Halal Food refers to food that is regarded as lawful for Muslims to eat. They include any meals that are prepared following strict Sharia law. Certain criteria is needed for food to be classified as Halal such as; the food being dedicated to Allah, only live animals slaughtered with a sharp knife cutting through throat but not damaging the spinal cord etc.

Pork, Gelatin, Alcohol and several other foods not considered healthy or good for Muslims are termed 'Haram' and can't be sold to Muslim faithfuls.

Market Overview

There are more than 80 million Muslims in Nigeria with many of them being devout and strictly follow their religious principles. Halal products very often are certified by regulatory Islamic organisations within the countries in which they operate. Although Nigeria is not an Islamic country but she belongs to the Organisation of Islamic countries and is hence a suitable market. The standards organisation of Nigeria is the only certified

Halal Food Opportunities in Nigeria

In Northern Nigeria where Sharia law is predominantly practiced there are unlimited opportunities to market this service and along with its numerous products including beef, cereals, cosmetics, dairy products, poultry products and lots more. However even Christians purchase Halal products including food and lifestyle items.

Challenges in Dealing in Halal Food in Nigeria

Religion is a highly contentious issue in Nigeria and it's a multi-religious society, how do you market this service without whipping up religious sentiments or further alienating potential customers?

Market Strategy for Halal Food

There are a few innovative ways to market Halal products in Nigeria such as; Internet Marketing, strategic alliances, direct marketing to name a few.

Start-up Summary

Shop Space - N1 million
Inventory - N6 million
Other Costs - N3 million
Total - N10 million

How Profitable is Halal Food Business in Nigeria

This business has low net profit margin - gross profit margin at between 5 and 10% and total expenses less than 80% of gross profit - how much profit you make is determined by sales volume. Net profit margin is roughly 2.5% to 6% of total sales. The higher your sales volume the higher your profit. So on annual sales of say N150 million a business like this should earn between N4 million and N10 million in net profit.

Source: http://lagosbusinesses..com/2014/09/halal-food-business-plan-for-nigeria.html