Explainers

Top business ideas in Nigeria 2022

For most people, where and how to invest their money in Nigeria is a big challenge. And for good reason, the Nigerian economy is not exactly ideal for starting a business. There are bandits and kidnappers everywhere, not to talk of poor infrastructure and poor government policies that can up end a business without notice.

But investments involve risks, when you find a business idea that pays off, with effort, a little bit of prayer and luck, you might be on your way to life changing success. So if you are looking for where to invest your money in Nigeria especially as we approach the Ember months, this article might just be the guide you need.

Generally speaking, a good business idea in today’s Nigeria should be investment in sectors that are less risky, some of this sectors include;

Buying and selling

Buying and selling simply involve buying items low and in bulk, marking them up and selling them to make a profit. It is a simple business idea that is as old as civilization.

It is however important to know the right items to buy and sell, everyday items like foodstuff, baby items like diapers and fashion items tend to sell faster in Nigeria. A good thing about buying and selling nowadays is that physical shops and store locations are no longer required. Setting up an online shop on e-commerce websites like Shopify, Facebook or Instagram will do.

No technical skills or coding skills are required to set up an online shop, but the entrepreneur should have basic skills in digital advertising, Search Engine Optimization SEO and copy writing. There are freelancers that offer these services for a fee but the entrepreneur should have basic knowledge.

Yuletide is around the corner, Nigerians are known for their love of celebrations and partying. Now is the time to start selling what they will need for all those parties.

Transportation

The movement of people and goods is the very lifeblood of the economy, and those who invest in this lifeblood stand to gain a lot. In almost every Nigerian town and city, there are tricycles popularly called Keke Napep and motorcycles that provide fast and efficient means of transport within the city. Some of the riders are said to deliver up to #5,000 daily to their owners depending on the location, this is a very good source of passive income.

On the higher end, ride-hailing services like Uber and Bolt deliver even higher daily returns, especially in major cities like Abuja and Lagos. One major advantage of ride-hailing services is that the investor can become owner and operator, and they can become a side-hustle driver at the weekend without looking for a third party to ride the car.

Besides transporting people, haulage is another good business idea in Nigeria. Trucks, small or big that transport goods either intra or inter-state. Haulage is how food items and other products move from the factories to the final consumer.

ICT

This can feel overwhelming as the entire world seems to be going digital. There are sectors of Information and Communication Technology that most people thought are now obsolete but are making a comeback. One such is photo studios and professional photographers, everyone now has a camera on their phone but they also have an Instagram account, which means the demand for clearer and professional pictures to stand out is on the rise.

Other ICT sectors making a comeback are business centres and cybercafé! People are doing more and more online registration that requires them to upload documents, some of these things they can’t do on their phones or require a level of expertise they do not have, hence the need for a business centre where they can do it.

Cybercafés on the other hand are needed by freelancers and other remote workers who need a workstation. Cybercafés won’t exactly sell internet access as mobile data is now cheaper than it was 10 years ago at the peak of the café business, but rather they will sell a work space with constant electricity and a conducive environment for remote workers. Cafes can also double as a business center, making more money for the entrepreneur.

Agriculture

Nigeria is experiencing turbulence caused by climate change. From insecurity exacerbated by climate change to the direct effects of climate change like flooding, droughts and poor crop yield. All these means that the country has to produce more food for more people on less land, which can mean good opportunity for entrepreneurs in the agriculture value chain.

Besides crop production and animal rearing, the most underrated business in agriculture is food processing. As Nigerians become more educated, this means more demand for better processed and better packaged foods. More people now buy local fooditems like garri, beans, crayfish, and even ponmo from their supermarkets rather than from the local markets because of better processing and packaging. Entrepreneurs in these value chains stand to make a lot of profit as more Nigerians will prefer cleaner foods to the old way.

Money market

For those with expertise in this sector, the CBN recently hiked the country’s interest rate to 15.5%. This means that bonds, treasury bills and other financial instruments are set to go high.

All investments involve some level of risk that the entrepreneur must undertake, successful entrepreneurs are not the ones who avoid risks completely, but those who take calculated risks after doing their full research.

Ismaeel

Statistician with interests in finance, risk management, loan products and market surveys. I also write on crypto currencies, Forex and a variety of financial instruments.

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