Top 25 Lucrative Business Ideas in Nigeria to Start with 500k

Nigeria’s vibrant economy and large population of over 200 million people offer immense opportunities for entrepreneurs. With a budget of ₦500,000, you can launch a profitable business by tapping into high-demand sectors such as agriculture, technology, retail, and services. Below is a curated list of 25 lucrative business ideas tailored for Nigeria’s dynamic market in 2025, each requiring a startup capital of around ₦500,000 or less. These ideas are selected based on market demand, scalability, and alignment with current economic trends.

1. Poultry Farming

Poultry farming, focusing on eggs or meat production, is a high-demand business due to Nigeria’s large population and constant need for food.

Startup Costs: ₦300,000–₦500,000 (chicks, feed, housing, vaccines).
Why It’s Profitable: High demand for eggs and chicken, with potential for quick returns.
Tips: Implement biosecurity measures and secure reliable distribution channels.

2. Mini Importation Business

Import small-scale, high-demand goods like electronics, fashion items, or skincare products from platforms like Alibaba or AliExpress for resale in Nigeria.

Startup Costs: ₦200,000–₦500,000 (product sourcing, shipping, marketing).
Why It’s Profitable: High profit margins (100–300%) on trending products.
Tips: Research trending products and use e-commerce platforms like Jumia for broader reach.

3. POS (Point of Sale) Business

Provide electronic payment services in areas with limited access to banks or ATMs, earning commissions per transaction.

Startup Costs: ₦100,000–₦300,000 (POS machine, kiosk setup, initial float).
Why It’s Profitable: High transaction volume in busy areas, with daily profits up to ₦10,000.
Tips: Partner with trusted providers like Moniepoint or Opay and target high-traffic locations.

4. Laundry and Dry Cleaning Services

Offer laundry, ironing, and garment alteration services in urban areas with busy professionals.

Startup Costs: ₦300,000–₦500,000 (washing machine, detergents, small shop rent).
Why It’s Profitable: Growing demand due to busy lifestyles in cities like Lagos and Abuja.
Tips: Offer pickup and delivery services to attract more customers.

5. Beauty Salon

Start a unisex salon offering haircuts, manicures, pedicures, and makeup services.

Startup Costs: ₦350,000–₦500,000 (salon chairs, dryers, clippers, rent).
Why It’s Profitable: Consistent demand in Nigeria’s beauty-conscious market.
Tips: Build a strong social media presence on Instagram with client photos and reviews.

6. Fashion Boutique

Sell ready-made clothing or offer tailoring services, focusing on trendy styles like senator or bubu outfits.

Startup Costs: ₦300,000–₦500,000 (sewing machines, fabrics, shop rent).
Why It’s Profitable: High demand during festive seasons and events.
Tips: Start with quality second-hand (okrika) clothing to reduce costs.

7. Catering and Food Business

Launch a home-based catering service for offices, events, or daily meals, or operate a small eatery.

Startup Costs: ₦300,000–₦500,000 (cooking equipment, ingredients, packaging).
Why It’s Profitable: Constant demand for food, especially in urban and student areas.
Tips: Use social media for marketing and offer delivery services.

8. Snail Farming

Breed and sell snails for local and international markets, a low-maintenance agribusiness.

Startup Costs: ₦200,000–₦400,000 (snail pen, breeding stock, feed).
Why It’s Profitable: High demand in hotels and restaurants with minimal space required.
Tips: Learn proper snail rearing techniques to maximize yield.

9. Mobile Phone and Accessories Sales

Sell mobile phones, chargers, earphones, and repair services in a physical or online shop.

Startup Costs: ₦300,000–₦500,000 (stock, shop setup, tools for repairs).
Why It’s Profitable: High smartphone penetration drives constant demand.
Tips: Partner with wholesalers and offer repair services for added revenue.

10. Dropshipping

Run an e-commerce store without holding inventory by sourcing products from suppliers like Spocket or AliExpress.

Startup Costs: ₦200,000–₦500,000 (website setup, marketing, supplier agreements).
Why It’s Profitable: Low-risk model with minimal upfront costs.
Tips: Focus on high-demand niches like electronics or beauty products.

11. Bakery

Start a home-based bakery producing bread, cakes, and snacks for local sales.

Startup Costs: ₦300,000–₦500,000 (oven, ingredients, packaging).
Why It’s Profitable: High demand for affordable baked goods.
Tips: Use social media to showcase products and attract customers.

12. Cooking Gas Retail

Supply cooking gas to households and small businesses, leveraging Nigeria’s reliance on gas for cooking.

Startup Costs: ₦300,000–₦500,000 (gas cylinders, refilling equipment, shop).
Why It’s Profitable: Low competition and steady demand.
Tips: Ensure safety compliance and target residential areas.

