The business landscape in Nigeria and other African nations has no doubt taken new turns and interesting dimensions. The business sector continues to expand to accommodate both gradual and radical changes. Traditional trades have been modernized, agricultural businesses mechanized, and digital enterprises have come to stay. And there is no telling what changes are imminent within the current decade.
There’s so much to look out for!
Notwithstanding, your present focus as a startup entrepreneur or investor is to get into a business while it is highly profitable and still holds lots of promise. So if you’re considering starting a lucrative business in Nigeria or any other part of Africa, here are 54+ business ideas in Nigeria or Africa to start today:
1). Foodstuff Production Business:
Food remains an essential part of human existence and will never run out of demand. According to the World Food Clock, the world consumes about 11.5 million pounds of food every sixty seconds! With the growing global population, especially in this part of the world, existing producers will have a hard time meeting up with demand.
Depending on your startup capital, you could plug into the wide market either as a local producer or distributor and still smile to the bank!
2). Makeup and Cosmetics Business:
Looking good is good business. Gone are the days when cosmetics were an exclusive concern of the youths. The market has boomed significantly, with participants from individuals across both gender and all ages. As people become increasingly aware of the connection between good looks and self-confidence, they now invest more in cosmetic items such as skin care products, hair care materials, deodorants, perfumes and makeup products. There is no end to the possibilities in the cosmetics business.
3). Event Planning:
Event planning all over the world has taken on a new face. The need for flawless organization, perfect logistics, crowd management and overall event success has bolstered the event planning industry.
Particularly in African societies where social events and weekly parties are indications of social grace, people now commit their events to professional event planners much more than before. Unique events such as national festivals, games, weddings, funeral ceremonies, birthdays, political rallies, and musical concerts, among others, are all infinite business opportunities in the event planning industry.
4). Building Materials Business:
Industrial and real estate developments have paved the way for sophisticated office buildings, companies and housing units in Africa. The demand for building materials is bound to grow with the continuous industrialization and modernization of the region.
5). Ice Cream Production Business:
Ice cream remains one of the most consumed snacks across the globe. Although there is a demand preference for ice cream during dry seasons, the business is expected to rake in $75 billion by 2024 at a whopping CAGR of 30% from 2017!
This is a business you could begin with as little capital as possible, starting with distribution to schools, restaurants and hotels.
6). Sweets And Chocolate Candy Production Business:
When it comes to confectioneries, almost everyone – kids and adults alike – has a sweet tooth! Sweets and chocolates make up some of the best-selling items in local stores and supermarkets because, well, they’re tempting. As of 2019, the global confectionery industry amassed over US$210 billion. Meanwhile, the figures aren’t dropping anytime soon!
7). Car Dealership Business:
Car dealership is an open-ended business enterprise with loads of business opportunities. Although it requires a significant startup capital and involves some risks, its high profitability compensates for it all.
To start a car dealership business, however, you need the right know-how
8). Car Wash Business:
The car wash business is one of the local businesses that has enjoyed a facelift in Nigeria recently. It requires very low capital to start, but for optimal services, you could invest in a couple of machines.
The business thrives as so many people do not have the time nor technical know-how to properly wash their cars at home
9). Record Label Business:
Music and entertainment in Africa are enjoying an unprecedented boom. Record labels now brand and modernize the craft to gain global recognition and acceptance.
A record label business involves complex activities, including scouting for talents, signing contracts, PR management, etc. but can be worth the efforts once you have talented successful artistes.
10). Plumbing Business:
As more modern houses and facilities are erected, the need for plumbing services soars. These include repairs, maintenance and sales of plumbing materials, etc.
11). Ice Block Making Business:
Producing and distributing ice block is a highly lucrative business in industrial cities and towns in Nigeria and Africa at large. Small businesses such as restaurants, sachet water sellers, beer parlours and even hotels use ice blocks as supplements for the erratic power supply.
12). Pesticide And Insecticide Production:
Commercialized farming has made room for pesticide and insecticide production to help farmers battle pest attacks. They are equally in high demand in other sectors such as homes and offices.
13). Network Marketing Business:
Selling by proxy is one of the new lucrative businesses that hit the Nigerian market within the last decade. Large businesses do not bother about selling their products directly to end-consumers. They turn customers into affiliate marketers who in turn sell for commissions. The network marketing industry is fast expanding, with new agencies coming on the scene. You could start by joining one or establish a sales channel yourself.
