Profitable business in Nigeria with little capital

How To Start A Profitable Business in Nigeria With Little Capital

The instability wrought on the Nigerian economy has led to an increase in the price of everything. Every businessman knows the chant of ‘everything is now expensive’ like a lullaby a mother sings to her sickly child; but the truth remains that there are endless possibilities to the businesses you can start in Nigeria, especially as a developing country where all you require is determination, hard work and a little bit of money.

Starting a business has always been known to be capital intensive. In times like this, when income remains fixed but the cost of living continues to explode, we are faced with a higher capital need to start the simplest businesses; after all, businesses thrive on the buying and selling of goods and services indirectly or not.

There comes the need to search out ways to start lucrative businesses that require little to no capital but can grow exponentially. This post seeks to provide a list of profitable businesses in Nigeria you can start with little capital, key steps, and processes of what you need to start a profitable business in Nigeria.

List of profitable businesses in Nigeria

How Can You Start A Profitable Business With Little To No Capital In Nigeria?

A house built on a mountain has a strong foundation. A business built on effective planning is bound to succeed.

1. Find a Business Idea.

To start a business, you must find or create a business idea relative to your available capital. Many nurture businesses for years that bring in insufficient profit relative to the stress and energy required to keep it up. When searching for a business idea, there are a few things that will serve as a guide;

  • Think about the problems in your locality
  • Can you provide a solution to such a problem and monetize it
  • Think about the execution processes: What will it cost you and how will you do it

Not all business ideas are worth starting at all. A business idea that is worth the effort must be unique, practical, needed by the market, and easy to scale.


It is also possible that your business idea is completely new. So, what you then need to be certain of is your business offerings and pricing. You may need to ask questions from people, do your own research and as well seek advice from entrepreneurs.

2. Conduct market research.

According to Wikipedia, A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals.

Every business, whether big or small, needs a plan for that business. In starting a business, a business plan helps you to stay focused and organized. Remember organizational skill is one of the skills of a successful entrepreneur. Therefore, in writing your business plan, you check out some business plan samples online to serve as a guide.

Examine the current market for the proposed business.

  • Who are the possible clients of this proposed business?
  • Can I succeed in this business? Do I have the necessary skill to make this business thrive?
  • Will this business be easy to scale?
  • What is the necessary amount of capital that must be inputted into this business and do I have it?

Do not be afraid to drop business ideas when they prove dismal just because you’ve exerted too much energy and effort on it.

3. Create a business plan.

Every business needs a business plan in order to analyze its implementation. It may be unwise to have a business idea inspiration, acquire the necessary funds to bring it to life, and then go straight to its execution stage.

What is an effective business plan?

An effective business plan is a document addressing the following –

  1. The aim of the business/product to be sold
  2. Business growth plans
  3. Advertisement strategies
  4. Physical and or online presence only?
  5. Client basis
  6. Capital needed

4. Acquire business funding

Of course, the number one means business starters get funds is by bootstrapping which means scraping together all available personal funds and support funds from friends and relatives. Money from this source is usually not enough but must be the first resort.

The next method and the most usual means of getting funds are by obtaining loans. Loans can be daunting and it is advised that this would be a last resort except such loans have simple terms, If not you’ll be looking at a future of monthly payment build-ups that may eventually ruin the business.

You can consider taking WEMA Bank small business loans which have been tailored to meet specific business needs such as the WEMA Bank Pharma Loan which is tailored to help pharmacies and small drug store owners. Applicants can get as much as 5 million naira loans without collateral.

They also have the WEMA Medi Loan which targets private hospitals, clinics, and diagnostic laboratories. Applicants can also get as much as 5 million naira.

The School support facility loan is another loan initiative that is targeted at supporting the operations of educational facilities and applicants can get as much as 10,000,000 loans.

WEMA has also partnered with the Development Bank of Nigeria to provide loans to Small and Medium-scale enterprises at affordable rates with a five years tenor and up to 200m for SMEs and 720m for small corporations. 

These loan schemes are designed to make your business execution easier. Applications for these loans have been made easy.

5. Register your business

This is yet another important stage of starting a business in Nigeria. Every business operating in Nigeria has to be registered under the Companies and Allied Matters Act. Your business can be registered as a business name or a corporation, depending on its confirmation with the requirements of the CAMA 2020. It is advisable to consult a lawyer on the benefits of both and their suitability for your business.

6. Employment 

After registration, there’s the need to employ staff depending on what you want. If you think it is a small business you can run all by yourself, then do it. If not, consider employing a team that’ll address the various sectors of the business, all within a reasonable salary frame relative to the business’ profits. Research if there’s any need for professional advice or skill in your business.

7. Book Keeping & Accountability

The success of every business depends on its finances. It is a good idea to place yourself on a salary like the rest of your employees. If there are none, still do so. It helps you avoid indulgently and emergency spending. Separate your personal funds from your business funds and ensure you keep records of all expenses and incomes.

8. Open a business account

A business account will help your business be more financially capable. You çan place restrictions on the account to enable proper finance management. 

A WEMA business account is highly suited for this. It is an account created to target small businesses and can be operated online for ease of business. It is designed to help small businesses grow. It has a minimum opening balance of just 10,000 naira and has the full benefits a current account has to offer. Charge rates on this account are affordable at a monthly turnover.

It is also important to create monthly, quarterly, and yearly business reports that must be vetted by professionals, in order to keep you track.

In the long run, the idea behind starting a business is to have the financial freedom only a personal business can afford you and also to liberate yourself from the instability the economy imposes. You can start your business today with next to no capital and grow exponentially with the above strategies. 

