Uncover the Goldmine: 19 Most Profitable Businesses in Nigeria (2024)
Nigeria’s economic landscape faces challenges!
A staggering annual inflation rate of 29.90% as of January 2024 is coupled with a daunting exchange rate of ₦1,625.23 to $1 in today’s market.
Despite these obstacles, the entrepreneurial spirit thrives.
This article sheds light on 19 lucrative business ideas. It includes these economic realities to guide you to understand the complexities of the Nigerian market.
“In the realm of business, Nigeria is a treasure trove waiting to be discovered.” — John Doe, Renowned Business Strategist
Seizing Opportunities in Challenging Times
Nigeria, the giant of Africa, boasts a diverse economy and a population with an unquenchable thirst for progress. As a savvy investor, navigating the myriad options available can be challenging.
Fear not, we have meticulously curated a list to guide you on this exciting journey.
What are the Most Profitable Businesses in Nigeria (2024)?
1. PMS (Black Market)
2. Exportation
3. Agriculture
4. Real Estate
5. Affiliate Marketing
6. E-commerce
7. Laundry Mart
8. Restaurants
9. Mini Supermarket
10. Renewable Energy
11. Education
12. Health and Wellness
13. Transportation and Logistics
14. Technology
15. Fashion and Beauty
16. Hospitality
17. Financial Services
18. Entertainment
19. Construction
1. PMS (Black Market): A Profitable Daily Hustle
In the bustling city of Lagos, Nigeria, a savvy businesswoman found her niche in the unlikeliest of places — the fuel market.
Mrs. Adeola is a resilient entrepreneur whose son’s daily routine starts at 5:30 am.
His mission?
Is to secure 150 litres of Premium Motor Spirit (PMS) from the NNPC filling station at ₦568 per litre.
Now, here is the brilliance of Mrs. Adeola’s strategy.
She lives in an estate dominated by mid to high-income earners. She recognises the constant demand for fuel and sells this acquired fuel at ₦750 per litre within her estate. She caters to the convenience and urgency of her fellow residents.
In this real-life scenario, Mrs. Adeola exemplifies the essence of the PMS black market trade.
It is not just about buying and selling. It is about understanding the dynamics of your market. The estate's strategic location, coupled with its residents' purchasing power, creates a lucrative opportunity.
This is the daily hustle — a consistent and profitable business model that thrives on meeting a fundamental need in the community.
Cutting through the bluff, selling PMS in the black market is not just about the numbers. It is about recognizing patterns, understanding your customers, and seizing opportunities where they arise.
It is a testament to the resilience of Nigerian solopreneurs like Mrs. Adeola. Who turn everyday necessities into profitable ventures in the face of economic challenges.
Start-up Cost: ₦50,000.00 — ₦100,000.00
Risk: High
Profit Margin: 20–35%
2. Exportation: Shielding Profits from Naira Volatility
Diversifying into exportation is a strategic move to hedge against Naira volatility.
Mr. Olu is an enterprising individual. He has tapped into the lucrative world of exportation, specifically dealing in charcoal.
Utilizing the power of the internet, Mr. Olu scours platforms like Alibaba to connect with potential buyers. These buyers rely on this raw material for their end products.
Acting as the middleman, he sources the charcoal locally. He ensures quality and competitive pricing, before shipping it to the buyers upon receipt of payment.
But, exportation in Nigeria is not limited to commodities alone.
There is a growing demand among Nigerians in the diaspora for authentic Nigerian food products. This presents a golden opportunity for entrepreneurs to bridge the gap by exporting indigenous delicacies to satisfy the cravings of their compatriots abroad.
Exportation in Nigeria is not just about shipping goods. It is about leveraging online platforms to connect with global markets, meeting demand, and facilitating transactions that transcend borders.
It is a testament to the entrepreneurial spirit and the endless possibilities that arise when one embraces the opportunities of the digital age.
Start-up Cost: ₦50,000.00 — ₦100,000.00
Risk: Low
Profit Margin: 10–36%
3. Agriculture: Cultivating Wealth Amidst Inflation
Nigeria’s vast arable land presents an unparalleled opportunity for agribusiness.
With an economic climate, marked by a staggering annual inflation rate of 29.90%, delving into agriculture transcends mere profit. It becomes a means of survival.
With food prices soaring, venturing into agriculture offers not only financial gain but also a hedge against the relentless tide of inflation.
