If you’re an aspiring entrepreneur or a business enthusiast, this is your roadmap to success in the vibrant Nigerian business ecosystem. Discover and tap into these hidden business opportunities in Nigeria.
Top 10 Hidden Business Opportunities in Nigeria
1. E-commerce in the Digital Age
E-commerce has transformed the way people shop globally. The COVID-19 pandemic accelerated this shift, making it an opportune time to enter the market. In 2020, the global e-commerce market surged to $4.28 trillion, and this number is projected to grow steadily.
In addition to Jumia and Konga, newer players like PayPorte and Kara have also gained traction in Nigeria’s e-commerce scene. PayPorte specializes in fashion retail, while Kara focuses on electronics.
How to Start the Business in Nigeria in a Small Scale
- To carve a niche, consider niche-specific e-commerce, such as selling locally-made crafts or specialty food items.
- Optimize your website for mobile users, as many Nigerians access the internet via smartphones.
- Develop partnerships with local courier services for efficient deliveries.
2. Renewable Energy Solutions
The renewable energy market continues to expand globally, driven by the need for cleaner energy sources. Solar power alone is expected to reach a market value of $223.3 billion by 2026.
Lumos and Solar Sister continue to innovate in the Nigerian renewable energy sector. Lumos’s Solar Home System provides affordable access to electricity, while Solar Sister empowers women entrepreneurs to distribute solar products.
How to Start the Business in Nigeria in a Small Scale
- Consider offering solar-powered phone charging stations in off-grid areas.
- Collaborate with local authorities and NGOs to secure funding for pilot projects.
- Build strong community relationships for long-term success.
3. Agricultural Technology (AgTech)
The global AgTech market is on an upward trajectory, with precision agriculture technologies leading the way. By 2030, the market is predicted to be worth over $22.5 billion.
Apart from Farmcrowdy and Thrive Agric, there’s also AgroMall, which provides digital solutions to farmers and connects them with credit providers.
How to Start the Business in Nigeria in a Small Scale
- Focus on developing affordable precision farming solutions for small-scale farmers.
- Leverage data analytics to help farmers optimize crop yields.
- Establish partnerships with agricultural cooperatives to gain access to a wider customer base.
4. HealthTech and Telemedicine
HealthTech is at the forefront of global innovation, with the telemedicine market set to reach $559.52 billion by 2027.
Nigeria’s healthtech landscape is evolving rapidly, with startups like MDaaS Global and HealthLane offering innovative healthcare solutions.
How to Start the Business in Nigeria in a Small Scale
- Develop a telemedicine app specializing in a specific area like mental health or maternal care.
- Collaborate with local clinics and healthcare professionals to provide quality care.
- Focus on user education and building trust in your platform.
5. Waste Management and Recycling
The waste management and recycling industry is gaining momentum globally due to environmental concerns. It’s projected to reach a market size of $530 billion by 2025.
RecyclePoints and Wecyclers are champions of recycling in Nigeria, driving initiatives to reduce waste and promote recycling.
How to Start the Business in Nigeria in a Small Scale
- Consider organizing community clean-up drives and offer recycling services to local businesses.
- Invest in waste collection trucks or partner with existing waste management companies.
- Create awareness campaigns to encourage recycling.
6. Mobile App Development
Mobile app development is a thriving industry, with diverse opportunities. Mobile apps generated $462 billion in revenue in 2019, a number expected to rise.
In addition to Andela and Flutterwave, companies like Decagon are equipping developers with the skills needed to compete globally.
How to Start the Business in Nigeria in a Small Scale
- Explore emerging app niches such as healthcare, education, or agriculture.
- Build a strong portfolio of user-friendly apps.
- Collaborate with local businesses to create custom apps for their needs.
7. Tourism and Hospitality
Tourism remains a significant global industry, contributing $9.2 trillion to the global economy. Nigeria’s diverse culture and natural wonders are hidden gems.
Beyond Transcorp Hilton and Jollof Travels, Airbnb and Booking.com also play a role in Nigeria’s hospitality sector.
How to Start the Business in Nigeria in a Small Scale
- Focus on experiential tourism, offering unique cultural experiences or adventure tours.
- Leverage online platforms and social media to showcase local attractions.
- Collaborate with local artisans and communities to create authentic experiences.
8. Online Education and E-Learning
Online education is a booming industry, with global revenues predicted to reach $375 billion by 2026. Nigeria’s educational sector is ripe for transformation.
Apart from Andela and uLesson, LearnNG is another promising player, offering quality educational content.
How to Start the Business in Nigeria in a Small Scale
- Consider creating specialized content for Nigerian curricula or skill development courses.
- Offer free trials to build a user base.
- Implement a subscription model with tiered pricing for premium content.
9. Fashion and Apparel
The fashion industry is a global giant, expected to reach $2.5 trillion. Nigeria’s fashion scene, with its blend of traditional and modern styles, has significant potential.
Aside from Deola Sagoe and Mai Atafo, brands like Maki Oh and Lisa Folawiyo have gained international recognition.
How to Start the Business in Nigeria in a Small Scale
- Embrace sustainable fashion practices, source locally, and promote traditional Nigerian textiles.
- Collaborate with local artisans for unique designs.
- Leverage social media and influencers for brand promotion.
10. Agribusiness – Snail Farming
The global snail farming industry is valued at over $12 billion and growing. In Nigeria, there’s a burgeoning demand for snail meat, making it an excellent business opportunity.
M-Adam Ventures and Snail Village Farm are among the notable snail farms in Nigeria, contributing to the industry’s growth.
How to Start the Business in Nigeria in a Small Scale
- Begin by conducting thorough market research and understanding the specific snail species in demand.
- Establish a small-scale snail farm using low-cost materials.
