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Investment Opportunities in Nigeria

What are the best investment opportunities in Nigeria? Are you an entrepreneur or investor looking for where to invest your money with good returns? Do you want to invest in Nigeria but you don’t know where to invest your money? Then read on because this article is for you.

Over the years of doing business, I have met a lot of Nigerians and some foreigners with a lot of cash; but they just don’t know where to invest their money. Some even tried to invest in the stock market and they lost their money, not because the stock market is bad but because they lack the needed experience and knowledge to invest in the stock market. Well, I still invest in the stock market regardless of its ups and downs; because I have the needed technical know-how.

Now Nigeria still remains a hub for most entrepreneurs and investors. In fact, Nigeria remains the second largest economy in Africa and one of the fastest growing economies in the world. That’s why South African and Chinese companies are scrambling to invest in Nigeria. Tiger brand recently acquired Aliko Dangote’s stake in Dangote Flour. MTN South Africa recently mopped up shares of MTN Nigeria and Wal-Mart has moved heavily into Nigeria through its subsidiary, Shop Rite. The list goes on and on but the point I want to stress is that this is the right time to invest in Nigeria.

For those who want to invest their money in Nigeria but want to avoid the volatility and risk associated with stocks, I wrote an in-depth article highlighting 15+ low risk small business opportunities in Nigeria. Now it is more than possible to start a business and succeed in Nigeria. In fact, there are many investment opportunities in Nigeria. However in this article, I will be analyzing some profitable industry or sectors in Nigeria. Here are some of them:

Top 10 Best Business Ideas + Investment Opportunities in Nigeria

  • Food Industry

If you are going to invest in Nigeria, then the food industry should be one of your first considerations. The food industry is probably one of the best options whether or not you are investing in Nigeria and the reason is that people need and love food. With a population of over 150million people, there is a huge demand for food and in fact, most of the food being consumed in Nigeria is still being imported.

Regardless of the food business you venture into, there is surely market for it. What you need more than money in the food business is thorough understanding of the market you are venturing into. If you are interested in investing in the food industry, you can choose to start a restaurant, fast food, food processing plant, beverages, buying farm products from farmers in the rural areas and reselling them at major towns, crop cultivation, livestock farming (poultry, catfish, snail, grasscutter, goat, cattle), selling cooked food in concentrated areas such as markets, schools, commercial areas, etc. You can also choose to invest on a small scale by starting a food cart business. I have seen families run successful food cart businesses; you don’t even need to push the cart around. You can concentrate on cooking while your employees can push the cart and sell the food at designated areas.

  • Tourism Industry

Nigeria may be associated to lots of bad things including online scams but this country is absolutely beautiful. It is a great travel destination. The tourism industry definitely gives some of the best investment opportunities in Nigeria. You can be an airline or hotel broker. You can offer ground or water transportation. You can even offer tour and sightseeing packages.

  • Accommodations

Nigeria is not just a travel destination. It is also a business hub. Many investors come to Nigeria. After all, it is an important part of the oil industry. You can provide accommodations to international businessmen and leisure travelers. I was in Owerri, Imo state recently and was shocked to find out that despite the high number of hotels in Owerri, it was still difficult finding accommodation on weekends. That goes to show the high demand for accommodation in Nigeria.

  • 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.

  • Transportation Industry

The transportation industry is one of the best investment opportunities in Nigeria. Not everyone in this country owns a vehicle. Public transport is in great demand. You can earn a lot by providing public transport to people going to various places like market and shopping centers. You can also invest in water transport or better still, haulage and logistics.

Top 10 Best Business Ideas + Investment Opportunities in Nigeria

  • Retail Industry

Nigeria is one of the countries that don’t have structured markets. Sellers are everywhere, not because they want to be there but because there is demand everywhere. However, there are some people who are looking for a clean and neat place to buy things. Tourists even have a hard time buying souvenirs at the markets of Nigeria. If you can, a well structured shop that keeps prices low will be one of the best investment opportunities in Nigeria.

  • Import and Wholesale Market

It is easy to sell items in wholesale in Nigeria because of the population. Many are inclined to earn from selling items in retail. They easily buy products as long as they are of use and affordable. These days, it is easier to import because of the internet. You don’t even need to leave the comfort of your home to become an importer.

  • Herding or Livestock farming

Because of the climate, raising animals like cows also serves as one of the top investment opportunities in Nigeria. In fact, you can see goats, cows and sheep in various places every day. Most of them are even transported to other countries. You can also invest in livestock farming such as poultry, catfish, snail, grasscutter, etc as there is huge demand for it.

  • 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.

  • Property Development

The real estate market is booming in Nigeria, this is due to the demand for affordable housing. Many tourists and businessmen rely on hotels but some of them opt to have a vacation house in the country. If you are an expert in property development, you can actually earn from rich locals and foreign investors who want a second home in this country. Or better still, you can invest in building low cost housing estates, commercial properties, events or conference centers, warehouses, shops, school hostels, etc. In fact, you can make money from real estate using the bank’s money; if you have the knowledge and a good plan. Property development is definitely one of the best investment opportunities in Nigeria.

Top 10 Best Business Ideas + Investment Opportunities in Nigeria

  • Computer and Electronics

Nigeria is probably one of the countries with highest number of people who are active online and the number is increasing rapidly. Many of them buy electronic gadgets, phones and computers and use internet services. Computers and internet services are definitely some of the best investment opportunities in Nigeria. In fact, there is a current boom in the demand for used electronic gadgets like the Blackberry, iPad, iPhone, laptops, car devices, etc.

