In the dynamic and continuously evolving business environment of Nigeria, small-scale enterprises have emerged as influential drivers of economic growth and transformation.
From bustling marketplaces in Lagos to remote villages in the Niger Delta, these small businesses have been instrumental in driving employment, fostering innovation, and shaping the nation’s entrepreneurial spirit.
In this blog post, we will delve into the discussion of the 65 most lucrative small scale business in Nigeria. But before then, let’s define what a small scale business is.
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What is a Small Scale Business
In Nigeria, a small-scale business refers to a privately owned enterprise that operates on a relatively small scale in terms of employees, revenue, and market presence. The criteria for defining a small-scale business in Nigeria are outlined by various government agencies and industry associations.
For instance; The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) provides guidelines for categorizing businesses based on their size in Nigeria.
|Business Size||Number of Employees||Asset Range (Excluding Land and Buildings)|
|Microenterprises||Up to 10||Not exceeding 5 million Naira|
|Small Enterprises (Small Scale Businesses)||11 to 49||Between 5 million Naira and 50 million Naira|
|Medium Enterprises||50 to 199||Between 50 million Naira and 500 million Naira|
Small-scale businesses in Nigeria span various sectors, including retail, manufacturing, agriculture, services, technology, and hospitality.
Common examples of small-scale businesses in Nigeria include neighborhood grocery stores (known as “provision stores” or “kiosks”), fashion boutiques, beauty salons, small-scale manufacturing units, catering services, cyber cafes, and small-scale farming enterprises.
65 Most Profitable Small Scale Business in Nigeria
1. Crop farming (vegetables, fruits, or grains):
Crop farming involves cultivating various crops like tomatoes, peppers, maize, or rice. It requires suitable land, knowledge of farming techniques, and access to water. You can sell the harvested crops to local markets, restaurants, or wholesalers.
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2. Beauty spa or skincare services:
This business focuses on providing beauty and skincare treatments, such as facials, massages, manicures, and pedicures. You’ll need a well-equipped spa, trained beauticians, and quality skincare products. Target customers include individuals seeking relaxation and improved appearance.
3. Laundry and dry cleaning:
With this business, you offer laundry services to individuals and businesses. This can involve washing, ironing, and dry cleaning clothes and linens. You’ll need washing machines, irons, and a good location. Building relationships with hotels and offices can help secure regular clients.
4. Fashion boutique:
Running a fashion boutique involves selling trendy clothing and accessories. You can curate a collection based on your target market’s preferences. Focus on offering unique designs and quality products. Location, branding, and marketing play crucial roles in attracting customers.
5. Mobile phone repair and sales:
This business focuses on repairing damaged mobile phones and selling new or refurbished ones. You’ll need skilled technicians, phone parts and accessories, and a service center. Building partnerships with phone retailers and offering quality repairs can help establish a loyal customer base.
6. Car wash and detailing services:
This business entails providing car cleaning and detailing services. Offer options like interior and exterior cleaning, polishing, and waxing. Select a strategic location near busy roads or residential areas. Build a reputation for quality service and punctuality.
7. Graphic design and printing services:
This business caters to clients seeking graphic design services and printing of materials like business cards, brochures, and banners. You’ll need design software, printing equipment, and a skilled team. Establish connections with businesses, event planners, and marketers to secure orders.
8. Event planning and management:
Event planning involves organizing and coordinating various types of events, such as weddings, corporate functions, and parties. You’ll need creativity, organizational skills, and contacts in the industry. Offering unique themes and reliable services will help attract clients.
9. Fish farming:
Fish farming is the controlled cultivation of fish for consumption. It requires suitable ponds or tanks, knowledge of fish-rearing techniques, and access to fish feed. You can sell the fish to local markets, restaurants, or individuals. Market research and understanding customer preferences are crucial for success.
Running a bakery involves producing and selling baked goods like bread, pastries, cakes, and cookies. You’ll need baking equipment, skilled bakers, and quality ingredients. Create a diverse menu, maintain consistency in taste, and consider offering customized products for special occasions.
READ MORE: How to Start a Bakery Business in Nigeria
11. POS Agent
POS agent business is indeed a small-scale business idea that can be started in Nigeria. It requires relatively low capital investment and offers the opportunity to provide essential financial services to the local community. By partnering with banks or financial institutions and setting up a POS terminal, you can facilitate transactions, bill payments, cash withdrawals, and other financial services for customers.