14). Waste Collection Business:
As the world becomes more conscious of conserving resources, the recycling industry grows significantly. Waste collection is a major step in the recycling process. Although it involves a lot of physical exertion, waste collection is a highly rewarding enterprise.
15). Battery Recycling Business:
There’s so much wealth lying untapped in waste materials. The battery is one of such materials.
Recycling old batteries requires heavy investment in machinery but you could start by collecting the batteries and selling them to local and international recycling companies.
16). Generator Sales Business:
The generator sales business is at its prime in Africa. Insufficient utility power supply forces people to purchase generator sets both for business purposes and convenience at home.
17). Rubber Recycling Business:
Another lucrative recycling business you could start up is the rubber collection and recycling business. The industry has several components that lots of people employed and it rakes in a lot of profits.
18). Scrap Metal Collection Business:
If you’re looking to get started in the recycling business, there are several valuable materials lying waste on the streets. Tyres and rubbers are typical examples.
19). Generator Repair Business:
As the generator sales business expands, it inevitably creates business opportunities for technicians, repairers and engineers. The generator repair business requires expertise, so you need to be a professional in the field or employ experts.
20). Medical Equipment Supply Business:
The medical equipment business in Africa thrives more on distribution than production. Targeting the right clinics, hospitals, pharmacies, etc. could open your way to a highly lucrative distribution business in the health sector.
21). Digital Marketing Business:
Digital marketing is an opportunity for traditional businesses to take their products and services to the cyberspace to reach more customers. Starting a digital marketing agency puts you in the right spot to help businesses connect with their target audience and boost sales.
22). Palm Wine Production Business:
Whether you know it as ‘oguro’, ‘pami’, ‘emu’, etc., palm wine remains one of the most sought-after local drinks in Nigeria. You could open a grand palm wine bar or distribute it to hotels, wedding events, beer joints, etc.
23). Frozen Shrimps And Prawns Production Business:
Although this business is more accessible to people close to freshwater sources, rearing, packaging and distribution of frozen shrimps and prawns is a highly lucrative business idea. Thanks to the all-year-round demand it enjoys.
24). Poultry Business:
You can start a poultry business with as little capital as possible right from your home. But what’s even more interesting is that it appreciates during festive periods and it never runs out of demand!
25). Cocoa Farming Business:
If you’re interested in the agro-businesses, cocoa farming is a viable option especially if you live in an area that sports all the favourable conditions needed. With a strong distribution network, you could make a good business venture from cocoa farming.
26). Supermarket Business:
Supermarkets are trademarks of modern societies. A supermarket well situated in the heart of a town can be a potential gold mine. A supermarket could be costly to start but it holds a high prospect.
27). Pure Water Business:
Water is essential for business but pure water is the fuel that drives daily activities in busy towns and cities in Nigeria. Starting a pure water business sure requires high startup capital but with a good distribution channel, you could stay above the competition and get maximum returns.
28). Orange Farming Business:
Orange is consumed daily in diverse forms. Growing orange for distribution and further processing could be a highly lucrative business if you have the right marketing strategies and distribution network.
29). Used Oil Recycling Business:
Most industrial cities and towns in Africa consume gallons of oil each day and dispose of them in water bodies, bare land, etc. You could collect used oil and deliver it to recycling companies for refining.
30). Toothpaste Production Business:
In 2019, Nigeria ranked as the 56th biggest exporter of toothpaste. The growth has been teeming ever since. With quality branding, you could make your way into the competitive toothpaste production industry.
31). Sesame Seed Production Business:
Not many people are aware of the business opportunities in sesame seed production. The sesame seeds were the leading export product in Nigeria in Q1, 2018. With such an unsatisfied international market and low competition, sesame seed is a great business to delve into.
32). Tiger Nut Farming Business:
Tiger nuts are widely consumed for their immense health benefits and multiple uses. Although it requires extreme conditions to grow, the demand it enjoys makes it worth the efforts.
33). Tea Farming Business:
Tea is second only to water in terms of global consumption rate. There are tons of business opportunities in the tea farming business for any agro-entrepreneur to delve into.
34). Leather Production Business:
Leather is one of the most used materials, and its application extends to various fields of production. Whether you choose to deal in natural or synthetic leather, the demand is always on the rise.
35). Photography Business:
People appreciate the beauty in capturing people, places and memorable events. There are different kinds of photography to focus on but it helps to establish your business as a digital brand for wider reach.
