Have you tried climbing the Olumo Rock barefoot? Lol, starting a business in Nigeria can feel just as tiring and frustrating especially in this economy.
Here’s a hard truth – If you’re not mentally prepared, it might be better not to venture into it.
However—and here’s the important part—it is possible to start and scale a successful business in Nigeria when you’re armed with the right knowledge.
In this guide, you’ll learn all you need to start your business and position yourself for success by following these steps:
- Have a Practical Business Idea
- Conduct Market Research
- Draft a Business Plan
- Register Your Business
- Get the Necessary Licenses and Permits
- Secure Initial Funding
- Build Your Brand
- Network with Customers
- Leverage Digital Tools
- Invest in Equipment
- Hire the Right Team
- Test and Iterate
- Build Resilience
How to Start a Business in Nigeria
1. Have a Practical Business Idea
This might sound like a cliche but it’s a true one – Every great business venture begins with an idea.
Look around—what do people complain about? What gaps do you see? What problems can you solve?
Consider your skills and the needs of your target market.
According to AFSIC (Investing in Africa), Nigeria’s youth, with a median age of 18, are leading innovation and entrepreneurship, often seeking economic independence through self-employment.
Your business idea should tap into this energy and address real needs.
2. Conduct Market Research
Research is non-negotiable. Who are your customers? What do they want? Who is already serving them?
Study your competitors. Learn from them.
For example, if you open a suya stand on a street already full of suya vendors with no research at all, you’re setting yourself up for a problem.
The Nigerian market varies across regions, so tailor your strategy to local needs.
If you know your audience well, half the battle is won.
Studies show that successful small and medium-sized businesses in Nigeria prioritize understanding local customer behavior and leveraging community trust to build loyalty and grow.
3. Draft a Business Plan
No, it doesn’t have to be 50 pages long, but your business plan is your blueprint. Include:
- Your business concept
- Target audience – Who are you selling to?
- Market analysis
- Revenue model – How will you make money?
- Marketing strategy
- Financial goals
Keep it clear and concise. This plan will help keep you organized. If you need funding, it’s also a useful tool to convince investors.
4. Register Your Business
In Nigeria, business registration with the Corporate Affairs Commission (CAC) is mandatory for legitimacy.
Start by visiting the Corporate Affairs Commission (CAC) website.
Decide on a business type—sole proprietorship, partnership, or limited liability company—and register your business name.
You don’t want to skip this part—it’s worth the peace of mind.
5. Get the Necessary Licenses and Permits
If your business operates in a regulated industry, get the necessary business licenses.
For instance, food businesses require health certifications, while fintech companies must comply with Central Bank of Nigeria (CBN) regulations.
While this can be a headache, it’s far better to handle it upfront than face penalties later.
6. Secure Initial Funding
Money is a make or break for any business.
Start by estimating your costs. Will you use savings, apply for business loans, or seek investors?
If you’re not sure where to start, platforms like Loanspot offer insights and options for accessing financing tailored to your business needs.
Starting small is key.
Don’t go borrowing money to open a luxury office in Ikoyi when you’re still testing your idea. Explore savings, family support, or microfinance.
Data shows that small-scale entrepreneurs in Nigeria often use microfinance institutions and informal lending groups to kickstart their ventures due to limited access to traditional bank loans.
FURTHER READING
How to Start a Small Business in Nigeria [2025]
7. Open a Corporate Bank Account
Having a corporate or business bank account builds credibility with customers and investors.
Nigerian Banks will require your CAC (Corporate Affairs Commission) documents and TIN (Tax Identification Number), so ensure you’ve handled registration first.
8. Stay Compliant with Taxes
Nigeria’s tax system can be tricky, so it’s worth consulting an expert.
Register for the appropriate tax identification number (TIN) and ensure you understand your obligations.
As of 2025, small businesses with annual turnovers below a specified threshold are exempt from withholding tax obligations if they have a valid TIN.
This policy makes tax compliance less burdensome for business start-ups.
9. Build Your Brand
Your brand is the personality of your business, and in this part of the world, perception is everything.
Please note that branding isn’t just about logos. It’s the way people perceive your business.
Choose a business name that’s easy to remember, set up social media accounts, and build a website. Consistency in how you present your brand helps people trust you.
10. Network with Customers
This is an often-overlooked step – networking with your customers.
Get to know them personally, chat with them, listen to feedback, and let them feel like part of your business.
Word of mouth remains one of the strongest marketing tools.
11. Leverage Digital Tools
I strongly believe, digital tools are the great equalizers in the Nigerian business environment.
Platforms like Instagram, Google Business Profile (formerly Google My Business), and even WhatsApp can level the playing field for businesses.
So, if your business isn’t online, you’re leaving money on the table. Nigerians spend hours scrolling Instagram and TikTok, so meet them there.
Also, the rise of mobile technology in Nigeria has made digital marketing more accessible, even to businesses in rural areas.
Entrepreneurs are increasingly adopting affordable digital tools to reach wider audiences.
If you want to take a step in knowing how to leverage digital tools for your business, check out the Wild Fusion Digital Centre’s Digital Marketing Training. It’s designed for entrepreneurs looking to unlock the full potential of online platforms.
12. Develop a Marketing Strategy
You can have the best product or service, but without marketing, no one will know it exists.
The good news is that you don’t need a huge budget to market your business. Word of mouth, social media, and targeted ads work wonders when done consistently.
The key is to stay visible. Your brand should always be in your audience’s line of sight.
Here’s a small tip- Nigerians love a personal touch, so keep your marketing relatable.
13. Invest in Equipment
Equipment is the backbone of any business.
Buy only what you need to start.
If for instance, your business involves retail or customer payments, consider investing in a reliable POS device to make transactions easier and more professional.
14. Hire the Right Team
You can’t do it all.
I’ve found that identifying your strengths and delegating the rest is one of the smartest moves you can make.
As your business grows, investing in the right talent will make all the difference.
15. Test and Iterate
Your first idea might not be your best idea. Start small, gather feedback, and tweak your product or service based on customer input.
Businesses that adapt to their customers’ needs tend to last longer.
16. Build Resilience
Nigeria will test you. From erratic power supply to inflation, every day comes with its own gbas-gbos.
But every obstacle is an opportunity to learn. Stay adaptable, learn from setbacks, and keep moving forward.
To Sum it Up
Like I had said at the beginning of this guide, starting a business in Nigeria isn’t easy—there’s no sugarcoating that.
But it’s not impossible.
With the right information, preparation, and persistence, you can succeed in building a prosperous business.