The unfavorable economic situation in the country has caused many large enterprises to close down or changed direction. Interestingly enough, newer and smaller companies continue to pop up. One of the most pressing questions today: what is the most trending business in Nigeria? Read this article to find out the answer.
During economic crisis, a consumer is more focused on searching for cheaper products and more options. The buyer's habits change and everyone makes sure they find something that suits their purpose and is valuable.
According to experts, there are several options when it comes to the most lucrative business in Nigeria:
- production of different goods;
- sale of essentials;
- agriculture;
- hotel business and property rental;
- catering;
- provision of services to individuals and organisations.
Production
The most profitable business ideas in Nigeria is in the manufacturing sector. Within 3-5 years, more domestic producers is expected. The only thing that slows down the process is the lack of starting capital. Entrepreneurs with promising ideas and competently drawn up business plans with calculations may choose to rely on government assistance. The rest have to take expensive loans that are bad for a company's profitability.
Sale of essentials
During an economic recession, inexpensive essential goods gain popularity. Luxury items are not in demand. The production and sale of expensive household appliances, cars, and electronics will not be very popular. For example, when it comes to electronics, buyers try to find an "inexpensive, no-frills" smartphone model. It is difficult for large trading enterprises to survive in such conditions.
Specialists rely on small shops located in all areas (big and small cities, villages). These type of economic stores do not require too much financial investments. Such outlets quickly pay off and gain regular customers. This helps them compete with others in the field.
Children's products can be very lucrative, for instance, toys and clothing. Other products for personal and household hygiene are always in demand. The sale of inexpensive food and household items is increasing.
Agriculture
The huge agricultural potential of Nigeria allows for the growth of many food products in the country and also raw materials for factories. Today, hot business ideas in Nigeria include plant farming, animal husbandry, and other branches of agriculture.
Even city dwellers most often prefer to go to the market and buy fresh products (vegetables, fruits, meat, milk, eggs) than goods from the supermarket. Everyone knows that fresh food do not contain dyes and preservatives that can harm the human body.
A successful investment is the organization of your own farm. Pay attention to the idea of breeding ostriches. There is not a lot of competition in this field but payoff can be impressive.
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People who own some plots can make money by using their land for farming. The organization of a small part-time farm does not require the purchase of expensive equipment or the search for employees. At first, farm owners can do most of the work independently.
To organize a successful business, a beginning farmer needs to analyze the demand and supply of the market in the region where the enterprise is to be opened. Based on the information received, choose the direction of activity and proceed to the production of quality goods.
Hotel business and property rental
It has always been profitable to rent residential and industrial premises, garages and land. In the near future, no negative changes are expected in this area. The business plan is quite simple and affordable, and its profitability ranges from 75% or higher.
When asked what the most profitable business in Nigeria is, specialists respond that it is better to invest money in organizing hostels. This is due to the fact that many Nigerians can hardly afford to travel abroad, so they have to may need to spend some time within the country and use the services of inexpensive private hotels. This applies not only to tourists but also to people sent to another city for business purposes, students, etc.
At the same time, owners of many large hotel complexes close and sell their businesses, automatically leading to less competition.
Catering
As for public catering, fashionable restaurants and cafes are replaced by small pastry shops, snack bars, food outlets, small coffee shops with a profitability of 30 to 40%.
There are quite a lot business options in the area of public catering. Let's list the main ones:
- Food cooked to order. These can be wedding cakes pizzas, meals, and drinks. This is the initial stage of the public catering business. You take phone calls then prepare and deliver the food by courier. The organization of such business does not require large financial costs. It pays off fairly quickly. The main thing is to choose the right goods and location.
- Kiosks without a service room. Here we can include various stalls with grilled chicken, pies, etc. A person buys ready-to-eat food and takes it with him.
- Pavilions with service halls. Clients can have a snack right on the spot.
- Dining rooms. Premises are rented for this business must meet strict sanitary requirements.
- Cafe, bars. This is a more serious business as the opening of such institutions requires a lot more money. Specialists recommend developing an individual design and hiring a professional chef.
- Nightclubs and restaurants. This is the top of the business chain in the are of public catering. The creation of such enterprises may require large capital.
Provision of services to individuals and legal entities
According to statistics, in 2018, profitable business in Nigeria will very likely be in the service sector. Open an enterprise whose aim it is to provide services to the public. This is quite possible without a large starting capital. Sometimes you can make profit right from the beginning.
You can earn without investments if you deal with such things as repairing of cars/phones, tutoring, cleaning rooms, providing legal, accounting services and others.
Nobody likes to fill in declarations and to stand in queues in the tax inspection. Private tax specialists can earn money based on human laziness.
Also, a promising industry is small-scale lending. Companies issuing small loans enjoy popularity during the economic crisis. When the big banks refuse to offer loans to beginning entrepreneurs, small-scale lending firms are ready to provide funds for the needed period without special requirements. This is good news for small businesses.
Other small-scale medical service may include private dentists. Many patients can become permanent clients and go to the same doctor for dozens of years and even refer their friends to the specialist. Even without advertising but with expensive equipment, the dental office is a profitable enterprise.
While looking for a lucrative business in Nigeria, one should remember that the organization of any enterprise requires a competent approach. Choose a sphere that will bring you not only money but also pleasure. Then be ready to put in the effort.
Listen to the advice and recommendations of specialists and learn from the experience of others. Any startup can thrive if you are willing to put in the work.
READ ALSO: 20 lucrative businesses you can start with little or no capital in Nigeria
Source: Naija.ng