  • Oil and Gas

The oil and gas industry is currently of the most profitable in the country but it has its own downside. Starting an oil and gas business is capital intensive, man power intensive, the industry is strictly regulated and the profit margin depends on volume. However, if this sector catches your fancy, you can invest in the oil and gas sectors by building your own oil depot, building or leasing a fuel station, hauling oil and gas products, supplying companies and individuals with AGO (Diesel), retailing DPK (Kerosine) in residential areas, brokering deals between oil buyers and sellers, retailing domestic gas, etc.

  • Technology

I see Nigeria as a potential technology hub with a lot of money to be made. If you are a technology enthusiast or you understand the industry, you can set up your own technology firm here in Nigeria and grow as the industry grows. Now Nigeria is lagging behind with respect to technology, when compared to other developed countries. If you are interested in the technology sector, you can choose to set up a web development company, an app development company or a web TV company. You can also provide web design services, SEO services, digital marketing services, etc.

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.

Business Opportunities in Africa

Are you an investor or entrepreneur looking to invest or start a business in any of the African countries? Do you want to know the best investment opportunities or small business opportunities in Africa? Then read on.

Centuries ago, Europe was the darling economy of the world; until America rose to become the world’s economic power. Now, Asia is the fastest rising economy followed closely by Africa. Africa is perceived to be one of the frontrunners of future economic growth next to Asia. Africa’s foreign development investment has significantly improved over the past decade. It is forecasted to have a $150Billion growth by 2015 with Africans themselves leading the investment growth across the continent. So without wasting your time, here is a list of top 10 investment ideas and small business opportunities in Africa.

Top 10 Investment ideas + Small Business Opportunities in Africa

  • Fiber Optics + Internet service provision

As Africa open up to the world, there is a tremendous increase in the demand for quality telecommunication and internet service. Take for instance, video and web conferencing, web TV are yet to fully utilized in Africa because of the poor internet speed experienced in most African countries. This is where the need for Fiber optics cable comes in. This opens doors for outsourcing business and e-commerce ventures as the price of internet connection will be lower. In my country Nigeria, companies such as MainOne and Glo have taken the lead in the laying of fiber optics cable but the industry is not yet competitive; and other African countries are still untapped.

  • Industrial Zones and Free Trade Zones

Industrial and free trade zones are springing up rapidly in Africa and South Africa is taking the lead. This is proof that the African government is determined to improve its world ranking. If you run a manufacturing firm or you have plans to go global and tap into Africa’s potential, then you should consider the industrial zone because it offers strategic economic advantage with its location near local and national transportation links. This also opens doors to employment opportunities. And businesses that will be established in this zone will help support the expanding manufacturing industry and add value to the economy.

  • Government Tenders and Contracts

Responding to government and non-government tenders is next in the top 10 business opportunities in Africa. Since Africa is a fledging industrialized continent, the governments of various countries have an open market policy making it tenders an opportunity for business.

  • Outsourced Business Process Services

Another small business opportunity in Africa is Business Process Services. BPS lowers administrative and operating costs. Thus, it makes it easy and possible for the business to provide new services, improve core business activities and enhance customer service. With the massive population and high number of jobless graduates, technicians and technologist, you can set up a firm that will deliver administrative services to developed countries at a cheaper rate. Take for instance data entry services, database management services, call center services and customer care services are examples of services that most developed countries outsource to countries with skilled but cheap workforce.

  • Real Estate Development

In the list of the top 10 business opportunities in Africa is real estate. Purchasing or developing commercial property in Africa is very advantageous since it has appreciated over the past ten years. Evidence to this is the fact that demand for commercial real estate in countries such as South Africa, Ghana, Nigeria, Egypt, Kenya, etc have gone up to 400%, a growth caused by foreign investors and the increasing demand of offices by new businesses. But is commercial real estate the only lucrative aspect of real estate in Africa? My answer is no. There is also an overwhelming for residential properties and the rest. In fact, regardless of the area of real estate you venture into; you are bound to reap bountiful profits.

Top 10 Investment ideas + Small Business Opportunities in Africa

  • Health Care

Sixth in the top 10 business opportunities in Africa is health care. The standard of health care in Africa is very poor when compared to the standards in Europe, Asia and America. Secondary and tertiary healthcare services have a high investment potential in Africa as health management, research and information technology are lacking. This also offers the opportunities to serve a social cause. Taking my country Nigeria as an instance, the health care facilities on ground are obsolete and unreliable that most people seek medical checkup abroad and delicate surgeries such as heart and kidney transplant are done abroad.

  • ICT Infrastructure

Since Africa lacks infrastructure in the field of communication and information technology, it is a good investment opportunity. There are local IT and communications companies looking to expand their business and is seriously looking for foreign investors to make it possible; thereby creating opportunity for private investors to help make a thriving company improve its operations in return for a profit.

  • Power generation

Eighth in the top 10 investment opportunities in Africa is Nigeria’s need for infrastructure in the field of power generation. The government in fact has announced its plan to attract $100 billion in investments over the next five years for its power sector. And when there is a need, there are much business opportunities behind. In fact, there is a plan privatization process in place and to be sincere with you; power generation is the next big business not only in Nigeria but Africa as a whole. In fact, power generation is highly untapped because the primary source of power in Africa is Hydro and it is still under-utilized while solar, wind, etc are still untapped.

