Are you looking to tap into Nigeria’s vibrant business scene but unsure which lucrative business to pursue?
Read on.
Knowing which businesses are booming can give you a serious edge, whether you're an entrepreneur or an investor. Nigeria’s economy has shown resilience and promise amid global uncertainties and inflation pressures.
This article explores ten fast-growing businesses in Nigeria, diving into key growth sectors, the factors fueling their success, and how to leverage these insights to ensure your success.
TLDR: Key takeaways
- Nigeria offers diverse opportunities across booming sectors, from agriculture to beauty.
- With a young population and growing market, there's increasing demand for modern services.
- Supportive government initiatives make it easier to start and grow businesses.
- Nigerian-born businesses are achieving success both locally and internationally. Moniepoint recently became a unicorn after raising a $110 million Series C round.
- The country also presents lucrative opportunities for both local and foreign investors.
Introduction to fast-growing businesses in Nigeria
Nigeria’s business ecosystem is full of potential. With a large, young population and increasing smartphone and Internet penetration, businesses that cater to everyday needs and leverage technology are experiencing rapid growth.
Some promising industries include robust sectors like agriculture, eCommerce, real estate, food, and beauty, each thriving despite infrastructure and policy challenges. Here, we explore the fastest-growing businesses in Nigeria and why they’re worth your attention.
Overview of Nigeria’s economic landscape
Nigeria’s economic growth story is one of resilience. While GDP fluctuations and inflation rates have posed challenges, sectors like agriculture, telecom, and financial services continue to drive progress.
According to the National Bureau of Statistics, non-oil sectors are increasingly dominating the economy, offering ample room for new businesses and investments.
Importance of identifying fast-growing businesses
Investing in a fast-growing business can offer attractive returns while contributing to the country’s development. Fast-growing businesses help create jobs, attract foreign investments, and drive innovation. Knowing which sectors are flourishing can help you make informed investment decisions about starting a new business, expanding an existing one, or investing in either.
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Top 10 fast-growing businesses in Nigeria
The following are ten fast-growing businesses right now:
1. eCommerce
Below is a summary of the industry's progression and future projections:
Year | Estimated Market Size (USD Billion) | Notable Developments |
---|---|---|
2000 | 0.01 | Emergence of early online marketplaces; limited internet access and low consumer trust. |
2005 | 0.05 | Gradual increase in internet users; introduction of local e-commerce platforms. |
2010 | 0.2 | Expansion of mobile telecommunications; rise of mobile money services. |
2015 | 1.0 | Entry of major players like Jumia and Konga; improved logistics and payment systems. |
2020 | 4.0 | COVID-19 pandemic accelerates online shopping; significant growth in digital payments. |
2024 | 8.53 | Continued expansion with increased internet penetration and smartphone usage. |
2029 | 14.92 | Projected growth driven by urbanization, digital literacy, and enhanced infrastructure. Mordor Intelligence |
Key Trends:
- Internet Penetration: The rise from approximately 0.1% in 2000 to over 50% in 2024 has been pivotal in e-commerce adoption.
- Mobile Commerce: With over 84% of internet access via mobile devices, mobile commerce has become a dominant force in Nigeria's e-commerce landscape.
- Digital Payments: The adoption of online payment methods has facilitated secure and efficient transactions, boosting consumer confidence in online shopping.
- COVID-19 Impact: The pandemic significantly accelerated e-commerce growth as consumers turned to online platforms for essential goods and services.
- Future Outlook: The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 11.82% from 2024 to 2029, reaching an estimated USD 14.92 billion by 2029.
eCommerce is transforming how Nigerians sell and shop, with platforms like Jumia, Konga, and Jiji leading the charge. With a significant increase in mobile Internet usage, online shopping has become more accessible, especially among Nigeria's young population. This trend has pushed these online shopping platforms to expand rapidly.
eCommerce offers convenience, allowing consumers to shop from home and access a wider range of products. The growth of this sector also fuels job creation in logistics, warehousing, and customer service. Additionally, it supports many local businesses by offering them a larger customer base and improved nationwide visibility.
If you aren’t ready to build an app or a website just yet, like Jumia, you can start selling via social media platforms like Instagram, Facebook, and WhatsApp.