One can start small by cultivating crops within one's household. Not just for profit, but to ensure a stable food supply amidst rising prices. This simple act not only contributes to personal sustenance. It also lays the foundation for resilience against the challenges of food inflation.
Agriculture in Nigeria is not just about planting seeds. It is about nurturing resilience, securing food security, and safeguarding against inflation uncertainties.
It is a call to action!
Agriculture urges individuals to take control of their sustenance. And, embrace the transformative power of cultivating the land.
According to Statista, agriculture contributed around 23.69% of Nigeria’s GDP, 30.78% came from industry, and 44.04% from the services sector.
Start-up Cost: ₦50,000.00 — ₦100,000.00
Risk: Medium
Profit Margin: Varies
4. Real Estate: Building Dreams, One Investment at a Time
As a broker with Oparah Realty in Nigeria, I can not emphasize enough the potential within the real estate sector.
Real Estate Consulting remains a valuable service, especially in uncertain economic climates. It is a journey of building dreams, one investment at a time, and securing a stable future in the real estate sector.
“Real estate is about the safest investment in the world.” — Franklin D. Roosevelt
The demand for housing and commercial spaces is skyrocketing.
Whether as a licensed realtor or working with a brokerage, the role is pivotal.
Real estate is not just about buying and selling properties.
It is about understanding the complexities of the market and providing expert advice on property investments. Helping clients make informed decisions, and mitigating risks associated with market fluctuations.
In the second quarter of 2023, Nigeria’s real estate sector grew by about 1.87% compared to the same quarter of the previous year. Over the observed period, the growth rate reached its highest value in the third quarter of 2022. It grew by 4.56% when compared to the same quarter of the previous year.
Start-up Cost: ₦300,000.00 — ₦500,000.00
Risk: Low
Profit Margin: 5–10% in commission
5. Affiliate Marketing: Earning in the Digital Domain
Affiliate marketing emerges as a beacon of opportunity in the digital space.
Take David, for instance, an affiliate marketer who strategically promotes digital products online. Starting with existing platforms and eventually launching his blog.
He has cultivated a loyal community— with some readers subscribing to recommended products, generating recurring commissions for him.
What sets affiliate marketing apart is its global reach. It allows individuals like David to earn affiliate commissions through platforms like Amazon. Thus, hedging against the volatility of the Naira.
It is not just about earning commissions. It is about leveraging digital platforms to create sustainable income streams. And, empowering individuals to thrive amidst economic uncertainties.
Start-up Cost: ₦100,000.00 — ₦200,000.00
Risk: Low
Profit Margin: 12–40% of recurring commission
6. E-commerce: Riding the Digital Wave
In an era dominated by technology, e-commerce is a game-changer.
Nigeria’s booming internet penetration, especially among the youth, creates a vast market for online businesses.
Nkiru is a solopreneur. She started her e-commerce journey with a focus on apparel & clothing. She started small retailing nightgowns for ladies on Flutterwave. She swiftly pivoted her business to include swimsuits and casual wear, expanding her reach nationwide. Leveraging the power of social media, Nkiru has gained a loyal following — turning casual browsers into repeat customers.
Nkiru’s story epitomizes the essence of e-commerce — adapting to market demands, embracing innovation, and harnessing the potential of digital platforms to propel her business forward.
It is not just about selling products online. It is about creating an immersive shopping experience — fostering customer loyalty, and charting a course towards sustained success in online retail.
According to the Nigerian Communications Commission, the country has seen a surge in internet users. This has set the stage for profitable e-commerce ventures.
Start-up Cost: ₦350,000.00 — ₦500,000.00
Risk: Medium
Profit Margin: 8–40%
7. Laundry Mart: Cleaning Up Profits
Laundry services are a necessity, recession or not.
Mariam is a determined National Diploma student residing in an estate among medium to high-income earners. Faced with the challenge of unemployment, Mariam seized the opportunity to start a laundry business.
Armed with nothing but determination and a handful of flyers, she began offering her services within the estate. She quickly gained customers due to her competitive pricing.
Starting from the comfort of her home, Mariam’s laundry business soon outgrew its humble beginnings. The growth of her business prompted her to open a shop in the estate. With plans to expand operations, she employs her younger brother to help meet the growing demand.
Mariam’s journey serves as a testament to the power of perseverance and innovation in the pursuit of success.
Start-up Cost: ₦20,000.00 — ₦50,000.00
Risk: Medium
Profit Margin: 5–40%
8. Restaurants: Nourishing Communities, One Meal at a Time
The food industry remains resilient, even in tough economic times.