- Develop partnerships with local restaurants and markets to sell your produce.
11. Real Estate and Property Development
The global real estate market is estimated at $280.6 trillion, making it one of the largest and most stable industries worldwide. In Nigeria, the real estate sector is experiencing steady growth driven by population expansion and urbanization.
Prominent real estate companies in Nigeria include Dangote Group, Mixta Africa, and Landwey Investment Limited, each with diverse portfolios encompassing residential, commercial, and industrial properties.
How to Start the Business in Nigeria in a Small Scale
- Begin by researching local property trends and identifying promising locations.
- Start small with residential properties, such as duplexes or apartments.
- Collaborate with local builders and leverage online platforms for property listings.
12. Digital Marketing and SEO Services
The digital marketing industry is on the rise, with a global market size expected to exceed $350 billion by 2026. In Nigeria, businesses are increasingly recognizing the importance of a strong online presence.
Digital marketing agencies like Wild Fusion, and DottsMedia House have established themselves as leaders in the Nigerian market, offering services ranging from SEO to social media management.
How to Start the Business in Nigeria in a Small Scale
- Build expertise in digital marketing and SEO through online courses and certifications.
- Begin by offering freelance services to local businesses.
- As your client base grows, consider forming a small agency and hiring skilled professionals.
13. Manufacturing and Small-Scale Industry
Manufacturing is a cornerstone of economic growth, contributing significantly to GDPs worldwide. The global manufacturing market is worth over $40 trillion.
Nigeria’s manufacturing sector features companies like Dangote Group, producing cement and other essential goods, and Innoson Vehicle Manufacturing, known for producing automobiles.
How to Start the Business in Nigeria in a Small Scale
- Identify niche manufacturing opportunities, such as producing household items or specialty foods.
- Begin with small-scale production to control costs.
- Research and apply for government grants and incentives available to boost small-scale manufacturing.
14. Transportation and Logistics
The global transportation and logistics industry is valued at over $5.6 trillion. In Nigeria, efficient transportation and logistics services are crucial for economic development.
Companies like DHL, FedEx, and GIG Logistics dominate the logistics landscape in Nigeria, providing courier and freight services.
How to Start the Business in Nigeria in a Small Scale
- Consider starting with a courier or local delivery service.
- Invest in a fleet of vehicles or collaborate with local transport providers.
- Develop a user-friendly app for tracking and managing deliveries.
15. Financial Technology (FinTech)
The global FinTech market is booming, with a projected market size of $460 billion by 2026. Nigeria’s growing middle class and smartphone adoption create fertile ground for FinTech innovation.
FinTech startups like Flutterwave, Interswitch, and Paystack are transforming the financial landscape in Nigeria, offering payment processing, mobile banking, and lending solutions.
How to Start the Business in Nigeria in a Small Scale
- Consider launching a niche FinTech service, such as a digital wallet for specific communities or peer-to-peer lending.
- Build partnerships with local banks and regulatory bodies to navigate the complex financial sector.
16. Entertainment and Media
The global entertainment and media industry is valued at $2.3 trillion, encompassing film, music, gaming, and more. Nigeria’s entertainment scene, often dubbed “Nollywood” and “Afrobeats,” is gaining international recognition.
Nigeria boasts stars like Burna Boy and Wizkid in music and actors like Genevieve Nnaji in film, contributing to the country’s global influence.
How to Start the Business in Nigeria in a Small Scale
- Consider launching a niche entertainment platform, such as a podcast network or a YouTube channel dedicated to specific genres.
- Collaborate with emerging talents and leverage social media for promotion.
17. Environmental Services and Green Initiatives
With increasing environmental concerns, the global environmental services market is valued at $1.02 trillion. Nigeria faces environmental challenges, creating opportunities for eco-friendly businesses.
RecyclePoints, which we mentioned earlier, not only focuses on recycling but also contributes to environmental sustainability.
How to Start the Business in Nigeria in a Small Scale
- Consider launching a green consultancy firm or offering eco-friendly products like biodegradable packaging.
- Partner with local schools and communities to raise awareness about sustainable practices.
18. Information Technology (IT) Consulting
The global IT consulting market is expected to reach $406.23 billion by 2026. In Nigeria, businesses increasingly rely on IT solutions to streamline operations.
Companies like New Horizons Nigeria and Verraki Partners are prominent IT consulting firms offering a range of services from software development to cybersecurity.
How to Start the Business in Nigeria in a Small Scale
- Develop expertise in a specific IT niche, such as cybersecurity or cloud computing.
- Offer consulting services to local businesses looking to optimize their IT infrastructure.
- Continuously update your skills to stay competitive in the rapidly evolving IT landscape.
19. Restaurant and Food Services
The global food services industry generates over $4 trillion annually. In Nigeria, the food industry is diverse, offering opportunities ranging from street food stalls to fine dining restaurants.
Nigeria has a thriving culinary scene with restaurants like Terra Kulture and Nkoyo offering a fusion of local and international cuisines.
How to Start the Business in Nigeria in a Small Scale
- Identify a niche within the food industry, such as a unique cuisine or dietary-specific restaurant.
- Start with a small, local eatery and gradually expand.
- Invest in a strong online presence and food delivery services to reach a wider audience.
20. Personal Care and Beauty Products
The global personal care and beauty industry is valued at $511 billion. In Nigeria, there’s a growing demand for skincare, haircare, and beauty products.
Nigerian beauty brands like House of Tara and Zaron Cosmetics have made a mark in the industry, offering a range of cosmetics and skincare products.
How to Start the Business in Nigeria in a Small Scale
- Consider creating natural and locally-sourced beauty products.
- Sell your products at local markets and online platforms.
- Collaborate with beauty influencers and bloggers for product reviews and promotion.