Starting a business in Nigeria is a bold but rewarding move, as Small and Medium Enterprises (SMEs) contribute about 48% to the national GDP.
However, nearly 50% of SMEs fail within their first year, mainly due to low market demand and funding issues.
To help you succeed, here are 20 practical business ideas with insights on startup costs, challenges, and tips for thriving in Nigeria’s market.
20 Small Business Ideas In Nigeria to Start in 2025
- Agric and Agribusiness
- POS (Point of Sale) Business
- Drop Shipping Business
- Freelance Writing
- Small Chops Business
- Laundry and Dry Cleaning Services
- Event Planning and Decoration
- Barbing and Hair Dressing
- Fashion Design
- Bolt Driving
- Videography and Photography
- Social Media Management
- Viewing Centre
- Real Estate Management
- Mini Importation
- Cake and Pastry Business
- Provisions Store
- Resume Writer
- Delivery and Logistics Services
- Phone/Laptop Repair
1. Agric and Agribusiness
With agriculture contributing 24% to GDP and employing 70% of the population, the demand for food remains high.
You can begin with crops in high demand, like tomatoes, maize, and vegetables, or better still, start by rearing chickens for poultry production. This agricultural business has proven to be a viable venture.
Starting Cost: This can take a startup capital for as low as N200,000- N500,000 to start this lucrative business on a small scale and from the comfort of your backyard.
Challenges: Pests, poor infrastructure, and seasonal risks.
2. POS (Point of Sale) Business
The POS business is booming and has been stable over the years. This is because the majority of Nigerians hardly want to go to the ATM to withdraw money anymore.
So, how it works is that for every N1000 taken from the POS machine, you earn a little commission. Not only that, airtime can be purchased using the POS, utility bills can be paid through this point.
By choosing a reliable POS device, such as the Supply Smart POS, you can ensure smooth transactions, excellent uptime, and customer trust—essentials for scaling this business.
Starting Cost: ₦70,000–₦300,000 (for the POS machine and capital).
Challenges: Security risks and cash shortages.
3. Drop Shipping Business
This business idea will continue to thrive in 2025 as long as e-commerce remains on the rise in Nigeria.
You don’t need a warehouse or stock—just a laptop and an eye for good suppliers. My cousin started selling affordable home gadgets and now ships daily.
Before you do this, make sure you agree on sharing formulae with the supplier and already have your customers ready to buy these products.
Another way to make a profit from this business is to promote it on social media platforms. You can get an ads expert to set up one for you.
Starting Cost: ₦200,000–₦700,000 (website setup, marketing strategies).
Challenges: Delivery delays and unreliable suppliers.
4. Freelance Writing
Your writing talent comes in handy for this business idea and it’s a lucrative one because bloggers, copywriters, and content creators are always in demand.
For you to make money from this business, you need to sign up on freelancing platforms like Upwork and Fiverr to connect with paying customers.
This type of entrepreneurship demands strong business communication to build lasting relationships.
Starting Cost: ₦0–₦30,000 (for internet access).
Challenges: Inconsistent pay and tight deadlines.
5. Small Chops Business
Nigerians party every other weekend and every party needs small chops, and they’re often the first to run out.
For ₦50,000–₦200,000, you can start catering to events or selling snack packs to individuals. Focus on quality and packaging—Nigerians love well-presented food.
6. Laundry and Dry Cleaning Services
I am certain most people (especially professionals) find it hard to wash their clothes regularly themselves and this presents an opportunity that cannot be overlooked.
With the current situation of the Nigerian economy, people are twice as busy as before and will pay for their convenience. This business will thrive in busy cities like Lagos, Abuja, and Port Harcourt where the hustle is high.
Another area to explore this small-scale business idea is student areas where time matters most to them. You can start with an iron, washing machine, and other small laundry equipment and expand as you grow.
Starting Cost: ₦30,000–₦100,000 (for washing machine or basic tools).
How to Start: Offer home-based services initially to save on costs. Advertise in your neighborhood.
Challenges: Water supply and electricity issues.
7. Event Planning and Decoration
Any true Nigerian knows that we love to party and like they say “No party like a Lagos party”.
At least 10-15 weddings are happening at different locations every weekend in Lagos and some other functions require event planning and decorations.
If you feel you are very organized and creative, event planning and decoration is a great business idea you can start from the comfort of your home.
Starting Cost: ₦200,000–₦100,000,000 (for logistics and initial materials).
How to Start: Build connections with vendors and start by organizing small events.
Challenges: Managing client expectations and last-minute changes.
8. Barbing and Hair Dressing
Salon is a tried and proven business idea in Nigeria because it will always remain profitable.
All you need is a good location and essential equipment like a clipper, comb, towels, sterilizer, and mirrors to start this business.
