Starting a business with low capital in a country like Nigeria may not be easy, although it is not impossible. Many Nigerians have successfully launched and grown businesses with minimal initial investment.
For 2024, you’ve got much more at your fingertips than you may imagine if you want to start that business without necessarily bankrupting yourself. At TransferXO, we’ve got a rundown of the most profitable companies in Nigeria with low capital that can be started in 2024.
With the right attitude and a dash of creativity, you can turn any small investment into a real business. This piece is going to take you through some very profitable businesses in Nigeria that require low capital, therefore guiding you to make informed decisions on your first steps toward financial independence.
Whether you are a veteran or a new entrepreneur destined to make your mark, these ideas will give you just the right dose of inspiration and guidance. Let us now delve into the real business world and uncover the most profitable ventures in Nigeria with low capital for 2024.
TransferXO is your go-to source for the latest and greatest updates on everything happening in Nigeria’s Fintech world, especially for graduates. Stay in the loop with us!
You can also explore other business ideas to start with a million naira budget, through this article; 35 Profitable Businesses to Start With 1 Million Naira in Nigeria | 2024 Business Tips
What are Profitable Businesses in Nigeria?
A profitable business in Nigeria yields, through sales, much money in return, whose operational costs are lower than returns, and which yields substantial returns on investment.
It simply means running a business that cashes in on market demand, efficient use of resources, and can survive the economic climate of the country.
A profitable business in Nigeria is one with stable cash flow, growing market share, and growth-oriented; has the disruptive capacity to drive innovation and enhancement of value proposition before the economic vagaries, regulatory fluxes, and competitive challenges.
In the end, a profitable business in Nigeria has the reason of creating value for owners, staff, and customers, hence contributing to the economic growth of the country.
Check out the list of – 35 Profitable Businesses to Start With 2 Million Naira in Nigeria | 2023 Business Tips
Why Should You Start a Profitable Business in Nigeria?
The country has reasons that make it a very good environment for business entrepreneurs who desire value for their money. Here are some reasons to prove that starting a profitable business in Nigeria might be the best move:
- Large and Growing Market: With a population of more than 200 million people, Nigeria has the largest market in Africa, thereby giving your products a vast potential clientele base.
- Large Proportion of Youthful and Tech-Savvy Population: A huge proportion of its population is young and increasingly tech-savvy. This creates the opportunity to target customers who are receptive to new products and services, particularly those offered online.
- Economic Potential: By the year 2030, it is projected that Nigeria will feature in the top 20 economies of the world. This socio-economic growth in the economy sets a very conducive atmosphere for businesses to thrive.
- Government Support: The government of Nigeria provides subsidies and grants that encourage entrepreneurship, making it relatively easy to start an enterprise.
- Untapped Potential: As most of the sectors in Nigeria are underdeveloped, it is open territory for any innovative business to come, make a mark, and take over the market.
Of course, launching a business in any country is very challenging. Research the particular industry you wish to join and study the regulatory climate. With all that risk, though, Nigeria still gives a very promising landscape for building a profitable business for those who are ready to dare it.
Take out time to read – 17 Profitable Business to Start with 500k in Nigeria | 2024 Business Tips April 27, 2024 12 minute read
What are the Top 10 Most Profitable Businesses in Nigeria With Low Capital in 2024
Here’s a list of 10 profitable businesses in Nigeria that can be started with low capital in 2024:
1. Cryptocurrency Trading
Topping this list, which comprises the first and most lucrative businesses to start with low capital in Nigeria in 2024, is the business of cryptocurrency trading.
Though this was not long before the world first saw this means of currency exchange, today a cryptocurrency trading business is proving to be highly profitable to start in Nigeria, even with low capital. Aspiring entrepreneurs can be attracted to the potential of great returns the market in digital currencies holds.
For those who are ready to plunge into cryptocurrency trading, TransferXO is the best. In other words, low transaction fees go hand in hand with the robust security provided by the user-friendly interface of the platform to help you execute seamless trades.
TransferXO does offer a few learning resources so that new traders can acquaint themselves with the trends in the market and the proper decisions to make.
With this commitment to customer satisfaction and reliable service, TransferXO is the best way for anyone looking to start a successful cryptocurrency trading business in Nigeria.
People also read – Top 10 Weird Business Ideas That Made Millions You Can Start in 2024
2. Point-of-Sale (POS) Business
The point-of-sale (POS) industry is ranked second on this list of lucrative enterprises in Nigeria that require little capital as of 2024.
