The Basics Of How To Start A Food Business In Nigeria

Food Business In Nigeria

In this article, there are some topics to be discussed which include how to start a food business in Nigeria.

To start a food business, you must know what kind of food people want, putting your environment into consideration. You also have to consider the kind of food that can be kept for a long time so as not to lose your investment.

Food is a very important part of human life and survival. It involves the buying and selling of food products, either in homes or in the market. Moreover, we humans consume food products every day to survive, which makes the food business one of the most profitable businesses in Nigeria and worldwide.

You must know that this business is one of the easiest businesses to start, either by selling cooked food or raw food products or buying from other states to sell on a larger scale to other food vendors. It can be started with little capital or on a large scale.

Also, food products can be easily bought from various marketplaces, it can be bought from any trader, and it can be bought in any desired quantity.

Additionally, when going into packaging and branding, the only process to go through is getting approval from the food security agencies, and once done in the right way, it’s much easier.

What Are The Types Of Food Business In Nigeria?

There are different types of food businesses that you can start in Nigeria. Below are some of them:

1. Foodstuff Business: The foodstuff business involves the business of selling raw food items like spices, ingredients, semo, tomatoes, vegetables, fruits, etc.

2. Food Exportation Business: This is the sale of food and agricultural products to other countries. Moreover, countries like Canada, the United Kingdom (UK), and Germany are the countries that demand agricultural produce from Nigeria and other African countries.

3. Food Processing Business: Food processing business is another common food business in Nigeria that involves the transformation of agricultural products into edible food. Some examples are preparing fruit juice, baking bread, cheese, etc.

4. Frozen Food Business: Frozen food is a highly lucrative food business in Nigeria due to the demand for convenience foods. However, the frozen food business deals with the sale of frozen chickens, gizzards, fish, vegetables, turkeys, and frozen meat for consumption.

The frozen food business involves the storing and preserving of certain food items mentioned above in cooling temperatures to commercialize them.

5. Food Truck Business: The food truck business is a mobile food vending business that involves the use of trucks to market an already prepared meal. They mainly operate in markets, streets, or business environments.

6. Restaurant Business: Restaurants are the most popular food business idea in Nigeria that is thriving day by day. Undoubtedly, the restaurant business is the most profitable among the types of food businesses in Nigeria. Though it requires huge capital, but establishing it is immensely rewarding.

Meanwhile, a restaurant business is a food business that involves setting up a place for preparing and serving food to customers based on their orders.

7. Food Storage Business: The food storage model is very simple. Is just all about storing certain foods when they are mostly in demand, and thereby selling them when they seem scarce in society. Certainly, their value will be high at that moment.

Examples of food storage business are yam storage, ginger storage, and palm oil storage business.

Which Food Business Is Most Profitable In Nigeria?

The most profitable food business in Nigeria is the frozen food and restaurant business. This is because they have help in satisfying the demand of people. They are mostly great options for busy people.

What Are The Fast-Selling Food Items In Nigeria?

The fast-selling food items in Nigeria are:

1. Flour/wheat
2. Palm oil
3. Vegetable oil
4. Garri
5. Rice
6. Spaghetti
7. Beans
8. Yam
9. Crayfish
10. Tomatoes
11. Milk
12. Spices
13. Potatoes
14. Semo
15. Indomie
16. Macrony
17. Plantain
18. Onions
19. Quaker oats
20. Cocoayam

What Are The Challenges Of Food Business In Nigeria?

The food industry in Nigeria faced some challenges like:

1. High cost of foodstuffs
2. Food security issues
3. High food wastage
4. The food industry faces the issue of rising supply chain costs
5. Poor customer service (which is very high these days)
6. Competition
7. Insufficient start-up capital

Is Food Business Profitable In Nigeria?

The food business is very profitable but it depends on many factors such as market demand, management, and location. The food business is known for its solid profit margins. At the very least, the average profit margin for a food business is between 10% to 15%.

How Much Do I Need To Start A Food Business In Nigeria?

The food business is a profitable business to operate as an individual. In this business, the average cost of operating it should be around ₦500,000 to ₦1 million depending on how large your business is. Regardless of this, it may as well require lesser capital, it all depends on the type and business location.

Which Body Is Responsible For Setting Food Standards And Regulations In Nigeria?

NAFDAC known as the National Agency for Food and Drug Administration and Control is a body under the Federal Ministry of Health that is responsible for setting food standards and regulations in Nigeria.

How Can I Start A Food Business In Nigeria?

Below are some of the things required before you start a food business in Nigeria:

1. Develop A Good Business Plan: All successful businesses out there started with a business plan and the food business in Nigeria shouldn’t be exempted as this is the first factor you should consider as a business owner.

With the above in mind, writing a business plan and sticking to its purpose is a strategy that will help you avoid any form of failure. However, this requires you to conduct thorough research, and then with a focus on the food business in Nigeria, you draft a feasibility report.

2. Get Your Capital Available For Your Food Business: To start a food business in Nigeria you will need an average capital of ₦500,000 to ₦1 million. It requires a sufficient amount of capital to establish your food business to a standard. Helpfully, you can generate funds for your business through personal savings or loans from the government or microfinance banks.

3. Get An Appropriate Location: Whether you are starting a restaurant, frozen foods, foodstuffs, or thereabout. A good location plays a vital role in the success of your food business. Above all, you can start your food business in market centers, along busy roads, schools, parks, and bus stations.

4. Make Purchase The Needed Materials Or Equipment: The type of food business you are starting will now determine what should be made available. But all the same, purchase the needed equipment and tools. If it is foodstuff, you find a reliable supplier for it.

After carefully putting the above in place your food business is now ready to serve humanity. However, you can now decide whether to hire workers or not. But if you intend to hire workers, they should understand the concept of the business and meet the criteria and your expectations as well.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
Share this:

Leave a Reply

Your email address will not be published. Required fields are marked *