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Useful tips on how to start foodstuff business in Nigeria

Are you dreaming of starting a foodstuff business? Here you will find everything you should know before making foodstuff business plan.

In terms of population, in Africa Nigeria ranks the first place and is one of ten most populous countries in the world. It boasts a large number of dynamic, enterprising, and ambitious challenges.

Until recently, the fastest growing economy of Nigeria prompted the investment Bank "Goldman Sachs" to include it in the "Group of eleven" (N-11) - the list of countries with the potential to become the world's largest economy.

The oil sector traditionally dominates in the country's economy, but lately Nigeria economy has become more diversified, due to the active development of the sectors of telecommunications, real estate, financial services, and foodstuff business. The banking system of Nigeria is the largest in Africa. The Financial Times included ten Nigeria banks in the list of top 1000 banks in the world. All these factors, combined with promises of high yields, have made this country extremely attractive to potential investors.

Foodstuff business in Nigeria – what are the best ideas?

Fast food business

In order to become a successful businessman in this sphere, you need to hire a set of experienced workers, some management skills, and to have certain capital to operate your business. This way, you may create your own brand, such as Mr. Biggs.

Rice farming

This is one of the most profitable raw foodstuff businesses in Nigeria. It will help you to earn so much money only due to the fact that rice is so highly consumed. This way, not all the rice is manufactured in Nigeria, you can get involved in rice import which is also extremely rewarding.

Nigeria government tends to support such intentions of both large-scale and medium-scale businessmen.

Poultry farming

Such a start-up idea is extremely profitable due to the fact that you may sell chicken eggs and chicken meat. It is okay to start just from 100 birds and then you may increase the number of your birds to thousands.

Producing fruit juice

A great number of Nigerians is fond of fruit juices, this way, you may give it a go. Why not make an attempt?

Production of pure water

You can sell water in bottles or in sachet or special bags. Despite the fact that such foodstuff business needs some investments, in some time you can achieve good results and become rich. Pure water will always be in demand.

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Grocery store opening

The best choice is to combine all the aforementioned start-up ideas.

Grocery store: cost of foodstuff in Nigeria

In order to open a grocery store, you will need from about N60,000 to N100,000. This sum is suitable for opening a single simple shop, but if you are looking forward to opening a double shop, you will require nearly N120,000 to N200,000.

Daily profit may reach N5,000. Everything depends on the type of products you sell, whether they cost N5 or N500.

The main your expenses will be: place for your shop (purchasing or rent), refrigerators, salaries for your workers.

Raw foodstuff business in Nigeria

This means that you buy some food in bags and then sell it in retail to other consumers.

Wholesale foodstuff business in Nigeria is extremely popular, but in order to have some achievements you need about N50,000.

If you are interested in choosing the place and company where to buy the foodstuff for you business, then you need to decide which location you will choose. For instance, if you are in Lagos, you can go to Alaba rago market, Ojo, Lagos. Here, you will be able to buy rice, beans, corn much cheaper than in other place.

Business risks in Nigeria

It’s no wonder that every year our country arouses the interests of investors from a large number of states. However, the main limiting factor for economic development is the shortage of electricity. The second constraint in the economic sector of Nigeria is frequent different types of financial fraud. The problem with electricity is solved by the construction of new power plants with the help of China, the second problem is solved exactly by finding reliable partners. Unfortunately, the level of conventional crime is also extremely high.

Foodstuff business plan

It is difficult to keep everything and calculate all the figures in mind, so you will need to make up Foodstuff business plan.

First of all, you need to make a decision – what sphere will suit you the best. It may depend on various factors, in particular, your background knowledge about certain types of products.

The next, but not less decisive factor, is the amount of money you are ready to spend on your business start-up project. The sum will vary from the character of field you have opt for. Some spheres require more money, and some need less of your earnings. Make all the calculations thoroughly, taking into account all even small details.

The third thing to think over is the sum you want to earn daily or annually. Estimate your income and profit.

The fourth – find the right place for your wholesale foodstuff business in Nigeria (the example was given earlier).

The next – make a plan of what you have already done and what is to be done in future.

It can be useful to ask an advice of somebody who has experience in the foodstuff business.

Hire some devoted employees. Teach them how to work.

Start selling goods and making profit!

Now, you are supposed to be aware how to go in for foodstuff business in Nigeria. Think over carefully, make all necessary calculations, analyze the market and demands, and start making money!

READ ALSO: Natural resources in Nigeria


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