  • Agro-Allied investment

Next in the list of business opportunities in Africa is still in Nigeria which needs agricultural equipment, chemical supplies, waste recycling operations and fertilizers. But I want to emphasize the point that that the need for agro-allied equipments is not peculiar to Nigeria alone but all African countries.

In conclusion, I want you to know that every sector of the economy in Africa has huge untapped potential; from technology, agriculture, food industry, services, real estate, etc. They all have the potential to yield good return on investment.

Business Ideas in Nigeria

Are you a Nigerian entrepreneur or investor? Or you are non-resident in Nigeria but want to start a business in Nigeria? Do you have money but lack startup business ideas? Then read on as I share with you 100+ profitable small business ideas in Nigeria you can start in 2013.

By virtue of being an entrepreneur, investor and blogger; I have meet or discussed with quite a number of people worldwide. And from these interactions, I have been able to pinpoint one of the most crucial business challenge facing entrepreneurs; not just in Nigeria alone but globally. This challenge is simply a question of:

Now to solve the problem of how to find good business opportunities, I wrote an in-depth article about the 15 fastest growing business opportunities in Nigeria. So in this article, I will be sharing with you a list of 100+ profitable small business ideas in Nigeria. However, before I proceed; I want to clearly highlight three critical points.

  • Please bear in mind that you can tap into any of the business listed below either on a small scale, medium scale or large scale. So you should be looking at an investment capital of between N250,000 to N5,000,000 (Naira).
  • You are advised to do your own feasibility study and write your own business plan.
  • This list of business ideas is targeted at Nigerians, or those with interest in investing in Nigeria.

Why You Should Start Your Own Business in Nigeria this 2013

  • Nigeria is a country with a population of over 150million and growing rapidly. This means that there’s a ready market for products that fulfill a need or solves a problem.
  • Nigeria is a rapidly developing country and one of the fastest growing economy in the world. What this means in essence is that there is still a lot of untapped niches and opportunities in virtually every sector.
  • Nigeria is blessed with both mineral and natural resources that are under-exploited.
  • As at the time of writing this article, Nigeria is facing some critical internal problems with respect to security and the rest. But savvy entrepreneurs know that problems are simply opportunities in disguise. Just bear in mind that there’s a lot of money to be made from these problems; if only you will keep an open mind.

Now without wasting your time, let’s get down to business.

 100+ Profitable Small Business Ideas in Nigeria You can Start in 2013

Agricultural and Agro allied sector

  • Poultry farming business
  • Catfish Farming
  • Livestock  farming
  • Livestock feed production
  • Dog breeding business
  • Equipment leasing services
  • Soya beans processing
  • Maize Cultivation and procession
  • Rice Processing (Milling)
  • Cashew production and processing
  • Cassava processing
  • Ethanol production (from cassava)

    Employment Services Sector

  • You can start a resume writing business
  • Career advice and counseling
  • Job placement and recruitment agency

    100+ Profitable Small Business Ideas in Nigeria You can Start in 2013

   Education Sector

  • Start a tutorial centre for exams like JAMB, WAEC, GCE, ICAN, CIS,etc
  • Crèche School
  • Day care centre
  • Start a self defense training school

      100+ Profitable Small Business Ideas in Nigeria You can Start Today

    ICT/ Technology sector

  • Computer repair services
  • Mobile phone repairs
  • Mobile apps development
  • Games development
  • Software development

     Web Based Business Services

  • 20 Profitable Web Based Business Ideas
  • Web design and development
  • Search engine optimization services
  • Search engine marketing services

                Business to Business services

   Green Technology

  • 86 Green business ideas
  • Waste management
  • Waste recycling business
  • Alternative power generating devices installation services

      Security

  • You can start a security guard training school
  • Start a security company
  • Import security gadgets
  • Import non-lethal self defense weapons

How to Start a Business in Nigeria

Are you a Nigerian entrepreneur? Do you need advice on how to start a business in Nigeria? Or you need Small Business Opportunities and ideas for starting a small business in Nigeria? What are the costs and challenges of doing business in Nigeria? Please read on to find out.

I was inspired to write this article because I often come across Nigerians bracing up to start a business; armed with nothing but a presumed “million dollar idea.” Well, experienced entrepreneurs know that starting a business successfully takes more than just an idea. I am a Nigerian entrepreneur with successful businesses to prove it but this write up is not about me; it’s about you.

I am an active member of Nairaland.com; the largest online forum in Nigeria and everyday on this forum, I come across people wishing to start a small business but don’t know how to go about it. Also on Nairaland will you find individuals with cash but they just don’t know what business to start or where to invest their money. Well, this article will serve as a guide to those who want to start a small business in Nigeria. Now how do you start a small business in Nigeria? You will find out below.

 How to Start a Business in Nigeria from Scratch

1.   Prepare Yourself

The first step to starting a small business in Nigeria is to adequately prepare yourself. You may think this is not important but it can be the thin line between success and failure. Running a business on Nigerian is tough but highly rewarding; so to survive, you have to be tougher. Nigeria is a harsh terrain to operate in but since we are Nigerians; I believe we are well grounded to tackle the challenges on ground. Now how do you prepare yourself?

You can prepare yourself by attending a seminar on the chosen line of business you wish to venture in and getting all the necessary information about your chosen industry. You can also prepare yourself by accepting the reality that you can fail tomorrow; you prepare yourself by increasing your risk bearing capacity. And ultimately, you prepare yourself by making up your mind to succeed despite the odds and competition.

