12 Cheapest Businesses to Start in Nigeria & Capital (2024)

Ever wondered what the cheapest businesses are to start in Nigeria? We’ve compiled a list of the 12 most affordable businesses you can launch in Nigeria right now with little startup capital. Whether you’re looking to start a side hustle or build a scalable business, these low-cost ideas are perfect if you’re on a budget. Who says you need millions of naira to start a successful business in Nigeria? With the right idea, passion, and determination, you can turn a shoestring budget into a thriving company.

Our list of the 12 cheapest businesses to start in Nigeria will inspire your entrepreneurial spirit and ignite your dreams of business ownership. Let’s dive in!

12 Cheapest Businesses to Start With Little Capital

Starting a business does not have to cost an arm and a leg. There are several affordable, low-cost business opportunities in Nigeria that require little start-up capital. Many of these types of businesses can even be run as home-based businesses to keep overhead costs low.

Tailoring

Starting a tailoring business in Nigeria requires little capital but can be very rewarding. To get started, here are some tips:

Learn the skills

First, learn the necessary tailoring skills through formal training or apprenticeship. You’ll need to be highly proficient in taking measurements, designing, cutting, and sewing clothes. Continuous practice will help you master the craft.

Get the necessary equipment

You’ll need some essential equipment like sewing machines, scissors, needles, threads, measuring tapes, pressing irons, and a mannequin. You can start with just one sewing machine and other basic tools, then acquire more as your business grows.

Find a good location

Look for a shop in a busy area, possibly near a market or residential neighborhood. Make sure there is enough space for your equipment and a reception area. You’ll want foot traffic and visibility to attract new customers.

Build your portfolio

Create samples of your work to showcase your skills. Make different styles of clothes, especially the latest fashions and traditional outfits popular in your area. A good portfolio will help convince customers of your abilities.

Market your services

Advertise to spread the word about your new tailoring business. You can print flyers to distribute in your neighborhood, take out ads in local media, start a social media page to promote your services, or even go door-to-door to introduce yourself to potential clients. Offer discounts and promotions to first-time customers to keep them coming back.

Keep costs low

To maximize profits, keep your costs as low as possible. Buy materials and supplies in bulk at wholesale prices. Recycle or upcycle materials when you can. Price your services competitively based on your skills and experience. With hard work and persistence, a tailoring business in Nigeria can be very profitable with little startup capital required. The key is providing high-quality, personalized service to build a loyal customer base.

The amount required to establish this business is determined by the level of operation desired. For example, if you want to start as a small-scale tailoring, you should have between N100,000 and N150,000 in your bank account. However, to begin as a mid-level tailor, you will require between N500,000 and N700,000. Large-scale tailoring costs more than N1 million.

Food Vending Business

The food vending business is one of the most lucrative businesses in Nigeria, with low startup capital. It’s a business that allows you to start small and grow over time. To start a food vending business in Nigeria, here are some steps to follow:

Secure a good location

Finding a strategic location is key to success in this business. Look for areas with lots of foot traffic, like schools, markets, hospitals or business districts. Make sure the location you choose allows food vendors and any permits needed. It’s best to physically visit locations to determine the best spot. You’ll also want to consider if you need access to utilities like water and electricity.

Get the essential equipment

A basic setup includes a cart, tables, chairs, cooking equipment like burners or grills, utensils, napkins, plates, cups, and trash bags. You’ll also need food ingredients and snacks to sell. Packaged snacks, bottled/canned drinks, fresh fruit, samosa, egg rolls are all inexpensive options to get started. Plan on at least 200,000 Naira for a basic setup.

Build your menu

Keep your menu simple with just 3 to 5 items to start, focusing on popular snacks, meals, or drinks in your area that don’t require a lot of ingredients. Samosa, egg rolls, fufu, jollof rice, and moin moin are all great options. Price your items affordably, around 300 to 1,000 Naira. You can always expand your menu as your business grows.

Market your business

Tell friends and family about your new food vending business. You can also hand out flyers in nearby neighborhoods, advertise on community Facebook groups, or offer promotions and discounts when you first open to attract new customers. Building a loyal customer base through great food and service will drive word-of-mouth marketing.

With some passion and hard work, a food vending business can be very rewarding. Start small, keep costs low, provide great value to your customers and watch your business grow over time. On an average scale, the cost of starting a standard food vending business in Nigeria is ₦800,000

Hairdressing

Starting a hairdressing business in Nigeria is a great idea if you have the skills and passion for the beauty industry. Here are some tips to get you started:

Get the Necessary Skills

To start a hairdressing business in Nigeria, you will need the proper training and certification. Enroll in a hairdressing school or class to learn the latest techniques and styles. Become certified by a recognized body.

