What Business Can I Start With 500k in Nigeria (Practical Ideas for 2025)

Imagine your savings finally grew into something substantial, or maybe your UK-based uncle just decided to bless you with N500,000. Amazing right?

What kind of business do you think you would be able to start with that money?

At first glance, N500,000 might not feel like a lot of money to start a business, but believe us when we say it’s enough to kick-start something profitable if you choose wisely. 

And in this article, we’ll explore seven practical business ideas you can start with N500,000, the setup costs, tips, and common mistakes to avoid. Let’s dive in!

Quick Checklist

Before jumping in, we need to take a moment to plan. The difference between money well spent and money wasted often comes down to preparation. So here are a few things to do before you even get started.

1. Validate demand. Don’t assume. Confirm that people actually want what you plan to sell. Ask neighbours, run quick polls in WhatsApp or Facebook groups, or check how similar businesses are doing in your area.

2. Budget your basics. Your ₦500,000 isn’t just for inventory. Set aside funds for a small stall or rent, licenses/registrations, and basic marketing (flyers, social media ads, or word of mouth promotions).

3. Factor in risk and time. Most businesses won’t make big profits in the first three months. Be prepared to reinvest your earnings, remain patient, and continue learning.

7 Best Businesses You Can Start With ₦500,000

Now that you’ve understood what needs to be in place before starting out your venture, let’s dive into the practical ideas you can start with your ₦500,000.

1. Mini-importation / Small Online Retail

I’m sure you know a vendor who shops from Balogun and resells to you. Well, that’s almost how mini-importation works, just on a global scale. If you’ve ever bought a phone case or wig from an Instagram seller who says “preorder; delivery next week,” that’s probably mini-importation in action. They buy affordable goods from sites like 1688, Alibaba, or AliExpress, ship them to Nigeria, and resell them for a higher price.

With ₦500,000, you can do the same. It’s not about running a big store; it’s about moving fast with high-demand items that sell quickly.

How It Works

You can start with fashion accessories or phone gadgets, for example. Order from suppliers on Alibaba, AliExpress, DHgate, or 1688, and ship to Nigeria using reliable companies like GIG Logistics, and many more. Once the goods arrive, promote and sell through social media.

How to Sell and Promote

• Use Instagram, WhatsApp TV ads, Facebook Marketplace, and TikTok to showcase your products.
• Post short, catchy videos like unboxing clips, customer testimonials, product videos, etc.
• Offer same-day delivery within your city to attract impulse buyers.
• Create scarcity with phrases like “Only 5 pieces left!” to drive urgency.

What You Need to Begin

• A reliable supplier (DHgate, 1688, or Alibaba).
• Shipping and clearing budget.
• Social media sales channels (WhatsApp, Instagram, TikTok, etc).
• Promotion budget for ads. 

Startup Cost Breakdown (within ₦500,000)

• Products/Inventory: ₦300,000.
• Shipping & Clearing: ₦100,000.
• Ads & Promotion: ₦60,000.
• Miscellaneous Buffer: ₦40,000

Earning Potential

With smart product choices and consistency, you can make between ₦200,000 – ₦500,000 monthly, or even more once you build trust and get repeat customers.

Pro Tip: Always test before you commit. Run small WhatsApp or Instagram ads to gauge interest. If you get test orders quickly, that product is worth selling

2. Food & Snacks (Small Chops, Pastries, Doughnuts)

If there’s one business Nigerians will always spend on, it’s food. Think about how many people grab meat pies or puff-puff every day, or order small chops for birthdays, weddings, and office events. That demand is steady, and it’s not slowing down.

Start-up costs (within ₦500,000):

• Basic equipment (fryer, oven, utensils): ₦150,000.
• Ingredients & packaging: ₦100,000.
• Location/stall setup or rent: ₦100,000.
• Marketing (flyers, social media promos): ₦50,000

Earning potential: With consistent sales in a good location, you can earn ₦150,000–₦300,000 monthly, more if you get steady bulk orders for events.

Tip: Start small by supplying offices, schools, or your church community. Word-of-mouth spreads fast when your food tastes good.

3. POS Agent / Payment Collection Point

Running POS services in your community is one of those businesses that doesn’t feel far-fetched. You help people withdraw cash, make transfers, pay bills, and earn small commissions every single day.

What you’ll do

Be the go-to spot for payments in your area. Combine it with airtime/data sales or bill payments so there are multiple income lines.

What you need to start:

• A POS terminal.
• Float (cash to run withdrawals and cover transactions)

Startup costs:

• A Moniepoint POS terminal for instance costs ₦21,500 (₦10,000 caution fee + ₦10,000 logistics + ₦1,500 insurance)

Earnings potential: 

With a good location, you can earn between ₦150,000 and ₦600,000 a month, depending on foot traffic, location, and transaction volume.

Tip: You can partner with Moniepoint by opening a business banking account. You can then proceed to order a POS terminal. 