2.  Have a Good Business Idea

To successfully start a small business in Nigeria, you must have a good idea. In fact, any idea or business opportunity will do; except you are pioneering a new invention. I emphasized that any business opportunity will do because most Nigerians focus solely on the business idea without knowing that a business idea is just a tip of the iceberg in the entrepreneurial process of building a business.

“A business idea is just another idea. But an idea backed by a strong feasibility, a thorough business plan and a smart business team is no longer an idea. It’s now a solid business opportunity worth pursuing.” – Ajaero Tony Martins

A good business idea alone does not guarantee success in business; an average business idea with good business fundamentals does. The world is filled with brilliant “million dollar ideas” but the world lack seasoned entrepreneurs.

You don’t need to crack your head to create something new; don’t bother re-inventing the wheel, just find a proven business line and learn the fundamentals. You can even decide to buy a franchise if the capital is on ground. Nigeria has the needed population to absorb any product that is backed by a strong business sense.

3.   Do a Feasibility study

The third step to starting a small business in Nigeria is to do a thorough feasibility study before investing a dime in any business opportunity. This is basically where the failure of most Nigerian entrepreneurs begin. I have seen people invest in a business idea or opportunity simply because a friend or relative said the business is profitable. I have seen people jump into an industry blindly in reaction to unverified information.

I know entrepreneurship is all about risk taking but jumping into an industry without an adequate knowledge of its fundamentals is suicidal. I know this because I am talking from experience; my dad made this very mistake and he paid dearly for it.

4.  Understand your Market

Before jumping into any business or industry; make sure you have thorough understanding about its fundamental metrics. Every business has an inside secret and if you must succeed; you must find such secret. Understand the market of the industry you are going into and you will increase your chances of success. The best way to begin such is by asking yourself the questions below:

  • Who are the customers?
  • How do they want to be served?
  • Who are your major competitors?
  • Who is the market leader?
  • Do you have a chance for survival?

Can you grab some market share in that proposed business industry of yours? These are the questions you must answer before starting a small business in any industry.

5.   Write a simple Business Plan

This is another point where most Nigerians miss it. It is estimated that over 85 percent of small business owners in Nigeria operate without business plans. While I won’t criticize them because I started my first business without any business plan; I think it’s worthwhile you separate yourself from the pack.

Since majority business owners are operating without business plans; why can’t you capitalize on it and make it a competitive advantage for your business. Banks don’t lend money to businesses that are operated without business plans but what if you have one? Well, I leave that for you to answer.

Please write a business plan for any business venture you want to undertake. Even if it is an informal, one page business plan; write one. Your one page business plan may not get you the bank’s attention but it’s a way forward because it will help you concentrate on fulfilling your business mission.

How to Start a Business in Nigeria from Scratch

6.   Find a Good Location

So you want to start a small business in Nigeria? If yes; then where are you going to locate your business?

  • Are you going to site your business within your neighborhood or are you going to site your business in an industrial area?
  • Are you going to separate yourself from the crowd by building your own brand in a specially selected location?
  • Or you are going to operate from the centre of trade or commercial places in Nigeria?

If you intend dealing on general merchandise; then you can consider locating your business in districts such as Aba, Yaba, Tradefair, Idumota, Lagos Island, Oshodi, Mile 12, etc. But if you are in a service business or you are building a specialized brand; you can situate in areas such as Ikeja, Allen Avenue, Apapa, VGC, Victoria Island, CMS, Ikoyi, etc. But wherever you choose to situate, make sure you are well prepared to face the challenges of that terrain.

7.    Obtain the necessary Licenses and Permit

Well, I don’t need to hit much on this. If you don’t want to have the government and its law enforcement agents on your heels; make sure you obtain the necessary licenses and permit needed to operate your line of business.

Every industry has regulatory bodies governing it; so be sure to check their operational policy to make sure you are not going against the law. Also remember that you may need licenses and permits from both the local, state and federal government. So make sure you factor their costs in your budget.

8.   Register your company

Most businesses operate as sole proprietorships in Nigeria; you can choose to go the same way. But if you are truly out to build a successful business that will stand the test of time; I will advice you register a business name or factor it in your cost projections as a short term plan.

You can choose between the sole proprietorship; limited liability or public liability form of entity. After choosing your business entity, you can get your business name registered at the Corporate Affairs Commission’s office in Abuja, Alausa Lagos or anywhere nearest to you. I will advice you go through a lawyer to avoid unnecessary mistakes.

9.   Raise Capital

Before making up your mind to start a small business in Nigeria, I want to assume that you have the necessary capital to at least launch the business.

10.   Start the business

After going through all the processes above; this is where you get down to the real deal, this is where you start the business. Most people make wonderful plans, do feasibility research and even raise the needed capital to start a business. But for reasons best known to them; they just fail to start.

Maybe it’s because of the fear of failure; but what I do know is that not everybody has the guts to start a business. Most can only dream of it but only few dare to take the risk. Are you willing to take the risk and start your own business here in Nigeria? Only you can answer that.

Actually, this is where your work as an entrepreneur gets tougher because statistics reveal that 75% of all new businesses started fail in their first five years. And of the 25% that survived; 80% of them will fail in the next five years. It means that about 90% of all businesses started will fail in their first ten years. This statistics may be harsh but it’s the truth in its entirety. Are you prepared to lose it all? If your answer is yes, then start.