Starting Cost: ₦500,000–₦100,000,000 (for rent, equipment, and materials).
Challenges: Competition in urban areas.
9. Fashion Design
Just like the event planning and decoration business idea, fashion designing also requires creativity.
Nigerians have a strong sense of style, and love to wear trendy clothes like senator, bubu, kimono, etc.; this makes it a good business idea.
Starting Cost: ₦300,000–₦700,000 (for sewing machines and fabrics).
Challenges: Keeping up with changing fashion trends.
10. Bolt Driving
If you own a car, becoming an Uber or Bolt driver is an easy way to make extra cash. It is
a very profitable business and flexible.
You can pick up passengers on your way from work or come out on the weekend. You can make a profit of up to 150,000 in busy cities like Lagos and Abuja.
11. Videography and Photography
Videography and photography are also lucrative business ideas you can explore in Nigeria. You can make so much money when you go to events and weddings.
First, you need to invest in getting a good camera and editing software. Also, watch videos on YouTube to sharpen your skills.
Starting Cost: ₦800,000–₦1,500,000 (camera, editing software).
Challenges: High competition and cost of equipment.
12. Social media management
A lot of small businesses need an online presence with a social media manager to manage their social media accounts. You can bridge this gap by offering management services.
On average, you can earn 100-120k just by managing and growing an account. You can also take online courses to sharpen your skills.
Starting Cost: ₦10,000–₦50,000 (internet, tools).
Challenges: Delivering consistent results.
13. Viewing Centre
With football being a national obsession (lol, especially with the men), setting up a viewing center in a strategic location is a brilliant business idea.
Startup costs range from ₦300,000–₦500,000 for space, chairs, and TVs. Add snacks for extra cash.
14. Real Estate Management
While this may seem like a large-scale venture, you can start small by managing properties for friends and gradually expand your portfolio.
As a small business in 2025, you could focus on property listing and rental management using online platforms to connect property owners with potential tenants.
Starting Cost: ₦500,000–₦1,000,000 (advertising, office setup).
Challenges: Building a reputation in the market.
15. Mini Importation
Have you ever thought about buying products in bulk and reselling them to make a profit? That is how mini importation works.
All you need to do is identify high-demand products and leverage them. Items like electronics, fashion accessories, and gadgets will always be in high demand in Nigeria.
You can buy from international markets like China and Dubai at a low cost and resell here to make a profit.
Starting Cost: ₦50,000–₦800,000 (for sourcing and shipping).
Challenges: Customs delays and exchange rate fluctuations.
16. Cakes and Pastry Baking
For this low-cost business, consider specializing in customized cakes and pastries for events or offering home delivery services to cater to busy clients.
Starting Cost: ₦300,000–₦800,000 (equipment, ingredients).
Challenges: Short shelf life of products.
17. Provisions Store
Running a provisions store is a tried-and-true business in Nigeria.
With ₦800,000–₦1,500,000, you can stock everyday essentials like beverages, toiletries, and snacks. A good location near residential areas will help attract regular customers.
18. Resume Writer
The job market in Nigeria has always stayed competitive. As a resume writer, you can help job seekers stand out.
You should consider offering LinkedIn profile optimization and cover letter writing services to your offerings.
Starting Cost: ₦20,000–₦40,000 (internet, software).
Challenges: Competition from online templates.
19. Logistics and Delivery Business
The rise of e-commerce means delivery services are in demand.
Starting a small-scale logistics and delivery business can be a lucrative venture in this new year.
You can start with 2-3 bikes and expand as you grow in the business.
Starting Cost: ₦800,000–₦2,000,000 (bike, licenses).
Challenges: High fuel costs.
20. Phone/Laptop Repair
Everyone owns at least a phone or laptop, and repairs are inevitable.
Learn the skill or hire a technician. With ₦80,000–₦200,000, you can start by sourcing tools and parts.
What Makes a Small Business Idea Feasible in Nigeria?
1. Market Demand: Is there a genuine need or desire for your product or service? A business idea is only feasible if enough people are willing to pay for what you offer.
2. Scalability: Can your business grow and expand over time? A scalable business allows you to increase revenue without significantly increasing costs, ensuring long-term profitability.
3. Profitability: A feasible business model must have a clear path to profitability, considering pricing, costs, and market conditions.
A successful business idea is one that generates enough revenue to cover expenses and make a profit.
4. Sustainability: A sustainable business considers its impact on the environment, society, and economic development, ensuring long-term visibility.
Conclusion
From agriculture to digital services, these 20 small business ideas prove that there’s something for everyone.
The key to success lies in an entrepreneurial mindset, thorough research, strategic planning, and unwavering determination.
But don’t stop at just reading this blog; take action—identify a niche, understand your target audience, and consistently deliver value.