Find a good location

Look for a space in a busy area of town with lots of foot traffic, like near a market or university. A small shop front with 1-3 stations is ideal for a new salon. Negotiate the best rent you can; this will be one of your biggest costs.

Purchase high-quality equipment

Invest in tools and products from reputable brands to ensure client satisfaction. Key items include:

• Styling chairs
• Mirrors
• Hairdryers
• Combs
• Brushes
• Product display shelves
• Shampoo bowls

Build your team

Hire 2-3 skilled stylists to help take on clients and allow the business to grow. Offer competitive pay and commissions to attract top talent. This is only if you can afford it; for a start, you can do it alone till you get lots of customers.

Set your prices

Do research on average prices for different salon services in your area. You’ll want to price slightly lower as a new business to attract customers. Consider offering promotions and package deals.

Market your business

Create social media profiles to help promote your salon. Offer discounts and deals to new followers. Place ads in local newspapers and magazines. Provide exceptional service so word-of-mouth referrals will spread.

With around ₦500,000 to ₦1 million capital, you can start a successful hairdressing business in Nigeria. Keep costs low, build a loyal client base, and continue developing your skills to become the area’s top salon.

Barbing

To start a barbing salon in Nigeria, here are the steps and tips to follow:

Secure a shop space

The first thing you need to do is secure a good shop space in a commercial area with high human traffic. For a barbing salon, a space of about 10ft by 15ft is good enough to accommodate 2-3 barbing chairs, a waiting area for customers and a storage section. You can get a shop for between ₦100,000 to ₦500,000 per year, depending on the location.

Purchase the necessary equipment

You will need to equip your salon with the necessary tools like barbing chairs, clippers, blow dryers, sterilizers, mirrors, etc. A barbing chair costs about ₦70,000. You will need 2-3 chairs. Clippers cost from ₦10,000. Blow dryers cost ₦8,000 each. Other tools may cost about ₦50,000. So you need about ₦500,000 to fully equip a standard barbing salon.

Hire qualified barbers

Employ 2-3 well-trained and experienced barbers. Their salaries range from ₦25,000 to ₦40,000 per month. So, budget about ₦100,000 monthly for barber’s salaries. This is only if you can afford it, for a start you can work alone, till you get lots of clients.

Promote your business

Create awareness about your new barbing salon. You can print handbills and share them in your location. Create social media accounts to promote your salon. Offer discounts and promotions, especially when you first open, to attract customers.

Charge affordable prices

You need to charge prices that are affordable to people in your location. A typical barbing session should not cost more than ₦500. You can charge up to ₦1,000 for special styles. This way, you can attract many customers to your salon.

To start a barbing salon in Nigeria, you need about ₦1 million for rent, equipment, and to pay salaries (Optional) for the first 3 months. With good business skills and by providing quality service at affordable prices, you can break even within 6-12 months. The barbing business is a lucrative one in Nigeria if well managed.

POS Business

Starting a POS business in Nigeria is a great way to get into entrepreneurship. To start a POS business, here are the steps and tips to keep in mind:

Register with a Reliable Fintech Company

You’ll need to register your business and obtain the proper permits to operate from any reputable Fintech company, such as Palmpay, Opay, etc.

Invest in High-Quality POS Equipment

Purchase robust POS software, cash drawers, barcode scanners, and tablet or desktop computers. Look for systems that are fast, reliable and integrate well together. Your customers will expect the latest technology.

Market Your Services

Build a professional website to help market your business. You can also create social media profiles, offer promotions and discounts, take out ads, and network with local businesses. Word-of-mouth marketing from happy customers can also help grow your business.

Charge Competitive Rates

Research what other POS operators in your area are charging for their services. Price your services affordably but high enough to make a good profit. You may need to start lower to attract new clients.

Provide Great Customer Service

Build long-term relationships with your clients through friendly, helpful service. Satisfied customers will remain loyal and refer others.

With about 50,000 naira capital for startup costs and a commitment to service, a POS business can be very rewarding. By following these steps and tips, you’ll be on your way to building a successful point-of-sale company in Nigeria.

Freelancing

Freelancing is one of the cheapest businesses to start in Nigeria. It requires minimal startup capital and overhead costs. All you need is a skill or talent, a computer, and an internet connection. Here are the steps to get started:

To begin freelancing in Nigeria, first, determine what skills or services you can offer. This could be writing, programming, graphic design, virtual assistance, and more. Make sure it’s something you have experience in and can demonstrate your abilities.

