8 best online businesses in Nigeria 

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November 11, 2024
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11 min read
best online businesses in Nigeria

Nigeria’s fast-growing Internet landscape is creating new opportunities for anyone to start an online business from anywhere. Whether you're a student, professional, or looking for extra income, online businesses offer flexibility, low startup costs, and access to a broad marketplace.

This article will discuss eight of the best online business ideas in Nigeria. I'll also walk you through the steps to get started, the challenges to expect, and how to surmount them. 

Lastly, I’ll answer some frequently asked questions about online businesses in Nigeria. 

Key takeaways

  • Some of the best online businesses in Nigeria include dropshipping, freelance writing, virtual assistance, and online tutoring. 
  • Online business options in Nigeria allow for flexible earnings, either full-time or as a side hustle.
  • Many online business options in Nigeria, such as content creation or social media management, require low startup costs.
  • An online business allows you to expand your customer reach within Nigeria and internationally through online platforms.
  • Certain businesses, like digital product sales or online coaching, offer instant or daily payouts.

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Overview of the Nigerian online business landscape

With over 103 million Internet users and a 45.5% Internet penetration rate (percentage of the population with access to the Internet), Nigeria has the highest Internet usage rates in Africa. Social media is the primary platform for most people looking to venture into online business. 

As smartphone penetration continues, digital business opportunities are opening up in areas like virtual assistance, consulting, and freelance services. The youth-driven demographic, combined with a growing digital economy, is fuelling this shift towards online business.

Popular niches include eCommerce, content creation, and social media management. These digital ventures appeal to young entrepreneurs seeking flexible, low-cost business models with significant growth potential. 

Benefits of starting an online business in Nigeria

1. Low start-up costs: One advantage of online businesses is the minimal capital requirement. Unlike traditional brick-and-mortar businesses, many online ventures only require a computer or smartphone and a reliable Internet connection

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This significantly reduces upfront expenses, as there’s no need to invest in physical store space. 

2. Flexible working hours: Online businesses offer a level of flexibility that’s ideal for people who want more control over their time. You can manage your business from home, a café, or even on the go, and you can set your working hours according to your lifestyle. 

This flexibility is particularly beneficial for students, professionals, and stay-at-home parents who need income but may be unavailable for a strict 9-to-5 job.

3. Large customer base: An online business isn’t limited by geographical location, giving you access to a broad and diverse customer base. You can reach customers across Nigeria and even internationally from your smartphone or computer through various digital platforms. 

This makes it easy to market and sell products or services globally, helping you to reduce the effect of Nigeria’s ongoing economic downturn

Top online business ideas in Nigeria

Here are eight best online business ideas in Nigeria:

  1. Dropshipping 
  2. Freelance writing 
  3. Social media management 
  4. Ad services 
  5. Tutoring
  6. Virtual assistance
  7. Consulting
  8. Digital products sales

Idea 1. Dropshipping—[Best For Millenials and GenZ]

dropshipping

Dropshipping is a retail fulfillment business model that enables you to order and ship a third-party product directly from a supplier to the customer who purchased from your online business.

With dropshipping, you don’t need a warehouse of inventory to run an e-commerce business.

Here’s how it works in three steps: 

  1. You promote certain products to a targeted audience through social media platforms or a website. 
  2. Potential customers order directly on the website or reach out on social media to complete their orders. 
  3. Then, you order directly from your supplier(s), and they deliver directly to your customer. 

Dropshipping is great for the following reasons:

  • Since you’re not stocking products, your cash flow won’t be tied up in inventory, significantly reducing any upfront cash risk.
  • After you place your order, the third party (supplier) handles the fulfilment process — from packaging to delivery. 
  • Because you don’t need to hold products in a physical location, there’s no need for a warehouse. This lets you run your business from anywhere.
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If you’re interested, you can learn more about dropshipping. Here’s a list of dropshipping suppliers to get you started. 

Idea 2. Freelance writing - [Best For Students]

freelance writing

If you have strong writing skills, freelance writing can be highly profitable. Nigerian and foreign companies, blogs, and news sites, regularly seek quality content. You can also start your blog, and earn passive income from ads, sponsorships, or affiliate links as traffic. 

Here are five practical tips to get started in your freelance writing career: 

  1. Sign up on platforms like Fiverr or Upwork to connect with clients who need writers. 
  2. Optimise your LinkedIn profile and post regularly to show your expertise. Join relevant groups too.
  3. Compile a list of businesses, blogs, or publications in need of writing services, and pitch to them. Include links to relevant writing samples.
  4. Apply to companies looking for freelance writers. 
  5. Ask satisfied clients for referrals and testimonials. 

