Business Advisory
…e-Money Transfer, Chain POS Operation, e-Travel and Tours, e-Commerce, etc.
INTRODUCTION
At last there is something to celebrate about Nigeria. The digital economy is working in Nigeria despite our shortcomings as a nation. The use of mobile phones is very high, internet penetration is growing very fast, at one of the fastest rates in the world and of recent, we woke up one day to hear that over a ten year period, Nigeria recorded the highest rate of transition from a cash-based to a cashless economy in the world. According to www.fintechmagazine.africa.com, “Nigeria has experienced the sharpest decline in cash usage globally, fueled by the rapid adoption of digital payments and fintech-driven innovations. Between 2014 and 2024, cash transactions in Nigeria dropped by 59%, the steepest decline among seven major economies where cash has traditionally dominated”. The study, which examined 40 global markets covering 88% of the world’s GDP, forecasts that cash usage in Nigeria will continue its downward trajectory, falling to 32% by 2030 as digital payment alternatives take center stage.
Another cheering news, this time by Netherlands-based research firm Dealroom.com, named Lagos as the fastest growing tech ecosystem in the world by 2025. In its Global Tech Ecosystem Index 2025 report, just released, Lagos, as home to 5 unicoms: Interswitch, Flutterwave, Jumia, OPay and Moniepoint, stands out as an appealing hub for new enterprises. These are fast growing tech companies committed to seamless digital payments and e-commerce activities. How can Nigeria be more ready for your own online business to join the bandwagon?
This is good news for people who have intentions of starting digital or online businesses. If the government of Nigeria has not succeeded in anything, this is proof that Nigeria has succeeded in one area, which is turning our economy into a cashless economy. This shows the readiness of Nigeria to accommodate digital/online businesses, as many as people can start.
So, the smart entrepreneur should not wait a minute longer to jump into the fray before that market gets saturated. In this report, we have laid out for you ten potentially profitable online businesses you can easily start with minimal funds. They all have potential for fast growth meaning you can one day be the next OPay or Jumia.
1. e-LEARNING. This is a business opportunity that is gaining momentum all over the world due to the popularity of the digital platform and the need to learn on the job without having to go to any physical school. It offers unlimited potentials, due to the fact that an entrepreneur can focus on any area of the educational system of his choice, from elementary school to the tertiary education level. E-learning involves packaging of learning materials in a way that can make them to be deployed via the digital medium. This can be through the use of video and audio materials, podcasts, etc. It can be structured to complement learning at elementary school stage or use of standard certificate programmes in higher levels of the educational system. Anybody who wants to start an e-learning business can start with very simple processes by using existing digital resources or go full length by building dedicated applications hosted on the internet.
2. e-TRAVEL AND TOURS. Travelling has always been a very lucrative business. This business opportunity looks at managing the travelling/movement of people within and outside a geographical entity. It offers a high yield opportunity due to the dimension that it can be done over the digital platform. The dimensions offered can be (1) searching for, and booking of space in flight and road transport, (2) arranging of tours for education, business, leisure and commercial purposes on air, land, sea and railway transportation. The entrepreneur can also arrange travelling and tours targeted at regular conferences, trade fairs, sports and other popular events in destination countries.
3 e-COMMERCE. This is the sale of goods and services over the digital platform. For reasons of convenience and the very busy schedule of today’s generation, the need for online shopping has exploded over the years. It presents a great business opportunity whose potential is unlimited. To get the best out of it, it is better for one to focus on an industry of choice or segment of the population that one wishes to serve. It involves simply the display of the goods or services in electronic shops (online space) providing access for prospective buyers. Fulfilment, which is delivery of goods ordered, is done in line with the need of each buyer. One can use very basic tools/existing digital resources to start an e-commerce business, like a Whatsapp group account, or by building dedicated applications.
4. REM0TE WORK. This opportunity has grown in popularity most especially in the advanced world due to the work-from-home culture that started largely during the COVID-19 era. In addition, remote work opportunities are available for people living in developing countries due to the attractive exchange rate disparities. People set-up business around remote work opportunities starting as sole operations, to hiring other people when more work than one person can handle comes. Remote work is done mainly across the digital platform via popular existing sites and applications like Upwork, Fiverr and Freelancer. Payment for services rendered is also effected over the digital medium.