4. Poultry Farming

Nigerians love their proteins, and chicken and eggs always top the list. This steady demand makes poultry farming a proven choice if you’ve got some space and patience.

What You’ll Do

Start small with about 150 broiler chicks. Buy day-old chicks from reputable hatcheries such as Zartech on Afrimash or Agrited Hatchery.

Feed and water are your biggest daily needs. Get quality commercial feeds like TopFeed, Chikun, or Hybrid Feeds. You’ll also need:

• Proper housing (brooder setup).
• A clean water supply.
• Basic vaccination (Marek’s, Newcastle, and Gumboro)

What You Need to Begin

• Day-old chicks.
• Feed and supplements.
• Brooder setup.
• Clean water supply.
• Vaccines and medications (follow hatchery schedule).
• Marketing channels (WhatsApp, Instagram, local buyers)

Startup Cost Breakdown (within ₦500,000)

• Stock (chicks): ₦250,000.
• Feed: ₦100,000.
• Housing setup: ₦60,000.
• Vaccines/medication: ₦50,000.
• Miscellaneous buffer: ₦40,000

How to Sell and Promote

• Sell live or dressed birds to restaurants, local markets, and neighbours.

• Create a WhatsApp and Instagram page for your farm. Here, you can share growth videos, feeding routines, and customer feedback to build trust.
• Partner with food vendors or caterers who buy in bulk.

Earning Potential

A small poultry farm with 200 to 300 birds can generate ₦150,000 - ₦300,000 profit per cycle per harvest if you manage feeding and water conditions properly.

Pro Tip
Never skip vaccination; disease wipeouts are common for beginners. Start lean, learn fast, and reinvest profits to scale. For vaccination schedules, check the FAO Poultry Health Guide or the Nigerian Veterinary Research Institute.

5. Fish Farming

Catfish pepper soup is a national favourite, and that consistent demand makes fish farming another strong agribusiness option.

What You’ll Do

Start with about 150 fingerlings (catfish). Source healthy stock from Afrimash or reliable local hatcheries in your state.

Build or line a small pond (concrete or tarpaulin), feed twice daily, and keep water clean and oxygenated. A setup with 300 - 500 fish can run in a backyard or compact space.

What You Need to Begin

• Catfish fingerlings.
• Feed and supplements.
• Pond setup (concrete or tarpaulin).
• Clean water supply.
• Basic medications.
• Marketing channels (WhatsApp, Instagram, local buyers)

Startup Cost Breakdown (within ₦500,000)

• Stock (fingerlings): ₦250,000.
• Feed: ₦100,000.
• Pond setup: ₦60,000.
• Medication: ₦50,000.
• Miscellaneous buffer: ₦40,000

How to Sell and Promote

• Sell live or smoked catfish to pepper soup joints, hotels, and barbecue spots. 
• Use WhatsApp and Instagram to post pond updates and feeding videos. Customers love seeing clean, healthy fish.
• Build relationships with local food vendors for bulk sales.

Earning Potential

A well-managed catfish setup can earn ₦200,000+ per harvest, depending on feeding and water quality.

Pro Tip
Good water management is everything, as dirty or stagnant water kills profits. Keep oxygen levels high, change water regularly, and don’t overcrowd your pond.

5. Thrift / Second-hand Clothing (Okrika)

Fashion never goes out of style, and the thrift clothing business is one that Nigerians never get tired of. With ₦500,000, you can buy bales of fairly-used clothes (“Okrika”) and resell them at a markup.

How It Works

You source bales of second-hand clothes (jeans, tops, kids’ clothes, etc.) from trusted importers or local wholesalers. For example, a 100 kg first-grade bale currently goes for around ₦250,000 - ₦300,000 in Lagos.

Once you have your bale, you sort it (by grade, by gender/age group, and by item type), clean/iron as needed, pick the best pieces out, then sell piece-by-piece at a markup via local markets, Instagram, WhatsApp, pop-up stalls or even roadside tables.

What You Need to Begin

• Bale purchase (e.g., ₦200,000–₦300,000 per bale depending on quality).
• Sorting/cleaning area (tables, small space).
• Transportation (to bring the bale from the market/supplier to your shop/stall).
• Marketing budget (for social media posts, maybe a local flyer)

Startup Cost Breakdown (within ₦500,000)

• Bale Purchase: ₦200,000 (choose quality over quantity).
• Sorting / Cleaning / Packaging: ₦50,000.
• Stall or pop-up setup + transportation: ₦100,000.
• Marketing & online promotion: ₦50,000.
• Miscellaneous buffer: ₦50,000

How to Sell and Promote

• Set up on Instagram or WhatsApp: post high-quality, well-lit images of your best items.
• Use pop-up stalls in busy markets or roadside spots: this attracts foot traffic and impulse buyers.
• Offer a mix of online and offline platforms to reach more people.
• Sort and display by age group (kids, teens, adults) and by gender to make shopping easier.
• Emphasise “first-grade” pieces (good condition, labelled) with captions like “just arrived – UK direct, first-grade”. Good pics equal faster sales.

