WELCOME TO SADEDIJI2GIST ™:sme

25 Small Scale Business ideas and
Investment Opportunities in Nigeria for
2018
1. Livestock Farming
Do you know that one of the fastest
growing business opportunities in Nigeria
is catfish farming? The primary reason I
listed catfish farming as one of the fastest
business opportunities in Nigeria is
because it’s an emerging industry that
hasn’t reached its peak or full potential.
The major players in this business are
usually regional players. What this means
in essence is that each major player in the
catfish farming industry is focused only on
a particular business terrain within the
geographical location of the farm.
Now for those who don’t know, there is a
bill being proposed now by the federal
government of Nigeria to ban the
importation of frozen fish. One this bill is
passed into law by the national assembly,
the local fish farmers will smile and you
will be left behind. So w hy not position
yourself now ?
With respect to poultry farming, the ban
imposed by the federal government of
Nigeria with respect to the importation of
live or frozen poultry birds has only helped
explode the demand. To be honest with
you, livestock farming in general is a
booming business in Nigeria and the trend
is not dying anytime soon.
You can even start this business from your
backyard . With 150+million mouths to feed
daily, there will always be demand for
livestock products. However, lack of
technical know-how and the use of crude
equipment are the major factors hampering
the growth of this industry.
If you can come in with adequate
knowledge and the patience to nurture this
business, you will reap immensely. Now
you can choose to either venture into
livestock breeding of animals or better still,
you can stick to livestock feed production
or equipment retailing.
Poultry farming – Egg production, meat
production, hatchery or day-old-chicks
production, etc.
Cattle Farming – Dairy ( milk )
production , beef, etc.
Rabbit Farming
Goat Farming
Sheep
Tilapia Fish Farming
Piggery
Grasscutter Farming
Snail Farming
Quail Farming
2. Agro-products exportation
Nigeria is blessed with a lot of food and
natural resources; and most of these
natural resources are raw materials
needed for the production of some finished
products. Every day, tons of raw materials
and food products leave the shores of
Nigeria to countries such as India,
Vietnam, China, USA, UK, Brazil, etc; yet,
the demand is never met.
You can become an exporter by simply
registering with the Nigerian Export
Promotion Council and decide on the
specific product you wish to export.
Examples of products highly in demand
both within and outside Nigeria are Chili
pepper, Mango , Kola nuts, Bitter Kola ,
Cassava flakes (Garri) , Cocoa, Groundnut,
Yam flour, Cashew nuts, etc.
However, if you think you don’t have the
capital or time to engage in agro-products
exportation, then you can stay local by
buying and selling them within the country.
A good example of a product you can buy
and sell for huge profits is Palm Oil .
3. Mining
Nigeria is blessed with a lot of mineral
resources like Limestone, Coal, Iron ore,
Bitumen, etc. Aside this, the mining
industry in Nigeria is set to take off
because the federal government in June
2013 implemented a policy to drive
forward the mining industry by declaring
the importation of mining equipment duty
free. The government is also going after
many dormant investors who were granted
mining licenses but are not utilizing it.
This act I believe, will spur the growth in
the mining sector. If you have the financial
capacity and a team, you can position
yourself in this sector.
4. Setting up a private mini refinery
There are lots of business opportunities in
the oil and gas sector . Building a private
refinery and refining crude oil is another
business you should look into because
there is a lot of potential in it. In January
2012, the federal government announced
the partial removal of subsidy and with a
long term plan to totally remove fuel
subsidy. What this means in essence is
that petroleum product importers will now
sell as they buy; thus bringing in
competition and it is a known fact that
80% of petroleum products consumed in
Nigeria are imported.
Now with the total removal of fuel subsidy,
investors will now have the opportunity to
set up their own refinery and produce fuel.
Are you among those that think the total
fuel subsidy removal is a pipe dream?
Then think again because in May 2013,
Aliko Dangote raised $9billion for the
setting up of a refinery; which will be sited
in Ondo state . This project was relocated
to Lekki Free Trade Zone, Lagos and is set
to commence operation in 2018.
As at 2017, the government is undergoing
research and consultation to set up
modular refinery ( an opportunity ) in 6 oil
producing states in the south. This is curb
the activities of pipeline vandalism and
illegal refining of crude oil ( a problem ).
Honestly, i understand that not everyone
have the financial capacity and technical
know-how to invest in a private refinery.
Well, you can still tap into the oil and gas
sector by setting up a filling station ,
starting a mini kerosene retailing depot or
establishing a cooking gas retailing outlet .
Which ever one you choose, you will surely
make money. Enough said.
