix the popular saying: 'One man's waste is another man's money'. With a population that now stands at over 170 million (and rising), the volume of waste produced in this country will continue to provide a steady stream of income for the waste entrepreneurs.

For a basic understanding of the whole waste business, its potentials and how to start yours, the article below would serve as a useful introduction:
From Waste to Wealth – How to build a profitable business out of Africa’s huge waste market http://www.smallstarter.com/browse-ideas/environmental-businesses/make-money-from-waste

I hope you found this mini article interesting. Have you got any questions, suggestions or comments about the waste business, I would love to read them!

wink
Re: Profitable Small Business Ideas For Nigerians by Alishachris: 10:38pm On Dec 13, 2013
for me, the best post in this business section so for.......

1 Like

Re: Profitable Small Business Ideas For Nigerians by owelle22(m): 11:06pm On Dec 13, 2013
nice one
Re: Profitable Small Business Ideas For Nigerians by MightyFortress: 5:01pm On Dec 14, 2013
Waiting... Waiting...
Re: Profitable Small Business Ideas For Nigerians by tolu4you: 5:02pm On Dec 14, 2013
booked
Re: Profitable Small Business Ideas For Nigerians by imsuboi(m): 5:03pm On Dec 14, 2013
Nice smiley
Re: Profitable Small Business Ideas For Nigerians by Macbriz(m): 5:03pm On Dec 14, 2013
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Re: Profitable Small Business Ideas For Nigerians by Onlinebiz2012: 5:03pm On Dec 14, 2013
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Re: Profitable Small Business Ideas For Nigerians by okposenxavier: 5:26pm On Dec 14, 2013
grin
Re: Profitable Small Business Ideas For Nigerians by JonCina: 5:27pm On Dec 14, 2013
I have been thinking of Cassava farming for years now. I have a strong conviction that Millions of whatever currency await me in the business. I shall start someday after the coast becomes clear: probably that will be a major plan for next year.
Hope to gather the most i can, in terms of information, before the planting season starts!

OP, nice one.
See people no want contribute or comment here: if na one topic wey no get any value compared to this, you will see all sorts of comments.
Nigerians with our consuming mentality, ehn!
Re: Profitable Small Business Ideas For Nigerians by Tolite22(m): 5:31pm On Dec 14, 2013
I hope everyone's having a swell weekend.

I am very happy with the level of interest in this thread and would like to thank everyone who has given their kind feedback. I am deeply encouraged by your responses. Of course, this includes the many others who have been reading 'silently'; I see you too. wink

As promised, I look forward to sharing my next lucrative small business idea with you on Monday.

Until then, happy reading! cool

3 Likes

Re: Profitable Small Business Ideas For Nigerians by IamDebola(m): 5:33pm On Dec 14, 2013
@OP, may the Almighty bless you with this info, It's really inspiring.
Space booked... For young blood like me.
Re: Profitable Small Business Ideas For Nigerians by NnamdiN(m): 5:45pm On Dec 14, 2013
JonCina: I have been thinking of Cassava farming for years now. I have a strong conviction that Millions of whatever currency await me in the business. I shall start someday after the coast becomes clear: probably that will be a major plan for next year.
Hope to gather the most i can, in terms of information, before the planting season starts!

OP, nice one.
See people no want contribute or comment here: if na one topic wey no get any value compared to this, you will see all sorts of comments.
Nigerians with our consuming mentality, ehn!
that we are not commenting does not mean we are not following.

4 Likes

Re: Profitable Small Business Ideas For Nigerians by brownlord: 5:48pm On Dec 14, 2013
Subscribed
Re: Profitable Small Business Ideas For Nigerians by Temismith: 6:01pm On Dec 14, 2013
Oookk.
Re: Profitable Small Business Ideas For Nigerians by kweenbee(f): 6:07pm On Dec 14, 2013
Op you are making sense,thank you.
Re: Profitable Small Business Ideas For Nigerians by Bisjosh(f): 6:13pm On Dec 14, 2013
Bookmarked
Re: Profitable Small Business Ideas For Nigerians by Tolite22(m): 6:16pm On Dec 14, 2013
JonCina: I have been thinking of Cassava farming for years now. I have a strong conviction that Millions of whatever currency await me in the business. I shall start someday after the coast becomes clear: probably that will be a major plan for next year.
Hope to gather the most i can, in terms of information, before the planting season starts!

OP, nice one.
See people no want contribute or comment here: if na one topic wey no get any value compared to this, you will see all sorts of comments.
Nigerians with our consuming mentality, ehn!

NnamdiN: that we are not commenting does not mean we are not following.


cheesy cheesy cheesy cheesy @NnamdiN, pardon my uninformed assumption. The silent readers are actually more active than I thought! lipsrsealed
Re: Profitable Small Business Ideas For Nigerians by olawonder(m): 6:22pm On Dec 14, 2013
All these ideas seem far fetch of 'small businesses' to me. For me o, am looking to open a large buka someday. Make it as traditional as possible with main foods from various part of the country; am talking about proper homemade effo riro, banga, ohha, edikaikong etc. Foods are prepared openly with fresh stock of fresh and dried fish, live goats and assorted meats are made available every single day. No flashy seat and silly lights, nothing posh or dramatic, just quality freshly cooked traditional recipes. It'll be nice to build the place to layout as I wish, but leasing a place is also an option (but has to be a big premise). No breakfast, opened just lunch to dinner times... I am a postgraduate student of Social Sciences, but this is my dream if I were to own a business.

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