Earning Potential
A single bale, if well-sorted and sold effectively, can generate ₦400,000–₦600,000 in revenue when sold piece by piece. Repeat with multiple bales and broaden your channels, and profit will grow.

Pro Tip
Always inspect your bale before purchase. Check the condition, mix of items, origin, and how many items are likely unsellable. For online thrift sales, especially, good pictures equal faster sales. 

6. Mobile Phone Accessories

Everyone has a phone, and accessories like chargers, power banks, earpieces, and cases sell fast because they’re essential and get replaced often. It’s a solid, high-turnover business that fits easily into ₦500,000 or less.

How It Works

You buy mobile accessories in bulk from trusted wholesalers or importers and resell them at retail prices. You can source from Computer Village (Ikeja, Lagos), Alaba International Market, or import directly from sites like 1688.com, Alibaba, or DHgate through a logistics agent.

Start with fast-moving items like charging cables, wall adapters, earpieces, Bluetooth speakers, screen guards, and power banks. These are small, high-margin products that don’t require complex storage or handling.

How to Sell and Promote

• Set up a small stall or counter near phone shops or bus parks where foot traffic is high.
• Use WhatsApp, Instagram, and Facebook Marketplace to showcase items and take orders.
• If possible, brand your packaging or bags, as it helps with repeat customers.

What You Need to Begin

• Inventory: chargers, cables, cases, earpieces, power banks.
• Display setup: glass stand, shelf, or small kiosk.
• Simple branding/packaging materials.
• Marketing tools: WhatsApp Business, Instagram, etc.

Startup Cost Breakdown (within ₦500,000)

• Inventory: ₦300,000.
• Stall/display setup: ₦100,000.
• Branding & packaging: ₦20,000.
• Promotion & ads: ₦50,000.
• Miscellaneous buffer: ₦30,000.

Earning Potential

With stock worth ₦150,000 – ₦500,000, if you sell consistently, you are likely to see profits from ₦100,000 monthly and above, depending on turnover and location.

Pro Tip

Always stock trending items like fast chargers, wireless earbuds, or phone holders. Nigerians love upgrades, and hot products sell out fast, so stay updated with new gadget trends online and at Computer Village.

7. Digital Content Creation

People want to learn, get entertained, or be inspired online, and that’s a real business opportunity. With ₦500,000, you can start creating digital content or teaching skills online and earn from sponsorships, ad revenue, or paid classes.

How It Works

Pick a niche you understand: exam prep, tech skills, makeup tutorials, lifestyle, or finance tips. Then create valuable content in video, text, or audio format, and share it on platforms like YouTube, TikTok, Instagram, or WhatsApp groups.

How to Sell and Promote

• Use short, clear videos and post consistently (at least 3 - 4 times per week).
• Run small Instagram or WhatsApp ads to promote your channel.
• Build a personal brand; people pay more when they trust you.

What You Need to Begin

• Basic gear: smartphone or camera, microphone, ring light.
• Internet/data plan & editing tools: CapCut, Canva, VN, or InShot.
• Expertise in a topic people value.
• Marketing plan: social media pages, small ads, and WhatsApp broadcast lists.

Startup Cost Breakdown (within ₦500,000)

• Equipment (smartphone, mic, lighting): ₦250,000 - ₦300,000.
• Data & subscriptions: ₦30,000 - ₦50,000.
• Marketing/ads: ₦50,000 - ₦80,000.
• Workspace setup (lighting, decor): ₦50,000 - ₦70,000.
• Miscellaneous: ₦20,000 - ₦30,000

Earning Potential

Depending on consistency and audience size, Nigerian content creators earn between ₦50,000 and ₦2,000,000 per month from ads, sponsorships, or paid classes. Once you build traction, your income compounds through repeat students, brand deals, and referrals.

Pro Tip

Start with what you know best, talk about something that solves a real problem. Focus on quality, not perfection; record with your phone, post, learn from feedback, and improve. Build small, prove results, then scale.

How Then Do You Get Paid

Starting is great, but real business growth comes when you can fund operations, track income, and reinvest with confidence. That’s where Moniepoint Business Banking steps in.

You can open a free business account in minutes, get an expense card for daily spending, and accept payments easily through your POS or transfer, right from your shop or on the go. Payments come in fast, every transaction is recorded automatically, and you stay fully in control of your cash flow.

But that’s not all, when your business stays active and consistent, you can also qualify for Moniepoint business loans. These loans help you restock, expand your shop, or take advantage of big opportunities without slowing down.

So whether it’s collecting payments, managing expenses, or scaling up, Moniepoint keeps your business moving, not just started, but growing.

Let’s Wrap Up

Starting a business with ₦500,000 might feel like a big risk, but with the right idea, discipline, and consistency, it can be the first step toward financial independence. 

From food to fashion, POS to farming, what matters is finding what fits your strengths and your community’s needs. Your ₦500,000 is more than capital. It’s a seed. Plant it wisely, nurture it daily, and watch it grow into something bigger than you imagined.