12. Interior decoration and design:
This business focuses on transforming the interiors of homes, offices, or event venues. Offer services like space planning, furniture selection, and decor installation. Develop relationships with suppliers and stay updated on the latest design trends to attract clients.
13. Solar panel installation and maintenance:
With the increasing demand for renewable energy, this business involves installing and maintaining solar panels for residential and commercial clients. You’ll need technical expertise, knowledge of solar systems, and reliable suppliers. Market your services to environmentally conscious customers.
14. Real estate agency:
As a real estate agent, you help clients buy, sell, or rent properties. You’ll need good negotiation skills, knowledge of the local real estate market, and connections with property owners. Advertise listings online, network with potential clients, and provide exceptional customer service.
Read More: How to Start Real Estate Business in Nigeria
15. Car rental services:
This business involves renting out vehicles to individuals or businesses. You’ll need a fleet of well-maintained cars, valid licenses, and insurance. Market your services to tourists, travelers, and corporate clients. Develop an online booking system for convenience.
16. Snail farming:
Snail farming involves breeding and rearing snails for commercial purposes. It requires suitable housing, proper feeding, and knowledge of snail care. Snails are in demand for their meat and slime, which are used in various industries like cosmetics and medicine.
17. Computer repair and maintenance:
This business focuses on repairing and maintaining computers and laptops. You’ll need technical expertise, diagnostic tools, and a repair workshop. Market your services to individuals, businesses, and educational institutions.
18. Cybercafe or Internet services:
Set up a cybercafe where customers can access the internet, print documents, and use computer services. You’ll need computers, high-speed internet connection, and printing facilities. Target students, professionals, and individuals without internet access.
19. Photography and videography:
Start a photography and videography service for various occasions like weddings, birthdays, and corporate events. Invest in quality camera equipment, editing software, and lighting. Build a strong portfolio and network with event planners and businesses.
20. Carpenters’ tool production:
Manufacturing and selling carpenters’ tools like saws, chisels, and planes can be a profitable business. You’ll need a workshop, machinery, and knowledge of tool production. Target carpenters, woodworking enthusiasts, and construction companies.
21. Organic food store:
Open an organic food store that offers a wide range of organic products such as fruits, vegetables, grains, and dairy products. Establish relationships with local farmers and suppliers to ensure a fresh and diverse inventory. Educate customers about the benefits of organic food.
22. Toy rental services:
Provide a toy rental service where parents can rent toys for their children on a temporary basis. You’ll need a collection of age-appropriate toys, storage space, and a user-friendly rental system. Market your services to families, preschools, and event organizers.
23. Herb and spice farming:
Cultivate and sell herbs and spices such as basil, mint, ginger, and turmeric. You can grow them in a small garden or greenhouse. Target health-conscious individuals, restaurants, and spice retailers.
READ MORE: How to Start a Farming Business in Nigeria
24. Waste recycling and upcycling:
Start a business that focuses on recycling and upcycling waste materials like paper, plastics, or glass. You can process these materials into new products or sell them to recycling companies. Raise awareness about the importance of recycling in your community.
25. Electronic repairs and maintenance:
Offer repairs and maintenance services for electronic devices like televisions, home appliances, and audio equipment. Acquire technical skills, diagnostic tools, and replacement parts. Advertise your services through local media and online platforms.
26. Art gallery or exhibition space:
Open an art gallery or exhibition space to showcase and sell artworks created by local artists. You’ll need a suitable location, display systems, and marketing efforts to attract art enthusiasts, collectors, and interior designers.
27. Livestock feed production:
Start a livestock feed production business, manufacturing and selling nutritious animal feed. Research different feed formulations and develop partnerships with local farmers. Market your products to livestock farmers and animal breeders.
28. Grocery delivery services:
Provide a convenient grocery delivery service where customers can order groceries online and have them delivered to their doorstep. Create partnerships with local supermarkets or establish your own inventory. Develop a user-friendly website or mobile app for easy ordering.
