Starting a business in Nigeria offers numerous advantages, making it a favorable destination for entrepreneurs. With a growing population of over 225 million people, the market potential is significant. Additionally, Nigeria boasts one of Africa’s fastest-growing economies, providing a wealth of opportunities for businesses.
Nigeria’s abundance of natural resources—including oil, gas, minerals, and agriculture—serves as a strong foundation for various industries. Moreover, the Nigerian government supports entrepreneurship through various programs, creating a conducive environment for startups and businesses to thrive.
However, with many cities to choose from, deciding where to establish a business can be overwhelming. To help with this, Grow.NG has compiled a list of the top ten cities in Nigeria to start a business in 2024, based on factors like current State Governor, population, economic activity, infrastructure and cost of living.
Top 10 Cities to Start a Business in Nigeria
1. Lagos
As Nigeria’s commercial and financial hub, Lagos is the nation’s business powerhouse. The city hosts a wide array of international organizations and industries, making it an ideal location for businesses of all kinds—from tech startups to manufacturing ventures. However, the high level of competition in Lagos requires a well-developed business strategy to succeed.
2. Aba
Located in Abia State, Aba is Nigeria’s leading manufacturing city, renowned for its thriving small and medium-scale industries, particularly in textiles, footwear, and leather goods. The city’s skilled workforce and industrial expertise make it an ideal place for manufacturers and entrepreneurs to set up operations. With what Alex Otti of Labour Party is doing, Aba- Abia State is a great place to start a business in 2024.
3. Abuja
Abuja, Nigeria’s capital, has seen rapid economic growth and development in recent years. It is an excellent location for businesses related to government contracts, education, and healthcare. The city’s central location also makes it a strategic choice for companies looking to access a broader market. Additionally, Abuja is a hotspot for businesses catering to expatriates and multinational companies.
4. Ibadan
Ibadan, the third-largest city in Nigeria, is a key industrial and commercial hub. Known for its affordable living and operating costs, Ibadan is an attractive option for startups, particularly in manufacturing, agribusiness, and trading sectors. With its several institutions and universities, it’s also a great place for businesses targeting the student population.
5. Kano
Kano, Nigeria’s second-largest city, is a vibrant business and industrial center. The city offers opportunities in manufacturing, trading, and agriculture, with access to a large market due to its proximity to neighboring countries. Kano’s strategic location makes it a vital hub for entrepreneurs looking to expand into both local and regional markets.
6. Port Harcourt
As the capital of Rivers State, Port Harcourt is a significant hub for the oil and gas industry. Businesses involved in engineering, construction, and logistics can benefit from the city’s infrastructure and deep harbor, which supports international trade. Port Harcourt offers a wealth of opportunities for businesses seeking to operate in Nigeria’s energy sector.
7. Onitsha
Onitsha, a bustling commercial center in Anambra State, is known for its vibrant markets and entrepreneurial spirit. The city serves as a key trading and distribution hub, making it a great location for businesses focused on commerce and consumer goods. With its dynamic business environment, Onitsha offers excellent opportunities for entrepreneurs looking to tap into Nigeria’s retail sector.
8. Benin City
Benin City, the capital of Edo State, is another great location for starting a business, particularly in agriculture, manufacturing, and education. Its close proximity to both Port Harcourt and Lagos gives businesses in Benin City easy access to larger markets, while the city’s youthful population offers a dynamic customer base.
9. Warri
Warri, in Delta State, is a key player in Nigeria’s energy sector due to its proximity to oil and gas production areas. The city offers numerous opportunities for businesses involved in the energy sector, as well as those specializing in engineering, construction, and logistics.
10. Jos
Jos, in Plateau State, is a growing city with significant economic potential. Known for its mild climate and scenic landscapes, Jos presents opportunities in agriculture, tourism, and education. The city’s status as a tourist destination also makes it a favorable location for businesses catering to the tourism industry.
Conclusion
When selecting a city in Nigeria to start a business, consider factors such as population size, economic activity, infrastructure, and cost of living. Additionally, think about your industry and personal preferences to choose the best location for your business venture. Each of the cities mentioned offers unique opportunities that can be leveraged to build a successful enterprise.
Why is Aba in the list?