One of the major decisions to make when starting a business is the location. The right choice of location or point of sale has a great impact on the success of businesses. Nigeria, being the most populous African country and the seventh most populous country in the world, with over two hundred million people, is a lucrative place for Businesses – locally and internationally.
Nigeria is not only strong in terms of population, but also has a large economy – the largest in Africa, 26th largest in the world by nominal GDP, and 25th largest in the world by PPP. Nigeria is an emerging market, according to World Bank. There are about 82 cities in Nigeria including Lagos, Kano, Aba, Abuja, Enugu, Kaduna, Zaria, Anambra, Ibadan, etc.
What's in this guide?
Ranking factors
1. GDP and per capita income
If you are looking to start a business in Nigeria, we have selected a list of the top 10 cities in Nigeria to do business, considering mostly the GDP and per capita income rankings. GDP – Gross Domestic Product, in a general sense is used to determine how well or poor the economy is doing. A booming GDP is healthy for growing businesses. Other factors considered are:
2. Population Density
A Business’s market potential in a location increases to the degree of the increase in the population density in that location. The higher the population, the more likely you will get consumers that would be interested in the type of your business. Also, a business is more likely to easily hire the best cohort of employees.
3. The level of security
The security of the city where a business is located contributes a whole lot to the success of that business. Most businesses in insecure cities usually have to close down because of low patronage and losses due to damages caused during the violence.
4. Public Infrastructural development
The presence of public infrastructures like a good road network, telecommunications, health system, etc makes doing business in a location easy and smooth. Public infrastructures reduce the cost and effort of running a business.
5. Business licensing and taxing laws
Business licensing and taxing are necessary obligations of all businesses. However, the requirements and procedures for licensing, and taxing laws should not be cumbersome or unbearable for businesses.
Top 10 cities in Nigeria to do business
Here are the top 10 cities in Nigeria to do business:
65. Ibadan
Ibadan city is located in Oyo state (GDP of $16.12 billion and per capita income of $2,665), and it is the capital city and most populous city in the state.
The current population of this city is estimated to be 3,649,000 people. Ibadan city houses several industries like Agro allied, Textile, Food processing, etc.
