Last updated on December 31st, 2022 at 06:45 am
Kano State is the commercial hub of Northern Nigeria from the colonial period till today. And business activities continue to grow in the city of Kano, the state capital.
Called the Centre of Commerce, there are many business ideas and investment opportunities for everyone living within and out of Kano.
In this article, we shall highlight some of the business ideas for rich investors and for small and medium-sized businesses.
Table of Contents
Groundnut is one of the major crops grown in Kano state. Before Nigeria’s Independence in 1960, revenues from sales of groundnut constitute a major income for the Northern region government.
You may have heard about the groundnut pyramid of Kano, it’s no joke. Though the dependence on revenues from oil has affected its farming.
But as an investor, there is still untapped opportunity in groundnut in Kano. It is one of the major sources of the production of peanuts.
Groundnut can also be used for several consumable products for humans and livestock. No part of groundnut is a waste. The shell can be processed in making feed for livestock.
Vegetable Oil Production
As endowed Nigerian soil is for the cultivation of soya beans, it is surprising to note that the country still depends largely on the importation of vegetable oil.
By 2029 if nothing is done, Nigeria would spend at least $2.07 Billion on the importation of vegetable oil, according to the MSMEsToday report.
As worrisome as the figure could be, it is an investment opportunity in Kano for investors within and outside Nigeria.
The good part is that Kano state is one of the major producers of soya beans in Nigeria. Soya beans are used for more than five products, the chief among them is soybean vegetable oil.
This is a huge market considering the location of Kano in the north and its access to other African countries through Niger Republic.
Sugarcane is used locally for the production of white sugar or exported to foreign buyers. But the production of sugar in Nigeria is lower than the consumption rate.
Interestingly, there are local farmers in Kano who plant sugarcane in large quantities, meaning the sitting of a sugar production factory in Kano would be an investment that is worth it.
Bua Sugar, Dangote Sugar and more than 10 other sugar production factories in Nigeria are not enough to meet the high demand consumption of Nigerians. More investors are needed in this sector.
Milk has several sources: cattle, goat, and soya beans. Luckily, Kano State is blessed with all three sources of milk production.
For an investor who wants to go into milk production, sourcing ingredients locally shouldn’t be as hard as you think. Nigeria still imports a larger percentage of its dairy products, this is an investment opportunity.
Importation of Palm Oil
Kano is called the centre of commerce, not for fun, especially the city accommodates every merchant from across Nigeria.
You can import palm oil from the south and sell them in Kano. Other products you can import from the south include garri and crayfish.
Investing in electronics entails the selling of electronics like fans, ACs, different brands of TVs, refrigerator, and so on. The best location for this business is the city of Kano.
Mobile Phone Repairs
Some time ago, the federal government through its National Social Intervention Programme (NSIP) launched N-Power Tech and software to train hundreds of unemployed youths on phone repairs.
The market is huge and demand for phone engineers will continue to grow as new brands of phones are released to the market.
Sales of Mobile Phones
Sales of mobile will never go off the market because Nigerians love gadgets. As new products and models are released into the market, a lot of Nigerians love to use new products.
So, between NGN5 million to NGN10,000,000 is moderate to set up a small mobile phone shop in Kano.
Sales of Building Materials
Kano city continues to expand as the number of business-minded people come into the city every day.
Expansion means more buildings, shops and apartments, thereby creating business opportunities for someone who is ready to embrace investment in building materials.
Make quality building material your watchword, be customer-friendly, and give discounts on some special festive periods to win the hearts of your customers.
We’ve emphasized mechanized farming in almost all the business ideas we mentioned in all the states in Nigeria, Kano state isn’t an exception.
Farming is a thriving business in the state and it’s the main source of revenue for more than 80% of the rural population.
Investing in mechanized farming in Kano is worth it considering the number of crops grown in the state.
The North part of Nigeria is the largest owner of goats and cattle in Nigeria. Kano state isn’t an exception. If you want to diversify your business and embrace livestock farming, Kano is a good location.
You should be well familiar with how to take good care of the birds, giving them the right feeds as well as medicines.
Computers Repair and Servicing
Kano state has the presence of nearly all Nigerian banks in the state, they use laptops and desktop computers that could malfunction at any time.
They will forever need the services of sound computer engineers to fix their computers whenever anything goes wrong.
Apart from financial institutions, there are also other corporate organisations in the state whose daily tasks depend on computers.
If you are a trained computer engineer, you can begin to share your skills on forums and on social media. Let the Kano residents know what you are good at.
Raw Food Merchant
Being a raw food merchant is a business anyone can go into. It involves taking off the stress of sourcing food at the local markets off the neck of the consumers.
If you are able to build strong trust, and loyal customers, you can be their go-to whenever they want to restock their pantry.
Business Solution Service
This involves assisting small businesses and organisations to solve technical or registration issues beyond their control. This way, companies outsource your service and skills.
Bureau De Change operation
Trading foreign currency in Nigeria, especially in Kano city is a lucrative business in the north. It’s a foreign exchange trading has its origin in the Northern part of Nigeria.
The business will continue to thrive in the northern part.
But before you go into this business, you must be able to differentiate between an original dollar, Pound Sterling, EUR, Naira and other currencies so that you don’t fall prey to the fake legal tender sellers..
You also have to be up to date about trends and policies that sway the price of currencies in the FX market.
Since Nigeria returned to democracy in 1999, the demand for public relations professionals by politicians has increased.
If you have expertise in this profession and know digital marketing in selling products and in the promotion of candidates during electioneering campaigns, you’ve got a huge market in Kano state.
It’s a digital world and the demand for social media managers has also increased.
Sales and Installation of Security Equipment
Kano is one of the stabilized states in the north, but it has its security challenges. Security agencies are overwhelmed, thereby creating business opportunities for security equipment installers.
Kano is blessed with many solid minerals which include Uranium, Kaolin, Niobium, Gold, Tin, and Silica Sand to mention a few.
You can obtain a mining licence from the federal government, a permit from the state government and go the legal way to explore the mineral resources in the state.
WITS data shows that Nigeria imported most of its textile materials from China, Japan, Malaysia, India, and the United States
Corroborating this in December 2019, the Nigerian Textile Manufacturers Association (NTMA) in a report revealed that Nigeria spends $4 billion annually to import textiles and readymade clothes, despite the cultivation of cotton in Nigeria, but which has not been harnessed.
In case you searching for a state that has cotton resources, Kano should be on top of your list. The Nigerian market is big for textile materials.
Sales of Recharge Card Printing Machine
As of the last population count held in 2006, Kano state had over 15 million people. And the population of Kano, the state capital has consistently been growing by at least 2% every year.
With the number of Nigerians who use phones and calls every minute, the market is a great one for the sales of recharge card printing machines.
The machine is between NGN15, 000 to NGN90,000, depending on the maker and quality of the machine.
Don’t forget that most people like market women and men in the city of Kano and rural areas prefer to recharge their phones through the conventional means, printing out recharge cards.
This is a huge market for an investor who can splash between NGN2 million to NGN5,000,000 for the importation of recharge card printing machines in Kano state.
Challenges of setting up business in Kano
Some of the issues business people are facing in this state include:
- Insecurity as it is across Nigeria
- Bribery among some government officials
- Lack of constant electricity
The business opportunities in Kano State aforementioned above are not exhaustive, there are other business ideas for SMEs.
- Featured image by nairametrics
- Peter Olowa (January 19, 2021). “Vegetable oil importation to gulp $2.07 billion in 2029”. msmestoday.com