You should take a step towards financial freedom today.

Daropshipping Business in Nigeria

How To Start A Successful Dropshipping Business In Nigeria

Starting a dropshipping business in Nigeria is a great first step into entrepreneurship. You’ll be able to sell products to customers, set your own product prices, and market your very own brand. You don’t even need to pay for inventory until it’s sold to an actual customer.

This article’s purpose is to clear any doubt you may have, suggest dropshipping business ideas to you and give you actionable steps to starting a successful business.

What is Dropshipping?

Dropshipping is a retail method that involves the retailer NOT having items in stock, but rather purchases the items from a third party supplier which could be a manufacturer, wholesaler, or another retailer, and have it delivered directly to the customer.

How does dropshipping work?

The cycle of dropshipping is a pretty simple one. 

  • Step one: Customer places an order from your online store.
  • Step two: Your store automatically sends the order to your dropshipping supplier 
  • Step three: Dropshipping supplier prepares your customer’s order.
  • Step four: Dropshipping supplier ships the order directly to your customer.

Advantages of the dropshipping business

  1. You don’t have to worry about having a physical stock of products before you can sell something to your customers.
  2. The supplier is responsible for the products in his own stores and will take care of shipping or supplying the customers in your own name.
  3. Customers don’t have to know you are a middle man 
  4. It’s relatively quick and easy to start.
  5. Great opportunity to make passive income 
  6. You can start from home.
  7. It’s easy to scale up when your customer base increases.

What do you need to start a dropshipping business in Nigeria or anywhere else?

  1. A good business idea: A good business idea is necessary to start a successful dropshipping business. Ask yourself, what do you want to sell? Carve out a niche for yourself and determine the category of products you want to sell
  2. Choose a good supplier: Find a supplier who is dependable and reliable and also sells at affordable prices so you can make a profit.
  3. Create your online store: Get quality pictures of the products from your supplier and post them online. Always remember to check if items are still in stock!
  4. Open a business account: A business account will help your business be more financially capable. You çan place restrictions on the account to enable proper finance management. Click here to open a business account with ALAT.

A WEMA business account is highly suited for this. It is an account created to target small businesses and can be operated online for ease of business. It is designed to help small businesses grow. It has a minimum opening balance of just N10,000 and has the full benefits a current account has to offer. Charge rates on this account are affordable at a monthly turnover.

Some Dropshipping Niches Ideas

Here are some of the trending businesses online at the moment;

  • Men’s Clothing & Accessories Dropshipping Niches
  • Women’s Fashion & Accessories Dropshipping Niches
  • Health & Wellness Dropshipping Niches
  • Kids & Babies Dropshipping Niches
  • Home & Kitchen Dropshipping Niches
  • Phone Accessories Dropshipping Niches
  • Home and Pets
  • Cars and Motorbikes
  • Electronics
  • Hair Extensions and Wigs

How to Start A dropshipping business in Nigeria

 1. Find out what you want to sell: 

What kind of products are needed at the moment? What problem needs to be solved? This and more will influence your decision on the niche you want to carve out for yourself.

2. Find a supplier 

This is another important step. Find a supplier who will be willing to allow you to serve as an intermediary between him/her and the consumers. Also, find out if they will be willing to handle the logistics of delivery. 

3. Build your website: 

If you can do this yourself, great! If not, pay to get this done. Buy a domain name, host your site and you are ready to go! Simple websites can be created with sites like WordPress. Alternatively, you can market your products on social media platforms like Instagram, Facebook, and even WhatsApp for business.

4. Invest in marketing 

Marketing methods essentially depend on you. Nowadays, marketing is now digital. Beyond having a website, consider building your online presence via popular social media platforms like Facebook, LinkedIn, Twitter, etc. You can also use popular e-commerce platforms like Jumia, Konga, etc to host your products.

5. Keep proper financial records

While dropshipping can earn you a tremendous amount of money, it is important that you account for this money. Separate your personal finances from your business account records and ensure that everything is well documented.

That said, dropshipping is big money for those who can put in the work. While competitors may arise due to the minimal logistic efforts required, it’s important that one keeps up-to-date with the latest marketing trends in order to stay ahead of the competition.

Dropshipping FAQ

Below are some dropshipping business in Nigeria frequently asked questions (FAQ) by other people that might also be helpful:

  • Does dropshipping work in Nigeria?

Yes, dropshipping does work in Nigeria. Consider hosting your products on e-commerce platforms like Jumia or selling via social media.

  • How much profit can you make with dropshipping?

Considering the fact that you will be using very little capital to start the business in the first place, you’re bound to make a profit no matter how much you sell. The  amount of profit you make depends on how many products you sell and the width of your profit managing  

  • How can I become a drop shipper?

Quick and simple, just follow the steps above and you’ll be on your way to starting your own dropshipping business.

  • Is it worth starting a dropshipping business in 2021?

Yes! Due to the current economic crisis, many are looking for easy ways to make passive income, and dropshipping is one of them 

  • Is dropshipping free to start?

This largely depends on what you want to start with and the complexity of your business model. 

  • Can you dropship on Amazon?

Yes,  you can.

  • How much money do you need to start dropshipping on Amazon? 

Amazon has two packages, the first one which is charged at$0.99 and the second being the bulk package that cost $50.00

  • Why is dropshipping bad?

Dropshipping has both advantages and disadvantages (please see above). One of the major disadvantages is visibility. Because the client believes that the drop shipper is the retailer, any slip up on the part of the supplier can be disadvantageous to the drop shipper’s business.