29. Music and instrument lessons:
If you have musical skills, offer music lessons for instruments like piano, guitar, drums, or violin. You can teach one-on-one or in group settings. Create a structured curriculum, set competitive pricing, and offer flexible scheduling options. Advertise your services in schools, community centers, and online platforms.
30. Security equipment sales and installation:
Start a business selling and installing security equipment such as CCTV cameras, alarm systems, and access control devices. Establish partnerships with manufacturers or distributors to ensure a steady supply of quality products. Target homeowners, businesses, and institutions concerned about security.
31. Bookstore or stationery shop:
Open a bookstore or stationery shop where customers can find a wide range of books, magazines, stationery, and related items. Create a welcoming and organized space, curate a diverse collection of books, and offer additional services such as book recommendations, author events, and reading clubs. Cater to students, professionals, and book enthusiasts looking for quality reading materials and stationery supplies.
32. Pet breeding and sales:
Start a business focused on breeding and selling pets, such as dogs, cats, or exotic birds. Ensure responsible breeding practices, provide proper veterinary care, and prioritize the well-being of the animals. Build a reputation for healthy and well-socialized pets, target pet lovers, and establish connections with local pet-related organizations and communities.
33. Renewable energy products sales:
Establish a business that sells renewable energy products like solar panels, wind turbines, or energy-efficient appliances. Educate customers about the benefits of renewable energy, offer consultation on system design and installation, and provide reliable products that contribute to sustainable living. Target residential and commercial customers seeking eco-friendly solutions and cost savings on energy bills.
34. Language translation services:
Offer professional language translation services for written documents, websites, or verbal communication. Specialize in multiple languages and industries, ensuring accurate and culturally appropriate translations. Serve businesses, government agencies, and individuals seeking reliable language services for communication, documentation, or market expansion purposes.
35. Food processing and packaging:
Start a business that processes and packages food products such as jams, sauces, or snacks. Ensure compliance with food safety regulations, focus on high-quality ingredients, and create attractive packaging that appeals to customers. Distribute your products to supermarkets, restaurants, and retailers, or explore direct-to-consumer sales through online platforms or your own retail outlet.
36. HR consulting services:
Provide human resources consulting services to businesses, assisting them with various HR functions such as recruitment, employee training, performance management, and HR strategy development. Stay updated on employment laws and industry trends, offer customized solutions based on client needs, and help businesses optimize their human capital for improved productivity and organizational success.
37. Import and export business:
Start an import and export business, sourcing products from one country and selling them in another. Develop relationships with suppliers and distributors, navigate international trade regulations, and ensure efficient logistics and customs clearance. Identify market demands and trends, and offer products that cater to the specific needs of customers in Nigeria or overseas.
38. Water treatment and purification:
Provide water treatment and purification services to ensure access to clean and safe drinking water. Install and maintain water filtration systems, conduct water testing, and offer solutions for water treatment and purification challenges. Serve residential, commercial, and industrial clients, emphasizing the importance of water quality and promoting healthier living and sustainable practices.
39. Car tracking and security services:
Establish a business that offers car tracking and security services by installing GPS tracking systems in vehicles and providing monitoring and recovery services. Target individuals, fleet owners, and transportation companies concerned about vehicle security, asset management, and driver safety. Differentiate your services through advanced tracking technology, responsive customer support, and quick recovery solutions in case of theft or emergencies.
40. Building materials sales:
Start a business that sells building materials such as cement, bricks, steel, roofing materials, and other construction essentials. Establish relationships with suppliers and builders, ensure competitive pricing and reliable delivery, and cater to the construction industry’s needs. Offer quality products, provide technical expertise, and strive for customer satisfaction through excellent service and efficient supply management.
41. Personal shopping and concierge services:
Offer personalized shopping and concierge services to busy individuals or those who need assistance with shopping, event planning, or travel arrangements. Provide a range of services like gift shopping, grocery shopping, event coordination, and travel bookings. Build strong relationships with clients, offer convenience, and deliver exceptional service tailored to their specific requirements.
42. Fitness center or gym:
Establish a fitness center or gym that offers a variety of exercise equipment, fitness classes, and personalized training programs. Create a motivating environment, hire qualified fitness instructors, and offer services for different fitness levels and goals. Focus on providing excellent customer service, promoting a healthy lifestyle, and helping individuals achieve their fitness objectives.
