The high unemployment levels in Nigeria has forced many people to start side businesses along with their regular jobs. However, lack of funds poses a major hindrance to business establishment.
Estimated Capital Required for These Businesses
Here are approximate startup funds needed for cheapest businesses in Nigeria:
- Retail kiosk – ₦50,000 to ₦150,000
- Affiliate marketing – ₦5,000 per month
- Fashion designing – ₦20,000 to ₦50,000
- Akara/puff puff frying – ₦30,000 to ₦100 000
- Event planning – ₦100,000
- Phone charging – ₦2,000
- Home tutoring – ₦0 to ₦10,000
With wise spending, savvy marketing and reasonable industry knowledge, these micro-enterprises can be spun across Nigeria on tight budgets.
Government Support Available
Some Federal Government small biz programs helpful here:
- MSME Grants – One-time equipment grants up to ₦50 million
- SSIEDI Loans – Low cost loans from ₦350k to boost working capital
- GEEP Loans – Collateral free loans for micro-businesses
- FREE Trainings – Free MSME training to strengthen capacity
Additional FAQs
What are recurring expenses to consider?
Rent, inventory, ingredients, packaging, internet data, replacement components, utility bills. Plan buffer for such.
Which ideas require specialized skills?
Some capabilities needed for ventures like event planning, fashion designing, tutoring to stand out. Learn before diving in.
What permits and paperwork are needed?
Basic business registration as sole proprietorship. Additionally, health certification if dealing with food.
Which ideas can evolve into bigger companies?
Retail, fashion design, phone charging have potential to scale into specialized stores, branded clothing lines and franchise models.
What factors impact unit economics?
Supply agreements with vendors, clustering target geography, digitization, inventory management disciplines.
How to get first customers easily?
Door-to-door promotion, localization, partnerships with influencers, provides irresistible deals, foster word-of-mouth
This article lists down lucrative businesses that require low startup capital for new entrepreneurs in Nigeria. It covers the cheapest business options across various sectors that can be initiated with small money but grow to become very profitable if executed well.
Factors That Determine Business Costs in Nigeria
Some factors that decide affordable business options include:
- Low initial inventory and operational costs
- Informal infrastructure and rental requirements
- Basic equipment needs
- Ability to start small and grow organically
- Opportunity to leverage online platforms at zero-cost
Keeping these factors in check allows low barrier to entry for people wanting to start without significant seed capital.
Top Cheapest Business Ideas and Opportunities in Nigeria
Some of the most pocket-friendly business options across sectors include:
1. Food Vending
Become a mobile food vendor selling ready-made snacks like puff-puff, scotch eggs etc. outside offices or schools with low startup costs.
2. Affiliate Marketing
Earn commissions promoting companies’ products online via your affiliate links at zero-investment cost model.
3. Graphic Designing
Offer graphic design service like creating branding collateral, social media posts for clients on freelance model.
4. Data Reselling
Bulk purchase cheap telcom data bundles and resell smaller plans at margins to retail customers.
5. Phone Repair
Offer mobile phone servicing like screen replacement, software updates/repairs with high local demand.
6. Home-based Baking
Prepare baked goods like cookies, cupcakes, pastries etc. at home for sale to neighbourhood residents.
7. Freelance Writing
Get freelance gigs for creative writing, web content production, SEO writing for foreign clients.
8. Thrift-Flipping
Purchase old furniture, refurbish and upcycle them creatively to sell at a marked up price through online listings and retail agents.
Detailed Overview of Cheapest Businesses in Nigeria
1. Food Vending
Roadside food vending is easiest and most pocket-friendly option with capital needed just for basic supplies. Work carts take negligible investment or rent small space.
With as low as ₦5,000 foringredients and packaging, one can start making snackslike puff puff, scotch eggs etc. nearby schools/offices and sell affordably. Locating strategically is key to drive daily sales.