5. DROP SHIPPING. This is a specialized service that is offered as a marketing function. This is done by creating a platform where goods are offered for sale online. However, the person offering the goods does not necessarily have to keep stock. When the people offering the goods for sale, who are called merchants send the order to shops where the good are kept, those people have the obligation to go and deliver straight to the buyer. In essence the merchant does not have to touch goods physically in anyway. The business can be done even through ordering goods from foreign countries, from where the delivery can be done straight to buyers.
6. CHAIN POS OPERATION. Operating a POS cash dispensing business is extremely popular in Nigeria due to its low entry barrier and capital requirement. With proper planning, the business can be done across multiple locations starting from three to an unlimited number of locations. When you have more than one or two locations, the business becomes a chain operation and it should be managed like a multi-branch or multi-location business. For this business to succeed, the entrepreneur must prepare a good business plan to guide day-to-day operations in order to maximize returns and minimize loses. Key requirements of a chain POS operation are effective staff selection and deployment, sound financial control and exceptional customer service system.
7. e-LOANS. This is online loan where one can borrow money without having to appear physically for processing of his request and collection of borrowed funds. Retail money lending has always been an attractive business opportunity, particularly within the traditional business setting. In such cases, it is done within communities whereby everybody knows one another and so repayment default is virtually non-existent, making it a very profitable business opportunity. When the same model, where the target is comprised of people in homogenous groups, is carried to the digital platform, it becomes a viable business opportunity. This means that the money lending operation should be limited to people within the same community or group that shares common identity and background. This time transactions are done online and despite the fact that the people may not share physical proximity, they will still be willing to honour their obligations on money borrowed due to the presence of group pressure.
8. ELECTRONIC MONEY TRANSFER. This is a service that has been in use for some time. However, there are many segments or niches of the market that are yet to be properly covered. One good example is money transfer across other countries like the ECOWAS region. Another segment is the transfer of large sums of money within our local areas which people still prefer to travel far to do through the traditional banking system since cash remains the medium of transaction in such local markets. Ability to extend money transfer service, particularly of huge sums to the last mile in local markets and local areas is a viable business opportunity. Money transfer across countries within the West African coast is still a service that still has big potential for success. There are many other segments and niches that are still open. It requires the effort of sitting down to identify such gaps and quickly take advantage of them.
9. e-MICRO CREDIT/COOPERATIVE SOCIETY MODEL. This involves savings and loans management when people are made by habit to save money from their business ventures regularly. They also have the advantage of borrowing money to do business within their locality under this arrangement. People are expected to save in line with the timing of the cash flow of their business. When they also borrow money, they are expected to pay in a similar manner. For example, most market women and traders sell on a daily basis. So, their savings is done daily and when they take loans the repayment is done daily or at the extreme on weekly basis. This effective cash flow management makes default to be virtually non- existing within the cooperative society model. The business can be started within small communities either across geographically contingent locations or with similar, ethnic, religious, or communal affiliation.
10. e-CROWD FUNDING. This is a business used to raise money on behalf of other people who need assistance and find it difficult to use other means of raising funds or for causes of social or non-profit nature. However the difference of this arrangement from other sources of funding is the fact that a very large number of people are targeted and reached to provide the money. At the end of the day, what each person contributes is an extremely small percentage of the money been raised. The money is very small to the individuals contributing the money and so they hardly constitute any concern in terms of putting pressure on those they have given the money to, when the time comes to honour repayment and other obligations on the funds. It is done strictly online and success depend on how sound is the business case presented the management company. It is also advised that, its target of funding should be communities of people who share common values.
David Solomon Business Opportunities Report June 2025 prepared by Sunday Ikotun and Kola Owolabi. Sunday Ikotun is on the consulting staff of David Solomon Consulting Limited. Kola Owolabi is the CEO of David Solomon Consulting – He is a Fellow of the Nigerian Institute of Management Consultants (FIMC.CMC).They can be reached by phone or WhatsApp through 08023203198.