Fast Growing Small Scale Business ideas
in Nigeria
5. Inland waterway Transport
There are lots of opportunities in the
transport industry and inland waterway is
one of them. Nigeria has a broad network
of inland waterways comprising rivers,
creeks, lakes and seas; yet, transportation
still remains a challenge because investors
are yet to tap into water transportation.
A lot of countries such as Italy, Thailand,
etc have effectively been utilizing their
waterways as a means of transport; thus
reducing the traffic congestion on the road.
All you need to do is to incorporate a
company, obtain license from the state and
federal government, import or purchase
some locally fabricated boats; and you are
in business.
6. Establishing a Television and Radio
Station
Now it is a known fact that the mass
media industry is saturated in Nigeria.
However, this is only true for some cities
in Nigeria such as Lagos and Abuja. I have
travel through several parts of the
countries and discovered that most states
have no private TV station, and only rely
on the government own TV stations; which
are very incompetent, uncreative and
unreliable.
I see an opportunity for entrepreneurs and
investors with interest and competence in
broadcasting or mass media. You can
either choose to setup a radio station or
TV Station. You think you don’t have the
funds for a license and infrastructure to
run a conventional TV and Radio station,
then you should consider starting an online
radio station, podcast or Youtube Video
Channel. A lot of Nigerians have made
fame and money running on a low cost
model by simply using the internet. A few
names you might know are Mark Angel
Comedy (the famous Emmanuella), Linda
Ikeji TV , LaughPillsComedy , PulseTv, etc.
7. Setting up a security company
There is a huge demand for excellent
security services in Nigeria. As the
government battle to improve the security
situation in the country, individuals and
corporate entities are now becoming aware
of the fact that security is not the
responsibility of the government alone; it
is a collective responsibility. Hence, the
current increase in demand for security
guards, bodyguards, executive protection
professionals and security gadgets or
devices.
As an entrepreneur or investor, you can
setup a security guard recruitment or
training company, or you can setup an
executive protection or bodyguard agency.
Also, you can import and retail security
products and safety devices.
8. Sewing of specialized uniforms
There are over 500 schools ( both Crèche,
primary and secondary) in Lagos state
alone; and each of these schools have a
specific uniform or attire for their students.
Okay, let’s look beyond educational
institutions. Do you know that other
individuals and corporate organizations
are in need of uniforms for their security
personnel, staff, etc ?
There are also a lot or military ( Army, Air
Force, Navy ), paramilitary ( Civil Defense
Corps , Police Force) and non-paramilitary
( Road Safety, Traffic Warden, Kick against
Indiscipline, Vigilante groups, etc )
organizations in Nigeria that make use of
uniforms. You can position yourself as a
uniform supplier and make money from it.
9. Construction company
Nigeria is still a developing country
especially in the area of infrastructure but
this is set to change in the nearest future.
Massive constructions are currently on-
going in Nigeria ranging from bridges,
roads, towers and skyscrapers, etc. If you
run a construction company oversee , or
you have the financial capacity to
assemble the needed team and machinery
for a construction company; then this is a
business you should invest in.
10. Real Estate development
I have met a lot of individuals with money
piling up in the bank, but they don’t seem
to know what to do with that money. Yet,
on every business trip I make, I hear
stories of people facing accommodation
problems; not because they can’t afford it
but because there is none within their
choice of location.
Also, I hear woeful stories from students in
various universities and other high
institutions who live under harsh
conditions; not because they want to or
can’t afford a comfortable place to live;
but because they is no conducive
apartment in close proximity to the
institutions.
I also know the stress, effort and resources
it took me before I got an office space both
within and outside Lagos. What these facts
or complaints are pointing to is that there
is a massive need for buildings, both
residential and commercial. It is a known
fact that shelter is one of the basic needs
of man.
Now for those who wouldn’t want to go
through the ups and downs of running a
business, you can choose to invest in
development of hotels , school hostels for
students, shopping malls, residential
apartments, events and conference halls,
etc.
11. Set up a writing company
If you are current with trend, you would
have observed that most jobs in the United
States are now being outsourced to
countries like Philippines, India, China, etc.
And as things stand now, a trickle of such
outsourcing jobs are coming to Nigeria
and one of such jobs is Article Writing or
Ghostwriting. You can consider platforms
such as Fiverr, Elance, Freelancer, etc.
Do you have passion and skill for writing ?
If yes, then you can either choose to write
from home as a self employed freelance
writer or you can setup a company, employ
competent writers and source for jobs
online. This business is easy to get into
and it is very profitable.
