Best Businesses To Start In Nigeria Now (For Local & Foreign Investors)

Best Businesses To Start In Nigeria Now (For Local & Foreign Investors)

Nigeria is a land of activity, ambition, and endless opportunities. It is true that the economy of the country has its ups and downs, but for the sharp-minded entrepreneur, that is not a roadblock; rather, it’s a launchpad.  

The country has a population of over 220 million people, most of whom are young and hungry for progress. The market for essential goods and services is massive. Hence, the question isn’t whether there are opportunities? But rather, which ones will you grab first that will give you the desired return? 

The truth is, some of the world’s biggest fortunes are built in times of uncertainty. And right now, Nigeria’s unique mix of challenges — from power shortages to high food prices — is creating new demands and fresh business ideas, and people need solutions every single day: affordable meals, reliable transportation, steady power, digital services, and products that make life easier. 

The entrepreneurs who provide these solutions consistently will not only make money but also build businesses that thrive for years to come. 

In today’s Nigeria, the most profitable ventures are those that: 

1. Focus on essential goods and services: It is good that you focus on businesses that solve essential problems, such as Food, energy, health, and education. This kind of business remains evergreen with many diversities.  

Think about it — people will always eat, communicate, seek better health, learn, and move from place to place. That’s why businesses in agriculture, food processing, renewable energy, logistics, and digital services are booming. Even with small capital, you can tap into these markets if you plan well and market smartly. 

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2. Solve real problems: If your business doesn’t meet a daily need, it won’t last long.  

3. Start small and scale up: Begin with what you have, and then expand as demand grows. Hence, venture in a business that has high scalability.  

4. Leverage technology: Ensure to venture into a business that can be easily packaged for Social media, mobile apps, and e-commerce, which can take your business far beyond your shop or city. 

Generally, it is also good to consider the capital intensity of the business you want to launch into. For example, you don’t need a million naira to start selling fresh fruit juice, launching a mini-importation business, or running a home laundry service. 

With as little as ₦50,000, you can start a profitable side hustle that grows into a full-time income stream. 

On the flip side, if you have a bit more capital, you can explore solar energy installation, small-scale poultry farming, or even e-commerce stores with nationwide delivery. 

Nigeria is believed by many to be a challenging country, but it’s also rich in opportunities. Every challenge you see is a business idea waiting to happen. Whether you are aiming for a small side hustle or a scalable enterprise, there has never been a better time to start than right now and from where you are. 

Hence, if you’ve been thinking about launching a business, stop waiting for the perfect moment. The perfect time is now, and in this article, you will be guided through the best businesses to start in Nigeria today and how to make them work for you. 

Who are Local and International Investors? 

1. Local investors

These are individuals, companies, or organisations based within a country that commit their own resources into businesses, projects, or assets within that same country. 

In Nigeria, local investors may include entrepreneurs, private companies, cooperatives, or government-backed entities that finance ventures in agriculture, real estate, manufacturing, technology, or other sectors. 

They usually have better knowledge of the local market, cultural context, and regulatory environment, which helps them make informed investment decisions. 

2. International investors 

These are individuals, corporations, or institutions from outside a country that invest in that country’s economy. These investments may take the form of foreign direct investment (FDI), portfolio investment, or partnerships with local companies. 

In Nigeria, international investors may include multinational corporations, foreign governments, venture capital firms, and global development agencies. 

Both local and international investors play a crucial role in economic growth. Local investors strengthen domestic industries and create homegrown wealth, while international investors bring in foreign capital, advanced technology, and global market access.  

Together, they help create jobs, improve infrastructure, and drive innovation in the Nigerian economy. It is good to note here that in most cases the problem of investors, either local or International, is mostly not of the capital but of what business to invest into that will yield the desired return.  

If your main worry is what business is worth investing in, then this article will serve as a guide to you as it digs deep on the best Businesses to invest in in Nigeria as a local and international investor.

10 Best Businesses to Start in Nigeria Now for Local and International Investors 

1. Food & Agriculture 

2. Tech & Digital Services 

3. Renewable Energy & Power Solutions  

4. Transportation & Logistics 

5. Health & Wellness 

6. Real Estate 

7. Education & Training 

8. Fashion & Beauty 

9. E-commerce & Retail 

10. Waste Management & Recycling 

1. Food & Agriculture 

The first on our list of the best businesses to start in Nigeria now is the Food and Agriculture.

The capital requirement to invest in the food and agriculture business varies widely depending on the scale, type of venture, and market target. 

In Nigeria, agriculture is one of the most promising sectors due to the country’s large population, growing demand for food, and export opportunities.  

