Franchise opportunities in Nigeria
Popular franchise directions in Nigeria
Attractiveness of Nigeria for the development of franchise business
The Federal Republic of Nigeria is rich on petroleum and petroleum products, cocoa, and rubber. Although the economy of the country is so far developing, the poor economic situation in Nigeria has been recently improved due to some useful reforms implemented by the government.
The most successful franchise businesses in Nigeria are transportation, movie, logistics, coffee, petrol stations, medical health care, educational services, restaurant and beauty. All in all the franchise market in the country brings annual revenue of one hundred billion dollars.
There are many foreign, mostly US, South African and European franchises, though the demand for international brands is still growing. To facilitate the development and promotion of franchise businesses in Nigeria a special organization called National Office for Technology Acquisition and Promotion was established. The purpose of it is to provide trainings for franchise stakeholders.
High population in the country creates two advantages for establishing a franchise, large consumer market and much workforce. Therefore, the most favorable cities for the business are Lagos (9 mln), Kano (3.63 mln), Ibadan (3.57 mln), Kaduna (1.58 mln), Port Harcourt (1.15 mln), Benin City (1.12 mln), Maiduguri (1.11 mln), Zaria (975,153), Aba (897,560), and Abuja (776,298). Taking into consideration that the biggest cities also host currently growing middle and upper consumer class, and the income of Nigerians is tending to increase, there are good opportunities for luxury foreign brands to enter the market.
The average franchise costs depend on the type and size of the business but on the average they are between $50,000 and $200,000 to establish.
There are high investment business opportunities, as well as cheap franchises in Nigeria presented for review, the choice is yours.
Indicators of Nigeria Business Market
Education Index (2013): 0.425
Official languages: English
Per capita GDP (PPP): $6,351
Quality-of-life index (0-10): 4.74
Population: 185.990 mln
Total GDP (PPP): $1.166 trillion
Ease of Doing Business Ranking, Rank: 145
Human Development Index (HDI): 0.514