In fact, let me put it to you that you don’t
even need to source for writing from
foreign countries, and deal with payment
hurdles. There is a huge demand for well
written content locally, and virtually a lack
of quality writers. I know this because my
company is also a player in the Media/
Publishing industry.
12. Call center agency
Have you called the customer care service
of a telecom network before? Or have you
tried sending a message or complaint to a
corporate organization before? Do you
know that those who take your calls,
complaints and respond accordingly are
not employees of the companies you
patronize; neither do they operate in the
premises of the company? If you are
hearing this for the first time, then
welcome to the world of “ Call center
outsourcing .”
You can setup a call center agency and
work for big companies on a contract
basis. One sweet fact about this business
is that you can always start small by
becoming a call center agent from home,
as it doesn’t require much startup capital
unless you want to scale up by employing
more helping hands.
13. Recruitment Agency
The labour market is becoming tougher
and there are over five million unemployed
youths in Nigeria. Another hard fact is that
companies are no longer employing full
time in-house staff; they are now using
the services of recruitment agencies to
employ people based on contract basis.
This strategy is aimed at reducing the cost
of doing business by avoiding the cost of
conducting a recruitment exercise and also
avoiding employee claims and benefits.
This is the sole reason why banks and
other companies are sacking their workers
on daily basis.
So rather than fight the trend, why not
profit from it by setting up a recruitment
agency and connect jobseekers to their
dream jobs. You can also be a corporate
executive headhunter and make money
poaching competent staff from one
company to another. If this is too capital
intensive for you, then you can setup a
resume writing service from home and
profit from the trend.
14. Importation of wears
Clothing is another basic need of man.
Regardless of the economy, people must
wear clothes and this includes shoes,
bags, underwear, perfumes, etc. Now there
is a fast growing trend now and that is
“ Used clothes” or “Recycled clothes, ”
otherwise called “Okirika.”
Since the economy is getting tougher and
there’s need to be clothed, the masses
have resolved to buying used clothes
rather than new ones. Still yet, there is a
market for new clothes; for men, women,
and kids. You can source your materials
from China, Hong Kong, Italy, France,
Dubai, India, etc.
15. Haulage and logistics
Haulage and logistics is another booming
business in Nigeria because regardless of
the weather, people must haul their goods
from one location to another. In fact,
haulage or trucking business is one of the
most profitable businesses so far; though
it is management intensive. However, you
can start with just a truck and see how it
goes.
You can choose to focus on hauling
containers for clients from the seaports to
their various destinations or better still,
you can choose to haul products of
specific companies such as breweries,
production companies, etc. You can also
haul perishable goods from farms and
villages to the marketplace or you can haul
specialty products such as frozen foods,
petroleum products, gas, etc.
Now there is also an opportunity for those
who want to venture into haulage business
but do not want to be bugged down by
management requirements. All you need to
do is to buy a truck and contract it to a
Haulage and logistics company; which will
in turn pay you a specified amount weekly
or monthly based on agreement.
16. Outsourced bus service
This is another form of haulage business,
but this time you will be lifting humans.
This is a business that requires providing
transportation services to organizations
that cannot afford to buy a vehicle in-
house. Your clients in this case can be
schools, religious organizations, NGOs,
corporate bodies, etc.
Some corporate organizations can’t afford
an in-house transport system for its
executives and staff, so this is where you
come in. You provide the cars or buses,
provide the drivers and you are paid on a
monthly bases or contract bases for the
use of your transport services.
Another area of target is schools. Most
schools would like to provide transport
facilities for their students but they can’t
afford it and this is where you come in.
You provide a bus service system and
send out a proposal to schools to use your
bus services. Just imagine 20 or more
young schools jointly using your student
bus service system and you will catch the
vision of this idea.
Small Scale Business Investment
Opportunities in Nigeria
17. e-Services
Nigeria is catching on with the rest of the
world with respect to technology. If you
are technologically inclined, you can setup
shop in Nigeria and start offering e-
services to clients. Example of such e-
services include Web designing and
development, Web hosting , App
development, Digital marketing services,
Search Engine Optimization services ,
Banner design services , Bulk SMS
services , Online registration of exams such
as JAMB, WAEC, professional courses, etc
18. Daycare centre
The demand for quality childcare service is
increasing daily. Parents are now working
harder just to generate enough income to
keep the family going, thus leaving them
with less time for the children.
Now to be honest with you, there are a lot
of daycare centers existing but only a few
are providing exceptional services; and
parents that cherish their kids are never
comfortable leaving their kids in a child
care centre whose environment is dirty. If
you can come in with exceptional service
and creativity, you will make money from
this business. Another thing you must
know is that you can start this business
from home.
