Starting a business in Nigeria used to sound like one big project that needed millions, but things have changed. If you know what you’re doing and you focus on a business people actually need every day, ₦500,000 can start something solid for you. I always tell people that the main thing is not the amount you start with; it’s how smart you run it and how you position yourself where customers already are. With half a million, you can kick off something clean, simple, and profitable without shouting too much.
Below are businesses you can start with ₦500,000 and grow steadily, even if it’s your first time running something.
1. POS / Agent Banking Business
POS is still one of the fastest ways to start earning immediately. If you position well in a busy area, junction, school, estate, or market, you will make daily returns.
Startup breakdown you can work with:
• POS machine (free from some banks, or 30k–70k if buying)
• Shop or kiosk setup
• Capital for daily transactions
This business works because Nigerians still rely on cash movement every day. Your growth depends on location and customer trust.
2. Mini Supermarket or Provision Store
With ₦500k, you can open a small but solid provision store. Focus on fast-moving items because those ones bring cash flow quickly.
Items to stock:
• Milk, beverages, noodles
• Drinks and water
• Bread, eggs
• Soap, tissue, small toiletries
If you operate in an estate or street with no direct competition, you’ll make daily sales.
3. Phone Accessories Business
People spoil chargers, earphones, screen guards, and cords every week. ₦500,000 gives you a strong opening stock if you buy directly from wholesalers.
Profitable items:
• Chargers
• Earbuds
• Screen guards
• Power banks
• Pouches
• USB cords
You can run it inside a small container or even do part online and part delivery.
4. POS + Airtime/Data + Bill Payment Shop
Instead of only POS, you can combine:
• Airtime vending
• Data reselling
• Cable subscription
• Electricity token
• Betting funding
• Transfers / withdrawals
This combination is what makes small agent shops earn better, because you’re giving people everything in one place.
5. Frozen Food Business
If you can secure a small freezer and stable power (or a small generator), you’re good. Frozen food moves fast because people buy daily.
Things to sell:
• Chicken
• Turkey
• Fish
• Gizzard
• Sausage
You need neat packaging and a location close to residential areas. ₦500k is enough for a freezer and the first stock.
6. Shawarma / Small Grill Spot
Young people love shawarma and grills. If you learn the recipe well and maintain clean packaging, you’ll make quick sales.
Startup cost covers:
• Grill machine
• Shawarma tools
• First food items
• Small corner/shop
This business works very well around campuses, estates, and busy junctions.
7. Laundry & Dry Cleaning
You don’t need to start big. ₦500k covers:
• Washing machine
• Steam iron
• Generator
• Branding
• First rent deposit (if small shop)
People will always need clean clothes, especially office workers.
8. Thrift/Okrika Clothing (Male or Female)
Okrika is one of the cheapest businesses to start with high returns. ₦500k can buy one or two strong bales, depending on the category.
Categories that sell fast:
• Vintage shirts
• Joggers
• Ladies’ gowns
• Children wear
• Hoodies
Sell online + WhatsApp status + Instagram for faster turnover.
9. Small Restaurant / Food Vendor
Even if it’s small, the food business never dies in Nigeria. Focus on takeaway style to reduce cost.
Meals that move fast:
• Jollof
• Fried rice
• Spaghetti
• Beans
• Swallow
Delivery inside estates and offices makes the business grow faster.
10. Hair Salon / Barbing Salon
If you’re skilled or you have someone good, ₦500,000 opens a small salon comfortably.
You’ll need:
• Clippers
• Sterilizer
• Mirror setup
• Small generator
• Chairs
• Basic décor
People cut hair weekly, so cash flow is steady.
11. Small Wholesale Drinks Business
You can buy drinks in wholesale quantities and supply small shops around you.
Items:
• Soft drinks
• Malt
• Water
• Energy drinks
Wholesale business moves faster when you deliver early and keep your prices friendly.
12. Cement/Building Materials Reselling
If you live in an area where new buildings are going up, this business pays well. You can resell:
• Cement
• Blocks
• Sand
• Plumbing materials
₦500k is enough for small reselling and drop-shipping style.
13. Small Fashion Brand (Ready-to-Wear)
If you sew or you have a tailor, start a small ready-to-wear line. Nigeria’s fashion market is big.
Styles:
• Senator
• Kaftan
• Two-piece
• Jumpsuits
• Corporate dresses
Sell mostly online to reduce rent costs.
14. Baking & Pastry Business
Cakes, small chops, doughnuts, and pastries always sell. ₦500k buys equipment and ingredients to start comfortably.
You can target:
• Birthdays
• Offices
• Schools
• Events
• Home orders
15. Water Production (Retail Distribution)
People sell bags of sachet water and make a small margin per bag, but it adds up fast when you supply streets and shops.
You only need:
• Wheelbarrow or small tricycle hire
• Storage space
• Daily pickup from factory
This is one of the easiest businesses to enter.
Conclusion
Starting a good business in Nigeria with ₦500,000 is possible, but you have to focus on something people need every single day. Don’t go into a business because someone else is doing it; choose what you can manage and grow. Nigeria is tough, but if you position yourself in a place where customers already exist, you’ll make steady money. The main thing is to start small, be consistent, and build your customer base gradually.