5 High Profitable Businesses You Can Start With ₦500k in Nigeria.

Starting a business in Nigeria today can feel like an uphill battle. Rising inflation, unstable electricity, limited access to loans, and intense competition make many aspiring entrepreneurs believe success is out of reach. It often looks as though only those with millions of naira can build something sustainable but that is far from the truth.

The reality is this: with the right mindset, proper planning, and strategic use of available resources, ₦500,000 is more than enough to start a practical, profitable business in Nigeria. Many thriving entrepreneurs you see today began with less, but scaled up by focusing on businesses that solve real problems in the market.

This guide is designed to show you how. We’ll explore 10 practical businesses you can start in Nigeria with ₦500k or less, complete with:

• Estimated startup costs, so you know where your money goes,
  
• Step-by-step setup guides to make execution easier, and
  
• Reasons why these businesses thrive in Nigeria’s present economy.
  

Instead of chasing “get-rich-quick” schemes, the businesses covered here are sustainable, realistic, and profitable if you’re willing to put in the work. Whether you’re a fresh graduate looking to be self-reliant, an employee seeking extra income, or someone ready to finally escape the 9–5 grind, there’s something here for you.

1. POS Business (Agent Banking)

In the last few years, POS business has become one of the most common and profitable small-scale ventures in Nigeria. With the constant issue of long queues in banks, limited ATMs, and the high demand for quick financial services in both urban and rural areas, Nigerians are relying more on POS agents for their daily transactions.

The industry has grown so much that it is now regarded as one of the easiest ways to start making steady income without needing a physical shop in high-brow locations. However, just like every business, success depends on location, security, and customer trust.

Requirements to Start

• Valid ID (NIN, Voter’s Card, or International Passport)
  
• BVN (Bank Verification Number)
  
• Utility Bill (Not older than 3 months)
  
• Passport Photograph
  
• Startup Capital (₦100k – ₦500k depending on scale)
  
• POS Machine (₦0 – ₦50k depending on provider; some give free, some lease, some sell outright)

Startup Cost Breakdown (Based on ₦500,000 Capital)

• POS Machine Deposit / Purchase: ₦20,000 – ₦50,000
  
• Shop/Stand Setup (umbrella, chair, small kiosk rent): ₦50,000 – ₦100,000 (varies by location)
  
• Float (working capital for withdrawals & transfers): ₦300,000 – ₦400,000
  
• Miscellaneous (branding, signage, small generator, security): ₦30,000 – ₦50,000
  

Total Estimated Startup: ₦400,000 – ₦500,000

How to Start a POS Business in Nigeria

1. Choose a Bank or Mobile Money Operator (MMO)
   
   • Popular options include First Bank, Access Bank, Opay, PalmPay, Moniepoint, and Paga.
     
   • These providers give you a POS machine after registration and a small deposit (sometimes refundable).
     
2. Register Your Business (Optional but Recommended)
   
   • CAC registration isn’t compulsory for entry-level POS agents, but it builds trust and helps if you want to scale later.
     
3. Secure a Strategic Location
   
   • Ideal spots include motor parks, university gates, marketplaces, or residential areas with limited banks/ATMs.
     
4. Get Your POS Machine
   
   • Apply through your bank or an MMO. Most providers require basic KYC (BVN, ID card, utility bill, passport photo).
     
5. Fund Your Wallet
   
   • You’ll need float (working capital) for transactions. This is where most of your ₦500k will go.
     

Profit Potential

Profit comes from the charges per transaction (withdrawals, deposits, transfers, airtime, bill payments). On average:

• Withdrawals: ₦100 – ₦200 per ₦5,000
  
• Transfers/Deposits: ₦50 – ₦100 per ₦1,000 – ₦5,000
  
• Other services (Airtime, Bills, Betting, Data): Commissions vary, usually ₦20 – ₦100 per transaction
  

Monthly Earning Estimate (Realistic, Not Hyped)

• Small Location (low traffic): ₦50,000 – ₦70,000/month
  
• Busy Area (marketplace, park, campus gate): ₦120,000 – ₦200,000/month

Your daily turnover depends heavily on location and security. In high-demand areas, some POS agents handle ₦200k–₦500k transactions per day.