Next, build your online presence. Create a professional website to showcase your services and work samples. You should also start a profile on freelancing websites like Upwork, Fiverr, and Freelancer. These platforms allow you to find clients and projects to bid on. Fill out your profiles with details about your experience, education, skills, and reviews from previous clients.

Determine your rates based on your skills and experience. Do some research to see what other freelancers are charging for similar services. You want to price yourself competitively while still making a good profit. You can charge by the hour or per project.

Start marketing your services and applying for jobs on freelancing websites. Also, network on platforms like LinkedIn to find new clients. Get good reviews and ratings to help boost your visibility. Continue honing your skills through practice and online courses.

Some tips for successful freelancing in Nigeria:

• Build a professional online presence: A website and profiles on freelancing platforms establish your credibility.
• Focus on high-demand skills: Areas like writing, programming, and graphic design are always in need of freelancers.
• Set your rates competitively: Charge enough to make a good profit but not too much that you price yourself out of the market.
• Get good reviews and ratings: Positive reviews from clients will help you land more work. Ask clients for reviews and ratings on freelancing websites.
• Continuously improve your skills: Take online courses and practice to strengthen your abilities. Stay up-to-date with new technologies and tools in your field.
• Diversify your income streams: Don’t rely on one freelancing website or a single client. Have multiple sources to generate work and income.

The capital required to start freelancing in Nigeria is minimal. You mainly need a computer, internet access, and money to build your online presence. With hard work and persistence, freelancing can provide a good source of income with little financial investment.

Cleaning Services

Starting a cleaning service business in Nigeria is a great way to become your own boss with minimal startup costs. All you really need to get started are some basic cleaning supplies and equipment, transportation to get to clients, and a solid plan to build up your business.

To start a cleaning service in Nigeria, follow these steps:

• Develop a business plan. Outline your mission and vision, target market, marketing plan, operational details, and financial projections. This will help guide you and prepare you for success.
• Register your business. Choose a business structure like sole proprietorship, partnership or limited liability company. Then, register with the Corporate Affairs Commission.
• Determine your services. Offer residential cleaning, commercial cleaning, floor cleaning, window cleaning, or a combination. Figure out your rates and fees based on your offerings.
• Build your brand. Choose a business name, logo, and tagline. Get business cards, set up a website, and create social media profiles to market your new company.
• Buy supplies and equipment. Invest in quality cleaning agents, tools, vacuums, mops, buckets, gloves, and anything else you’ll need to clean clients’ spaces properly.
• Recruit staff or train yourself. Hire qualified cleaners or train yourself and any employees on proper cleaning techniques. Provide them with supplies, uniforms and transportation.
• Find customers. Market your cleaning service through your website, social media, ads, promotions, networking, and word-of-mouth referrals. Offer introductory rates or discounts to win new clients.
• Provide great service. Show up on time, do high-quality work, and be professional and friendly. Get reviews and testimonials from happy clients to build your reputation.
• Expand as needed. As your business grows, you may need to hire more staff, invest in more supplies and equipment, find larger office space, and continue marketing to new potential clients.

Following these steps and tips will set you up for success in launching your own cleaning service business in Nigeria with minimal capital required. The capital required is determined by the type of cleaning service you wish to start. To start a residential cleaning service, you will need a capital of about #100,000. Stay dedicated and keep working to build up your company into a thriving endeavour.

Personal Shopping Services

A personal shopper service is one of the cheapest businesses to start in Nigeria. As a personal shopper, you help clients shop for various items like groceries, gifts, or clothing. Many people love shopping but don’t have the time to do it themselves. That’s where you come in!

To get started, determine what type of personal shopping service you want to offer. Do you want to focus on grocery shopping, gift shopping, wardrobe styling, or a combination? Set your business apart by focusing on a specific niche.

Next, create a professional website showcasing your services. Include details about your background, experience, and the types of shopping you can do for clients. You’ll also want business cards to hand out to potential customers.

Market your new business through social media, online ads, and by reaching out to local retailers. Offer promotions and discounts to first-time clients to get the ball rolling. Build your reputation by providing friendly, efficient service. Ask happy clients to leave reviews on your website or social media.