This, with the ever-increasing cashless policy, should mean that POS terminals will soon be a need for most small businesses. The POS business involves just completing ordinary bank transactions, deposits, transfers, withdrawals, etc., on behalf of the people for some fee.
Partner with any bank of your choice and become a POS operator; any transaction processed, you get a certain commission for that. Anybody, irrespective of their location, can start this business of becoming a POS.
You can even become a POS agent in Nigeria with less than 50,000 Naira, as many banks issue POSs at a cautionary fee that is not so expensive. In this business, one stands a chance of making quite a good amount out of it since it translates to money every day.
3. Cleaning Services
Another most profitable business in Nigeria with low capital to start is the cleaning service business.
Busy Nigerians will seldom have the time to clean their homes and offices. You can begin a cleaning service with a low investment in cleaning supplies and build your customer base from good service. Examples include residential, commercial, and industrial cleaning services.
Benefit from the rising demands for cleaning services, mostly in urban places. Start by putting together a team of trustworthy cleaners whom you will later supply with cleaning materials and equipment. Ancillary services like fumigation, pest control, or even landscaping can be added to complement your business.
4. Start a YouTube Channel
Starting a YouTube channel, yet another profitable online business in Nigeria, is where people post videos and make money.
Some don’t know that their favorite YouTubers make money from the videos they make on YouTube. You can start a YouTube channel just like blogging and then monetize it with Adsense.
You get paid whenever someone watches your video. One can also monetize a YouTube channel through brand partnerships and affiliate marketing.
You can also explore free businesses without registration by reading; Top 10 Online Business that Pays Daily With Free Registration in Nigeria
5. Mobile Food Vendor
Nigerians love street food! You can sell popular meals like jollof rice, suya, or puff puff to hungry customers with a cart or a small kiosk.
Look for nice spots where the footfall is high, like busy streets, markets, or places in front of offices. With low investment, the street food business may turn out to be very profitable. You can start small and grow with more customers.
Ensure good hygiene and food safety practices to gain the customers’ trust. Get the right location and quality food raking in the money ceaselessly.
6. Affiliate Marketing
Affiliate marketing is the next big thing in Nigerian e-commerce that pays well and doesn’t even require any capital.
This is a very lucrative business and not difficult to establish. It’s simply a way of Internet marketing where one recommends products to people and gets a commission on the buying of those same products.
You have a few affiliate programs in Nigeria, and you can start with little or no experience in making money through affiliate marketing.
You can also start this business with minimal risks or, in some cases, even completely risk-free because you might not even need any money to begin with.
If you are a student in Nigeria, you can explore these Free 15 Online Businesses that Pay Daily for Students in Nigeria
7. Social Media Management
Many businesses in Nigeria are still struggling to have a strong presence on social media. You can help them with this by offering social media management services to create content and schedule posts, among other things, to engage their followers.
With increased businesses going online, social media marketing is fast becoming a booming business in Nigeria. A small amount of capital is needed to start a social media marketing business, and the revenues are handsome.
Offer businesses or individuals services like social media management, content creation, and advertising. Build a team of talented marketers and leverage online platforms—Facebook, Instagram, or Twitter—to pitch for services.
8. Sales of Cosmetics
Looking at most of the lucrative businesses with low capital in Nigeria, especially for women, one should come across the cosmetic business. In simple terms, it deals with selling every type of cosmetic and beauty products available that relate to foundation, powder, mascara, or lip gloss.
With makeup among those things which most Nigerian ladies can’t do without, you wouldn’t have to sweat so much when it comes to sales. You can take off your cosmetics business from home by selling online or renting a shop for it.
The profit margin could be 30% to 50% for a cosmetics business and it wouldn’t take millions of naira to start.
9. Event Planning
In terms of money, event organizing is one of the most profitable businesses in Nigeria. The potential never runs out since events happen every day.
Nigerians love to celebrate! Therefore, if you have a talent for organization and being detail-oriented, you should set up an event planning business to help people plan their weddings, birthday parties, or corporate events.
Help clients have a successful event by offering your organizational and management skills with attention to detail.
Design relationships with some vendors, caterers, and decorators so that you can offer the full service. Build a website or promote it on social media platforms showcasing your work to get clients.
10. Freelance Writing and Editing
If you are a student looking to start some profitable online businesses in Nigeria with little money, then freelance writing is one good business to try. Working online allows you to earn money whenever you choose.
You can offer freelance writing and editing services to businesses and people. With good writing skills and a strong portfolio, there is a growing demand for content creation online where you can find plenty of freelance work.
