The Basics Of How To Start A Foodstuff Business In Nigeria

Foodstuff Business In Nigeria

The foodstuff business is one of the most lucrative businesses you can choose to start in Nigeria today. Other than the oil and gas industry, the agricultural industry is one of the biggest and most popular industries contributing to the Nigerian economy. Hence, leading to the profitability of the foodstuff business.

Also, the fact that food itself is a necessity, something humans need to survive or can’t do without, makes the foodstuff business something you are likely to benefit from if you decide to venture into it.

Foodstuff business basically involves selling foodstuff in wholesale or retail. You simply purchase food items like garlic, beans, yam, rice, tomatoes, crayfish, corn, millet, etc from a distributor and sell to customers in wholesale, or buy in wholesale from wholesalers and sell to customers in retail.

Usually, people with high capital tend to start as wholesalers while the ones with low capital start as retailers. But whichever one you need to start with, just know that the large population of Nigeria and the need for people to consume food every day makes the foodstuff business a profitable one in the country.

This is why in this article, we’ve provided a detailed guide on how you can start your own foodstuff business in Nigeria either as a wholesaler selling to retailers or as a retailer selling to customers.

Can I Start Foodstuff Business With 200k?

This is one of the most commonly asked questions by people who want to start a foodstuff business in Nigeria but do not have enough capital. The answer is yes. You can start a foodstuff business with 200k.

Here’s the deal. There are three types of foodstuff business you can do in Nigeria. The first one involves planting cash crops and harvesting them to be sold as foodstuffs to wholesalers or retailers or manufacturing foodstuffs and selling them directly.

You can start this type of foodstuff business with 200k provided you intend to do it on a small scale and you have land already for farming. What you simply have to do is buy in small quantities the seeds of the crops you want to sell as foodstuff and sell them after harvest.

The second type of foodstuff business involves buying directly from farmers or manufacturers wholesale and selling to retailers who would then sell to their customers.

As a result of the quantity of foodstuff you would need to be able to sell as a wholesaler, you might require more than 200k to start and successfully run this type of foodstuff business. If you find yourself in this situation, you can go the extra mile by taking a loan to add to your 200k or seeking financial help from family and friends.

The third and last type of foodstuff business requires buying from wholesalers and selling directly to people. Since this would require you to purchase foodstuff in small or average quantities before reselling, 200k can be sufficient for the business.

In all, the possibility of starting and successfully running a foodstuff business in Nigeria with 200k depends on the scale on which you intend to run the business. For someone who wants to run a foodstuff business on a small scale, 200k might be enough. But for someone who intends to do the same on a big scale, 200k might not be enough.

What Are The Types Of Foodstuff Business?

Other than the foodstuff business that requires one to plant, harvest, and sell their produce, there are two major types of foodstuff business namely retail foodstuff business and wholesale foodstuff business.

1. The wholesale foodstuff business involves buying directly from farmers or manufacturers and selling to retailers. Usually, and as mentioned already, it requires a high capital for one to start it largely because most of the foodstuff or food items that will be needed will have to be purchased in high quantity. Since everything will be done on a large scale, provisions will also have to be made for vehicles that will transport or supply them to retailers, manpower to load and offload the foodstuffs, and personnel to handle the flow of money, among others.

Also, it is worthy of note that as a wholesale foodstuff business person, there are other people you can sell to other than retailers. You can sell foodstuffs to catering companies who handle the cooking of various events or occasions or even restaurants and eateries that are known to be in the business of selling food.

2. Retail foodstuff business on the other hand involves buying from wholesalers and selling to people. It usually does not require a huge capital since the food items or foodstuff needed will be purchased in medium or low quantities. While the retail foodstuff business might not be as profitable as the wholesale foodstuff business, it is at least ideal for those who want to start on a medium or small scale.

As a food retail foodstuff businessman or businesswoman, other than selling foodstuff to the average Nigerian who cooks at home, your customer base can also include local food vendors, roadside maize sellers, roadside groundnut sellers, etc.