2. Logistics and delivery services
Year | Estimated Market Size (USD Billion) | Notable Developments |
---|---|---|
2000 | 1.5 | Predominantly informal logistics operations; limited infrastructure development. |
2005 | 2.0 | Introduction of private logistics firms; gradual improvement in road networks. |
2010 | 3.5 | Expansion of telecommunications; rise of e-commerce platforms necessitating delivery services. |
2015 | 5.0 | Entry of international logistics companies; investment in warehousing and distribution centers. |
2020 | 7.5 | COVID-19 pandemic accelerates demand for delivery services; digital payment adoption increases. |
2024 | 10.2 | The introduction of private logistics firms will result in a gradual improvement in road networks. |
2030 | 15.05 | Projected expansion driven by urbanization, technological integration, and regional trade agreements. Mordor Intelligence |
Key Trends:
- Infrastructure Development: Investments in road, rail, and port infrastructure have improved logistics efficiency, reducing transit times and costs.
- Technological Integration: The adoption of digital platforms for tracking, inventory management, and customer engagement has enhanced service delivery and operational transparency.
- E-commerce Growth: The rise of online retail has significantly increased the demand for reliable delivery services, prompting logistics companies to expand their capabilities.
- Regulatory Reforms: Government initiatives to reduce bottlenecks and improve customs procedures have facilitated smoother logistics operations.
- Regional Trade Agreements: Participation in agreements like the African Continental Free Trade Area (AfCFTA) is expected to boost cross-border logistics activities.
With the rapid rise of eCommerce comes the need for reliable logistics and delivery services. While platforms like Jumia and Konga have in-house logistics systems, other businesses outsource them to third-party services.
A company like Gokada, initially a bike-hailing service, has transitioned to focus on logistics, delivering everything from food to packages. Startups like Chowdeck, Heyfood, and Mano have emerged to take on food delivery. These services are vital, particularly in Nigeria’s traffic-heavy urban areas, where quick, dependable delivery is a priority.
Logistics businesses create jobs for drivers, riders, and warehouse personnel by partnering with eCommerce, food, and other businesses. You can start with just one bike, making this business accessible with minimal investment.
3. Catfish farming
Year | Estimated Production (Metric Tons) | Notable Developments |
---|---|---|
2000 | 25,000 | Emergence of small-scale catfish farms; limited adoption of modern aquaculture techniques. |
2005 | 50,000 | Government initiatives to boost aquaculture and enhanced training programs for farmers. |
2010 | 150,000 | Expansion of commercial catfish farms; increased investment in feed production. |
2015 | 300,000 | Government initiatives to boost aquaculture; enhanced training programs for farmers. |
2020 | 450,000 | Adoption of advanced farming technologies; growth in domestic and export markets. |
2024 | 600,000 | Continued expansion with focus on sustainability and value-added products. |
2030 | 800,000 | Projected growth driven by urbanization, rising protein demand, and improved supply chains. |
Key Trends:
- Technological Advancements: Adoption of modern aquaculture practices, including recirculating systems and improved feed formulations, has enhanced productivity.
- Government Support: Policies aimed at reducing fish imports and promoting local production have provided incentives for catfish farming expansion.
- Market Demand: Rising population and urbanization have increased the demand for affordable protein sources, positioning catfish as a staple in Nigerian diets.
- Export Potential: Efforts to meet international standards have opened opportunities for exporting catfish products to neighboring countries and beyond.
- Sustainability Focus: Emphasis on sustainable farming practices is growing, addressing environmental concerns and ensuring long-term viability.
Catfish farming is a profitable and fast-growing agricultural business in Nigeria. Due to its popularity in Nigerian cuisine, the demand for catfish is high, making this venture appealing to small—and large-scale farmers.
Many successful catfish farmers either start by hatching and raising fingerlings (young fish) or dive into the entire process, including breeding, growing, and selling mature fish.
Here are five ways you can go about a profitable catfish farming business:
- Fingerling production: Hatch and raise fingerlings for sale. It requires a relatively low investment and is a good entry point.
- Grow-out farming: Raise catfish from fingerlings to maturity for the food market, targeting high demand from local consumers and restaurants.
- Smoked catfish production: Add value by processing catfish into smoked products, which have a longer shelf life and high market demand.