Idea 3. Social media management - [ Best For Stay-Home-Moms]

social media management

With over 94% of Internet users active on social media, individuals and businesses need help building and maintaining a strong online presence. That’s where you come in; even basic social media skills can make this an easy and flexible option.

As a social media manager, you can handle content posting and engagement for brands that don’t have time to do it themselves. Target businesses that are open to you remotely managing their social media management presence — schedule posts and engage with followers.

Check out this FREE social media certificate course on Hubspot. 

Idea 4. Ad services -- [Best For Digital Nomads]

Here's the fact: 

While many businesses want to leverage online advertising, they often lack the expertise to run effective campaigns. If you have the proficiency to run online ads for businesses, they'll only be too happy to pay you for it. And you can do all of these without having to leave your home. 

To get started:

  • Pick the types of ads you want to specialize in, whether pay-per-click (PPC) ads on Google or social media ads on Instagram, Facebook, TikTok, or X. 
  • Take courses or work under a seasoned ad consultant until you gain expertise. 
  • Then, start marketing your services with a professional website or through other social media. You can also advertise your services on professional networking sites like LinkedIn.
  • Ask satisfied customers for referrals. 

Here's why getting into the ad consulting business is a good idea: 

  • The need for ads will be around as long as there are businesses and people to sell to — which is to say, forever.
  • It's lucrative once you master it and start getting clients. 
  • You can work with multiple clients simultaneously.

Idea 5. Tutoring -- [Best For Retired Professionals]

turoting

If you have expertise in academic subjects, languages, or skills, online tutoring can be profitable. Platforms like Udemy and Fiverr allow you to reach students locally and internationally. 

Its flexibility makes online tutoring stand out as one of the best online businesses in Nigeria. You can teach live sessions or create pre-recorded courses, allowing you to have great control over your time. 

Some things you can teach online include: 

  • Any academic subject, such as mathematics, physics, and philosophy. 
  • Digital skills like programming, video editing, and social media management.

Idea 6. Virtual assistant services 

Essentially, virtual assistants help busy entrepreneurs, executives, and businesses organise their personal and professional lives. Virtual assistant services typically involve administrative tasks like managing emails, overseeing appointments, handling travel plans, and entering data. 

If you’re highly organised and prefer working behind the scenes, consider starting a virtual assistant (VA) business. Many individuals and businesses need virtual assistants for administrative tasks that they can't do themselves. More and more these days, this job is in high demand. 

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This role is ideal for people with organisational skills who seek flexible hours, making it a flexible and convenient online job for many Nigerian students and professionals. While you may start as a one-person business initially, you can quickly grow your business into a network of VAs by hiring and training other VAs to lighten your workload. 

Idea 7. Consulting

You might want to give online coaching a shot if you're an expert in a particular field, such as business strategy, human resources management, personal development, fitness coaching, or career coaching, It's not only a lucrative business, but it can also be deeply fulfilling. 

You can conduct one-on-one sessions or group workshops over platforms like Zoom or Google Meet, allowing you to earn while helping others grow in their careers or personal lives. As a coach, your work will include helping clients through important events around work, relationships, and lifestyle. 

Here are tips that will increase your chances of succeeding as a coach: 

  • Pick a niche. Are you a fitness coach or an HR consultant
  • Use social media to promote your business and attract potential clients. 
  • As you build up your client base, ask clients to tell their loved ones about you.

Idea 8. Digital product sales

Think of something you're deeply passionate or knowledgeable about and create digital products (e.g. eBooks, audios, or videos) around it.  

It doesn’t matter if it’s a poetry chapbook, a step-by-step audio marketing guide, or a video course on how to increase business revenue through SEO, there are now plenty of options for successfully self-publishing your work. A platform like Selar is a good place to start. 

Digital products are a good idea because: 

  • They can keep selling as long as you want, making for a great passive income stream. 
  • With self-publishing, you don’t have to deal with the slow process of selling your product to a publishing house.
  • The self-publishing services typically handle storage and delivery.

Steps to start an online business in Nigeria

Starting an online business involves careful planning and research. Here are the steps to guide you through the process.

Step 1: Conduct market research

Now that you have a product or a service to sell, it’s time to find out if there’s a market for it. Before you invest your resources into starting your online business, research if there are people who will buy it (target audience) and businesses already doing exactly or similar to what you plan to do (competition).

