What Is a Good Business One Can Start in Nigeria With 5 to 6 Million Naira?

Introduction.

Starting a business in Nigeria with ₦5–₦6 million is more realistic than most people think. It’s not small money — and it’s not too much either — but if you’re smart about where you put it, that amount can open the door to something solid and profitable.

Nigeria is a country full of potential, but it comes with challenges: inflation, power issues, changing government policies, and tough competition in many sectors.

So, choosing the right business idea matters. You don’t want to throw millions into something just because it “sounds good.” You want to know it works — and works here, in Nigeria.

That’s exactly what I’ll be breaking down in this post: what you can do with 5 to 6 million naira, what to avoid, and how to make sure you’re not wasting your money.

I’ll also walk through some frequently asked questions that come up when people are thinking about investing that kind of money.

Let’s get straight into it.

Things to Consider Before Starting Any Business in Nigeria

Before putting your money into anything, make sure you’ve thought about:

Location

Lagos isn’t the same as Ibadan. Abuja isn’t the same as Kano. What works in one place might fail in another. Your environment matters.

Market Demand

Ask yourself: are people already spending money in this industry? If you have to convince them, that might be a red flag.

Startup vs. Daily Running Costs

Some businesses are cheap to start but expensive to maintain. Others are capital-intensive upfront but easy to run long term. Know which one you’re entering.

Skills and Experience

You don’t have to be an expert, but don’t jump into what you don’t understand. Either learn or hire someone who knows what they’re doing.

Best Business Ideas to Start in Nigeria With ₦5–₦6 Million

Here are some smart ideas I’d recommend based on what’s currently working in Nigeria (2024–2025), and how far your capital can go.

1. Mini Importation and E-Commerce

Capital Needed: ₦2.5m – ₦5m
Profit Margin: 20–50%

With the rise of platforms like TikTok Shop, Jumia, and Konga, selling imported products online has become easier.

You can start by importing hot-selling items (gadgets, health products, beauty tools, fashion accessories) from China using platforms like 1688.com or Alibaba.

Why it works:

• People love affordable products.
• You don’t need a physical shop.
• You can reinvest profits quickly.

Where to be careful:

• Avoid overstocking.
• Don’t chase every trend — focus on products with constant demand.

2. Food Processing and Packaging

Capital Needed: ₦4m – ₦6m
Profit Margin: 30–60%

Nigeria’s population is growing, and so is the demand for ready-to-use foods. Think garri, spices, palm oil, beans flour, dried vegetables — packaged cleanly and sold in markets, supermarkets, and online.

You can buy machines for packaging locally in Lagos or Aba. With good branding and NAFDAC registration, you can scale fast.

Tip: Add social media marketing (Instagram and WhatsApp Status alone can bring good sales).

3. Boutique Fashion Business (Men & Women)

Capital Needed: ₦3.5m – ₦6m
Profit Margin: 25–45%

If you’re in an urban location with steady foot traffic (think Lekki, Wuse, GRA areas), a boutique selling trendy clothes, shoes, or handbags can work well. Or even better — combine a walk-in store with Instagram sales.

Where the money goes:

• Shop rent (if needed)
• Inventory from Turkey, China, or even Aba
• Light branding and photography

4. POS & Mobile Banking Business (Agency Banking)

Capital Needed: ₦1m – ₦3m (add more to scale)
Profit Margin: ₦150k–₦500k monthly (per location)

Agency banking is still booming, especially in less urban areas. You earn from transaction fees. With 5–6 million, you can open 2–3 outlets and hire staff. Make sure to get your machines from trusted sources — Opay, Moniepoint, and Palmpay are still the top players.

Watch out for:

• Theft (install CCTV and track cash daily)
• Wrong location (avoid oversaturated spots)

5. Bakery or Small Fast Food Outlet

Capital Needed: ₦4m – ₦6m
Profit Margin: 30–50%

A small but well-located bakery or fast food spot can pull in a lot of cash. Nigerians love fresh bread, meat pies, shawarma, and rice/beans combos. If you get the recipe and location right, you can build steady daily sales.

Use your capital for:

• Baking equipment or cooking gear
• Rent and initial stock
• Branding and uniforms (helps build trust)

6. Laundry & Dry Cleaning Service

Capital Needed: ₦2.5m – ₦5m
Profit Margin: 20–40%

Clean clothes will always be in demand, especially in cities. With a simple setup — a few washing machines, pressing tables, shelves, and a solid generator — you can start small and grow.

You can attract clients through estate flyers, WhatsApp BCs, and walk-in promos.

7. Small-scale Farming + Processing

Capital Needed: ₦4m – ₦6m
Profit Margin: 40–70% (longer cycle)

If you’re open to the agro space, you could look at things like catfish farming, snail rearing, or poultry. Even better — process and sell part of it (like smoked catfish or chicken) to add value and profit.

Note:

• Farming needs patience.
• Weather and disease management are real issues — don’t ignore them.

A Few Businesses to Avoid (or Be Extra Careful With)

• Crypto/Forex Trading: Very risky if you don’t understand the game. Many have lost millions here.
• Purely Online “Money Doubling” Schemes: No matter how real they look, most end in losses.
• Transport Business (Bolt/Uber) Without Supervision: Cars get damaged or stolen. You need structure to make this work.

FAQs

What is the best business to start in Lagos with ₦5–₦6 million?

E-commerce, food packaging, or POS agency business can do well in Lagos due to high traffic and demand.

Is it better to open a physical store or start online?

If your product sells well visually (fashion, gadgets, beauty), online is cheaper to start. But combining both works best.

Do I need to register my business with CAC or NAFDAC?

Yes — for trust and to avoid problems. CAC is cheap and can be done online (cac.gov.ng). NAFDAC is a must if you’re selling food or skincare.

Can I get a loan instead of using my capital?

You can, but interest rates are often high. Use your funds if possible, or start small and scale.

Final Thoughts

Starting a business in Nigeria with 5–6 million naira is not a guarantee of success, but it’s definitely a solid head start.

The real game is not just the idea — it’s in how well you execute. Pick something that fits your interest, your area, and what people are already spending money on.

The truth is, there’s no “one size fits all.” But with the right research, discipline, and a bit of hustle, that money can turn into something real.

So now I’ll ask you — if you had ₦5–₦6 million today, what kind of business would you start in Nigeria, and why?