Whether as an inheritance or as money gotten for work done, what to do with 100k in Nigeria can sometimes be a daunting challenge.
Assuming that your intention is not to blow the money away. 100k has set some people up for life, with them growing by reinvesting all profits they make in the business back into the business.
You may not have the best business idea, but we do, and this article hopes to try to guide you to make sure that you do the best with your money, or at least the next best thing.
Just do something productive and learn from the experience. Business is a reiterative process. You learn from each new cycle, so get into it.
Table of contents
Introduction
The Guardian has a story about two legends and how they started with virtually the same amount of money and how differently they have both ended up. The story is about Jim Ovia and Shina Peters.
The article is quoted as saying “In 1990, Shina Peters built a house with N20 million naira; the same year Jim Ovia started Zenith Bank with the same amount.
Today, you and I don’t have a room in Shina’s house but I have an account in Jim’s bank and probably you do too.
Shina’s house was built in Iju Lagos and remains there to date. Jim’s bank started in a corner and now has over 500 branches in Nigeria, and many international branches. Millions upon millions of transacting business in Jim’s bank daily.
Shina’s house is becoming dilapidated.” This was not quoted to indicate that any of them did something bad, their choices were rational and that is alright.
The point is that you can make better choices with the little in your hand, and that is something you should never forget as you make this journey.
Is 100k Naira A Lot Of Money?
While it is evident to anyone in Nigeria how much value the naira has lost, a lot can still be done with the value the naira has left.
In 2010, a 100k naira was worth $666. In 2015, 100k naira was worth $546. Now in 2021, 100k naira is worth $257.89.
This proves that today is always a good day to invest what you have so that it can multiply.
What Is A Good Business Idea?
Good business ideas are okay, but you only move when you see an opportunity. In the words of business authors Edward Hess and Charles Goetz, can you tell the difference between a good business idea and a good business opportunity?
Good ideas are exciting, but good opportunities are scalable. They’re implementable plans with a customer base that you can access and build on.
Good business ideas should solve problems, be scalable, make good profit, be difficult to copy, and not just be a mental exercise – it should convince others of its potential.
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What To Do With 100k In Nigeria – 11 Best Business Ideas
#1 – A salon
This is one of the best business ideas that you can have right now. The business idea is independent of the government (you know how it is with government things) and does not require too much to start.
The fear of robots taking over the jobs of humans does not readily affect the running of a salon. Robots can be useful, but they will find it extremely difficult to replace the humans who take care of the hair of clients and provide that natural human touch, much less in a place like Nigeria.
To start a salon, you may need numerous permits, but since you are starting small, some things are most important to you.
Invest your 100k in getting shop space, decorations(as little as necessary), the tools (combs, scissors, hair cream, gels), etc before doing any other thing.
The market is large and has very good potential as Nigeria’s population continues to increase. With an investment in this, your 100k will not go to waste.
If you cannot do it, get someone to run it for you.
#2 – A clothing line
Nigeria is the most populous country in Africa with one of the largest populations of youth in the world. This number far exceeds 33 million and continues to rise.
As trends continue to slide along, the number of fashion-conscious youth will continue to rise, and that means that more money will be spent on fashion.
An investment in this sector, like many others, is positioning themselves, will go a long way to set you up for future rewards.
Nigeria’s fashion market right now is worth $ 4.7 billion and is expected to triple as the years strut along. Nigerians are fashion-conscious. This has, in no small measure, affected the fashion industry in the country.
To satisfy local and international demands, Nigerian fashion designers have, over the years, stepped up their game in terms of creativity and output. And they now rub shoulders with acclaimed designers from other climes at international fashion exhibitions.
This is an opportunity that should not be taken lightly; and as usual, start small.
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#3 – Food business
A recent Stears Business report for 2021 provides insight into why food is important in Nigeria and why you should invest your 100k naira in the food business. “…Data from the National Bureau of Statistics show there is a measure of truth to the claim.
During the first half of 2019, Nigeria spent ₦334.3 billion importing food. The money spent was two times more than our export earnings from agriculture in the same period.
Although export earnings have seen continuous growth, food importation has also recorded a rising trend.
The growth in food imports is primarily because crop production increases are not meeting up with the fast-rising population…” they went further to state that “…data shows that levels of production are not meeting the country’s consumption requirement.
Interestingly, some of the local rice produced is also exported. This happens because it is more lucrative to sell paddy i.e rice still in its husk at the international market than to local producers.