- Catfish feed production: Create and sell affordable, quality feed, as feed costs make up a large portion of farming expenses.
- Consultancy services: Share expertise with new or prospective farmers by offering consulting and training services. This is a good additional income stream.
Catfish farming creates jobs, meets Nigeria’s protein needs, and contributes to economic stability.
4. Food processing
Year | Estimated Market Size (USD Billion) | Notable Developments |
---|---|---|
2000 | 2.5 | Predominantly small-scale operations; limited technological adoption. |
2005 | 4.0 | Introduction of modern processing techniques; growth in packaged food products. |
2010 | 6.5 | Entry of multinational companies; expansion of product varieties. |
2015 | 9.0 | Government initiatives to boost local production; improvement in supply chain logistics. |
2020 | 12.0 | Increased demand for processed foods due to urban lifestyles; rise of e-commerce platforms. |
2024 | 15.0 | Continued growth with focus on quality standards and export potential. |
2030 | 20.0 | Projected expansion driven by technological innovation, health-conscious consumers, and regional trade agreements. |
Food processing is another thriving sector in Nigeria, with significant demand for transforming raw foods into everyday consumable goods. This industry provides several business opportunities, from palm oil and groundnut oil production to rice milling and tomato purée processing.
However, it often requires substantial startup capital for machinery, typically upwards of one million naira, which can be a barrier for some. Nonetheless, food processing remains an attractive option, especially for entrepreneurs who want to tap into Nigeria’s growing demand for processed, packaged food products.
5. Real estate and property development
Year | Estimated Market Size (USD Billion) | Notable Developments |
---|---|---|
2000 | 3.5 | Predominantly informal housing; limited investment in commercial real estate. |
2005 | 5.0 | Introduction of private developers; commencement of large-scale residential projects. |
2010 | 7.5 | Expansion of commercial real estate; development of shopping malls and office complexes. |
2015 | 10.0 | Government initiatives to address housing deficits; growth in affordable housing projects. |
2020 | 12.5 | Increased foreign investment; emergence of smart city projects and luxury estates. |
2024 | 15.0 | Continued expansion with focus on sustainable development and green buildings. |
2030 | 20.0 | Projected growth driven by urbanization, improved infrastructure, and regulatory reforms. |
Key Trends:
- Urbanization: Rapid urbanization has led to increased demand for residential and commercial properties in major cities like Lagos, Abuja, and Port Harcourt.
- Affordable Housing: Government policies and private sector initiatives are focusing on reducing the housing deficit by developing affordable housing units.
- Foreign Investment: The sector has attracted significant foreign direct investment, leading to the development of high-end residential and commercial properties.
- Technological Integration: Adoption of technology in property development, including the use of PropTech solutions, is enhancing efficiency and transparency in the market.
- Sustainability: There is a growing emphasis on sustainable and environmentally friendly building practices, with developers incorporating green building standards.
Nigeria’s real estate sector continues to grow, driven by urbanisation and a demand for affordable housing. Real estate is a lucrative venture that has produced many of the world’s wealthiest individuals, and in Nigeria, it’s no different.
This sector offers multiple pathways to success:
- Residential and commercial rentals: Buy and rent out residential or commercial properties. This provides steady income and long-term asset growth.
- Land flipping involves Purchasing land in developing areas and reselling it as demand rises. This is a lower-barrier entry into real estate.
- Property development involves Building housing or commercial property for sale. Though capital-intensive, it’s highly profitable in growing cities.
- Real estate agency services: Start as an agent, connecting buyers and sellers for a commission. This approach requires minimal startup cost and helps you build essential market connections.
- Real Estate Investment Trust (REIT): An REIT allows smaller investors to participate in large-scale property ownership with lower capital and managed risk.
6. Freelancing
Year | Estimated Number of Freelancers (Millions) | Notable Developments |
---|---|---|
2000 | 0.5 | Emergence of early freelance opportunities; limited internet access and awareness. |
2005 | 1.5 | Gradual increase in internet users; introduction of local freelancing platforms. |
2010 | 5.0 | Expansion of global freelancing platforms; rise of digital skills training programs. |
2015 | 10.0 | Growth in remote work culture; increased participation in sectors like IT and design. |
2020 | 15.0 | COVID-19 pandemic accelerates adoption of freelancing; significant growth in digital payments. |
2024 | 20.0 | Continued expansion with increased internet penetration and smartphone usage. |
2030 | 25.0 | Projected growth driven by urbanization, digital literacy, and enhanced infrastructure. |
Key Trends:
- Internet Penetration: The rise from approximately 0.1% in 2000 to over 50% in 2024 has been pivotal in freelancing adoption.