Why POS Business Works in Nigeria

• Cash scarcity & unreliable ATMs keep demand high.
  
• Nigerians trust POS agents for convenience.
  
• Flexible — you can start small and expand into multiple locations with more attendants

2. Foodstuff Supply & Retail Business in Nigeria (Starting with ₦500k)

In Nigeria today, food is not just a want — it is a daily necessity. No matter how tough the economy gets, people must eat. This makes foodstuff supply and retail one of the most reliable and profitable businesses you can start with as little as ₦500,000.

Unlike luxury products, food has steady demand year-round. Prices also tend to increase with inflation, which means your profit margins can grow over time if you manage your stock properly. Whether you’re selling directly to households or supplying restaurants and hotels, this business guarantees a constant flow of customers.

Requirements to Get Started

Shop or Storage Space: ₦100k – ₦150k yearly (depending on location).

Initial Stock of Foodstuff: ₦300k – ₦350k.

Weighing Scale & Packaging Materials: ₦15k – ₦20k.

Sacks, Basins, Containers: ₦10k – ₦15k.

Logistics/Transport for Supply: ₦20k – ₦30k.

Branding/Signboard: ₦10k – ₦15k (optional but useful for trust).

Startup Cost Breakdown (₦500,000 Budget)

• Shop/Kiosk rent: ₦120,000
  
• Initial stock purchase: ₦320,000
  
• Weighing scale & packaging: ₦15,000
  
• Transport/logistics: ₦25,000
  
• Miscellaneous (branding, storage bags, license): ₦20,000
  

Total: ₦500,000

How to Start a Foodstuff Business in Nigeria

1. Choose Your Business Model

• Retail: Open a small shop or kiosk where people buy rice, beans, garri, yam, oil, and other staples in smaller quantities.
  
• Supply: Buy in bulk from major food markets (like Mile 12 in Lagos, Ogbete in Enugu, or Bodija in Ibadan) and distribute to caterers, restaurants, hotels, and households.
  
• Many smart entrepreneurs combine both — retail for daily sales and supply for bigger profits.
  

2. Secure a Good Location

• For retail, target busy areas: markets, estates, school junctions, or roadside shops with high foot traffic.
  
• For supply, you may not need a shop. A small warehouse or rented storage space close to your target buyers is enough.
  

3. Build Trust & Relationships

Food is sensitive, so trust and consistency are key. Supplying fresh, quality items at fair prices will earn you loyal customers. For bigger deals, registering your business with CAC can give you more credibility.

Profit Potential

Foodstuff margins in Nigeria are usually 10% – 30%, depending on the item and packaging.

Examples:

• A 50kg bag of rice bought at ₦70,000 can fetch ₦78,000–₦82,000 when sold in small quantities.
  
• 25 liters of palm oil bought at ₦50,000 can bring in ₦58,000–₦60,000 when sold in bottles.
  

With ₦500k worth of stock, you can generate ₦600k – ₦650k revenue per cycle (monthly or bi-monthly). That means an average profit of ₦100k – ₦150k per cycle.

Why This Business Works in Nigeria:

• Food is a daily need, not seasonal.
  
• Inflation increases your profit margins.
  
• Easy to expand into wholesale, frozen foods, or distribution

Once your foodstuff retail shop is stable, you can expand into online foodstuff delivery, serving working-class Nigerians who prefer convenience. This is a growing trend that can multiply your profits.

3. Mini Importation Business in Nigeria (Starting with ₦500k)

Mini importation is one of the fastest-growing businesses in Nigeria today. Unlike traditional importation, you don’t need millions, clearing agents, or large warehouses. With as little as ₦100,000 – ₦500,000, you can import goods in small quantities from countries like China, Turkey, or even the U.S., and resell them in Nigeria at 2x to 5x profit margins.

Nigerians love affordable, trendy, and unique items — especially in categories like fashion, gadgets, household items, and beauty products. Mini importation allows you to tap into this demand without heavy infrastructure.

