Franchise opportunities 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, 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 favourable cities for the business are Lagos, Abuja,  Kano, Ibadan, Port Harcourt. 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 business but on the average they are  between $50,000 and $200,000 to establish.