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Whether you are starting small or going big, your capital needs will depend on factors such as land acquisition or leasing, equipment, inputs, labor, processing facilities, and marketing. 

Capital requirements for investing in the Food and Agricultural Business 

Here are the basic financial requirements for investing in the Food and Agricultural Business, either as a local investor or an International investor  

1. Small-Scale Ventures (₦50,000 – ₦5 Million) 

This category is suitable for beginners and low-risk investors. It includes activities like small vegetable farms, backyard poultry, catfish farming, and basic food processing. 

Most of the capital goes into buying seeds or fingerlings, feeds, fertilisers, simple tools, and packaging. Profit margins can range from 30% to 60%, and the break-even period is often within 6–12 months. 

2. Large-Scale Agriculture (₦5 million – ₦50 million) 

This involves fully commercial farming and large-scale food production, such as integrated poultry farms, cattle ranches, industrial rice mills, or export-oriented cash crops like cocoa, sesame, and cashew. Major costs include heavy machinery, automated processing plants, large-scale irrigation, high-capacity storage, logistics, and export certifications. While profitability can be 15–40% annually, the scale of investment demands professional management and a strong distribution network. 

In conclusion, the capital requirement for food and agriculture in Nigeria can start from as low as ₦50,000 for small-scale ventures and rise to over ₦50 million for industrial agribusiness.  

2. Tech & Digital Services 

The next on our list of the best businesses to start in Nigeria now is the Tech and digital services because virtually all services have gone digital, and there is a need for companies that can provide these services. 

The capital requirement to invest in Tech & Digital Services varies greatly depending on the type of business, scale, and specialisation. 

In Nigeria, a small-scale digital service business, such as freelance graphic design, app development companies, e-commerce platforms, social media management, or website development, or digital marketing agencies, can be started with ₦200,000 to ₦10 million for a laptop, software subscriptions, skilled staff salaries, advanced tools, branding, and operational expenses. 

On the other hand, Large-scale tech ventures such as fintech startups, SaaS (Software as a Service) platforms, or IT infrastructure companies can need ₦20 million to ₦100 million.  

Tech and Digital services are a good business to invest in because of their scalability. You can start small, validate your idea, and expand as revenue grows.. 

Generally, Tech & Digital Services in Nigeria offer high potential returns with relatively lower initial capital compared to traditional industries, making it an attractive choice for both local and international investors. 

Areas covered by Tech and Digital services 

1. Digital Marketing Agency: 

Many businesses need help with online advertising. 

2. Web Development & App Design: 

Small businesses increasingly want websites and apps for their businesses. 

3. Freelance Services: 

Writing, virtual assistance, graphics design, and data entry. 

4. IT Training & Coding Bootcamps: 

Teaching youth tech skills. 

3. Renewable Energy & Power Solutions 

The next on our list of the best businesses to start in Nigeria now is renewable Energy and power solutions. This is due to the epileptic nature of electricity in most areas in Nigeria and the large population of citizens living in such areas, hence most Nigerians are looking for alternatives and Renewable Energy as a substitute to electricity, making it a lucrative business to invest into either as a local investor or international investor. 

With over 100 million Nigerians lacking reliable electricity, demand for renewable solutions is booming. Government incentives, such as tax breaks and reduced import duties on green technologies, make the sector even more attractive.  

The capital needed to invest in Renewable Energy & Power Solutions in Nigeria depends on the project’s size and scope, but with a high return on investment. 

Here are the financial requirements for investing in Renewable Energy & Power Solutions Business, either as a local investor or an International investor 

1.  Small-scale ventures such as selling solar panels, installing basic home solar systems, inverter assembly, or mini-grid systems for rural areas. The startup costs typically range from ₦500,000 to ₦20 million.  

This covers inventory, importing quality equipment, hiring skilled technicians, or acquiring installation vehicles. 

2.  Large-scale projects like solar farms, wind power plants, or biomass facilities can demand as much as ₦100 million to several billion naira, given the need for advanced technology, land acquisition, infrastructure development, and long-term maintenance. 

Renewable energy offers a profitable and sustainable path for both local and international investors. 

Areas covered by Tech and Digital services 

1. Solar Panel Sales & Installation: 

Due to an unstable power supply, the installation of solar panels is a good business to invest in now.

2. Inverter Installation & Battery Sales: 

One can venture into inverter installation and battery sales for households and companies. 

3. Mini Power Plants: 

One can also choose to go into Small-scale energy generation for rural areas. 