You don’t need a physical retail space for a personal shopping business. Meet with clients virtually or in-person to discuss their needs and budget. Shop for the requested items on your own time, then schedule a time to deliver the goods. Many personal shoppers charge an hourly rate, commission, service fee, or a combination. You can expect to make between ₦50,000 to ₦200,000 per month or more, depending on the number and type of clients.

The startup costs for a personal shopping service are minimal. You’ll need a reliable computer, phone, website, business cards, and transportation to meet clients and shop. The total capital required would be around ₦100,000 to ₦300,000.

A personal shopping service is a fulfilling business that requires exceptional customer service and style skills. If you enjoy shopping and helping others, this could be an ideal business for you to start in Nigeria. Follow these tips, focus on your niche, and you’ll be assisting happy clients with their shopping needs in no time.

Makeup Services

Starting a makeup services business is a great way to turn your passion for beauty into a profitable venture. To get started, follow these steps:

Develop your skills

First, make sure you have the necessary skills and training to provide professional makeup services. You’ll need to be highly proficient with makeup application techniques, tools, and products. Consider pursuing makeup artistry certification or a course in cosmetology school. Hands-on practice is also extremely valuable. Offer to do makeup for friends and family or volunteer your services for events like weddings, birthdays, and other ceremonies.

Create a business plan

A solid business plan will help you outline your vision, target market, and operational details. It will also be necessary if you need funding from investors or a bank loan. Include sections on your company overview, target market, marketing plan, operational details, and financial projections.

Determine your services

Decide what types of makeup services you want to offer. Things like bridal makeup, special event makeup, makeup lessons, etc. You may start with a few core offerings and expand from there as your business grows. Consider your areas of expertise and what’s in demand in your local market.

Set your rates

Research what other makeup artists in your area are charging for similar services. Set your rates competitively based on your level of experience and expertise. You’ll want to charge enough to cover costs and turn a profit without pricing yourself out of the market. Offer package deals and discounts when possible to attract new clients.

Promote your business

Create a professional website to promote your makeup services and share photos of your work. Build a social media presence on platforms like Instagram and Facebook. Offer promotions and deals to new followers and clients. Network by attending wedding expos and cosmetology events and by partnering with local wedding planners, photographers, and beauty salons. Word-of-mouth marketing and referrals from happy clients will also help drive new business.

With the right skills, planning, and persistence, launching a successful makeup services company is absolutely achievable. Stay passionate, continue improving your craft, and really focus on building a loyal client base. In no time, you’ll be well on your way to turning your love of makeup into a thriving business.

Airtime and Data Reselling

To start an airtime and data reselling business in Nigeria, here are the basic steps and capital required:

Airtime and data are in high demand in Nigeria, so this business has good potential. Many people prefer to buy airtime and data in small denominations as needed rather than in bulk. As a reseller, you buy in bulk at a discount from network providers like MTN, Glo, Airtel and 9mobile, then resell to customers in smaller amounts at a profit.

To get started, you need a small capital of around ₦50,000-₦100,000 to buy your initial airtime and data inventory. You also need a location to operate from, like a small kiosk or shop; you can also operate it fully online by having a VTU (Virtual Top Up) website. Many resellers operate from small roadside kiosks, tables or online. You’ll need a means of storing and securing your inventory as well.

Next, you need to register your business. While airtime reselling is open to anyone, data reselling requires registering with network providers to buy data in bulk. They will train you and provide marketing materials to get started.

Market your business by printing flyers to distribute in your area, telling friends and family, using social media, and offering promotions and discounts to new customers. Provide great service by selling promptly, offering various denominations, and staying up to date with the latest plans and bonuses from network providers.

To boost sales, offer additional services like mobile bulk SMS, TV or Decoder Subscription, and Electricity payment. You can also become a super reseller, buying in very large volumes at big discounts and distributing to other resellers as well as directly to customers. With time and increasing inventory, airtime and data reselling can become quite lucrative.

The keys to success are excellent customer service, keeping enough inventory on hand to sell promptly, buying at the best discounts by maintaining a good relationship with network providers, and continuing to promote your business to reach new customers. With hard work and patience, you’ll soon build a loyal customer base and see your profits grow.

Bale Business

To start a bale business in Nigeria, here are some tips to get you going:

Capital Required

To start a bale business in Nigeria, you will need a capital of at least ₦50,000 to ₦200,000. This will cover the cost of renting a shop and purchasing clothes and other tailoring materials. You can start small and grow over time.

Find a Good Location

Look for a shop in a busy market area close to your target customers. Make sure there is enough space for your equipment, fabrics, and workspace. You will also need storage space for products. Rent in a commercial area may cost ₦50,000 to ₦20,000 per month.