Step 2: Develop a business plan

If your market research shows that your business idea is viable, develop a business plan to put your idea to paper. Outline your goals, strategies, and revenue projections. A clear plan helps you stay organised and focused on the essentials of starting a new online business.

Step 3: Register your business

Register your online business with the Corporate Affairs Commission (CAC) to operate legally in Nigeria. The registration also gives you access to certain business benefits, including opening a corporate account, credibility with credit institutions, and protection. 

Follow this step-by-step breakdown to register your business in Nigeria by yourself.

Step 4: Set up an online presence

An online business isn’t complete without an online presence. Create a website or register on social media platforms like Instagram and TikTok to reach potential clients and engage existing ones. 

Step 5: Implement marketing strategies

Once online, do everything within your power to promote your business. For instance, consider digital marketing techniques like SEO if you own a website. Social media marketing and email marketing are essential. This is how you attract new clients and build brand awareness, whether as a first-time business owner or an experienced entrepreneur.

Step 6: Manage finances effectively

Remember, the primary purpose of a business is to turn a profit. This means striving month after month to make sure your revenue always exceeds your expenses. You can use a tool as accessible as Google Docs to track your income and expenses.

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Challenges and considerations

1. Internet connectivity Issues

Access to reliable Internet is crucial for online business, but many areas in Nigeria experience connectivity challenges. Consider using multiple data providers to ensure stability, prioritising the most effective one in your location. 

2. Cybersecurity concerns

Online businesses face several security risks, like hacked websites and compromised social media accounts. Protect yourself using strong passwords, two-factor authentication, and secure payment platforms.

3. Regulatory compliance

Stay informed about laws related to eCommerce and data protection. Register your business with the CAC and pay all your taxes as and when due. 

Success stories and case studies

Profiles of successful Nigerian online entrepreneurs

Hauwa Lawal — Content creator

Hauwa Lawal is a Nigerian digital content creator who has made waves across social media with her unique approach to humour and storytelling. Known for her witty skits and relatable content, Hauwa has gained a substantial online following among young Nigerians looking for authentic and humorous reflections of daily life. She has since collaborated with Zikoko, a prominent Nigerian digital publication, and Grey, a YC-backed Nigerian fintech startup that provides US, EU, and UK accounts for remote workers.

Linda Ikeji — Blogger

Linda Ikeji is one of Nigeria's most renowned online entrepreneurs and a trailblazer in the digital media industry. Starting as a modest blogger in 2006, Linda initially focused on sharing stories and celebrity news on her self-titled website, Linda Ikeji Blog. What began as a small blog transformed into a media empire, attracting millions of readers in Nigeria and internationally. Over the years, Linda expanded her brand beyond blogging. She launched Linda Ikeji TV (LITV), a streaming platform focused on original Nigerian content, including reality TV, series, and talk shows. 

Lessons learned from their journeys

Hauwa Lawal and Linda Ikeji turned their passions into profitable online businesses. Their journeys emphasise three key lessons: 

  1. Play to your strength. Hauwa Lawal honed her storytelling skills on social media and Linda Ikeji used her writing to share engaging content with her blog audience. 
  2. Stay consistent: You may not catch a break the day you start or two years after. The important thing is to do what these two successful online entrepreneurs did — keep at it and do it regularly. 
  3. Learn and adapt: You don’t have to continue the way you started, leave enough room for improvements. Learn from your mistakes, listen to your audience, and make necessary adjustments as you go along. 

FAQs about online businesses in Nigeria

What is the most profitable online business in Nigeria?

Dropshipping, eCommerce, freelancing, and virtual assistance are among the most profitable, particularly in high-demand niches.

How much capital is required to start an online business in Nigeria?

This varies depending on the type of online business. For example, you can start freelancing writing and online tutoring with nothing if you own a smartphone or a computer. While eCommerce may require money for website setup.

Can I run an online business in Nigeria while employed full-time?

Yes, many online businesses are flexible and can be managed part-time. Just ensure you comply with any employment regulations.

What legal requirements must be met to operate an online business in Nigeria?

Registering with the CAC and complying with Nigerian tax laws are important steps. Some industries may have additional requirements.

How can I ensure the security of my online business?

Use secure payment options, strong passwords, and two-factor verification, and consider investing in antivirus software and regular backups.

Conclusion

Starting an online business in Nigeria is an accessible path to flexible income and growth. With options from freelance writing to dropshipping, there’s an opportunity for every skill set. Remember, success comes with consistent effort, patience, and adaptability. 

So why wait? Start exploring your options and turn your skills into profit today. 

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