Whichever sector you wish to venture into, you will not regret venturing into it. 

4. Transportation & Logistics 

Nigeria has a very large population of over 220 million who need means of movement from one place to another, hence investing in Transportation and logistics will bring more profit to whoever invests in this sector.  

Here are the financial requirements for investing in the Transportation & Logistics Business, either as a local investor or an International investor  

1. Small-scale ventures such as motorcycle (okada) or tricycle (keke) transport, interstate bus services, specialised courier companies, startup costs typically range from ₦500,000 to ₦20 million. 

This covers vehicle purchase, registration, branding, and basic running expenses. 

2. Large-scale logistics operations business, involving nationwide cargo transport, warehousing, freight forwarding, or port haulage can demand ₦50 million to over ₦500 million, due to the high cost of fleets, warehouses, heavy-duty equipment, skilled staff, and advanced logistics technology. 

With Nigeria’s booming e-commerce sector, expanding manufacturing industry, and limited public transport infrastructure, the demand for efficient private transportation and logistics is on the rise. While vehicle acquisition and maintenance require significant investment, the sector offers steady cash flow and long-term profitability, especially for investors who combine technology-driven operations with reliable service delivery. 

5. Health & Wellness 

Health is wealth, as generally said, and people fall sick daily, making it a must to pay for their well-being and in most cases, people are ready to give away their fortune in exchange for their wellness.  

Hence, investing in the Health and Wellness sector in Nigeria is highly profitable, driven by rising health consciousness, urbanisation, and a growing middle class.  

Today, more Nigerians are prioritising preventive healthcare, fitness, and holistic well-being, creating strong demand for gyms, spas, wellness centres, organic health products, and alternative therapies. 

Profit margins in this sector can be impressive. For example, fitness centres and spas can enjoy 30%–50% margins, while specialised wellness products and services can yield even higher returns due to premium pricing. 

This industry benefits from repeat customers and long-term client relationships, which help maintain steady revenue streams. 

Additionally, lifestyle-related health issues, such as obesity, hypertension, and stress, are on the rise, pushing more people to seek fitness programs, dietary guidance, and relaxation therapies, making it lucrative. 

While the initial capital depends on the scale of operations, profitability is maximised by offering diverse services, building a strong brand, and ensuring excellent customer experience. 

Investors who combine wellness expertise with effective marketing can tap into a market that is not only financially rewarding but also socially impactful, contributing to healthier communities. 

Areas in Health & Wellness that you can venture into  

Here are the aspects of health and wellness that you can venture into now in Nigeria, where you will make great profit 

1. Pharmacy or Drug Store: 

There is high demand for medicines and health products, especially in rural areas that are more conversant with health challenges. 

2. Fitness Centres or Gyms:

 There is a great growing interest in fitness in Nigeria now, hence investing in fitness centres or gyms. 

3. Skincare & Organic Products: 

Natural skin and hair care is trending in Nigeria today, and with over 120 million population of women, skincare products are profitable. 

4. Medical Labs & Diagnostics 

The growing need for affordable testing services is on the high side in Nigeria today, making investing in Medical Labs and diagnostic centres very profitable. 

The financial requirement to invest in the Health and wellness business varies depending on the scale; however, you will need capital ranging from N500 thousand to N400 million naira. 

6. Real Estate 

The next on our list of the 10 best businesses to start now in Nigeria is the Real Estate.

The Nigerian real estate market has substantial opportunities for investors wishing to make income and develop wealth, but success takes careful preparation, due diligence, and a realistic grasp of the market dynamics. 

Truthfully, the Real Estate business is very profitable; however, the cost of investing in Real Estate in Nigeria varies significantly depending on the type of property, location, and investment strategy. 

Here are few clues to the cost range of investing in real estate 

Land purchases, costs can start from as low as ₦500,000 to ₦5 million in developing areas, while plots in prime urban centres like Lagos, Abuja, and Port Harcourt can range from ₦10 million to over ₦200 million, depending on size and location. 

Residential property development, such as building single-family homes, duplexes, or small apartment blocks, capital requirements can range from ₦10 million to ₦100 million or more. 

This includes land acquisition, architectural design, construction, permits, and finishing. 

The last range is for Commercial properties such as office complexes, shopping malls, and mixed-use developments. 

These level of investment are more capital-intensive, often requiring ₦200 million to several billion naira, depending on the project scale. 

Areas in Real Estate that you can venture into  

Here are the aspects of Real Estate that you can venture into now in Nigeria that you will make great profit 

1. Property Development 

This aspect covers building affordable housing for rent or sale, the building and being one or more. 