READ MORE: How to be a successful Fitness Trainer
43. Furniture making and carpentry:
Start a business that specializes in furniture making and carpentry services. Design and manufacture custom furniture pieces, offer furniture repair and restoration, and provide carpentry services for residential and commercial projects. Emphasize quality craftsmanship, use durable materials, and cater to customers seeking unique, functional, and aesthetically pleasing furniture.
44. Hair salon or barbershop:
Open a hair salon or barbershop that offers a range of hair services, including haircuts, styling, coloring, and treatments. Create a comfortable and stylish space, hire skilled hairstylists, and use high-quality hair care products. Cater to both men and women, and establish a loyal customer base through excellent service and customer satisfaction.
45. Beauty spa or skincare services:
Establish a beauty spa that offers a range of skincare services, such as facials, body treatments, massages, and beauty treatments. Create a relaxing and serene environment, use high-quality skincare products, and employ licensed professionals. Offer personalized consultations, recommend skincare regimens, and provide treatments that enhance the overall well-being and appearance of your clients.
46. Courier and delivery services:
Start a courier and delivery service that provides efficient and reliable delivery solutions for individuals and businesses. Offer services like same-day delivery, express shipping, and package tracking. Utilize a fleet of vehicles or partner with existing delivery networks to ensure timely and secure deliveries. Build a reputation for promptness, reliability, and excellent customer service.
47. Computer and laptop sales:
Establish a business that sells computers and laptops to individuals, businesses, and educational institutions. Source a variety of brands and models, including desktop computers, laptops, accessories, and peripherals. Provide technical expertise, offer after-sales support, and cater to the specific needs and budgets of your customers. Stay updated on the latest technology trends and provide solutions that meet the evolving demands of the market.
48. Plumbing services:
Start a plumbing services business that offers a wide range of plumbing solutions to residential and commercial clients. Provide services such as repairs, installations, maintenance, and plumbing system inspections. Employ skilled plumbers, use high-quality materials, and prioritize customer satisfaction. Build a reputation for reliability, responsiveness, and expertise in resolving plumbing issues.
49. Welding and metal fabrication:
Offer welding and metal fabrication services to individuals, businesses, and construction projects. Specialize in various metalworking techniques, including welding, cutting, and shaping metal structures and components. Provide customized solutions, ensure high-quality craftsmanship, and adhere to safety standards. Target industries such as construction, manufacturing, and automotive for both small-scale and large-scale projects.
50. Dropshipping business:
Start a dropshipping business where you partner with suppliers to sell their products online without the need for inventory management or shipping logistics. Set up an e-commerce store, curate a selection of products from different suppliers, and market them to your target audience. When a customer places an order, the supplier handles the packaging and shipping while you earn a profit margin.
51. Affiliate marketing:
Enter the field of affiliate marketing where you promote other companies’ products or services and earn a commission for each sale or lead generated through your referral. Build a website or utilize social media platforms to create engaging content and drive traffic to the affiliate products. Partner with reputable brands, track your performance, and optimize your marketing efforts to maximize earnings.
52. Bed and breakfast accommodation (Airbnb):
Offer bed and breakfast accommodation by listing your property on platforms like Airbnb. Provide comfortable rooms, amenities, and personalized services to travelers seeking a homely and authentic experience. Create attractive listings, maintain cleanliness, and deliver exceptional hospitality to earn positive reviews and attract more guests.
53. Gym equipment sales:
Start a business that sells gym equipment to fitness enthusiasts, individuals, and commercial gyms. Source a range of exercise machines, weights, accessories, and fitness gear. Cater to different budgets and fitness goals, provide expert guidance on equipment selection, and offer after-sales support. Promote the benefits of a healthy lifestyle and provide quality products to customers.
54. Pest control services:
Offer pest control services to residential and commercial properties, addressing issues with pests such as insects, rodents, or termites. Conduct thorough inspections, provide effective pest control treatments, and offer preventive measures to ensure long-term pest management. Focus on eco-friendly and safe pest control practices, and build a reputation for reliable and efficient pest eradication.
55. Shoe repair and cobbling services:
Start a shoe repair and cobbling services business, providing services such as shoe cleaning, sole repair, stitching, and shoe customization. Use quality materials, employ skilled cobblers, and offer quick turnaround times. Target individuals, shoe stores, and businesses that require professional shoe repair and maintenance services.