According to Charles Isidi, head of growth at Thrive Agric., the average price for paddy in Nigeria as of January 2020 was $0.30, and the average global price at the time was $0.77. “The export price is almost triple the price offered in the local markets.
This is enough motivation for most farmers to export their products rather than sell them in the local market.”
This proves that when money is invested over time in agriculture and the food business, the profit potential is very high.
#4 – Your education
One of the best ways to invest 100k naira and have very good prospects to get up to 5x your money is to invest in yourself. The skills you have, education, etc.
If you worked to get the 100k naira, then the way you work can be amplified to prepare you to earn multiple times that amount of money. This way, it does not just sit around waiting to build up, but it goes into you, your learning.
Something that no one can take away from you. So go for that course or that program that you have always wanted to do.
After doing proper research for the courses that prepare you to earn more, go for that financial literacy course, self-improvement course, just get better by investing that 100k or some part of it on you and educating yourself.
#5 – In other people’s businesses
This is now a thing. There are a great number of programs that offer people the chance to invest their money into businesses that promise to offer a percentage after several months.
While this is true, you just need to “shine your eyes.” Many have come with similar schemes and many have gone, but the legit ones remain.
“Investy”, which is an investment feature by the startup PiggyVest, is one that has made saving and investing easy for many. Investify allows users to invest in primary and secondary opportunities.
These opportunities have been vetted and certified to be low and medium-risk. Investments under PiggyVest are insured.
#6 – Dry Cleaning
This is not so difficult to start and implement. With the rise in Nigeria’s population looming, there will certainly be a need for dry cleaners.
This desire to stay clean, but the inherent inability to attain expected levels of cleanliness and still have spare time is what will drive people to you when you start this business.
The only thing you need to start this business is space, a small washing machine, some customers, an iron, and branding with good additional services.
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#7 – Become a POS merchant
A Point of sale business is one of those businesses that does not need further introduction. Pending on when Nigeria goes fully digital, people will need POS merchants because banks cannot contain or service the number of customers that need cash for various transactions.
This business is one of scale. The only thing you need is a license to operate, a nice customer meeting spot, constant flow cash, and a customer-friendly approach.
That done, you have yourself a gold mine.
#8 – Charcoal business
There is an apparent growing appetite for charcoal all across Nigeria. The export value is also driving this business. Charcoal is one of the most preferred fuels in the country because gas is costly, kerosene is scarce and the power supply is erratic in Nigeria.
Production of charcoal has increased to about 4 million tonnes a year and is projected to increase. Take a position.
#9 – Sell livestock
Trading in livestock is one business that is sure to continue till the end of time. While many investors try to take up positions, you can as well take yours.
Trading of cows, pigs, goats, etc is still seeing progress and is expected to continue to increase in volume as time progresses.
From trading it in small quantities, you can go on to owning a ranch, haulage, and logistics and perhaps someday owning a large block of the internet lice stock market. Think big.
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#10 – Invest in the stock market
Unlike in America where the rule of 72 applies very perfectly to determine how quickly money can be doubled, it is not so straightforward here. People love money, and they love it more to see the money getting doubled.
Getting a rough estimate of how much time it will take to double the money also helps the average guy to compare investments.
However, mathematical calculations can be complex for common individuals to compute how much time is required for their money to double from a particular investment that promises a certain rate of return.
According to the rule of 72, “To estimate the time it will take to double your money, divide 72 by the expected growth rate, expressed as a percentage.
For example, if you expect to earn 10% per year on a 100k naira investment, it will double to 200k naira in about 7.2 years.
Why did I bring up the rule of 72? The reason is to give perspective to what investing in the Nigerian market can be like for many people. For many, it is just an avenue not to lose their money, while some assume that investing in the Nigerian market is a losing game.
Nigeria’s system is so nonlinear that while you can be making heart-wrenching losses, a single investment can blossom beyond your wildest expectations.
This is partly because of Nigeria’s population and the fact that it is still a developing economy.
This makes it quite the apple juice for those who succeed in conquering the market. Make the right investments and you could be on your merry way to having your investment of 100k lay the daily golden eggs years later.
Invest in stocks you understand and don’t take unhealthy risks.
#11 – Invest in cryptocurrency
Bitcoins and other cryptocurrencies are in the raves now. It has made some multi-millionaires and is still geared to make some more millionaires just by buying and holding and perhaps selling them. Educate yourself first.
Conclusion
There is no end to the nature of businesses you can venture into in Nigeria. The aim as is taught in Harvard Business School and the Lagos Business School is to not lose your money. The best business ideas only require you to start with your 100k.
Stay sharp! Stay jiggy!
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