2. Real Estate Agency 

Another aspect is the real estate agency whereby you connect buyers, sellers, and renters together, you can also manage buildings for people. 

Risk of investing in Real estate in Nigeria 

Investing in real estate in Nigeria can be highly rewarding, but it comes with specific risks that investors must carefully consider so as not to lose capital. 

1. Land Title and Ownership Disputes

One of the most common risks is purchasing land or property with unclear or fraudulent titles. Without proper verification from government registries, investors may face legal battles or lose their investment entirely. 

2. Regulatory and Bureaucratic Challenges 

Obtaining approvals, permits, and necessary documentation can be slow, costly, and prone to corruption, potentially delaying projects and increasing expenses. 

3. Infrastructure Limitations 

In underdeveloped areas, lack of good roads, electricity, and water can reduce property demand and appreciation potential. 

4. Construction Risks 

Poor quality materials, incompetent contractors, or project abandonment can lead to financial losses. 

5. Security Concerns 

In certain regions, insecurity can affect property desirability and value. 

While these risks are real, most can be minimised through thorough due diligence, engaging reputable professionals, and investing in high-demand locations. 

7. Education & Training 

Education and Training are the next on our list of the best businesses to start in Nigeria now. 

The financial requirement for investing in Education and Training in Nigeria mainly depends on the scale, target audience, and delivery method of the services.  

Here are the basic financial requirements for investing in the Education and Training Business, either as a local investor or International investor 

1. Small-scale operations

This level is for private tutoring, private primary or secondary schools, online courses, specialised institutes or skill acquisition centres.  

This level of operation requires capital that falls into the range of ₦500,000 to ₦50 million. These cover venue rental (or virtual platform setup), learning materials, marketing, and basic equipment like computers, projectors, land or building acquisition, renovation, classroom furniture, ICT infrastructure, staff recruitment, and licensing fees. 

2. Large-scale investments

This level of investment includes the establishment of private universities, technical colleges, or franchised international schools, and this can demand capital outlays exceeding ₦200 million to several billion naira due to higher infrastructure, staffing, and compliance requirements. 

When investing in Education and Training, Investors should budget for recurring costs such as salaries, utilities, curriculum development, and maintenance.  

However, the education sector in Nigeria is a long-term, high-demand market, driven by a young and growing population, rising middle-class aspirations, and the need for globally competitive skills. Well-structured educational ventures can deliver steady income and strong social impact over time. 

Areas in Education and Training that you can invest in

1. Private Tutoring

This involves school creation, tertiary institutions or creation of special training centres for special examinations such as WAEC, NECO, ICAN and JAMB prep among others. 

2. Skill Acquisition Centers

This could be Tailoring, makeup, photography, ICT or DIY training. 

3. E-learning Platforms

Establishment of online courses for professional skills. 

Risk of investing in Education and Training in Nigeria 

1. Regulatory and Licensing Challenges

 The education sector is heavily regulated, with specific requirements from the Ministry of Education and relevant accrediting bodies. 

Hence, Failure to meet these standards can lead to delays, fines, or closure of the facility. 

2. High Initial Costs 

Setting up quality infrastructure, hiring qualified teachers, and maintaining competitive facilities can be capital-intensive, especially for tertiary institutions. 

3. Quality Assurance Risks 

Poor curriculum design, unqualified staff, or outdated teaching methods can damage reputation and reduce enrollment. 

4. Security Concerns 

In recent years, especially in some regions, insecurity and social unrest have threatened the safety of students and staff, thereby discouraging enrollment of students and leading to abandonment of schools and institutions; hence, any investor that wants to venture into education should consider the security level of the area before venturing. 

8. Fashion & Beauty 

Fashion and Beauty is the next on our list of 10 best businesses to start now in Nigeria.

Investing in the Fashion and Beauty industry in Nigeria is generally profitable due to strong local demand, cultural trends, and growing international interest in African designs and beauty products. 

Nigeria’s population of over 220 million, with a large youth demographic, drives consistent demand for clothing, accessories, cosmetics, and grooming services. 

Fashion is deeply embedded in Nigerian culture, with events such as weddings, festivals, and corporate functions creating year-round demand for both traditional and contemporary styles. 

Profitability in this sector varies depending on scale and niche. 

Small to medium-scale businesses, such as tailoring shops, beauty salons, or online boutiques, can generate high returns with relatively low overhead if well-marketed. 

While larger operations, like manufacturing brands or franchised beauty chains, have potential for national and international expansion, tapping into Nigeria’s growing e-commerce market. 