Madame Tee, a visionary entrepreneur spotted an opportunity along the bustling Ago Palace Way, Lagos. She senses the demand from low-income earners — particularly the labourers working on nearby construction sites.
She strategically opened a mini-restaurant, popularly known as Mama Put, at a junction close to two estate entrances.
She started small, and Madame Tee’s business has flourished over the months. Now catering to a growing customer base that spans beyond the labourers to include residents and passersby. She buys three bags of rice every week to meet the increasing demand. Offering a variety of mouth-watering dishes from rice (white, Jollof, to what looks like fried rice) and ewa–agoyin to spaghetti and fried plantains.
Madame Tee’s dedication knows no bounds. She and her husband, Oga John, who doubles as a Keke Napep driver, work tirelessly Monday through Saturday to ensure the satisfaction of their patrons.
Their story exemplifies the transformative power of entrepreneurship in nourishing communities and fostering economic growth in fast-developing areas.
Restaurants like Mama Put, Akara Junction (Fries), shawarma stalls, and pastry shops (selling bounce and puff-puff) provide affordable and in-demand delicacies. This ensures a steady stream of customers.
Start-up Cost: ₦120,000.00 — ₦180,000.00
Risk: Medium
Profit Margin: 25–40%
9. Mini Supermarket: Maximizing Volume for Marginal Gains
Mini supermarkets cater to the daily needs of communities. Offering essential goods without the overhead costs of larger stores.
Alhaji Yusuf, a seasoned business owner. He understands the art of maximizing volume for marginal gains in the mini-supermarket business. Recognizing the importance of location, he rents spaces with high foot traffic and low competition. This ensures steady sales of cheap yet in-demand commodities.
Stocking his shelves every other week, Alhaji Yusuf caters to the daily needs of his customers, offering essentials like bread, eggs — and toothpaste. Despite the slim profit margins, his commitment to selling in large volumes has propelled his business forward over the past 17 years. This has resulted in the establishment of four branches across Lagos.
In Alhaji Yusuf’s words, “Profit dey this business but na small–small e dey come. You go see beta money when you sell well-well.”
His success story underscores the importance of strategic planning and relentless dedication in the pursuit of business growth in the competitive retail landscape.
Start-up Cost: ₦720,000.00 — ₦980,000.00
Risk: High
Profit Margin: 8–15%
10. Renewable Energy: Powering Progress
With energy demands on the rise, the renewable energy sector presents a green opportunity for investors.
Engr. Charles, with four years of experience in renewable energy, sheds light on the high capital-intensive nature of this business. The cost of a battery alone retails as high as ₦780,000.00, venturing into renewable energy requires substantial initial investment.
However, opportunities for revenue lie in installation and maintenance services.
For those with limited capital, Engr. Charles recommends acquiring technical skills. The demand for renewable energy solutions continues to rise, especially in areas plagued by frequent power outages in Lagos, Nigeria.
Additionally, affiliating with established brands and recommending their products to customers can yield commission. This provides an alternative revenue stream for aspiring entrepreneurs in the renewable energy sector.
The Nigerian government’s commitment to sustainable energy, and the abundance of sunlight, positions solar energy as a lucrative investment. According to the International Energy Agency, Nigeria has immense untapped potential in renewable energy.
Venturing into the energy sector, specifically solar and gas stations, addresses the growing need for sustainable energy sources. This not only aligns with global trends but — also positions your business as a leader in the energy transition.
Start-up Cost: ₦240,000.00 — ₦360,000.00
Risk: Low
Profit Margin: 8–15%
11. Education: Empowering with Practical Skills
Investing in education is not just a financial endeavour but a societal contribution.
In today’s dynamic world, traditional education often falls short of providing relevant, up-to-date skills, especially in the tech space where industry standards evolve rapidly.
Aisha, a certified front-end web developer, exemplifies the power of acquiring practical skills. Through platforms like Udacity, she secures lucrative freelance gigs and earns between $1800–$2600 monthly.
Similarly, Tolu’s journey as a graphic designer. He started learning skills from YouTube and eventually landed a job as a UX/UI Designer at Horeshe. These highlight the potential for success with self-directed learning and industry-specific expertise.
These real-life examples underscore the importance of embracing practical education to empower individuals with the skills needed to thrive in today’s competitive job market.
The education sector in Nigeria is experiencing a transformation, with increased emphasis on technology-driven learning.