Writing stuff online—blog posts, resumes, copywriting, etc.—getting paid. First, though, you will need to have a smartphone and good internet.
Log into freelance websites available in Nigeria, such as Fiverr, Upwork, PeoplePerHour, etc., login, create your gig, and you are good to go on the orders.
Don’t miss out to read – Top 30 Cheapest Businesses to Start in Nigeria | 2024 Business Tips
How to Identify and Choose Profitable Business Opportunities in Nigeria?
Identifying a profitable business opportunity in Nigeria requires looking at market trends, your skills, and what resources you have available. Here’s a guide to help you get going:
1. Know the Market
Research trends in Nigeria’s economy, demographic data, and sectors with high growth. Target areas that have growing middle-class segments, unmet needs, or increasing disposable incomes. Websites of the World Bank or African Development Bank Group provide very useful data [. Africa’s Young Entrepreneurs Organization].
2. Identify Your Skills and Interests
Where does your passion lie? What skills do you have? Consider business ideas that directly match your strengths and interests. There will be a greater chance of success in the venture.
3. Spot the Gap
Determine any gaps in the market or unmet needs: Present a subpar or nonexistent good or service. Can you innovate in an existing industry?
4. Research and Validate
Don’t be afraid to dig in. Do proper research on the business idea you are going to venture into. Touch base with your customers, study your competitors, and evaluate whether it is going to make any financial sense. This way, you will be able to refine the concept and come to the realization that there is an increased possibility of becoming successful.
Also read – Is P2P Trading Profitable? How to Make Money from P2P Trading With TransferXO P2P
Troubleshooting Challenges Faced When Starting a Profitable Business in Nigeria
Even with a very high degree of entrepreneurial spirit, challenges will not keep off. Here’s how to troubleshoot four common hurdles:
1. Financing Constraints
Acquiring capital can be quite challenging, plus high interest rates on loans and minimal attraction of investor funds. To surpass this, look at first bootstrapping. Search for government grants, incubators, and angel investor networks that target Nigerian startups.
2. Infrastructural Obstacles
Unreliable power grids and poor transportation networks can hamper efficiency. Consider alternative sources for energy supplies, such as solar panels. Seek cost-effective logistics solutions and embrace technology to support remote work arrangements.
3. Bureaucratic Challenges
The maze of regulations and permits is very time-consuming to get through. Seek business consultants or lawyers familiar with Nigerian regulations. Network with other entrepreneurs who can share their experiences.
4. Competitive Environment
Well-established businesses, coupled with a rising tide of startups, can make penetration difficult. For that reason, building a niche by doing proper market research, identifying an area of excellence or specialty, and excelling in customer service while developing brand loyalty can help in entry.
With clever steps to deal with these challenges, you will be very close to having a prosperous business in Nigeria. Keep in mind the robust support system of resources available—use them to your benefit!
Frequently Asked Questions
What is the most profitable business in Nigeria with low capital?
Among the most profitable businesses in Nigeria include crypto trading, agriculture, foodstuff sales, and mobile phone accessories. To put it mildly, they have little to no competition, huge demand, and little to no startup costs. Proper strategy and execution make them very profitable.
Can I run a profitable online business in Nigeria with low capital?
Yes, online businesses such as dropshipping, freelancing, and digital marketing services require low capital. You can begin by offering your services on freelance platforms or by creating a professional website that showcases your skills.
Will agriculture be a good business to start with low capital in Nigeria?
Yes, agriculture is another profitable business in Nigeria. You can start with small-scale poultry, fish farming, or crop cultivation and begin expanding when you get profits and reinvest them in the business.
What are the problems I could meet setting up a low-capital business in Nigeria?
Some are access to finance, elusive power supply, and red tape of government. You can, however, get the better of it with your persistence and creativity and come out triumphant.
How much capital is required to set up a small business in Nigeria?
Depending on the kind of business, you may start most of the lucrative businesses in Nigeria with a capital of between ₦50,000 and ₦100,000. This amount shall cater for preliminary costs such as registration, equipment, and marketing.
Conclusion
Determination, innovation, and hard work involved in starting a low-capital business in Nigeria are very rewarding: it gives financial independence to a person, personal fulfillment, and a contribution towards the country’s economic growth.
This article has identified the top 10 most profitable businesses in Nigeria with low capital requirements for 2024. Whether your purse is lean or you have no initial investment at all, there is always an opportunity open for you to start up a business.
Take the first step toward financial freedom by starting to build your business today!