Cost of Starting a Business in Nigeria in 2025
Starting a business in Nigeria is a smart way to escape unemployment, boost your income, and gain financial independence. But one of the biggest questions every new entrepreneur asks is: “How much does it cost to start a business in Nigeria?”
The truth is, there’s no fixed amount — it depends on the type of business you want to start, your location, your goals, and how much you’re willing to manage or outsource. In this guide, we’ll break down the typical costs involved in starting a small or medium business in Nigeria in 2025.
Whether you’re planning to sell products, offer services, start online or open a shop, this article will help you estimate what you’ll need to begin.
Table of Contents
- Factors That Affect Startup Costs in Nigeria
- Average Cost of Starting Different Types of Businesses
- Hidden Costs Most People Don’t Consider
- How to Start Small with Limited Capital
- Tips to Reduce Startup Costs
Key Takeaways
- Startup costs in Nigeria vary widely depending on the type of business, location, and whether it’s online or offline.
- You can start a business with as little as ₦20,000–₦50,000, especially for digital or service-based ventures.
- Common startup expenses include equipment, product inventory, branding, shop rent, and data/internet access.
- Hidden costs like business registration, transportation, and marketing often surprise new business owners — plan for them early.
- You can reduce startup costs by starting from home, using free tools, learning basic skills, and buying secondhand equipment.
- Starting small is smart — many successful businesses in Nigeria today began with limited capital.
Cost of Starting a Business in Nigeria in 2025
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Factors That Affect Startup Costs in Nigeria
Before you can estimate how much you’ll spend, you need to consider these key factors:
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Type of Business
A POS business doesn’t cost the same as starting a restaurant. Some businesses are low-capital, others are capital-intensive.
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Business Location
Starting in Lagos may cost more than starting in a rural town. Shop rent, staff salaries, and logistics vary by location.
3. Online vs. Offline
Online businesses like dropshipping or freelance services need less capital compared to offline businesses like hair salons or food joints.
4. DIY vs. Hiring Professionals
Are you designing your logo, registering your business, or building your website yourself — or paying someone to do it?
5. Average Cost of Starting Different Types of Businesses
Let’s look at rough estimates of common small businesses and their startup costs in 2025:
POS (Agent Banking) Business
- POS Terminal: ₦20,000 – ₦50,000
- Float (working capital): ₦20,000 – ₦100,000
- Table/kiosk (optional): ₦30,000 – ₦100,000
- Estimated Total: ₦50,000 – ₦200,000
Mini Importation Business
- Product Samples: ₦30,000 – ₦70,000
- Logistics & Shipping: ₦15,000 – ₦40,000
- Adverts/Marketing: ₦10,000 – ₦30,000
- Estimated Total: ₦70,000 – ₦150,000
Foodstuff Packaging Business
- Raw foodstuff (e.g., rice, beans, spices): ₦30,000 – ₦100,000
- Branded nylons, scales, buckets: ₦10,000 – ₦40,000
- Table or stall (if physical selling): ₦20,000 – ₦50,000
- Estimated Total: ₦60,000 – ₦150,000
Laundry and Ironing Business
- Washing machine (optional): ₦80,000 – ₦150,000
- Detergents, bowls, buckets: ₦10,000 – ₦20,000
- Iron and table: ₦15,000 – ₦25,000
- Estimated Total: ₦50,000 – ₦200,000
Social Media Management Business
- Smartphone: Already owned or ₦50,000+
- Data subscription: ₦5,000/month
- Canva Pro or tools (optional): ₦6,000/month
- Marketing materials: ₦10,000
- Estimated Total: ₦20,000 – ₦70,000
Small Chops or Puff-Puff Business
- Cooking tools: ₦30,000
- Ingredients: ₦15,000 – ₦30,000
- Table & display items: ₦20,000
- Estimated Total: ₦50,000 – ₦100,000
Barbing Salon
- Clippers and tools: ₦30,000 – ₦70,000
- Chair and mirror: ₦25,000 – ₦60,000
- Shop rent (varies): ₦100,000 – ₦300,000/year
- Estimated Total: ₦150,000 – ₦400,000
These are just examples. Your own startup cost could be lower or higher depending on how you want to start.