13. Digital Marketing Services

Offer social media management, content creation, or SEO services to businesses seeking an online presence.

Startup Costs: ₦100,000–₦300,000 (laptop, internet, software).
Why It’s Profitable: Growing demand for digital visibility among SMEs.
Tips: Build skills through platforms like Fiverr or Upwork and target local businesses.

14. Vegetable Farming

Cultivate high-demand crops like tomatoes, peppers, or leafy greens on a small plot.

Startup Costs: ₦200,000–₦400,000 (seeds, fertilizers, irrigation).
Why It’s Profitable: Quick harvest cycles and stable food demand.
Tips: Use modern farming techniques to boost yield.

15. Printing and Branding

Provide printing services for banners, T-shirts, and promotional materials.

Startup Costs: ₦300,000–₦500,000 (printer, materials, small space).
Why It’s Profitable: High demand from businesses and event planners.
Tips: Focus on quality and timely delivery to build a loyal customer base.

16. Photography and Videography

Offer services for weddings, events, or corporate shoots, leveraging Nigeria’s vibrant event culture.

Startup Costs: ₦400,000–₦500,000 (camera, editing software, lenses).
Why It’s Profitable: High demand for professional visuals in urban areas.
Tips: Build a portfolio on Instagram and YouTube to attract clients.

17. Car Wash

Set up a car wash in a high-traffic urban area with cleaning equipment and water supply.

Startup Costs: ₦300,000–₦500,000 (equipment, water tank, rent).
Why It’s Profitable: Steady demand from car owners in cities like Lagos.
Tips: Offer premium services like waxing to increase revenue.

18. Cosmetics Retail

Sell skincare and makeup products, either online or in a physical store.

Startup Costs: ₦300,000–₦500,000 (stock, shop setup, marketing).
Why It’s Profitable: Booming beauty industry with high demand among women aged 18–45.
Tips: Source trending products and use social media for promotion.

19. Delivery and Logistics

Start a small-scale delivery service using a motorcycle for e-commerce or local businesses.

Startup Costs: ₦400,000–₦500,000 (motorcycle, licenses, branding).
Why It’s Profitable: Rising e-commerce drives demand for last-mile delivery.
Tips: Partner with e-commerce platforms and ensure reliable service.

20. Zobo Drink Production

Produce and distribute Zobo, a popular healthy beverage made from hibiscus leaves.

Startup Costs: ₦100,000–₦300,000 (ingredients, packaging, distribution).
Why It’s Profitable: Low startup costs and growing demand for healthy drinks.
Tips: Focus on quality packaging and target health-conscious consumers.

21. Block Molding Business

Produce concrete blocks for construction, a thriving industry in Nigeria.

Startup Costs: ₦300,000–₦500,000 (molding machine, cement, sand).
Why It’s Profitable: High demand due to ongoing construction projects.
Tips: Secure contracts with local contractors for steady sales.

22. Event Planning

Offer event planning services for weddings, birthdays, or corporate events.

Startup Costs: ₦200,000–₦400,000 (décor, marketing, vendor networks).
Why It’s Profitable: High demand in urban areas for professional event services.
Tips: Build a network of vendors and promote via social media.

23. Perfume Oil Sales

Sell affordable perfume oils as an alternative to expensive branded perfumes.

Startup Costs: ₦100,000–₦300,000 (stock, packaging, marketing).
Why It’s Profitable: High demand for cost-effective fragrance options.
Tips: Source from wholesalers and sell via social media or local markets.

24. Tutoring Services

Provide academic tutoring for students preparing for exams like WAEC or JAMB.

Startup Costs: ₦100, 000–₦300,000 (teaching materials, space, marketing).
Why It’s Profitable: Growing demand for quality education support.
Tips: Offer online classes to reduce costs and reach more students.

25. Real Estate Agency

Start a real estate agency connecting buyers and sellers for a commission.

Startup Costs: ₦200,000–₦400,000 (office setup, marketing, licensing).
Why It’s Profitable: Booming real estate market in urban centers like Lagos and Abuja.
Tips: Build a network and leverage online platforms for listings.

Key Considerations for Success

Market Research: Validate demand for your chosen business in your target area.
Strategic Location: Choose high-traffic or accessible locations for physical businesses.
Digital Presence: Use social media platforms like Instagram and WhatsApp to market products and services.
Customer Focus: Prioritize quality and excellent customer service to build loyalty.
Financial Management: Reinvest profits to scale and avoid overspending initially.

With ₦500,000, these business ideas offer a balance of low startup costs, scalability, and high demand in Nigeria’s market. Choose one that aligns with your skills, passion, and local needs, and execute with strategic planning to ensure long-term success.