5 Most Unprofitable Businesses in Nigeria

Business in Nigeria is like warfare, it can be very challenging. Starting a business in Nigeria is a good idea, but choosing the wrong kind of business may lead to bankruptcy. 

There are many business ideas to choose from, and some used to be very profitable with the promise of big returns. But since things have changed, we need to be careful when deciding which business to begin.

Here are five of the most unprofitable businesses in Nigeria:

Fast-Moving Consumer Goods (FMCG)

You often see cartons of biscuits or sweets labeled FMCG. However, this is one of the least profitable businesses for small business owners in Nigeria. The profit on each carton may not even reach 200 Naira. Only those selling in bulk might see reasonable profits.

Insurance

Nigerians generally do not trust insurance for their cars, properties, or land. Insurance is very difficult to sell in Nigeria and remains largely unprofitable. This is why many insurance companies close down. According to statistics from NAICOM, there are only 67 licensed insurance companies operating in Nigeria.

Motorcycle Business

In the past, the motorcycle business was quite profitable in Nigeria. But with new government regulations and laws, it has become less profitable. In many parts of the country, motorcycles are illegal, especially in urban areas.

Art Gallery

Running an art gallery is not a very smart idea in Nigeria. Lagos might be the only place where such a business could succeed due to its larger audience. But opening an art gallery in less exposed areas is unlikely to give good results.

Boxing and Wrestling Joints

You cannot compare the popularity of boxing and wrestling in Nigeria to that in other countries. Nigerians generally prefer football, making boxing and wrestling an unprofitable business to venture into. These sports have not yet gained strong momentum in the country, though hopefully, this may improve in the future.