Risk of investing in Fashion and Beauty in Nigeria 

Here are the risks involved in investing in the Fashion and Beauty industry in Nigeria: 

1. High Competition

The market is saturated with local designers, beauty salons, and online vendors, making it challenging for new entrants to stand out without a strong brand and unique offerings. 

2. Changing Trends

Fashion and beauty trends shift quickly, and failure to adapt can lead to unsold inventory or outdated services, leading to loss of capital. 

3. Quality Control Issues

 Sourcing high-quality fabrics, cosmetics, or beauty products can be inconsistent due to supply chain challenges, affecting customer satisfaction. 

4. Economic Factors

Inflation and currency fluctuations can increase production costs and reduce consumer spending on non-essential luxury items. 

Generally, the Fashion and Beauty industry in Nigeria can be highly profitable if invested into putting demands on adaptability, strong branding, and quality assurance in place to overcome these risks. 

9. E-commerce & Retail 

Investing in E-commerce and Retail Business in Nigeria is highly profitable, driven by rapid internet penetration, smartphone adoption, and a growing middle class eager for convenience. 

This is the next on our list of bet businesses to start now in Nigeria.

Nigeria’s e-commerce market is valued in billions of dollars and is projected to keep expanding as more consumers shift from traditional shopping to online platforms. 

E-commerce platforms such as Jumia, Konga, and PayPorte have paved the way, proving that Nigerians are willing to shop online for fashion, electronics, groceries, and more. 

The rise of social media selling (Instagram, Facebook, TikTok) has also created opportunities for small and medium-sized entrepreneurs to reach customers directly without heavy infrastructure costs. 

Retailing, both online and offline, benefits from Nigeria’s large and youthful population, where spending habits are influenced by trends, peer recommendations, and promotions.  

However, profitability depends on efficient logistics, competitive pricing, and customer trust. Businesses that can solve delivery challenges, offer quality products, and create strong brand loyalty stand to enjoy high returns.  

Hence, with the right strategy put in place, E-commerce and Retail in Nigeria offer massive growth and profit potential. 

Here are the basic financial requirements for investing in E-commerce and Retail Business, either as a local investor or International investor 

The cost of investing in E-commerce and Retail in Nigeria depends on the scale, niche, and business model you choose but it can range from relatively low entry costs for small-scale online sellers to millions of naira for large, full-scale retail operations. 

1. Small-scale online retail 

These are online retailers such as sell via Instagram, Jumia, or WhatsApp, with a dedicated website and integrated payment systems. The startup costs can be as low as ₦200,000–₦5,000,000. 

This covers product sourcing, web development, branding, packaging, digital marketing, and minimal inventory. 

You may not need a physical store, but investment in photography, social media ads, and delivery partnerships is essential. 

2. large-scale retail chains or hybrid models

This involves a physical store + e-commerce platform, and the investments can start from ₦10 million upward, depending on location, store size, and inventory. 

These require significant spending on rent, furnishings, POS systems, staff, warehousing, and logistics infrastructure. 

In all cases, ongoing costs for marketing, delivery logistics, and inventory restocking are critical.  

Profitability depends heavily on competitive pricing, customer trust, and operational efficiency. 

10. Waste Management & Recycling 

The next on our list of the best businesses to start in Nigeria is Waste Management and Recycling. 

Investing in Waste Management & Recycling in Nigeria is increasingly profitable due to rising urbanisation, population growth, and the urgent need for sustainable solutions.  

Nigeria generates over 32 million tonnes of solid waste annually, with major cities like Lagos, Abuja, and Port Harcourt struggling with proper disposal. 

This creates both an environmental challenge and a business opportunity. 

Recycling offers multiple income streams. For example, plastic bottles, cans, glass, and metal scraps can be collected and sold to processing plants. 

Some entrepreneurs even export recycled materials, earning valuable foreign exchange. 

Profitability comes from the fact that many industries, such as manufacturing and construction, now rely on recycled inputs to reduce costs and comply with environmental regulations. 

Furthermore, international organisations and government agencies are showing growing interest in supporting eco-friendly businesses through funding and partnerships. 

With effective systems in place, Waste Management & Recycling in Nigeria can deliver high returns while contributing to environmental sustainability. 

Conclusion 

 Starting a business in Nigeria requires creativity, resilience, and an understanding of market needs. With a youthful population and rising digital adoption, sectors like agriculture, e-commerce, fintech, fashion, and renewable energy offer huge opportunities. 

Hence, Entrepreneurs who embrace innovation, adapt to challenges, and focus on value creation stand the best chance of success.