2. Affiliate Marketing
Affiliate marketing has zero startup costs. Simply promote company products through your marketing content, social media platforms and ownwebsite. For every purchase or lead generation through your affiliate link, you earn a commission.
You only invest time and effort with high potential returns. Most sought-after programs are Amazon Associates and Naira Affiliates in Nigeria.
3. Graphic Designing
Offering professional graphic design services like flyers, logos, brochures, banners etc can be initiated from home using your design skills. By building a portfolio and reviews, you can charge clients anything from ₦2500 per gig.
Using free software like Canva to support paid tools, this micro-business only needs a laptop and internet connection to take off.
4. Data Reselling
With telcom data costs being exorbitant in Nigeria, buying bulk data plans from networks and reselling smaller data bundles to customers is a lucrative business. Plans are segmented by validity and volumes offering flexibility to users.
Outside renting a small space as retail point, you only need contacts in telcos providing bulk data and float capital of ₦50,000-80,000 to start.
5. Phone Repair
With huge smartphone adoption, mobile servicing issues like cracked screens, software crashes, battery drainage provide immense business opportunities. Rent a small workshop and acquire repair tool kits for under ₦100,000 combined cost.
Quick reliable phone servicing will gain customer word-of-mouth and boost daily repairs count over time. Spare part imports will expand offerings.
6. Home Baking
Utilizing purpose-built home ovens, commercial mixers and quality ingredients, appetizing baked goods like cookies, brownies, cupcakes can be prepared cost-effectively even in apartment kitchens for sale.
Outside key baking equipment costing under ₦150,000, minimal overheads exist for electric, ingredients etc. Sale happens through personal network, social media and eCommerce platforms.
7. Freelance Writing
Leveraging writing skills for clients across the globe can generate fixed monthly income or per project payments. Article writing for blogs, website content, newsletter creation, SEO writing etc. see huge offline and online demand.
With extensive portfolio and demonstrated skills, projects can be charged anything between ₦50,000 to ₦200,000 depending on complexity and client size.
8. Thrift Flipping
A rising trend adopted by young entrepreneurs identifying value in old used goods, refurbishing them through upcycling or restoration and selling them for multiples through online and offline channels.
Outside cost of acquiring and transporting old furniture, vehicles, antique pieces, minimal working costs exist while selling prices can be set fact times higher.
FAQs About Cheapest Businesses to Start in Nigeria
What is the easiest business I can start cheaply?
Mobile roadside food vending, affiliate marketing, reselling consumer goods etc. are easiest options for newbies requiring little capital.
What small business is trending now in Nigeria?
Some top-ranking trending business in Nigeria include baking, event planning, fitness coaching, mobile tech repairs, thrift flipping, catering services etc.
Do I need huge space or infrastructure?
Not at all. Mobile carts, roadside kiosks, home kitchens/workshops or just an online presence can allow starting with low real estate costs.
Can I realistically compete with big brands?
Small businesses can successfully compete leveraging personal touch, customization, market gaps and niches untouched by bigger brands.
Is funding easily available?
Yes, several government grants like GEEP, CBN schemes, and private investments help mobilize capital for promising early-stage ventures.
Are permits and licenses mandatory?
Basic registrations to operate legally are required depending on your business activity and state regulations.
Can someone start part-time alongside a job?
Absolutely. Many cheapest business options can be initiated as a side-hustle while retaining your stable job especially if it has an online service component.
What sales and marketing tactics work best?
Social media marketing across platforms like Instagram and Facebook along with offline field sales through agents and resellers help gain customer traction.
How soon can one expect profits?
Within few months to half a year of executing proven business fundamentals like product market fit, sales, cash flow etc. and reinvesting early earnings.
Read more: finance how to start mini importation business from china to nigeria
Conclusion
Aspiring Nigerian entrepreneurs can pick from diverse affordable businesses that require low startup investment but offer high profit margins if effectively implemented. Conduct market research, refine your MVP, leverage technology enablers and continuously redeploy earnings towards scalability for maximum returns.