- Digital Skills Development: Increased access to online courses and training programs has empowered more individuals to offer freelance services.
- Global Platforms: The availability of international freelancing platforms has provided Nigerian freelancers with access to a global client base.
- Payment Systems: The adoption of secure online payment methods has facilitated transactions between freelancers and clients, boosting confidence in the freelancing ecosystem.
- Regulatory Environment: Government initiatives to support the digital economy have contributed to the growth of freelancing opportunities.
The demand for remote work and freelance services is increasing as businesses go online. With the right skills and Internet connection, you can offer local and international services.
Freelancing allows you to start with minimal upfront costs, making it accessible and scalable. Moreover, popular platforms like Upwork, Fiverr, and LinkedIn can help connect you with global clients and build a portfolio.
Here are some freelance business ideas you can try:
- Content writing: Blogging, article writing, and social media content creation.
- Graphic design: Logos, banners, and brand assets.
- Web development: Website design and maintenance.
- Digital marketing: Search engine optimisation (SEO), social media marketing, and paid ads.
- Virtual assistance: Administrative support and data entry.
Freelancing has contributed to reducing the percentage of Nigeria’s unemployed youth population.
7. Daycare centres
Year | Estimated Number of Daycare Centers | Notable Developments |
---|---|---|
2000 | 1,000 | Predominantly informal setups; limited regulatory oversight. |
2005 | 2,500 | Emergence of private daycare centers in urban areas; gradual increase in demand. |
2010 | 5,000 | Expansion driven by rising dual-income households; introduction of early learning curricula. |
2015 | 8,000 | Government initiatives to standardize early childhood education; growth in private sector investment. |
2020 | 12,000 | Increased awareness of early childhood development; incorporation of technology in learning. |
2024 | 15,000 | Continued expansion with focus on quality standards and accessibility. |
2030 | 20,000 | Projected growth driven by urbanization, improved infrastructure, and regulatory reforms. |
With more Nigerian parents entering the workforce, the demand for reliable daycare centres is soaring. Daycare services offer a valuable solution for parents and guardians, especially working ones, who need safe, nurturing environments for their children during the day.
Starting a daycare centre requires a strong understanding of childcare practices and regulations, but even those without direct parenting experience can succeed by hiring trained childcare professionals.
Successful daycare centres can charge on daily, weekly, or monthly plans, providing consistent revenue streams while supporting families in local communities.
8. Spa business
As more Nigerians embrace self-care, the demand for spa services is growing rapidly. Increased awareness about skincare and wellness in Nigeria has led to more people seeking professional treatments for relaxation, skincare, and beauty.
Starting a spa business in Nigeria can be highly lucrative, as consumers look for services like facials, body scrubs, and massages to rejuvenate their skin and address specific concerns, such as acne, hyperpigmentation, and dry skin.
A well-positioned spa that offers high-quality treatments will attract a loyal customer base. You can further cater to the booming wellness market by launching your line of skincare products.
9. Hospitality business
The hospitality industry in Nigeria is booming, with local and international investments rapidly growing. Whether it’s running a traditional hotel, launching an Airbnb service, or managing boutique guesthouses, the potential for success is significant.
While hotel ownership requires significant investment, Airbnb offers a more accessible entry point with the flexibility of renting out properties. Local and international investors are investing in hotel expansion across Nigeria, especially in popular cities like Lagos, Abuja, Benin, Uyo, Ibadan, and Port Harcourt, capitalising on the rising influx of travellers and events that drive occupancy rates up.
With the right location, service, and marketing, running a hotel or vacation rental business can be highly profitable.
10. Hair extensions sales
Hair extensions, especially premium options like bone-straight hair, are a booming segment of Nigeria’s beauty market. With an increasing desire for high-quality, natural-looking hair, local and international consumers are willing to invest in long-lasting, luxurious extensions.
