Which cities are the best cities for business in Nigeria? One of the most important decisions to make when starting a business is where to locate it. The right choice of location or point of sale has a significant impact on business success.
With over 200 million people, Nigeria is the most populous African country and the seventh most populous country in the world, making it a lucrative place for businesses both locally and internationally.
Nigeria is not only populous, but it also has a large economy – the largest in Africa, the 26th largest in the world by nominal GDP, and the 25th largest in the world by PPP.
The report from the World Bank shows that Nigeria is an emerging market. Nigeria has 82 cities, including Lagos, Kano, Aba, Abuja, Enugu, Kaduna, Zaria, Anambra, and Ibadan.
GDP and per capita income as ranking factors
If you want to start a business in Nigeria, we have compiled a list of the top ten cities to do business in Nigeria, based primarily on GDP and per capita income rankings.
GDP – Gross Domestic Product – is a broad measure of how well or poorly the economy is performing. A rising GDP is beneficial to expanding businesses. Other factors to consider include:
Density of Population
The market potential of a business in a location grows in proportion to the increase in population density in that location. The larger the population, the more likely it is that you will attract customers who are interested in your type of business. Furthermore, a company is more likely to easily hire the best cohort of employees.
The level of safety
The security of the city in which a business is located has a significant impact on its success. Most businesses in insecure cities are forced to close due to low patronage and losses incurred as a result of damage caused by the violence.
Development of Public Infrastructures
The presence of public infrastructures such as a good road network, telecommunications, a health system, and so on makes doing business in a location simple and straightforward.
Public infrastructure reduces the cost and effort required to run a business.
Regulations governing business licensing and taxation
All businesses are required to obtain business licenses and pay taxes. However, the licensing and taxation requirements and procedures should not be burdensome or unbearable for businesses.
Top 10 Best Cities For Business In Nigeria
Here are the top ten cities for business in Nigeria:
1. Lagos, Nigeria
Lagos is Nigeria’s most populous city, with a population of approximately 14.8 million people. It is a major African financial center as well as the state of Lagos and Nigeria’s economic hub.
It has a GDP of $33.68 billion and a per capita income of $4 335, making it one of the world’s fastest-growing communities.
Lagos has a good network of roads, as well as ferries, rail systems, and airport terminals. It also has a number of outstanding hospitals and medical facilities.
The country’s overall security challenge is still at a low level. As a result, Lagos is a good place to start a business.
2. Port Harcourt, Nigeria
Port Harcourt is the capital city of Rivers state, the largest city also and the fifth-largest city in Nigeria, with a GDP of $21.17 billion and a per capita income of $3 966. The current population estimate is 3,171,000 people.
The discovery of crude oil in 1956 was a major factor in the modernization and development of this city’s infrastructure. Port Harcourt is Nigeria’s main oil-refining city.
Port Harcourt has an international airport (Port Harcourt International Airport) on its outskirts. The Nigerian Air Force (NAF) base, is also located near the only other airport used for domestic flights.
Commercial airlines Aero Contractors, Caverton Helicopters, and Bristow Helicopters use the airport. FOT Onne and Port Harcourt Wharf are the city’s two seaports.
3. Abuja, Nigeria
Abuja is Nigeria’s capital and is located in the country’s center. The current population of Abuja is estimated to be 3,464,000 people. Abuja is Africa’s fastest-growing city and one of the world’s fastest-growing cities. It is also one of the best cities to live in Nigeria.
It is regarded as one of Africa’s wealthiest federal capitals. Abuja has a major international airport, Nnamdi Azikiwe International Airport, and a highway that connects it to Nasarawa, Plateau, Benue, and Northeast Nigeria.
Warri is the commercial capital city of Delta state (with a GDP of $16.75 billion) and one of the state’s largest cities. Though it is not the capital city of Delta, it is a more notable location than Asaba. It is a major oil hub in the South-South region, and it is home to the extension of the Government House.
Warri’s current population is estimated to be 898,927 people. It is a major hub of petroleum activities and businesses in the country’s southern region.
It is considered a modern metropolitan area with significant infrastructure development. It is home to a number of major international and local businesses operating in Nigeria.
Ibadan is the capital city and the most populous city in Oyo state (with a GDP of $16.12 billion and a per capita income of $2,665). This city’s current population is estimated to be 3,649,000 people. Ibadan is home to a variety of industries, including agro-allied, textile, and food processing.
Owerri is the capital city of Imo state and the state’s largest city (with a GDP of $14.21 billion). This city’s current population is estimated to be 908,000 people.
Owerri has an international airport as well as strategic road connections such as Port Harcourt Rd., Aba Rd., Onitsha Rd., and Okigwe Rd. IKONSO WAY., Weathral Rd., Tetlow Rd., and Works Rd. are the city’s roads.
Kano is the capital city and the most populous city in Kano state (with a GDP of $12.39 billion). This city’s current population is estimated to be 4,103,000 people.
Kano is served by an international airport, Mallam Aminu Kano International Airport. It also has a rail station that connects to Lagos via Kaduna and Ibadan, as well as access to the seaports of Lagos and Port Harcourt.
8. Benin City
Benin city is the capital and largest city of Edo state (with a GDP of $11.89 billion and a per capita income of $3,624). This city’s current population is estimated to be 1,782,000 people.
Benin City is the center of Nigeria’s rubber industry, as well as a significant oil production industry. Benin City has a commercial airport served by three airlines.
The city of Abeokuta is the capital and most populous city of Ogun state (with a GDP of $10.47 billion and a per capita income of $2,744). This city’s current population is estimated to be 543,723.
The city is home to the federal Ogun-Oshun River Basin Authority’s headquarters as well as several local industries.
The city of Kaduna is the capital of Kaduna state and has a GDP of $10.3 billion and a per capita income of $1,666. This city’s current population is estimated to be 1,133,000 people.
Because of its rail and road junction, the city serves as a commercial center and a major transportation hub for the surrounding agricultural areas. It is widely regarded as Northern Nigeria’s and the Middle Belt’s industrial center.