Hit by the current economic fiasco, running a small-scale production business in Nigeria could revive hope for several individuals. As multinationals are packing their bags and leaving Nigeria, in all of these, a glimpse of hope is cast on the small-scale production business. But what’s the viability of such small-scale production in Nigeria?

Earlier, over 200 million Nigerians relied on either imported products or locally manufactured goods by foreign firms operating in the country. Today’s reality is different, import and port duties have led to the high cost of imported and even goods manufactured locally by foreign firms. This has resulted in less import and multinational exodus but when it seems hopeless, local manufacturing can save the day.

Today we believe in the creativity of Nigerians and are encouraging small-scale production business in Nigeria. This is because we believe that unless something is urgently done, Nigeria may be heading to an unprecedented lack. But how can one get into small-scale production?

How to start a small-scale production business in Nigeria

Unlike several other countries, it is somewhat easier to start a business in Nigeria. Generally, Nigeria doesn’t present many complicated processes, especially in the early stages for local businesses. You can start your production journey small with what you already know and the things you already have and then grow at your own pace. Now that some multinationals are closing, it simply means that competition is reducing for small-scale production businesses in Nigeria by locals. Start your small production business in Nigeria today by taking the following steps.

• Examine your market and think of what to produce: Your production needs to be motivated by an available market. Observe your locality, identify needs, and move to satisfy such needs. With the current reality in Nigeria where firms are folding up or cost is rising, you can find broken supply and then fill it in. Even sometimes unrelated products can serve as alternatives. For instance, kids love drinking soda (soft drinks) however with the cost of living, the price of soda drinks has more than doubled, can you produce and supply Zobo to the same supply chain that once preferred soda drinks?

When it comes to price today, Zobo is about two times more affordable than regular soda drinks. Note that this available market or broken supply doesn’t just apply to soda drinks and Zobo, it applies to several other market situations. Find a market or a broken supply then step in with your product that may serve a fresh need or be an alternative to an existing satisfaction.

• Start small: Thinking about what to produce? While aiming big is important, the aspect of the humble beginning is a core stage in every successful business. When considering starting a small scale production business in Nigeria, you can think of producing things that don’t require huge capital. Things like doughnut production, bread buns, Chinchin, kuli kuli, Kunu, etc. production don’t have to be fancy products. Producing local products like Kunu, tiger nut juice, etc. are all amazing things to try. Even the big global corporations we see today most of them started in the garage or the backyard producing things that were extremely local back in the day.

Take for instance Coca-Cola, Domino, and KFC, these firms were attending to the demands of the local population before they went international. The big names are among the very few that made it to global importance. A lot of small-scale production is going on in other countries. Those may not make it to the international stage but individuals are using such small-scale production to earn a living. Here in Nigeria, we need to package and mass-produce what we already have. Someone has to do it and that someone can be you.

•  Secure your supply: The good thing about production is that you can supply outside your production area. In terms of small-scale production business in Nigeria, depending on what you are producing, you can reach new markets beyond your community, beyond your local government, state, etc. By the time you start producing and become effective in what you do, you may realize that the available market could be bigger than your production capacity. Reach out to likely distributors of your products and engage them. You can create a win-win scenario by distributing cheaper to your supply chain.
• Pay attention to standards and safety: Whatever you produce needs to meet standard requirements. If they are things to be eaten or used on or in the body, safety needs to be put into consideration. You must ensure that your product is tested and approved by relevant authorities like NAFDAC in the case of food and drugs and NIS in the case of other types of production. Paying attention to safety and standards is important for your brand and your customers.
• Register with appropriate authority, Union, and the likes: When it comes to Small Scale Production Business in Nigeria, there are operational approaches to business and production. First, you need to register your production business with the Nigerian CAC and proceed to discover if there’s a Union for your production line.

It is important to comply with such a Union as it will help in the long run as the business operation progresses. Sometimes belonging to the Union of your trade can come with building a common front which may help in tackling common challenges faced by the industry. At other times, Union membership can come with government benefits like support and even tax waiver.

Conclusion

Small-scale production business in Nigeria is the most feasible direction out of the current shortage of manufacturing and mass exodus of foreign manufacturers in Nigeria. Locals need to get involved in production. It is a lucrative venture as well with an available viable market.

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