Requirements to Get Started

• A smartphone or laptop for sourcing and marketing.
  
• Internet connection for communication and promotion.
  
• Capital for goods purchase (₦300k – ₦400k).
  
• Shipping & clearing budget (₦50k – ₦100k depending on size).
  
• Marketing budget (₦20k – ₦30k for ads, branding, and packaging).
  
• Trustworthy logistics agent to avoid losses.
  

Startup Cost Breakdown (₦500,000 Budget)

• Product sourcing & purchase: ₦350,000
  
• Shipping & clearing (air/sea freight): ₦80,000
  
• Branding/Packaging: ₦20,000
  
• Online ads (Instagram, Facebook, TikTok): ₦30,000
  
• Miscellaneous: ₦20,000
  

Total: ₦500,000

How to Start a Mini Importation Business in Nigeria

1. Identify Profitable Products

Before spending a dime, research what’s in high demand. Some profitable categories include:

• Fashion (shoes, bags, wristwatches, sunglasses).
  
• Mobile accessories (earpods, chargers, power banks, smartwatches).
  
• Beauty and skincare products.
  
• Household items (blenders, rechargeable fans, organizers).
  
• Kids’ items (toys, clothing, school bags).
  

Use Google Trends, Jumia, Konga, or TikTok trends to spot products Nigerians are actively buying.

2. Choose a Reliable Supplier

• Use platforms like 1688.com, Alibaba, AliExpress, or Turkey wholesalers.
  
• For China-based sourcing, you may need an agent to help with payment and shipping.
  
• Always check reviews, product ratings, and supplier reputation to avoid scams.
  

3. Arrange Shipping

• Small packages can be shipped via air freight (5–10 days).
  
• Bulkier items may go via sea freight (4–6 weeks) but at a lower cost.
  
• Use trusted logistics companies that specialize in Nigeria imports (e.g., Skyjet, DHL for express, or local clearing agents for bulk).
  

4. Sell Your Products

• Offline: Open a small shop or supply boutiques, salons, or supermarkets.
  
• Online: Create an Instagram page, TikTok shop, or sell on Jumia/Konga.
  
• Direct Marketing: Use WhatsApp status, groups, and referrals Nigerians buy heavily through trust networks.
  

Profit Potential

The profit in mini importation depends on the product choice, but margins are usually 50% – 200%.

Example:

• A smartwatch bought at ₦6,000 on 1688.com can sell in Nigeria for ₦15,000 – ₦20,000.
  
• A designer handbag bought at ₦8,000 in Turkey can retail for ₦18,000 – ₦25,000.
  
• A set of beauty products worth ₦50,000 can resell for ₦120,000.
  

With ₦500k investment, you can realistically expect ₦250k – ₦500k profit per cycle (monthly or bi-monthly). Some smart importers scale this into a ₦3m – ₦6m yearly business.

Why This Business Works in Nigeria:

• Nigerians love foreign products, especially when they are trendy and affordable.
  
• The weak naira makes local prices higher, but savvy importers still profit.
  
• You can run it part-time while in school, working, or managing another hustle.
  
• Easy to scale: start small, reinvest profits, and grow into wholesale or branded stores. 

Tip: Start by picking one niche (e.g., fashion accessories), test the market with ₦100k – ₦200k orders, and scale up gradually. Avoid importing too many varieties at once — focus on products that sell fast.

4. Poultry Farming in Nigeria

Poultry farming (rearing chickens for meat or eggs) is one of the most profitable agribusinesses in Nigeria because poultry products are consumed daily across all classes of society. From festive seasons when chicken is in high demand, to bakeries and food vendors who buy eggs in bulk, poultry farming provides a steady market and continuous cash flow.

With Nigeria’s growing population and dependence on imported frozen chicken (which the government occasionally bans), local poultry farms are in a strategic position to profit. Even with as little as ₦500,000, a beginner can start small, scale gradually, and build a sustainable poultry business.

Requirements to Start Poultry Farming

• Space/land or rented area.
  
