15 Small Scale Business ideas and Investment Opportunities in Nigeria
I will be discussing 15 Small Scale Business ideas and Investment Opportunities in Nigeria:
- 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 is an emerging industry that has not reached its peak or full potential. The major participants in this business are usually regional farmers. What this means in essence is that each major farmer in the catfish farming industry is focused only on a particular business terrain within the geographical location of the farm.
Now, for those who do not know, there is a bill being proposed recently by the Federal Government of Nigeria to ban the importation of frozen foods. Once this bill is passed into law by the National Assembly, the local fish farmers will smile and you will be left behind. So why 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 start this business from your backyard. With over 170million 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.
Tilapia Fish Farming
Grass cutter Farming
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.
- Training/ Tutorial 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, JAMB, A. LEVEL etc. With a good number of students under your training or tutorial, you can realize as much as a bank manager’s salary monthly.
- 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. Nowadays, there is a fast growing trend and that is “Used clothes” or
“Recycled clothes,” otherwise called “Okirika.”
Since the economy is getting tougher and there is 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, amongst others.
- 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 set up 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.
- 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. 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.
- 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 there 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 life.
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.
- 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 set up 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 does not require much startup capital unless you want to scale up by employing more helping hands.
- Recruitment Agency
The labor 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.
- Sewing of specialized uniforms
There are over 500 schools (both Crèche, primary and secondary) in Lagos state alone; and each of these schools has 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.
- 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.
- 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.
In conclusion, the investment opportunities in Nigeria are not limited to the list above. With more 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 investment.
These are some of the moving businesses in Nigeria with a favor population for this good and services demand and this also help in combating high rate of unemployment.
Most of these types of business are usually of small scale enterprise that requires low capital.
Why don’t you do something today!
Nurudeen Olaide Binuomote
BUSINESS CONSULTANT- AUTHOR - SPEAKER - SERIAL ENTREPRENEUR - BUSINESS COACH
He is an alumnus of Enterprise Development Centre (EDC) of the Lagos Business School (LBS), Pan-Atlantic University (PAU). Through his training, mentoring, speaking and coaching programmes, he has empowered many young people over the years to start and grow their own business, build wealth, create multiple streams of income and achieve financial independence.
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