Is It Good To Start A Foodstuff Business In Nigeria?

Yes, it is. Unlike other business niches where the demand for products or items is sometimes high and sometimes low, in the foodstuff business, the demand is always high. This is because everyone consumes food every day. That is why the agriculture industry is one of the biggest industries in Nigeria alongside the oil and gas industry.

While the standard of living in Nigeria might not be high compared to most other countries, it is still good to start a foodstuff business in the country. It doesn’t matter how hard the struggle to get food is or how bad the economy of the country is, people still eat two or three square meals every day. Add that to the fact that Nigeria is the most populated country in Africa with over 200 million people, you would see that the foodstuff business is a very good one you can start in Nigeria.

Is Foodstuff Business Profitable In Nigeria?

As mentioned already, the foodstuff business is profitable in Nigeria. Think about the number of people in the country, the number of times they eat in a day, and the quantity of food they eat in a day. This goes to show the profit potential of the business.

Other than the high demand for food, the foodstuff business in Nigeria is also considered profitable because it is long-lasting. People have been eating food years before, they eat food now, and they will keep eating food in the future. So provided you make a profit as a foodstuff business owner today, you are likely to make a profit tomorrow, the day after tomorrow, and continuously.

While it has been established that the foodstuff business in Nigeria is profitable, it is worth noting that your profit will depend largely on your business scale and the amount of capital you invest into the business. For instance, the profit of a wholesale foodstuff business owner who operates on a large scale will be way more than that of a retail foodstuff business owner who is operating on a small or medium scale.

How Much Does It Cost To Start A Foodstuff Business In Nigeria?

The cost of starting a foodstuff business in Nigeria varies according to the scale of the business. For a small-scale foodstuff business, you can start with an amount between 100k to 300k. For a medium-scale foodstuff business, you can start with 500k and above. But for a foodstuff business on a large scale, you would need at least a million naira.

How Do I Start A Foodstuff Business In Nigeria?

There are various steps you can follow if you wish to start a foodstuff business in Nigeria. These steps include:

1. Do your research: You shouldn’t just wake up one day and start a foodstuff business. Do your research first. What set of foodstuff or food items do you want to sell? Which set of farmers or wholesalers do you want to get them from? Who do you want to sell them to? All these are questions you should be able to ask and provide answers for while doing research.

You can also research seasons and decide the type of food items that will be in high demand and the ones that will be in low demand. This would help you make the right decisions on the type of foodstuff to sell at a given season.

Also, do well to meet other foodstuff sellers to know about the pricing of different foodstuffs. This should help you decide on the pricing for your own foodstuff business.

2. Get the needed capital: After conducting your research, the next thing is to get capital. The foodstuff business is all about buying and selling. You would have to buy food items and sell them for profit. However, the need for capital is very important.

As mentioned already, the capital you would need for a foodstuff business varies according to the scale on which you want to operate the business. While a small or medium-scale foodstuff business will require a low capital, a large-scale foodstuff business will require a high capital.

3. Rent a place to store your foodstuff: For a wholesale foodstuff business, you might have to rent a warehouse where you will store food items before supplying or selling to retailers, and for a retail foodstuff business, you’ll need to rent a store for the same purpose.

Other than serving as a storage space, a store can also help protect foodstuff against spoilage that might occur as a result of too much sunshine or rain. Also, when renting a place to store your foodstuff, ensure it is very spacious and in a good location.

4. Buy foodstuff and start selling: Once you’ve conducted your research and have gotten the needed capital as well as a place to store the foodstuff, you can now start buying foodstuff and selling it for profit.

Examples of foodstuff you can buy and sell for profit include potatoes, Irish potatoes, eggs, cocoa yams, yams, wheat, semo, garri, beans, rice, vegetable oil, palm oil, corn, guinea corn, etc.

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.
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