The total population of Nigeria as at 2016 was estimated to be 186.0 million people according to the recent census figures. Statistics has shown that “the population of Nigeria represents 2.35 percent of the world’s total population which means that one person in every 43 people on the planet is a resident of Nigeria”.
Nigeria is the most populated country in Africa that is why it is often referred to as the giant of Africa; Nigeria is also the 7th most populated country in the world. According to the Director-General of the National Population Commission (NPC), Ghaji Bello, the Nigerian population is currently 182 million. As you can see, Nigeria has a very high population and a high population means high productivity. In this article I will explain how the Nigerian population can be an advantage and a good market for start-up businesses.
What is a start-up business?
According to WIKIPEDIA, a start-up business or company is an entrepreneurial venture which is typically a newly emerged, fast growing business that aims to meet a market- place needs by developing a viable business model around innovative product, service, process or a platform. Neil Blumenthal co-founder and co-CEO of warby Parker says a start-up business is a company working to solve a problem where the solution is not obvious and success is not guaranteed.
Now we have known about the population of Nigerian and what a start-up business is, let’s look at the market of the Nigerian population for the startup business. Nigeria as a country is blessed with human, mineral and natural resources making her a good place for different business ventures and investment. When it comes to doing business the following aspects of the Nigerian market makes it easy ride.
- The Large Population of Nigeria: As I earlier said, Nigeria is a country with a large population and it will continue to grow higher than the way it is now. Statistic has shown that in 2020 the total population of Nigeria may rise to 204.68 million. You can imagine the large market to target for your business. The population is faced with a high demand for goods and services. It is low in companies, industries and business enterprises to meet the demands of the growing population. Is a known fact that Nigeria imports almost everything into the country. Even food, clothes, power supply and the basic needs are being imported. If an individual takes time to venture into a business that can meet those needs, it is obvious that the business will thrive.
- The Nigerian Economy: Nigeria operates a mixed economy model in which the government controls key sectors of the economy while the heavily regulated private sector runs the other part of the economy, and I know it is free economy in which anybody can start up a business and won’t be disturbed as far as it is legally acceptable in the Nigerian constitution. Moreover, Nigeria has been blessed with an economy that is sustainable. The country has potentials of a growing economy even after recession.
- Natural Resources: Nigeria is blessed with natural resources that have been left untapped. It is one of those countries in Africa that has a wide variety of natural resources ranging from precious metals to industrial stones. Most of these natural resources are yet to be explored. There is no state in Nigeria that has been left out because each state with its own natural resources. In the past years, Nigeria has been totally dependent on oil, but in the current recession with the fall in the price of oil, it has become a known fact that there is need for us to put our eggs in different baskets which will bring an opportunity for start-up businesses to diversify.
- High Consumer Rate: In Nigeria we have a large population and short supply of goods and services so that the little that is available can’t go round to the whole populace. There is a market for every business in Nigeria and there are lots of people looking for goods and services that are in short supply. If a start-up business look around and see opportunities that come with the large population of Nigeria, the business will make money while also meeting the needs of the people.
- Growth in E-commerce: E-commerce in Nigeria has undergone different stages and has also reached a reasonable lofty height. The advancement of information technology has revolutionized the way we use to communicate and do business. The internet on which e-commerce rides has played a very vital role in the economic development in Nigeria. E-commerce has grown faster and faster that more entrepreneurs have embraced the internet as one of the major channel and platform to advertise and connect with people in order to have a larger market.
- Large Manpower: The country is also blessed with a large manpower. A larger part of the Nigerian population is made up of young graduates and able bodied youths who are ready to work and earn a living. The Nigerian labor market is filled with people who have lots of skill and a strong desire to engage in profitable activities. Manpower being an essential ingredient needed in the growth of the economy is one of the most valuable resources that a business has, and Nigeria has that in abundance.
Many people might think that the increase in the Nigerian population is a disaster; this is not so, while it may come with its problem, with the right mindset, business owners could take advantage and grab the opportunity to make their business thrive.