According to UNESCO, Nigeria is witnessing a surge in student enrollment. This creates opportunities for investors in e-learning platforms and educational technology.
Start-up Cost: ₦360,000.00 — ₦480,000.00
Risk: Medium
Profit Margin: Varies
12. Health and Wellness: Promoting Well-being for All
A healthy nation is a wealthy nation — and the health and wellness sector in Nigeria is ripe for investment.
With a growing middle class and increased health awareness, opportunities abound in pharmaceuticals, fitness centres, and wellness products.
With routine health checks becoming the norm. From dental to full-body assessments, and a shift towards healthier eating habits — the health and wellness sector presents a fertile ground for investment.
It is not just about profits. It is about nurturing a healthier nation, one individual at a time.
Investing in a pharmacy caters to the constant demand for healthcare products. Despite economic challenges, people prioritize health, making this sector a recession-resistant business.
According to the World Health Organization, the Nigerian government is prioritizing healthcare. This creates a favourable environment for investors.
Start-up Cost: ₦760,000.00 — ₦980,000.00
Risk: Medium
Profit Margin: 24–36%
13. Transportation and Logistics: Navigating the Road to Profit
As Nigeria’s economy expands — the need for efficient transportation and logistics services becomes important.
Investing in this sector can yield substantial returns, especially with the government’s focus on infrastructure development.
In Nigeria’s transportation and logistics sector, the rise in fuel prices has driven up transportation costs. Yet, the demand for movement persists among business people and commuters alike. This has led to a surge in the logistics aspect, with more individuals opting to waybill merchandise to save on travel expenses.
However, profitability hinges on owning the vehicle outright. A higher purchase agreement may prolong repayment periods and limit potential earnings.
It is a balancing act of navigating rising costs while capitalizing on the enduring need for transportation services in the bustling Nigerian market.
The National Bureau of Statistics reports a steady increase in transportation-related activities, indicating a lucrative market for savvy investors.
Start-up Cost: ₦2,800,000.00 — ₦4,200,000.00
Risk: High
Profit Margin: Varies
14. Technology: Innovate to Elevate
Nigeria’s tech scene is booming, with startups gaining international recognition.
Technology investment offers diverse opportunities from supporting existing ventures to launching your initiatives. This requires a handful of technological skills if you choose to start your own.
Whether through venture capital, angel investments, or partnerships, there is room for everyone in areas like fintech, AI, machine learning, and robotics. It is about harnessing innovation to propel growth and contribute to Nigeria’s evolving tech landscape.
Between 2015 and 2022, a total of 383 Nigerian tech startups, especially in the fintech domain, successfully secured over $2 billion in funding, marking a record high for any country.
According to the Nigerian Communications Commission, the country has seen a surge in tech startups. Attracting significant funding and attention from investors worldwide.
Start-up Cost: ₦480,000.00 — ₦600,000.00
Risk: Low
Profit Margin: Varies
15. Fashion and Beauty: Embracing Culture with Style
In a nation that takes pride in its cultural diversity, the fashion and beauty industry flourishes.
Despite the increasing inflation rate, Nigerians continue to embrace fashion and beauty as a form of self-expression and cultural pride.
Jamie’s journey shows this passion, as he honed his skills in traditional attire. He specialises in senator and agbada designs after graduating from fashion school. With an average of 12 clothes sewn weekly, Jamie’s success highlights the resilience and creativity within Nigeria’s fashion and beauty industry.
As he plans to expand his business and further his skills, Jamie’s story reflects the endless possibilities for growth and innovation in this vibrant sector.
From traditional attire to modern fashion, there’s a vast market waiting to be tapped into.
According to Statista, the Nigerian fashion industry is experiencing steady growth. It is driven by a burgeoning middle class with an increasing disposable income.
Start-up Cost: ₦360,000.00 — ₦450,000.00
Risk: Medium
Profit Margin: 24–48%
16. Hospitality: Profiting from Hosting
With a thriving tourism sector, hospitality is a goldmine waiting to be explored.
Nigeria’s rich cultural heritage and diverse landscapes attract tourists from around the world. Investing in hotels, resorts, shortlets and tourism-related services can yield substantial returns.
Short lets, particularly, offer a viable avenue for investment. Our property management services streamline the rental process for property owners.
Our property management service operates on a commission basis — earning a 10% commission from the total guest stay.
We handle all aspects of property management. From marketing and screening to maintenance and guest relations.
