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Nigeria is the economic powerhouse of Sub-Saharan Africa. It competes closely with South Africa to be the largest economy of Africa. With a population of around 202 million and a GDP totaling US$1.2 trillion. Lagos is the largest city of Nigeria and its former capital too. It is home to some 21 million people dreaming of making it big in life. It gives a lot of obvious and not-so-obvious business choices for the budding entrepreneur. There are several business consulting firms in Lagos that can guide you in this regard.
As the famous saying goes in Lagos’s streets, “if u can make it in Lagos, you can make it anywhere in Africa.”
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It puts this city at the center stage of economic activities in Nigeria and the entire African continent.
Let us explore this topic further and try to find the different business opportunities available here and which ones Nigerians are putting their bets on.
Lagos, the commercial capital of Nigeria:
Lagos is the city of contrasts. It has gleaming skyscrapers screaming for attention along with squatters housing tens of thousands of people.
It is a bustling, hustling potpourri of different sounds and sights twenty-four hours a day. Hence, people of Lagos are hardworking, enterprising, and energetic.
They also know how to make the most of their time, and it is common to find them working two jobs or a side-business with a job or multiple businesses. Lagos presents a wealth of opportunities for its discerning residents who are brimming with business ideas.
If a particular company in Lagos clicks, it produces its clones overnight, and soon the market gets saturated.
Many businesses cannot survive in competition and bow out looking for new business ideas.
Some prove more resilient and make it big even though they started as a smaller business. This cycle keeps repeating itself in Lagos, also turning the city into one big science lab where some experiments work and fail.
We will now share with you some great business ideas and opportunities in the city of Lagos. We hope you will find this list helpful.
Real estate agency:
Like any other big city in the world, Lagos suffers from housing accommodation. Being an economic hub, it attracts migrant populations from villages and small towns situated across the country.
Therefore, it gives the people associated with real estate a prominent edge.
The real estate business in Lagos is booming. A real estate agency is a small business primarily and is service-oriented.
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You can commence it from a tiny scale and then expand and diversify later. It has the potential to grow and will give you good returns. It is a lucrative business in Lagos.
Hair and beauty salons:
The beauty business is big business. We all want to look well-groomed and fashionable. That is why hair and beauty salons are earning very well around the world.
The people of Lagos are not indifferent to the onslaught of beauty salons. They attract hordes of people and enjoy loyal patronage.
Being a small business can also be set up quickly and does not require significant capital to begin operations.
You need to hire competent workers as it is service-oriented and requires top-notch service to the customers.
You can also develop a niche here and begin a beauty salon for older ladies, use only herbal products, etc. Such business ideas seldom fail.
Mobile phones and accessories:
Nigeria has a thriving mobile phone market. By 2025 the number of mobile phone users is expected to reach 140 million.
It is a whopping number and shows that the demand for mobile phones and their accessories will remain huge.
Although it requires some capital, to begin with, you can begin as a micro business and then grow big.
Accessories are always cheaper than mobile phones, so if you don’t have enough cash, you can set up a mobile phone accessories shop.
It costs much less than a mobile phone shop. Business ideas revolving around mobiles are going to be big.
Mobile repair shop:
Mobile phones require repair and maintenance, and there is a big market for mobile phone technicians. It is not very hard to learn mobile phones’ repair.
Nearly all of them have the same mechanical make. There are institutes offering courses for mobile phone repairs.
Women should especially venture into this field as there are very few women technicians for mobile phones, and they should grab this opportunity.
Plantain snacks:
It is another tiny business that can give you big rewards. Unripe plantain chips are a favorite snack of the people of Nigeria and Lagos in particular.
You can start this from your home with as little as 5000 or even less. What more can you ask for? Just get going. It is a good business in Lagos.
Digital skills:
Nigeria has a large number of internet users. In January 2020, the number of internet users stood at 85.49 million, with a market penetration of 42%.
There are around 28 million Facebook users in Nigeria too. These numbers are, of course, expected to increase.