• Poultry pen and equipment (feeders, drinkers, heat source, lighting).
  
• Day-old chicks (broilers or layers).
  
• Quality feeds.
  
• Vaccines and medications.
  
• Farm attendant (if not running it alone).

Startup Cost Breakdown (₦500,000 Budget for 200 Broilers)

• Rent for land/space (1 year): ₦80,000 – ₦100,000
  
• Construction of poultry pen: ₦100,000 – ₦120,000
  
• Day-old chicks (200 @ ₦800 each): ₦160,000
  
• Feeding (6–8 weeks): ₦90,000 – ₦100,000
  
• Vaccination & medications: ₦20,000 – ₦30,000
  
• Miscellaneous (equipment, labor, water, electricity): ₦30,000 – ₦40,000
  

 Total: ≈ ₦500,000

How to Start Poultry Farming in Nigeria

1. Decide Your Focus

You can choose either:

• Broilers → For meat production (ready for sale in 6–8 weeks).
  
• Layers → For egg production (start laying from 5–6 months and can lay for 1–2 years).
  
• Dual-purpose → Combine both for a mixed income stream.
  

For beginners with ₦500k, broilers are often safer because they mature faster and give quick returns, while layers take longer but provide steady long-term income.

2. Get Land or Space

You don’t need to buy land immediately. You can start with:

• A rented plot or backyard space (₦50k–₦100k yearly in semi-urban areas).
  
• A properly ventilated poultry house with room for future expansion.
  

3. Construct a Poultry Pen

A basic pen must:

• Be well-ventilated with wire mesh.
  
• Have feeders and drinkers.
  
• Provide spacing (about 1 square foot per bird).
  
• Be secure from predators and theft.
  

4. Buy Day-Old Chicks (DOC)

You can buy quality chicks from reputable hatcheries like Obasanjo Farms, Chi Farms, Zartech, or Amo Farms. Always check for vaccination history and quality assurance.

5. Feed & Vaccinate

Feeding takes up to 70% of the cost in poultry farming. You’ll need starter, grower, and finisher feeds for broilers, or layer mash for egg producers.
Vaccination is non-negotiable to prevent diseases like Newcastle and Gumboro.

6. Market Your Products Early

Don’t wait till harvest. Start building relationships with:

• Restaurants, eateries, and hotels.
  
• Frozen food sellers and market women.
  
• Families in your area (direct sales).
  

Profit Potential (For Broilers Example)

• After 6–8 weeks, 200 broilers weigh 2.5kg+ each.
  
• Market price per broiler: ₦6,000 – ₦7,500 (depending on season).
  
• Revenue: 200 × ₦6,500 (average) = ₦1,300,000.
  
• Less cost of production (₦500,000).
  

 Estimated Profit: ≈ ₦800,000 in 2 months.

If you repeat this cycle 4–5 times a year, profits can cross ₦3m–₦4m annually, with potential to expand into layers for long-term egg income.

Why Poultry Farming Works in Nigeria

• Chicken and eggs are everyday food staples.
  
• Fast turnover for broilers (6–8 weeks).
  
• Egg production provides long-term consistent income.
  
• High demand across both rural and urban markets.
  

Tip for Beginners: Start small with 100–200 birds, master the process, and reinvest profits into scaling. With good management, poultry farming can grow from a ₦500k side hustle into a multi-million-naira agribusiness.

5. Okirika (Thrift Clothing) Business in Nigeria

Okirika (popularly called “bend down select” or “okrika”) refers to imported second-hand clothes, shoes, and bags that come in bales from countries like the UK, US, Canada, and China.

Why it works in Nigeria:

• Many Nigerians prefer quality thrift clothes because they are cheaper than brand-new wear but often last longer than low-quality new ones.
  
• The fashion-conscious youth market, especially students and young professionals, love “first-grade okirika” (neat, trendy pieces).
  
• Okirika caters to every income level — from those buying ₦200 shirts in local markets to those spending ₦5,000 on vintage jackets.
  

This means the business has a ready market, fast turnover, and consistent demand all year round.