11.   Look for Leverage

The fastest way to grow in business is to leverage on the structure of well established businesses. So if you want to grow; then look for leverage. Leverage can be in the form of getting a bank loan, getting credit line from suppliers; striking strategic alliance with a bigger player or getting a contract. No matter what leverage you decide to pursue; go for it.

12.   Survival is the Game

If you can make it to this stage, then it’s congratulations because you’ve just started your own small business in Nigeria. You have started the game and showed resilience; now is the time to break it through.

At this stage, survival is the name of the game. You might take some pounding from stronger competitors; you might make a business mistake or even face intricate business challenges like a change in government policy but don’t give up. Stay strong and fight it through, I will see you at the top.

The Cost and Challenges of Doing Business in Nigeria

Are you a Nigerian entrepreneur in diaspora? Do you intend starting a business in Nigeria? Do you want to know the risk factors or challenges of doing business in Nigeria? Are you interested in finding out the potentials and rewards of doing business in Nigeria?

Are you an investor looking for where to invest for a high return on investment? If any of the situations above best describe you, then please read on as I highlight the basic challenges of starting a small business in Nigeria or doing business in Nigeria.

Nigeria is a country blessed with human, mineral and natural resources. When it comes to starting a business in Nigeria; the potentials are so great that any investor or entrepreneur will be tempted to jump in with both feet without first testing the waters.

A reasonable proof that Nigeria hold huge potential for entrepreneurs and investors is the fact that we have an abundance of successful entrepreneurs who started from scratch and built massive business empires without leaving the shores of Nigeria.

I am talking about successful entrepreneurs and Nigerian billionaires such as Aliko Dangote, Cletus Ibeto, Femi Otedola, Orji Uzor Kalu, Ifeanyi Ubah and so on. The fact that Nigeria once produced the richest black man in the world further proves that there is money to be made in Nigeria; if only you understand her business terrain. The secret to the success of these Nigerian entrepreneurs is a story for another day.

                The Richest People in Nigeria and Secret to their Success

                Nigerian Billionaires and top 20 Richest People in Nigeria

Now if you are serious about starting a business in Nigeria; then I will provide the necessary down-to-earth information needed to help you successfully start and build a business in Nigeria. As expected, there are general business challenges and factors that startup entrepreneurs face all over the world but when it comes to economic and environmental challenges; it varies from region to region.

                10 Business Challenges of Starting a Small Business from Scratch

For instance, the economic and environmental factors affecting businesses in the United States of America or Canada is different from the factors affecting entrepreneurs in Africa or better still; Nigeria. So it’s based on this fact that I wrote this article to help familiarize you with the business terrain of Nigeria and how to handle its challenges.

The Cons and Challenges of Doing Business in Nigeria

 

1.            Lack of Infrastructure

The first business challenge you will face when doing business in Nigeria is infrastructural challenge. Nigeria lacks the basic infrastructure and logistics to support entrepreneurship. If you are going to run a successful business in Nigeria; then you must have the financial muscle to provide your own infrastructure.

Take for instance you want to start a manufacturing firm in Nigeria; you will need to build your own factory, provide your own water supply and other amenities that smoothens business operations. This single factor lengthens the time frame from initial planning to full business operations when compared to developed countries that have the basic infrastructure in place. Infrastructural challenge will directly or indirectly increase your startup overhead cost so you have to properly factor in this challenge in your business plan.

 

2.            Poor Power Supply

Poor power supply is the next challenge militating against the successful growth of small business startups in Nigeria. Successful companies operating in Nigeria has found a way to deal with the challenge of power supply by providing their own power.

For instance, Aliko Dangote; the founder of Dangote Group has developed the strategy of situating a mini power plant right next to his factories as an alternative to the erratic power supply in the company. So if you are successfully going to operate in Nigeria; then you must map out a plan to curtail the harsh effect of poor power supply.

 

3.            Inadequate Security

Security is the next challenge you must deal with especially if you are a foreigner wanting to invest in building a business in Nigeria. But I think it’s worthwhile I add that there has been a massive step up by the government with respect to security and based on this; I can confidently say that I am impressed with the way the government is handling the security of the state. Enough said.

 

4.            Inconsistent Government Policies

Government inconsistency is really a challenge you will have to tackle if you must succeed in Nigeria as an entrepreneur. Governance is something entrepreneurs have no control over; all entrepreneurs can do is to influence government’s policy with respect to enacting favorable business laws. But you must have political clout and massive resources to be able to influence government laws.

Now you may not have the political clout or financial muscle to influence government’s policy so the best strategy to combating the ever changing policy of the government is to keep a keen eye on government laws and swiftly adjust your business to align with the policies.

 

5.            Transportation Challenges

The next challenge of doing business in Nigeria is the poor transportation standard. As expected; the dependable source of raw materials may not be situated close to its market. So you will have to decide if to locate your business close to the raw materials or close to your market. Either way; transportation of either raw materials or finished goods will be involved and this will pose a great challenge if you intend operating in Nigeria.

Poor transportation standard and road network is a factor militating against industrialization in Nigeria but I believe this challenge is being tackled by the government through the upgrading of roads and construction of railway lines.

 

6.            Inability to access funds

Of all the business challenges involved with starting a small business in Nigeria; this one interest entrepreneurs the most. Inability to access funds and banks unwillingness to support entrepreneurship and small business is the major barrier to massive entrepreneurship growth in Nigeria.

However, this challenge can be surmounted if you are a die hard, creative entrepreneur. Hard core entrepreneurs are not held back by the lack of support from banks; they are not discouraged by the unavailability of startup capital.