56. Online advertising agency:
Establish an online advertising agency that helps businesses create and implement effective digital marketing strategies. Offer services such as search engine optimization (SEO), pay-per-click (PPC) advertising, social media advertising, and content marketing. Help clients reach their target audience, increase brand visibility, and generate leads and conversions through online channels.
57. Social media influencer or blogger:
Build a personal brand as a social media influencer or blogger by creating engaging content in a specific niche. Utilize platforms like Instagram, YouTube, or a personal blog to share your expertise, experiences, or lifestyle choices. Collaborate with brands for sponsored content, affiliate partnerships, or product endorsements. Grow a loyal following and monetize your influence through brand collaborations, advertising, or merchandise sales.
58. Health and wellness products sales:
Start a business that sells health and wellness products, such as dietary supplements, organic foods, fitness accessories, or natural skincare products. Source products from reputable suppliers, ensure quality and authenticity, and cater to the growing demand for health-conscious products. Create an online store or partner with existing retail outlets to reach a wider customer base.
59. Online Dating Platform Development:
Begin a business that specializes in the development and operation of an online dating platform. Create a user-friendly website or mobile application that facilitates connections, interactions, and potential romantic partnerships. Emphasize security, privacy, and user experience enhancement by incorporating features like matching algorithms, messaging systems, and customizable profiles. Generate revenue through subscriptions, premium features, or partnerships with advertisers.
60. Online Job Board or Recruitment Services:
Start an online job board or recruitment service connecting job seekers with employers. Develop a platform where companies can post job vacancies and individuals can upload resumes and search for employment opportunities. Provide supplementary services such as resume writing, interview coaching, or career counseling. Cultivate partnerships with employers, offer a user-friendly interface, and leverage technology to match qualified candidates with suitable job openings.
61. Air Conditioning and Refrigeration Services:
Deliver air conditioning and refrigeration services to residential, commercial, and industrial clients. Offer installation, repair, maintenance, and servicing of air conditioning and refrigeration systems. Employ skilled technicians, stay updated on the latest technology and industry standards, and prioritize customer satisfaction. Forge relationships with suppliers, provide competitive pricing, and establish a reputation for dependable and efficient cooling solutions.
62. Digital Marketing Consultancy:
Establish a digital marketing consultancy business that assists companies in enhancing their online presence and marketing strategies. Provide services such as search engine optimization (SEO), social media marketing, content marketing, email marketing, and pay-per-click (PPC) advertising. Tailor solutions to clients’ goals and target markets. Remain updated on digital marketing trends, analyze data, and deliver measurable results to clients.
63. Rental Services for Tools and Equipment:
Launch a rental business that offers short-term tool and equipment rentals to individuals, contractors, and businesses. Provide a wide array of tools and equipment, including construction tools, gardening equipment, power tools, and party supplies. Ensure regular maintenance, proper storage, and adherence to safety standards for all rented items. Offer flexible rental terms, competitive pricing, and convenient pickup or delivery options.
64. Social Media Management and Marketing:
Provide social media management and marketing services to businesses aiming to enhance their online presence and engage with their target audience. Develop and execute social media strategies, create compelling content, manage social media accounts, and monitor analytics to measure performance. Assist businesses in building brand awareness, increasing customer engagement, and driving traffic to their websites or physical stores.
65. Painting and House Renovation:
Establish a business that offers painting and house renovation services to residential and commercial clients. Provide interior and exterior painting, wallpaper installation, surface preparation, and restoration services. Employ skilled painters, utilize high-quality materials, and prioritize attention to detail. Expand services to include home renovation projects such as remodeling, flooring installation, or kitchen and bathroom renovations.
How to Start a Small Scale Business in Nigeria
- An idea supported by market research
- A business plan
- Funding and a bank account
- Business structure (e.g., corporation, LLC)
- Doing business as (DBA) name
- Business Location
- Licenses and permits
- Insurance policies
To know each step in detail visit this post
Remember, each business requires thorough planning, market research, and appropriate licensing and permits. Success depends on factors like location, competition, marketing, and providing excellent customer service.
And that’s all about starting a Small Scale Business in Nigeria
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