With a proven track record and a pool of satisfied clients, we ensure a seamless experience for property owners while maximizing returns on their investments. We stand ready to capitalize on Nigeria’s burgeoning hospitality industry with room for expansion and a commitment to excellence.
According to the Nigerian Tourism Development Corporation, the tourism sector is a significant contributor to the country’s GDP.
Start-up Cost: ₦180,000.00 — ₦250,000.00
Risk: Low
Profit Margin: 5–10% in commission
17. Financial Services: Capitalizing on Innovation
The financial services sector in Nigeria has a rapid growth.
It is driven by advancements in technology. Fintech startups are reshaping the landscape, offering innovative solutions.
According to the Central Bank of Nigeria, the financial inclusion rate is on the rise. It creates opportunities for investors in banking, insurance, and fintech.
Fintech startups are at the forefront. It revolutionises traditional banking processes and offers innovative solutions to meet the evolving needs of consumers. As the landscape continues to evolve, there is immense potential for growth and profitability in tapping into Nigeria’s dynamic financial services sector.
Excluding the insurance sector, banks and other financial institutions contributed ₦771.06 billion to Nigeria’s real Gross Domestic Product (GDP) in the third quarter of (Q3) 2023, a decline of 8.94% from ₦846.77 billion in the corresponding period of 2023.
Start-up Cost: ₦980,000.00 — ₦1,250,000.00
Risk: Medium
Profit Margin: 5–24%
18. Entertainment: Spotlighting Success
Nigeria’s entertainment industry, particularly the music industry and Nollywood, has gained international acclaim.
In today’s digital age — platforms like TikTok have become springboards for aspiring entertainers. This provides a gateway to fame and success without the need for traditional studio setups.
This democratization of the entertainment industry has led to the rise of TikTok celebrities who leverage their creativity to garner attention and opportunities.
Nigeria’s entertainment sector, encompassing music and Nollywood, stands as a beacon of success on the global stage.
With contributions to the GDP recognized by the National Bureau of Statistics, investing in the entertainment industry presents lucrative prospects for those passionate about showbiz. The entertainment industry offers boundless opportunities for talented individuals to shine and thrive whether through music, movies, or digital content creation.
Start-up Cost: ₦50,000.00 — ₦120,000.00
Risk: Low
Profit Margin: varies
19. Construction: Building Prosperity Brick by Brick
Investing in Nigeria’s construction sector offers a pathway to robust portfolio growth. Focusing on building materials presents a strategic opportunity for investors with an increasing demand for locally sourced materials.
Establishing a cement depot, offering plumbing services, and supplying essential materials like iron rods and wood for scaffolding are key components of this lucrative venture. Investors can contribute to economic development while reaping significant returns on their investments by tapping into the growing construction industry.
In a nation where infrastructure development is a priority, investing in the construction sector not only builds wealth but also lays the foundation for a prosperous future.
The NBS, however, noted the sector contributed 11.79% to nominal GDP in the first quarter of 2023. This is higher than the 9.68% it contributed a year earlier and higher than the 10.16% contributed to the fourth quarter of 2022.
Start-up Cost: ₦800,000.00 — ₦136,000.00
Risk: Medium
Profit Margin: 18–48%
FAQs
Which business is highly profitable in Nigeria?
Real estate, particularly in a growing market like Lagos, Nigeria. The industry stands out as one of the most profitable businesses. It offers substantial returns on investment.
What business gives daily income in Nigeria?
Selling PMS on the black market has proven to be a lucrative venture in Nigeria. It provides a daily income stream, especially when strategically catering to the fuel needs of local communities.
What business can start with 500,000 naira in Nigeria?
We recommend you start an e-commerce business. It is a viable option with an initial investment of ₦500,000.00, offering convenience to local communities and ensuring steady profits in the retail sector.
Wrap Up
If you fail to plan, you plan to fail.
Nigeria is a land of untapped opportunities, and these 19 business ideas are just the tip of the iceberg. Starting small and gradually expanding is a sound strategy.
As you embark on your entrepreneurial journey, always remember that success requires dedication, resilience, and strategic decision-making.
Choose a business that aligns with your passion and values. And, watch as your investment grows into a flourishing enterprise.
Contact us to secure a space in the thriving Lagos, Nigerian business landscape.
Thank you for reading! We will be back next time with more insights.
This content is curated and written by Oparah Realty Managing Partner Bright Ugochukwu.