This business offers a variety of opportunities, from synthetic hair to human hair bundles, catering to diverse budgets. Selling online, engaging in social media marketing, and collaborating with salons can increase visibility.
With the Nigerian beauty industry projected to reach $9.72 billion by 2024, this is a great time to start and grow a hair extension business.
Factors contributing to business growth in Nigeria
Below are three factors that impact business growth:
Government policies and initiatives
Government policies and initiatives can aid or hinder business growth. The Nigerian government has introduced various policies to support entrepreneurship, including tax incentives, low-interest loans, and ease of doing business reforms. Initiatives like the Central Bank of Nigeria’s Anchor Borrowers’ Programme and the N-Power scheme have significantly supported small and medium-sized businesses (SMBs), particularly in agriculture and technology.
Demographic advantages
Nigeria has a youthful population, with about 70% under the age of 30. This demographic provides a strong labour force and a tech-savvy consumer base that fuels demand for modern services like eCommerce.
Technological advancements
Technology is at the heart of many fast-growing businesses in Nigeria. Internet penetration, mobile money, and innovative apps allow them to reach more consumers and streamline operations. Sectors like eCommerce and logistics are particularly dependent on technology for growth.
Challenges and opportunities
Challenges
Despite the growth potential, Nigerian businesses face several challenges that can stifle growth. They include:
- Inadequate infrastructure
- Inconsistent policies
- Limited access to financing
- High operational costs
- Regulatory roadblocks
Opportunities
The Nigerian market holds immense opportunities. Key sectors like logistics and eCommerce have significant gaps, giving entrepreneurs and investors room to offer innovative solutions. The demand is high for affordable housing, processed foods, online shopping options, fast delivery services, and freelancing platforms. These areas not only fulfil evolving consumer needs but also provide high growth potential for businesses focused on convenience, accessibility, and quality.
Success stories of fast-growing Nigerian businesses
Case study: OmniRetail Inc
OmniRetail is transforming Nigeria's eCommerce space by providing a seamless platform for businesses to manage online and offline sales in one place. This model meets the rising demand for digital-first retail experiences and allows local businesses to reach a broader audience without needing separate infrastructures.
By integrating inventory management, logistics, and payment systems, OmniRetail has enabled Nigerian merchants to grow efficiently, reaching new customer bases. Their platform supports economic inclusion, especially for SMEs, by simplifying the process of scaling and maintaining visibility in Nigeria’s competitive retail market.
The B2B eCommerce startup, founded in 2019 by Deepankar Rustagi, is top on the list of Nigeria’s fastest-growing companies, according to the Financial Times.
FAQs about fast-growing businesses in Nigeria
What is the most profitable business in Nigeria?
Some of the most profitable businesses in Nigeria include real estate, agriculture, and logistics. These sectors cater to essential needs and have high demand due to Nigeria's growing population, urbanisation, and increased smartphone and internet use.
What business is moving fast in Nigeria?
Real estate, freelancing, eCommerce, and food-delivery businesses are expanding rapidly, driven by technology adoption and demand for convenience.
What are the three fastest-growing industries in Nigeria?
The ICT, agriculture, and real estate financial services industries are among the fastest-growing, contributing significantly to the nation’s GDP.
What business can I start with 500,000 Naira in Nigeria?
With 500,000 Naira, you can start a small-scale eCommerce, motorcycle logistics, and freelancing business. That amount can also get you started in an agribusiness venture, especially in fish farming.
Conclusion
Summary of key points
From eCommerce to agribusiness, Nigeria offers a variety of high-growth sectors with promising returns. These sectors support job creation, innovation, and sustainable economic growth. What’s more, the mostly young Nigerian population and growing market keep up the demand for modern services. Supportive government policies can make it even easier to start and sustain businesses.
Future outlook
As Nigeria continues to develop, these fast-growing businesses will play a critical role in shaping the economy, offering endless opportunities for those willing to invest or start their venture. Now is a good time to start your business.
Encouragement for entrepreneurs
With the low ease of doing business and ongoing crippling inflation, Nigeria has some challenges that can potentially impact businesses. The dynamic business environment is filled with potential for those ready to enter. With strategic planning and an understanding of market demands, you can thrive.