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Hidden Costs Most People Don’t Consider
Here are expenses most new business owners forget to include in their budget:
- Business name registration: ₦15,000 – ₦25,000
- Logo design and branding: ₦5,000 – ₦20,000
- Packaging materials: ₦5,000 – ₦50,000
- Transportation: ₦10,000 – ₦30,000/month
- Generator/fuel (for areas with poor light): ₦50,000 – ₦200,000
- Staff salary (if you’re hiring): ₦20,000 – ₦50,000/month
- Internet/data: ₦5,000 – ₦15,000/month
- Ads or flyers: ₦5,000 – ₦50,000
Knowing these extras helps you plan better and avoid surprises after launching.
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How to Start Small with Limited Capital
Not everyone has ₦200,000 or ₦500,000 to start. That’s okay. You can still begin smartly:
- Start from home or online to save on rent
- Sell through WhatsApp and Instagram
- Begin with one product or service, then expand
- Borrow or rent tools instead of buying
- Partner with a friend or family member
Many top businesses today started small and scaled up over time.
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Tips to Reduce Startup Costs
- Use free tools like Canva, Google Forms, and WhatsApp Business
- Learn basic skills like graphic design, marketing, or bookkeeping
- Register your business early to attract grants and avoid fines
- Buy equipment secondhand or refurbished
- Ask experienced business owners for cost-saving tips
Reducing unnecessary expenses allows you to focus on what matters — growing your business.
Final Thoughts
There’s no one-size-fits-all cost for starting a business in Nigeria. What matters most is planning ahead, starting with what you have, and managing your resources wisely. Even with ₦50,000 or less, you can start something that grows with time.
If you’re serious, committed, and willing to learn, you can make it work — no matter your starting point.
Need Help Starting Your Business?
At Dayo Adetiloye Business Hub, we help Nigerians like you start and grow profitable businesses — no matter your budget. From writing business plans to getting registered and finding the right business idea, we’ve got your back.
Call or WhatsApp us on +234-806-077-9290
Let’s build your dream business — together!
Frequently Asked Questions (FAQs)
Q1: What’s the cheapest business I can start in Nigeria in 2025?
A: Online businesses like affiliate marketing, data reselling, or social media management can be started with ₦20,000 or less.
Q2: Do I need to register my business before I start?
A: Not immediately, but it’s advisable to register your business (₦15,000–₦25,000) early to access grants, avoid legal issues, and build trust.
Q3: Can I start a business without a shop or office?
A: Yes. Many successful businesses in Nigeria today operate fully online or from home, especially in their early stages.
Q4: What are the most common hidden costs people forget?
A: Business name registration, branding, transportation, packaging, and generator/fuel costs are often overlooked.
Q5: How can I save money when starting my business?
A: Use free tools (e.g., Canva, Google Forms), buy secondhand equipment, partner with others, and learn basic marketing or design skills.
Q6: Is ₦100,000 enough to start a profitable business?
A: Yes. Several businesses like foodstuff packaging, POS, small chops, and mini importation can be started with ₦100,000 or less.
Q7: What’s better — online or offline business?
A: Online businesses are generally cheaper and easier to start for youths, while offline businesses may need more capital but can serve local needs better.
Q8: How long does it take to start making profit?
A: It varies by business type, effort, and marketing. Some businesses see returns in weeks, while others may take months.
Q9: Should I hire staff immediately?
A: Not unless necessary. Many small business owners start solo and hire later when the business grows.
Q10: Where can I get support or guidance as a new entrepreneur?
A: You can reach out to business hubs (Dayo Adetiloye Business Hub), mentorship programs, or professionals who offer startup support.
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