Rather than lament over the predicament, they look for creative ways to finance their business plans and ideas. So if you are in this category of entrepreneurs; then I want to believe that your plans of doing business in Nigeria will not be thwarted or held back by the challenge of capital.

7.            Lack of Governmental Support

The last but not the least challenge of doing business in Nigeria is government’s insensitivity to the plight of entrepreneurs and small business owners. And the result of these insensitivity surfaces in the form of double taxation, unnecessary levies and duties; and high cost of obtaining business licenses.

But Nigeria operates as a free economy; which favors capitalists, so I don’t think you will be discouraged by this challenge. A good strategy to balance the excesses of the government is to assemble a strong business team that will strategically position your business to withstand the ever increasing demand of the government.

In conclusion, this is my honest outline of the territorial challenges you will face when you start a business in Nigeria. I highlighted these challenges not to discourage you; but to help you prepare in advance because he who is prepared has half won the battle. Good luck.

Nigerian Billionaires and Top 20 Richest People in Nigeria

What is the secret to the success of the top 20 richest people in Nigeria? Who are the Nigerian billionaires and how did they amass their wealth? What are the business success secrets of the successful entrepreneurs in Nigeria? What does it take to become a billionaire in Nigeria? If the answer to any of these questions interests you, then please read on.

Today, I will be compiling a list of Nigerian billionaires and top richest people in Nigeria but please this list will be restricted to entrepreneurs only. Politicians and individuals whose source of wealth cannot be traced are excluded from this list.

Most people have asked why so few Nigerians made the Forbes list of richest people in the world. So far, only Aliko Dangote, Mike Adenuga and Femi Otedola have made the Forbes list of world billionaires. Well the answer to that question is this: Forbes estimates the wealth of individuals and rank them based on the value of shares they have in quoted companies (companies listed on the stock exchange) and most of the richest people in Nigeria prefer to run their businesses privately. That’s why they don’t make the Forbes list of richest people in the world.

                The criteria for coming up with this list

Most of you may be wondering the criteria or benchmark on which I compiled this list of richest people in Nigeria. Well, I compiled this list based on the following criteria:

  • By the value of their shares held in quoted companies.
  • The size and market share of their companies
  • The number of companies they own and its assumed value
  • The market value of their company’s brand
  • The impact of their companies on the Nigerian economy

I compiled this list of richest people in Nigeria and highlighted the secret to their success because I believe we can learn a lot from them. Nigeria as a country has been branded all sort of names and a lot has been said about Nigeria; both positive and negative but I am proud that some individuals stood tall to tell the world that we have got potentials.

Despite the harsh terrain and business challenges involved with starting a business in Nigeria; the successful entrepreneurs listed below held their ground and fought their way to the top. In a country with a population of over 150 million inhabitants and millions of businesses; these 20 entrepreneurs diligently carved their names in the sands of time.

Instead of boring you with their success stories; I would rather extract the vital lessons learned from the life of these billionaires. If you are ready to learn, then below is a list of the Nigerian Billionaires (entrepreneurs) and top richest people in Nigeria.

  Nigerian Billionaires and top 20 Richest People (Entrepreneurs) in Nigeria 2013

1.            Alhaji Aliko Dangote –    founder of Dangote Group and Richest black man in the world

2.            Mike Adenuga –    Conoil, Equatorial Trust Bank, Globacom

3.            Femi Otedola –     ZENON Oil and Gas

4.            Orji Uzor Kalu –      Slok Group

5.            Cosmos Maduka –     Coscharis Group

6.            Jimoh Ibrahim –     Nicon Insurance, Global Fleet

7.            Jim Ovia –       Zenith Bank, Visafone

8.            Pascal Dozie –     MTN Nigeria, Diamond Bank

9.            Oba Otudeko –    Honeywell Group Nigeria

10.          Alhaji Sayyu Dantata –   MRS Group

11.          Umaru Abdul Mutallab – former Chairman First Bank Plc, Mutallab Group

12.          Prince Samuel Adedoyin – Doyin Group

13.          Dele Fajemirokun –        Chaiman Aiico Insurance, Xerox Nigeria, Chicken Republic, Kings Guards etc.

14.          Chief Cletus Ibeto –        Ibeto Group

15.          Raymond Dokpesi –        Daar Communication, AIT,

16.          Tony Ezenna –                   Orange Group

17.          Chief Molade Okoya Thomas –    Chairman CFAO Nig and other six french companies

18.          Ifeanyi Ubah –      Capital oil and gas

19.          Leo Stan Ekeh –      Zinox

20.          Fola Adeola –      GTBank

21.          Chief Ade Ojo –        Elizade Motors Nig LTD, Distributor of Toyota cars

Now having gone through the list of richest (entrepreneurs) people In Nigeria, I believe it’s time I share with you the secret to their success. I am not sharing these secrets with you to fill up space or excite you.

Rather, I am sharing the secrets of Nigerian billionaire entrepreneurs so you can pick up one or two lessons and replicate their success strategy. After all, success can be replicated.

Business Opportunities in Nigeria

What are the best investment opportunities in Nigeria? Are you in search for small business ideas in Nigeria? Then read on as i share with you a detailed list of 15 fastest growing small business opportunities in Nigeria for 2013.

