How to Start a Food Business in Nigeria (Step-by-Step Guide)

Starting a food business in Nigeria is one of the best ways to make money. People eat every day, and with the right strategy, you can build a profitable and sustainable food business.

Whether you want to start a restaurant, food delivery service, or catering business, this guide will show you everything you need to know—step by step.

Step 1: Choose Your Food Business Type

The first step is deciding what kind of food business you want to start.

Here are some profitable food business ideas in Nigeria:

1. Restaurant/Fast Food Business

• A physical location where people can dine in or take out food.
• Examples: Buka, Amala joint, Fast food (like Chicken Republic), or Posh restaurant.

2. Food Delivery Business

• You prepare food from your home or a small kitchen and deliver to customers.
• Example: Jollof rice, shawarma, local soups, and home-cooked meals.

3. Street Food Business (Small Chop & Snacks)

• Selling popular Nigerian street food like puff-puff, akara, suya, grilled chicken, and roasted plantain.

4. Catering Services

• Preparing food for events, parties, and corporate functions.

5. Food Processing & Packaging

• Producing and selling packaged food products like chin chin, garri, zobo, and small chops.

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Pro Tip: Choose a food business that matches your budget, skills, and passion so that when you start it you won’t get tired along the way. So before deciding, you should take your time well, you can spend more than a day. No one is going to beat you for doing it.

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Step 2: Conduct Market Research

Before starting, you need to study the market and know:

• What food people love in your area, so not to do what won’t move market result to wasting business capital.
• How much customers are willing to pay, because some community they can’t afford to pay for expensive food.
•  Who your competitors are
•  The best location for your food business. So important, inorder not to establish food business were is not going to move market.

How to Do Market Research:

• Visit existing food businesses and observe their operations.
• Ask friends and family what kind of food they’d buy often.
• Check social media and food delivery apps to see trending food items.

Pro Tip: Find a gap in the market and offer something unique, this one of the best way to stand out among others. If you own is similar to your competitors, customer won’t see your special rather prefer to still patronize your competitors. To stand out, make your food a little bigger than your competitors ( ensure you’re making profits ), make it so delicious ( learn to cook well ), make your shop more attractive.

Step 3: Create a Business Plan

A business plan helps you organize your ideas and understand how to make money. Don’t ignore it has someone who want to start a business.

Your Food Business Plan Should Include:

1. Business Name & Concept (e.g., “Tasty Bites Kitchen – Home Cooked Meals Delivered”)

2. Target Customers (Who will buy your food?)

3. Pricing Strategy (How much will you sell your food?)

4. Startup Costs & Budget (How much money do you need to start?)

5. Marketing Plan (How will you attract customers?)

Pro Tip: A well-planned business helps you avoid mistakes and attract investors or loans. Now you know the importance of it, so write a business plan.

Step 4: Register Your Business with CAC

To operate legally, you should register your business name with the Corporate Affairs Commission (CAC).

How to Register Your Food Business:

1. Visit https://pre.cac.gov.ng
2. Check if your business name is available
3. Reserve your name (₦500)
4. Fill out the business registration form
5. Pay the registration fee (₦10,000 – ₦50,000)
6. Submit required documents (Valid ID, business details)
7. Receive your CAC Certificate in 5-10 days

Pro Tip: CAC registration allows you to open a business bank account and grow your brand legally.

Step 5: Get Necessary Licenses & Approvals

Since you are dealing with food, you need the right permits.

• Food Safety Certificate (from NAFDAC or Local Council)
• Health Permit (if you have a restaurant)
• Fire & Safety Certificate (for physical locations)

Pro Tip: Visit your local government office for details on specific permits needed

Step 6: Find a Good Location (If Needed)

If you’re opening a restaurant or food stall, you need a strategic location where people can easily find you.

Best Places for a Food Business in Nigeria:

• Busy markets & bus stops
• School areas & university campuses
• Office and business districts
• Residential neighborhoods

Pro Tip: If you’re running an online food delivery business, you don’t need a shop—just a good kitchen.

Step 7: Get the Right Equipment & Supplies

Depending on your food business type, you need to buy or rent the right equipment.

Basic Equipment for a Food Business:

1. Cooking Equipment – Pots, pans, stove, oven, deep fryer
2. Storage Equipment – Refrigerator, freezer, shelves
3. Packaging Materials – Takeaway packs, nylon, plastic plates
4. Serving Tools – Plates, spoons, cups, trays
5. POS Machine – For accepting card payments

Pro Tip: Buy quality second-hand equipment if you’re on a budget.

Step 8: Source Ingredients & Find Reliable Suppliers

Your food business will only succeed if you use fresh and high-quality ingredients.

• Buy in bulk from wholesale markets (Mile 12, Oyingbo, Onitsha, etc.)
• Source directly from farmers for better prices
• Partner with trusted suppliers for consistency

Pro Tip: Always negotiate prices to get the best deals.

Step 9: Price Your Food for Profit

Your food must be affordable but also profitable.

How to Set Your Prices:

Calculate the cost of ingredients per plate

Add other expenses (gas, rent, transport, staff salary)

Set a price that gives you at least 30% profit margin

Example Price List:

• Jollof Rice & Chicken – ₦2,500
• Amala & Ewedu – ₦1,500
• Small Chops Pack – ₦3,000

Pro Tip: Offer discounts for bulk orders to attract more customers.

Step 10: Market & Promote Your Food Business

No customers = No profit. You must actively promote your food business.

But how ?

Marketing Strategies for a Food Business:

• Social Media Marketing – Post pictures & videos of your food on Instagram, TikTok, and Facebook.
• Food Delivery Apps – List your business on Jumia Food, Chowdeck, Glovo, etc.
• Referral Marketing – Ask happy customers to recommend you.
• Flyers & Posters – Distribute in busy areas like offices and schools.

Pro Tip: Offer a first-time customer discount to attract more buyers.

Step 11: Track Your Profits & Grow Your Business

Once your business is running, you need to track your expenses and profits to stay profitable.

1. Keep a record of daily sales & expenses
2. Reduce waste & unnecessary costs
3. Reinvest profits into business growth

Pro Tip: As your business grows, expand into catering, bulk food supply, or franchising.

Final Thoughts

Starting a food business in Nigeria is a great way to make money if you follow the right steps.

Quick Recap of Steps:

1. Choose Your Food Business Type
2. Conduct Market Research
3. Create a Business Plan
4. Register Your Business with CAC
5. Get Necessary Licenses
6. Find a Good Location
7. Get the Right Equipment
8.  Source Ingredients & Suppliers
9. Price Your Food for Profit
10. Market & Promote Your Business
11. Track Your Profits & Grow

If you follow these steps, you’ll build a successful food business in Nigeria.

Got questions? Drop them below!