However, it presents a ready market where you can sell your digital skills and make a good amount of money.
These skills may include digital marketing, SEO, blogging, web development, graphic designing, etc., to name a few.
Lagos lies at the heart of Nigeria’s tech revolution; it’s about time you take your share of the pie too.
Food business:
The food business is one of those business ideas that have little chance of failure the world over. Everyone has to eat.
It is a basic necessity for all of us, so anything related to food is bound to sell. There are small huts or sheds in Lagos that sell cheap street food.
They are called ‘bukas’ in local parlance. You can easily set up one and make an earning.
Lagos has a vibrant working culture, so with everyone working and hopping from one job to another, there is little time left to cook food at home.
These shops provide an ideal retreat that is pocket-friendly as well. The food business in Lagos is profitable.
Organic food restaurant:
It is related to the food business, but we treat it separately because it caters to a growing niche. People around the world are turning to organic foods.
There is a boom in organic farming as people prefer nutritious food that is free from contaminants.
A restaurant that only offers organic food to its patrons is an excellent business idea worth trying.
The enlightened and health-conscious people of Lagos would love to have a go at it. Organic food business ideas are worth trying.
Food catering:
Food catering service is another activity that you can start from your home with small capital. There are minimal overhead costs, and you can create them right away.
It would help if you were a good cook, and that’s all. You can start with something you are good at and then add more items if need be.
Themed restaurants:
Themed restaurants would be a new thing in Lagos. A themed restaurant represents some particular idea or a concept, and the entire restaurant builds around it.
So you can have a theme related to a movie franchise, comic characters, profession, a particular interest, or food choice.
A healthy food restaurant can be a good option too. You can make meal plans low on fat, high on proteins, and offer a balanced diet or something to that effect.
Ice factory:
Nigeria suffers from electricity shortage, and power cuts are a routine affair in Lagos.
When coupled with the rampant heat in the summer months, power failures make ice block production among perfect business ideas.
People need ice to drink cold water and drinks, and ice block sellers make good money selling ice to the public who can’t get it from homes because of power failures.
So, it is another good business in Lagos. The production of ice blocks does not require significant capital. You can start with a small amount.
Car wash:
Vehicle ownership is steadily rising in Nigeria. It is a testament to the increasing purchasing power and prosperity of the Nigerian people.
By 2030 it is expected to be 48.7 million. Any business ideas associated with automobiles are going to be successful.
We have chosen car wash here as you can set it up with a small amount and little expertise and experience You need an open space though to set up a service station for cars.
Nowadays, you don’t even need that. You can go to the client’s place and wash his car there.
It would be best if you had specialized car shampoos, spraying nozzles, polishes, etc., and hire some workers to do the job. You can work through online means, and no need to set up an office, physical presence at all.
Mobile grooming services:
Covid-19 necessitated the closure of businesses and local social contact. It led to several companies going broke around the world.
Nigeria too suffered like other countries. But you can take advantage of this situation as well.
You can give grooming services to the clients at their homes.
If you do not know this, you can hire expert workers on a commission basis. The entire model could be run on a mobile app by you. It won’t cost you a fortune either. Internet-based businesses are among the best business ideas these days.
Grocery delivery service:
This business idea is similar to the one that we discussed above. The only difference is that now you are offering a different product or service.
You can start delivering fruits, vegetables, meat, dairy products, bread, etc., to people around the area.
There is no need to produce them in-house, you can buy them from the market, but there should be reliable supply sources.
Later, you can hire delivery guys or do it yourself in the beginning. It can be a roaring success.
Lagos has become congested, and traffic jams are a routine. People would love to use such services to get the goods and services of their choice right in their homes. So, such business ideas are bound to click.
Homeschooling or tuition service:
Lockdown has closed schools in Lagos and elsewhere. The kidnapping of children is also a common crime here.
Parents are concerned about their kids’ education so that a home-based school can be a good option for these times.