For quite sometime now, my email box has been filled with request from fellow Nigerian entrepreneurs asking for the fastest growing business opportunities in Nigeria which they can invest in. Before I proceed with any detailed explanation, I want to state clearly that there are untapped small scale business opportunities in every industry both in Nigeria and all over the world; you just need to dig deeper to find such niches.

Now for those landing on this blog for the first time, i think it is important i introduce myself briefly. Business Opportunities in NigeriaI am Ajaero Tony Martins (+2348022628615); an entrepreneur and investor, with a passion to share my knowledge and also learn from others. I own the biggest business blog in Nigeria and probably the fastest growing entrepreneurship blog in the world.

While there are untapped business opportunities in every industry, this article will be pointing out the fastest growing business opportunities in Nigeria. If you are non-Nigerian or you’re a Nigerian in Diaspora wishing to start a business in Nigeria; then you will find this list of fastest growing business opportunities in Nigeria very useful.

A lot of things have been said about my country Nigeria and her harsh business terrain. If you are a non-Nigerian entrepreneur or a Nigerian in Diaspora; then this is my take about starting or doing business in Nigeria. If you are an experienced serial entrepreneur or an entrepreneur with guts; then you should know that one of the best places to invest your money and build a business is in a developing terrain.

Nigeria is a developing country and one of the best places to invest or build a business is in a developing environment. Though the risk is high, so also is the reward. Like I said; if you are an entrepreneur with guts to take on business challenges like Richard Branson; then this article is for you.

If you are hungry for entrepreneurial ideas and information; then sit back, grab a cup of coffee and read on as I present with you a detailed list of 15 fastest growing small business ideas and opportunities in Nigeria.

    15 Fastest Growing Small Business Opportunities in Nigeria for 2013

Before I begin listing the fastest growing business opportunities in Nigeria; let me tell you how I came about this list.

Sometime ago, I handed out a task to some members of my strategic business team and that task was to research and get a detailed report on the fastest growing business opportunities in Nigeria with moderate risk and strong profit potential within a defined time frame. After several weeks of painstaking research, my business team reported back to me with an in-depth list of 500 Hottest Business Opportunities in Nigeria for 2013.

Well; if you must know why I mandated such task to be carried out, then I am going to spill it. As at the time of this writing, I am currently developing a strategic diversification plan with my business team and we are looking at the various options of business opportunities available.

So while I am not going to tell you the specific industry i will be breaking into; I am going to share with you a short extract from my list of 15+ fastest growing business opportunities in Nigeria, as researched by my team.

What if You Don’t Have the Money or Capital to Start a Business?

Now i know Nigerians are enterprising and industrious, but the inability to access the necessary funds or capital is what is holding back most Nigerians. The Federal Government went a step ahead to initiate a programme called “YouWin” and to be sincere, i really laud this proactive measure.

But the problem is that YouWin can’t finance everybody’s business; you must learn to raise money on your own without going to the bank. So in response to this, i wrote an article that reveals 100 Alternative Ways to Finance a Business Without Going to the Bank.

So without wasting your time, below is a brief extract of the fastest growing small business opportunities in Nigeria.

    15 Fastest Growing Small Business Opportunities in Nigeria for 2013

Agricultural Sector

1.            Catfish and Poultry Farming

The first 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.

So all you need to do is look for a region with a growing demand that haven’t been covered by a major player and situate your business there. As for 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. Snail farming is also another under-exploited money maker.

When accessing any of these business opportunities listed above, you must note three important facts. One, food is one of the basic necessities of man, thus making catfish, snail and poultry farming a huge potential. Two is that the population in Nigeria is estimated to be over 150 million and growing so that entails a growing demand for food. Three is that even if the local market with 150 million Nigerians gets saturated (which I strongly doubt as this niche is still in its adolescent phase), there’s still a growing demand for catfish all over the world. So do your own in-depth analysis and put your money to work.

However, you are free to use our own analysis and research on How to Start a Poultry Farm.

Textiles Sector

2.            Importation of wears

Importation of clothes (designer wears) into Nigeria is another fast growing business opportunity you can tap into but I must warn you; you will be breaking the law if you engage in this business because there’s a ban by the federal government on the importation of wears. I listed this business opportunity for those who have the entrepreneurial guts to take calculated risk.

Update: The ban on importation has been lifted by the federal government of Nigeria.

Another reason I listed the importation of wears as one of the fastest growing business opportunities in Nigeria is because the ban cut short its supply thereby leaving a gap of demand that can only be filled by brave entrepreneurs. Please don’t assume I am trying to hype you or something; I am a player in this line majoring mainly in men designer wears which is imported from China and India. I source corporate wears from Hong Kong because of the quality of their finished product. Enough said.

3.            Sewing of specialized uniforms

If you don’t have the entrepreneurial guts to go into the importation of wears; then you can set up a small scale textile firm that will specialize in sewing uniforms. The demand for uniforms is on the increase in Nigeria; from the crèche to the labor market, uniforms are highly in demand but it’s advisable you do your own detailed research before venturing into the business.

Transportation Sector

4.            Inland water way transport

Inland water way transport is one of the fastest growing business opportunities in Nigeria. In fact, I believe the niche is still untapped because I am yet to see a modern commercial boat or ferry service system in Nigeria. Though there are a few operators in this industry; I am yet to see the modern facilities being used by the developed countries.

Another reason inland water way transport business proves viable is because population in states such as Lagos, Ogun state and Rivers is rapidly on the rise thereby resulting in the congestion of roads. Since the roads are becoming heavily congested; the next means of transportation the inhabitants of these heavily populated states will resort to is water transport. With proper planning, a good management team and adequate funding, you can break into this untapped industry and carve a niche for your business.