36). Salt Production Business:
Salt sounds like a common commodity but its marketability lies in the fact people can’t do without it each passing day! You could make a lucrative business of salt production or distribution.
37). Cake Production Business:
The cake production industry has evolved radically with lots of participants. Notwithstanding, it is still a lucrative business idea for new startups. With good mastery, creativity, branding and a distribution network, you could make an empire out of cake production.
38). Orange Juice Production Business:
The global orange juice production is expected to reach $29 billion in 2021, with Nigeria contributing well over 900 MT. Starting an orange juice production business puts you on the radar of juice production businesses with great prospects.
39). Garlic Farming Business:
If your focus is on farming businesses, the garlic farming business might be a suitable option for you, particularly if you have enough capital to invest in mechanized large-scale garlic production.
40). Renewable Energy Business:
Renewable energy is the future of the energy generation industry. Delving into any renewable energy business of your choice (Wind, Biofuel, or Solar energy) while it is still at its budding stage will turn out a worthy long-term investment.
41). Potato Flour Production Business:
The discovery of new recipes continues to highlight the health benefits of flour types other than grain flour. Potato flour is used for thickening sauces and soups. Growing demand means a bigger prospect for the business.
42). Solar Energy Business:
Currently, individuals and companies across Africa are beginning to adopt solar energy in neglect of the public electricity grid. Although solar energy panels are beyond the capability of many people, it is only a matter of time before solar energy becomes the norm in all companies and households.
43). Web Design Business:
The world has gone digital and Africa is equally catching up with the pace. Bloggers, web publishers and companies now require the services of web designers to create responsive websites for their business activities.
44). E-waste Collection Business:
Starting an electronic waste collection business is a step in the right direction to maximize the available resources. It requires very little capital and could grow into a large business if you have the right recycling network.
45). Paper Recycling Business:
The abundance of waste paper makes paper recycling a highly lucrative business for anyone to delve into. If you’re low on a startup budget, start by collecting waste papers from offices, schools, etc. and delivering them to advance recycling firms.
46). Wind Energy Business:
Wind farms, large companies, etc. are some of the areas always in need of wind energy services. As the market for wind energy increases in this part of the world, the wind energy business is bound to grow.
47). Biofuel Production Business:
As of 2019, the global biofuel market was worth US$136 billion. Market statistics have it that the value could soar to over $150 billion by 2024. Biofuel production is capital-intensive but the potential returns are whopping!
48). Beer Parlour Business:
Nigerians are lovers of a ‘good life’. Beer parlours are common resorts for people after a day’s hard work. You can start a mini-beer parlour with as low as ₦150,000 and grow it over time.
49). Egg Hatchery Business:
Egg hatchery requires enough capital for facilities but with the tight distribution channel, you could grow an egg hatchery business into a multi-million naira business.
50). Shea Oil Production Business:
The local shea oil is one of the untapped resources in Africa. It has many health benefits that increase its value in the food production and health care industries.
51). Boutique Business:
This lucrative business idea is a major component of the fashion industry, which is worth over $1.4 trillion. Whether you stick to clothing items, shoes or other fashion accessories, a boutique business is a great business opportunity for all.
52). Tangerine Farming Business:
Another lucrative business idea in the agro-industry worthy of mention is tangerine farming. Tangerine farming creates business opportunities in the health care and beverage production industries. With such a large market, you can never run out of demand as a tangerine farmer.
53). Peanut Butter Production Business:
Whereas some people are selective with the kind of butter they consume, producing peanut butter for the right target could rake in lots of profit.
54). Gum Arabic Powder Production Business:
The gum Arabic powder business enjoys a limited demand, but with the right business strategy in place, you could produce them for the right audience and also create awareness about its benefits.
55). Ketchup Production Business:
Ketchup is rich in healthy nutrients and can also be used as conservatives. The ketchup market is infinite, so you can make a lucrative business out of producing, packaging and distributing ketchup to the right market.
To Sum It Up
There are tons of highly lucrative business ideas for you to get started as an entrepreneur in Nigeria or Africa. They range from low capital businesses like palm wine production to sophisticated ones like biofuel production. Whichever business idea piques your interest, you can bring it to life with a suitable business strategy!
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What are your thoughts on these 54+ lucrative business ideas you can start in Nigeria or anywhere else in Africa? Let me know by leaving a comment below.