You can also take these classes virtually. You can hire additional help if it expands and you are unable to bear the load.
Fitness center:
A fitness center can mean a lot of things. It could be a gym, a yoga center, a dance studio, an aerobics center, or all of these rolled into one.
The choice is yours, what you want to set up, or how much capital you have. People are concerned about their health like never before.
The internet and mass media have made people very much aware of their health and a healthy lifestyle. It is about time you cash in on the trend from the people of Lagos.
Co-working space:
Co-working space is a great idea that is fast becoming very popular. Here you rent out additional space to someone who needs it temporarily for work-related purposes.
There are now offices that cater to this trend and rent out spaces to freelance workers and small business owners who can’t own their place.
If you have any such building, you can begin this service and commence making reasonable amounts of money. It is a growing business in Lagos.
Nanny services:
As economic compulsions force both parents to work, there has to be someone to take care of the kids. For that purpose, a nanny service can be a good proposition.
You can do it yourself if you are inclined to take care of young children or hire a network of people for this purpose.
You can pay them at an hourly rate and keep a margin for yourself. These are among the proven business ideas.
Social media managers:
The rising number of trade websites and online businesses has created the position of social media managers.
They interact with the public on social media forums and engage them for the company’s collective good.
RELATED: TOP 10 SOCIAL MEDIA PLATFORMS FOR YOUR BUSINESS
Therefore, it has become a lucrative position of late.
It requires good communication skills and also technical know-how about how social media works.
With a bit of training and knowledge, you can be qualified to run this job effectively.
Room rentals:
Lagos attracts people from all over the country and elsewhere too. They come for official visits, education, employment, and other purposes.
Not all of them can afford hotels. So for them, a room rental service is just right. It can be a good source of income, and you will have no shortage of guests for sure.
It can be a good business in Lagos as well because of the scarcity of space. Business ideas around accommodation can be very successful here.
Professional movers:
Lagos badly needs a professional packing and moving service. Such services are top-rated in the west, but Nigeria has to catch on.
This service will require you to hire some well-built men who can lift heavy objects easily. The service can be a hit as there is not much competition in it, but the need is there.
People resort to common labor for this service, while a professional service can do it much more efficiently and quickly.
Daycare centers:
Daycare centers are also among the excellent business ideas in Lagos. The maternity leave in Nigeria usually lasts for three months, but the babies need care around the clock.
The workplaces in Nigeria have yet to adapt themselves to welcome the babies of working moms. It makes daycare centers essential for working moms. You can create one even in your home.
For this purpose, a room or two would suffice, but you will have to buy some cribs and other paraphernalia to support babies.
Dropshipping:
Dropshipping is a new model that has become popular with the rise of giant e-commerce stores like Amazon. It lets you sell stuff online without actually buying stock. You buy the item when you receive an order from your supplier.
You can use this model on websites like OLX, Konga, Jumia, etc. These novel business ideas are making a splash.
Herbal beauty products:
Herbal or organic beauty products have gained currency in recent times. They have a niche market where they sell like hotcakes.
If your products click and win the customers’ trust, then you can expect lifelong business. You can set up this business from your home relatively quickly on a tiny scale.
Hence make a page on Facebook or Instagram and start selling from there, and as the company progresses, add more products and make a good website. Business ideas around beauty products tend to be successful.
Event management:
Event management has made so many people extremely rich. It is a service-based business where you offer clients a range of services to manage their events.
These services can include food, chairs, tables, waiters, flower decorators, photographers, etc.
You offer these services in the form of a customized package to the client who may accept it after negotiating with you on price and also the extent of services.
As the city expands and develops, there will be events like product launches, new store openings, fashion shows, weddings, corporate meetings, and also other such stuff.
Event management is among those business ideas that hardly fails, provided you have the skills to lure and satisfy a customer.
Conclusion
These were some of the business ideas that are relevant in today’s Lagos.
There can be many others, but the above resonates the most with its socio-economic milieu, and we hope you will find this helpful and informative.