5.            Haulage and logistics

Haulage and logistics is another fastest growing business opportunity in Nigeria. Though it’s considered a risky business; you can breakthrough if you have a strategic business management team on ground. Good management is the key to surviving in the business of haulage and logistics.

6.            Outsourced bus service

This is similar to haulage and logistics but the cargo in this case is humans. I am not talking about the regular road transport bus service; in fact, I don’t think I have seen the idea for this business been utilized by anyone.

Now in this case, you are providing transportation services to firms and corporate entities. 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.

Information and Communication Technology

When it comes to ICT, I will say Nigeria is lagging behind when compared to the western world. It may sound like bad news to you but to entrepreneurs and investors, it is good news. ICT is still an emerging trend that hasn’t reached its peak so a lot of opportunities exist for both local and foreign investors. I won’t go into the capital intensive business opportunities that exist in the ICT sector; rather, I will stick with small and medium scale business opportunities.

7.            Cyber Café

The demand to stay connected to the rest of the world is rapidly on the increase and the cost of internet connection is still on the high side when compared to what is obtainable in the western world, thereby making cyber café an alternative for internet users; and an investment opportunity for entrepreneurs. This business can be started either on a small, medium or large scale but I will prefer a large scale because size can be a competitive edge for you in this business as customers won’t like to be kept waiting.

Customers of this industry want speed and efficient service and most importantly; they want to be sure to find a vacant computer system anytime they want to surf the web without having to wait in line. If you can get a good location; provide speedy internet access and provide complementary services; you are in for a breakthrough.

8.            E-Services

Just as the world is going e-crazy; so also is Nigeria catching up with the trend. E-services provision is still a virgin business opportunity that hasn’t fully been tapped. Under the umbrella of providing e-services; you can find the following fast growing business opportunities: E-payment, bulk Sms services, web design and hosting, database management services, e-portal management, etc.

    15 Fastest Growing Small Business Ideas in Nigeria for 2013

Education

The need for education is on the increase and the burden to provide quality education is getting heavier for the government to bear thereby, leaving room for private and institutional investors. The following are ways you can tap into the potential opportunity.

9.            Schools

A lot of institutional and private investors have gone into building quality schools and providing quality education but the potential has not been reached. With a population of over 150 million Nigerians, where 65% are below 40; there’s still untapped potential in this niche.

You can access this business opportunity from different entry levels. You can tap into this niche by providing either crèche, primary, secondary or tertiary education but all entry levels holds strong potential. Please carry out your own analysis before investing in any level of this business opportunity.

10.          Seminars

Not everyone loves being educated within four walls of school. Some prefer street smart education or high speed learning and that’s where you come in. You can set up a seminar company that organizes coaching services according to the current needs and trends of the society.

11.          Training centers

Specialized training or educational centers is another fast growing yet untapped business opportunity in Nigeria. Examples of specialized learning centers are Leadership training schools, entrepreneurial centers, training centre for the gifted and physically challenged, training centre for hobbies and crafts, etc.

12.          Tutorial centers

With the proliferation of academic and professional exams, tutorial centers have joined the list of fastest growing business opportunities in Nigeria. You can access this business opportunity by choosing or specializing on a training need. You can focus your proposed tutorial centre on any of the following: ICAN, GMAT, WAEC, JAMB, GSCE, CIS, job interview training, etc.

         15 Fastest Growing Small Business Opportunities in Nigeria for 2013

Green Energy and Technology

With a global increase in the awareness of environmental degradation and its hazard, the world has resorted to finding an alternative “green energy.” Nigeria is not left out in this global awareness that has created massive opportunities for smart entrepreneurs and investors. If you feel green is the next business trend on board, then below are the fastest growing business opportunities in the green energy and technology sector of Nigeria.

13.          Waste management

With an increased awareness in the need for environmental conservation; opportunity has popped up in Nigeria in the area of waste management. When analyzing the waste management business opportunity, I observed that two factors are responsible for the potential in the business and you must make sure these two factors are in place before deciding on an area of service.

One is a bursting population and the second is a strong environmental policy and its enforcement. So far, two states in Nigeria that has taken the lead with respect to these two factors and these states are Lagos and Imo state. But I believe great potential still lie in other states of Nigeria. Do your own personal research before venturing into this industry.

14.          Waste recycling

The next fastest growing business, yet untapped business opportunity in Nigeria is waste recycling. I don’t need to expatiate on this as the details are clear. You can venture into either bottle and can recycling or nylon recycling. You can even embark on a waste to green (manure) project as Nigeria has a huge demand for organic and inorganic fertilizer.

15.          Alternative power

The last but not the least of the fastest growing business opportunities in Nigeria is alternative power supply. In recent times; Nigeria has seen an explosive increase in the demand of power supply thus creating an avenue for smart entrepreneurs to capitalize on. Solar energy, Wind energy and bio energy are some of the alternative power supply system that are currently making waves in the country but the present alternative power supply service providers cannot meet up the demand thereby leaving room for other creative investors. With a good plan, adequate capital and a strong business team; you can break into this niche.

As a final note, I want you to know that of the numerous small business ideas, opportunities and potentials available in my country Nigeria, I believe the ones listed above are potential money makers but I emphasize you do your own feasibility study before investing a dime in any of these business opportunities.

  More Business Opportunities and Small Business Ideas in Nigeria for 2013