Now for those who lack the capital and
experience to setup a full-scale childcare
center, you can still make profit of this
niche by starting a small scale babysitting
service or Nanny agency .
19. Training centers
Every year, millions of people sit for
examinations and tests in Nigeria and
most of these people usually need some
kind of trainings or tutorials. You can
position yourself as a provider of such
training and make money off this niche.
Examples of trainings you can offer
include skill & vocational acquisition
training , corporate management skill
training , etc. You can also conduct tutorial
for individuals writing professional exams
like ICAN, WAEC, UTME, A. LEVEL, etc.
20. Waste Management
Waste management is another business
with a future potential because Nigerians
are yet to imbibe the habit of proper waste
disposal . However, states like Lagos have
been doing a lot to encourage proper
waste disposal and management. Now
there are several businesses you can start
within the waste management niche and
these include waste recycling , waste
disposal , junk hauling, organic fertilizer
production, etc.
21. Food processing
Another profitable industry to consider is
the food processing industry. The concept
of this industry is simply to take raw food
materials and turn them into finished
products. In fact, there are a lot of
businesses you can do in this niche and
examples of such businesses include
Tomato puree production , Frozen food
production , yogurt production , Vegetable
oil production , Garri Processing , oil palm
processing , groundnut processing, Fruit
juice production , Rice milling , etc.
22. Alternative Power Installation
As the world goes green, and Nigeria
battles her power supply challenges; there
is an already established opening in
Nigeria’s power sector. Even though the
government has taken steps to deregulate
the power sector by granting licenses for
Independent Power Plants, granting a free
import duty for the importation of power
generation equipment and commissioning
several power projects, this will never
hamper the growing demand for alternative
power generators such as solar energy ,
wind mills, Inverters, etc. You can either
make money by importing and retailing
these materials or you can choose to focus
on installations.
23. Plantation Farming
Do you have a fertile vacant land and you
know that you won’t be developing any
structure on it in the nearest future ? Then
why not start a livestock farming, crop
cultivation or plantation farming. There are
a lot of cash crops you can plant, nurture
and forget; and they will keep providing
you with steady returns annually.
Examples of crops you can start a
plantation around are Orange, Plantain,
Kola nut, Oil palm , Cocoa, Cassava, Yam ,
etc.
24. Manufacturing
You can also venture into small scale
manufacturing of products that are in daily
need. You don’t need to build a factory or
industrial plant; you can start on a small
scale from your room or a rented store or
apartment. Products you can start
manufacturing include Toothpicks, Tissue
paper & Serviette, chalk production , candle,
Match sticks , nylons and polythene bags ,
cartons, paper bags , etc.
25. Bottled water production
I get calls from individuals almost on daily
basis who are interested in setting up a
“ sachet water” ( Pure water) production
plant. Now let me tell you the honest truth,
the sachet water or pure water business is
saturated and the business may die off
very soon. Why did I say this? Well, I got
information from a reliable source that
there is a long term plan to ban the
production of sachet or nylon water; so as
to stem environmental degradation and
checkmate blocked drainages.
So once this bill is passed into law, the
sachet water production industry is toast.
The only solution I foresee that can keep
this business afloat is the establishment of
a nylon recycling plant. However, to avoid
being a victim of this yet-to-be proposed
policy, it is advisable you venture into
bottled water products and establish
yourself as a brand.
26. Become a Cement Distributor for
Dangote
27. Bars and Clubs
If not a hotel, you can consider investing
on a bar or a night club. Again, it attracts
tourists who are looking for an active night
life in countries like Nigeria. Plus, many
local young adults in Nigeria seek a fun
night life. If you are interested in investing
in the entertainment industry, then you
should consider starting a night club or
bar.
28. Cold Room ( Frozen Food )
Despite the high number of livestock
farmers in Nigeria, frozen fish and chicken
are still being smuggled into the country
through the border because there is a
market for it. Some people don’t want to
go through the stress of killing and
preparing fowls for eating, so they prefer
to buy ready-made frozen birds. With the
right plan and a strategic location, you can
make millions by investing in building and
operating a cold room.
In conclusion, the investment opportunities
in Nigeria are not limited to the list above.
With a little digging and research, you will
surely uncover more of these
opportunities. However, the point I want to
stress is that having the capital to invest
in these opportunities does not mean you
will succeed at it.
More important than your capital and the
business opportunity is to make sure you
have adequate understanding about the
industry you intend investing in.
Knowledge and experience are the
prerequisites for low risk investing.