Top 6 Challenges Faced by Nigerian Entrepreneurs (and how to overcome them)

There’s no doubt that the Nigerian market houses numerous profit-making opportunities. As one of the most populous nations on earth and one of the largest economies in Africa, Nigeria stands tall as a ripe location for business. However, there are unique challenges that Nigerian business owners have to grapple with. This article outlines the top 6 challenges faced by Nigerian entrepreneurs. But we won’t just highlight the hurdles – we’ll also equip you with actionable solutions to overcome them and forge ahead.

1. Access to Capital:

Securing capital remains a major roadblock for many business owners. Traditional banks often require established credit histories and hefty collateral, which can be out of reach for new businesses.

• Solution: Explore alternative funding options like financing partnerships from Non-interest banks like The Alternative Bank, crowdfunding platforms, grants, or angel investors. MBN also offers resources and funding opportunities that can be accessed HERE.

2. Unstable Economic Environment:

Fluctuating exchange rates, inflation, and an unpredictable economic climate can make planning a nightmare.

• Solution: Focus on building a lean business model, diversify your revenue streams, and stay updated on economic trends to adapt your strategies.

3. Limited Infrastructure:

Power outages and poor road networks negatively impact operations for Nigerian entrepreneurs. This unfortunately increases the cost of production and even reduces profit margins. 

• Solution: Invest in alternative energy solutions like solar power. Collaborate with like-minded entrepreneurs to utilize shared workspaces or find solutions to your most pressing problems. 

4. Bureaucracy and Complex Regulations:

This can be particularly daunting for first-time business owners who may not even know where to begin. Even for entrepreneurs who know what to do, navigating permits, and registrations and fulfilling legal requirements can be time-consuming and frustrating.

• Solution: Delegate this to professionals or consultants who specialise in Nigerian regulations. Many government websites also offer information and streamlined processes for business registration to make the process less cumbersome. 

5. Lack of Skilled Workforce:

Finding qualified employees with the specific skills you need can be difficult.

• Solution: Invest in employee training and development programs. Consider partnerships with vocational schools or universities to tap into fresh talent.

6.  Limited Access to Information and Mentorship:

Finding relevant business resources and experienced mentors can be challenging.

• Solution: MBN offers workshops, resources, and networking opportunities to connect with mentors and gain valuable business knowledge. Connect with us on social media via @MBN_HQ to stay updated. 

Entrepreneurship in Nigeria is filled with both challenges and immense potential. Being aware of these hurdles and adopting proactive solutions will empower you to navigate these obstacles better. MBN is here to support you every step of the way. Explore our resources, attend our workshops, and connect with our network to gain the knowledge, tools, and support you need to turn your entrepreneurial dream into a reality.