When it comes to choosing the best state to start a business in Nigeria, it is important to consider what business sector one is venturing into. Each state has businesses that may thrive there more than in other places. Given Nigeria’s diversity, each zone or even state has peculiar needs.

If we also look at Nigeria’s most business-friendly states, we could look at Lagos, Rivers, Ogun and others; however, it goes beyond these states. When considering starting a business in Nigeria, a market survey will be important in determining the best state for your business. For instance, although generally, Lagos is the country’s economic capital, selling some kind of fabrics familiar to Northerners will thrive more in the North.

Now having stated this peculiar scenario that indicates that all states in Nigeria have their unique offers in the business sector, it is also important to note the impacts of saturation. Some states are so filled up with business activities already that it will be very complicated for a start-up in such states to thrive.

We are looking at states’ business friendliness from the angle of the current boom, projected growth, and other aspects.

In terms of the current boom and projected growth, these are the best states to start a business in Nigeria:

1. Lagos: The economic nerve center of Nigeria is never going to take a backstage when business is the question. There are stories of individuals who migrated to Lagos with nothing and made a fortune. Given the strategic position of Lagos as it sits right in front of the Atlantic Ocean, logistics is never a problem and the affordability of imported items in the city creates huge opportunities. It also ensures that both finished goods and raw materials required by industry are readily available. In addition, Lagos is an international entry point and gateway to other West African countries. This naturally creates a huge market in addition to the over 20 million residents.
2. Rivers: Nigeria’s Niger Delta is rich in hydrocarbon. River state seems the most strategically placed state in the South-South. Boasting a standard seaport and busiest airport in the zone, the state has become filled with business activities. With the presence of several multinational oil firms, and other business sectors, individuals aiming to start a business in Nigeria and yet to determine which state to go for could leverage on the series of opportunities available in Rivers to establish their enterprises in the state. Given the state’s natural wealth, taxation is less in Rivers compared to Lagos.
3. Anambra: The South East is arguably Africa’s biggest indigenous manufacturing hub. With several local manufacturing going on in the zone, several big markets emerged. Onitsha in Anambra is not just the biggest single market in Nigeria but also West Africa. Starting a business in Anambra is almost certain to turn a profit. Several individuals who started businesses in the city through the Igbo apprenticeship have grown to be super successful. The state also has logistical advantages as it shares boundaries with several states that source their goods from the state.
4. Kano: The commercial and historic city of Kano continues to be the bedrock of the Northern economy. Having more population than any other Northern state, Kano has emerged to be a huge market. It also serves nearby countries of Niger and Chad.
5. Ogun: Ogun emerged as a critical industrial center as it houses several foreign manufacturing firms in Nigeria. Given its closeness to Lagos, it is easy for finished goods manufactured in Ogun by multinationals to hit the Lagos market. Given such closeness also, access to raw materials and even finished goods required for business is easier in Ogun than in several other states.
6. Abuja: Although Abuja may not exactly be a state, being the country’s capital, it is a melting pot of the movers and shakers of the country. There is high financial flow and opportunities. With a high concentration of successful individuals and the strategic placement of the city in the center of the country, businesses thrive. The city boasts one of the busiest airports, the headquarters of several federal institutions, and several other factors that make business in Abuja profitable.
7. Kaduna: Kaduna is about the second most business-friendly state in the North. From its days as the capital of Northern Nigeria to today, Kaduna hosts more federal military establishments than any other state in Nigeria save maybe for Abuja and Lagos. The presence of these institutions has given the state an edge when it comes to business viability.
8. Abia: Abia’s Aba is a city renowned for its business ingenuity. With several local manufacturing projects going on and the state’s robust plan of implementing a separate power supply for the Aba metropolis, business viability has increased.

Conclusion

Apart from these 8 states listed, several other Nigerian states are performing well business-wise. The states or cities listed are the most viable when it comes to running conventional businesses.

It is also important that if you are considering starting a business in Nigeria, the most important step would be conducting a viability study of the particular business you want to start and discovering the state where such business will be more profitable; however, if you have a limited understanding of the region where your business will be most successful, trying any of the states mentioned will guarantee success if such business man or woman knows his or her game.