Recruit Staff

You can hire a salesperson to assist you, especially when your business grows. Pay them competitively based on experience. You may start by hiring apprentices and training them. Treat your staff well to ensure low turnover.

Market Your Business

Promote your bale business through word-of-mouth and social media platforms like Instagram and Facebook, as well as by offering discounts and promotions. Build a great reputation by providing high quality, stylish and affordable bale clothing. Satisfied customers will spread the word about your business.

With time and consistency, a bale business can become very lucrative in Nigeria. Keep improving your skills, providing great customer service, using quality materials, and keeping up with the latest fashion trends. Your bale business will thrive.

Affiliate Marketing

Affiliate marketing is one of the cheapest businesses to start in Nigeria. All you need is a laptop or phone, an internet connection and some time. Here’s how to get started:

Find a niche

The first step is to find an area of interest that you’re passionate about. Some options include tech products, fashion, health & wellness or finance. Do some research to identify popular brands and products in your chosen niche.

Select products to promote

Once you’ve chosen a niche, pick high-quality products from reputable brands to promote as an affiliate. Look for brands that offer affiliate programs with good commission rates, typically 10-30% of each sale. Popular affiliate networks in Nigeria include Jumia Affiliate, Konga Affiliate and Wakanow.

Build your website

Create a simple website or blog to promote your affiliate products. You can build a site for free using WordPress.org or Blogger. Add content like blog posts, reviews, and ‘best of’ lists featuring your affiliate products. Optimize your content for search engines to drive organic traffic.

Promote on social media

Leverage social platforms like Facebook, Instagram and Twitter to spread the word about your affiliate products. Share your blog content, post photos of the products in action, and engage with your followers. Participate in relevant Facebook groups and online communities to reach new potential customers.

Track your sales

Most affiliate programs provide tracking links or discount codes to monitor your sales. Be sure to use these to properly attribute sales to your account. Many programs pay out commissions once a month for the previous month’s sales. The capital required to start is typically less than ₦50,000 to cover a domain name and basic website hosting.

With time and consistency, affiliate marketing can become a great source of passive income. The key is choosing products you genuinely want to promote and providing value to your readers and followers. With work, you can build a successful affiliate business in Nigeria.

There are many other cheap businesses to start in Nigeria, like farming, consulting, laundry and dry cleaning, event planning, and transportation. With hard work and persistence, these affordable business ideas can become very profitable.

Tips for Running a Successful Business on a Small Budget

To run a successful business on a tight budget, follow these tips:

Start with a solid plan.

Having a well-thought out business plan is key. Outline your vision, mission, target market, and operational details. Figure out how much it will cost to get started and keep things running. Update your plan regularly as things change.

Focus on your niche.

Don’t try to be all things to all people. Concentrate on a specific product, service or target audience. Become an expert in your niche so you can better serve your customers. Keep your product line or service offerings narrow and deep.

Watch your costs carefully.

Look for ways to minimize expenses, like using free business tools and planning efficient processes. Negotiate the best rates from vendors and suppliers. Buy used or refurbished equipment instead of new. Barter and trade with other businesses to reduce costs.

Offer great customer service.

Word-of-mouth marketing and repeat customers are essential for small businesses. Go above and beyond to provide amazing service. Collect feedback and reviews, then make improvements. Loyal, happy customers will help your business grow.

Use low-cost marketing techniques.

Employ inexpensive ways to spread the word about your business, like social media, content marketing, public relations, and partnerships. Sponsor local events or sports teams in exchange for promotion. Offer discounts and specials to attract new customers.

Consider going mobile or virtual.

If possible, eliminate or reduce the need for office space for your business by operating remotely or with a mobile set-up. Meet clients and customers at their location instead of your own office. Save on rent, utilities and commute costs.

Get help when you need it.

As a small business owner, you can’t do everything yourself. Outsource or delegate non-essential tasks so you can focus on growing your business. Hire part-time staff or interns, or barter with other businesses for skills and services. Ask friends and family for help in a pinch.

Continuously learn and improve.

Take free or low-cost business courses online or through your local Small Business Development Center. Stay up-to-date with the latest tools, software, and best practices for your industry. Make ongoing improvements to systems, products, services and marketing to boost your business. Continuous learning and progress will drive success.

Conclusion

Remember, starting a cheap business in Nigeria requires hard work, dedication, and a willingness to adapt to changing market dynamics. With the right mindset and a clear business plan, you can turn your low-cost venture into a thriving business.