Requirements to Start Okirika Business in Nigeria

With ₦500,000, you can realistically set up a solid thrift clothing business. Here’s what you’ll need:

1. Capital Breakdown
   
   • First-grade bale (Ladies tops, children’s wear, jeans, or mixed wear): ₦120k – ₦250k each (depending on type and supplier).
     
   • Stall/shop rent in a busy market: ₦100k – ₦150k per year (outside Lagos/Abuja; within those cities, could go higher).
     
   • Sorting, washing, ironing, packaging: ₦20k – ₦30k.
     
   • Marketing/branding (flyers, social media ads, mannequin, ring light, photography): ₦30k – ₦50k.
     
   • Miscellaneous (transportation, sewing for repairs, delivery): ₦20k – ₦30k.

Tip: With ₦500k, you can buy 2–3 bales, secure a small stall, and still have  money left for branding and logistics.

Estimated Profit Potential

• A bale of ladies’ tops (₦200k) may contain about 300 pieces.
  
  • If you sell 250 pieces at an average of ₦1,500 each, that’s ₦375,000.
    
  • Subtract costs (rent, logistics, etc.), you could clear ₦120k+ profit from just one bale.
    
• For children’s wear (₦150k bale with 400 pieces):
  
  • Selling 350 pieces at ₦800 each = ₦280k.
    
  • Profit margin = ₦100k – ₦120k.
    
• The more bales you roll out per month, the higher the turnover. Serious okirika sellers make ₦200k – ₦400k profit monthly when consistent.
  

How to Start an Okirika Business

1. Decide Your Niche

Don’t just buy anything. Focus on a profitable niche like:

• Children’s clothes (high demand, sells fast).
  
• Ladies’ wear (tops, jeans, gowns, handbags).
  
• Men’s corporate shirts, suits, and shoes.
  
• Mixed bale (variety: tops, trousers, jackets).
  

Pick what suits your target customers and location.

2. Choose Location / Sales Channel

You can sell through:

• Physical market stall (big markets like Yaba, Onitsha, Aba, Balogun, Wuse).
  
• Mobile sales (selling in hostels, schools, offices, churches).
  
• Online platforms → Instagram, Facebook, WhatsApp, TikTok (very effective for vintage/thrift).
  

Some sellers combine offline and online for maximum reach.

3. Source for Okirika Bales

Buy from major wholesalers/importers in Aba, Lagos (Oshodi, Yaba, Balogun), or Cotonou (if you can handle cross-border trade).

A bale (50–100kg) may contain 200–400 pieces depending on the category. Quality differs:

• First grade (cream) → Best quality, sells higher.
  
• Second grade → Mixed quality, cheaper.
  

4. Sorting & Washing

When a bale arrives, you must:

• Sort into categories (best items, medium, reject).
  
• Wash/iron to make them attractive.
  
• Price them according to grade.
  

5. Marketing & Branding

• Use “rush hour” sales strategy: announce new bale arrival so customers rush for first picks.
  
• Create an online thrift brand with clear pictures, catchy captions, and affordable delivery.
  
• Offer bundle discounts (e.g., 3 tops for ₦5,000).
  

Conclusion

Starting a business in Nigeria with ₦500,000 may look daunting at first, especially with the realities of inflation, competition, and limited infrastructure. But as we’ve explored, there are practical, profitable, and realistic businesses you can successfully launch with this budget — from POS agent banking, foodstuff supply, mini importation, poultry farming, to okirika (thrift clothing) sales.

The key is not just having the capital, but knowing where to invest, how to manage costs, and how to market your products or services effectively. With determination, proper planning, and consistency, ₦500,000 can grow into a business that provides financial stability and even expand into something much bigger.

Remember: there’s no “perfect” business. The right choice depends on your passion, location, and willingness to put in the work. Pick one niche, start small, reinvest your profits, and watch your business grow.

If you are committed, resilient, and strategic, these businesses can transform ₦500,000 into a sustainable income stream and set you on the path to financial independence in Nigeria’s challenging but opportunity-filled economy.