Top 10 Challenges Of Running A Business In Nigeria (And Practical Ways To Solve Them)

So, you want to start a business in Nigeria? Or maybe you already run one and you're wondering if the stress you're facing is normal. First of all—welcome to the club. You're not alone. Running a business in Nigeria is not for the faint-hearted. It’s a daily battle of wit, will, and resilience. From erratic electricity to government wahala, our dear country knows how to test patience. But guess what? Nigerians are hustlers by default. We don’t back down easily.

In this post, I’ll walk you through the top 10 challenges you’re likely to face when running a business in Nigeria, and more importantly—how to solve them without losing your mind (or your money). This is not your typical boring business post. We’re going to talk real talk, just like you're sipping zobo while complaining to your fellow entrepreneur about NEPA and multiple taxation.

Let’s dive in.

Sponsored:

Do you Want to Earn Money Online in Nigeria? Konnect is the Platform for you! Click the picture below to get started 

1. Unstable Power Supply (A.K.A The Famous NEPA Blues)

Let’s be honest—power supply in Nigeria is still a national shame. One minute you’re printing invoices, the next minute NEPA (sorry, PHCN) decides to take light without warning. Before you know it, your backup generator becomes your most loyal employee.

Solution:
Invest in reliable alternative power sources. Solar panels, inverters, and good ol’ generators are your best friends. Yes, they can be expensive upfront, but in the long run, they’ll save you from production delays, customer dissatisfaction, and even data loss. Also, explore co-working spaces if you're running a service-based business—they usually have 24/7 power.

2. Access to Capital (AKA Where Is the Money?)

Raise your hand if you’ve ever written a business plan only to discover that your bank balance says “try again next year.” Many Nigerian entrepreneurs have brilliant ideas but no funding. Traditional banks are not too friendly when it comes to giving loans—especially to SMEs.

Solution:
Start small, grow fast. Bootstrapping is your friend. Look for grants, angel investors, and business competitions. Platforms like Tony Elumelu Foundation, Bank of Industry (BOI), and even international organizations like the African Development Bank offer grants and soft loans. Just be ready with a solid pitch and detailed plan.

3. Multiple Taxation (Every Agency Wants a Piece of You)

One day it’s the local government asking for signage tax. The next day, it’s the state government demanding environmental levies. And then, just when you thought you were done, one agency appears from nowhere like a surprise party.

Solution:
Educate yourself about the taxes relevant to your business and location. Get a good tax consultant if you can afford one. Register with the Corporate Affairs Commission (CAC), get your TIN, and pay your taxes on time to avoid penalties. As annoying as it may be, being tax-compliant is better than having officials lock your shop during peak hours.

4. Poor Infrastructure

From bad roads to poor internet connectivity in some areas, Nigeria’s infrastructure is still a work in progress. Logistics businesses suffer the most here. You can’t deliver a product on time if the road to your customer looks like an obstacle course.

Solution:
Map out your delivery zones wisely and work with reputable logistics partners. If your business relies on the internet, invest in multiple data providers. When one network decides to take a break, the other can save your day. And if you’re dealing with logistics, try using hubs close to city centers to avoid the worst of the bad roads.

5. Inconsistent Government Policies

Today, the government bans something. Tomorrow, they lift the ban. By the next week, they introduce another regulation. This inconsistency can frustrate even the most patient entrepreneur.

Solution:
Stay informed. Join business groups like SMEDAN or industry associations that update members on policy changes. Also, follow credible news sources and engage with your local chambers of commerce. The more informed you are, the better you can adapt and avoid surprises.

6. Lack of Skilled Labor

This one is tricky. You hire someone to manage your social media, and the next thing they’re posting personal updates on your business page. Or worse, they vanish without notice. Finding reliable and skilled workers is like finding gold in traffic.

Solution:
Invest in training. Don’t assume everyone knows how to do the job just because they said “I sabi am well.” Offer basic training and create an onboarding process. Build a work culture that makes employees want to stay. Also, platforms like Jobberman and LinkedIn can help you find vetted talent.

7. Security Concerns

Depending on your location, security may be a huge concern—especially for businesses that operate late into the night or involve cash transactions. Kidnappings, robberies, and vandalism are sad realities some entrepreneurs face.

Solution:
Take security seriously. Install CCTV cameras, use alarm systems, and if your business deals with large amounts of cash, consider hiring trained security personnel. Also, maintain good relationships with local vigilante groups and the police. Prevention is cheaper than recovery.

8. Limited Market Access

Many Nigerian businesses are doing great things but still remain unknown. Why? Because they lack the tools and know-how to reach larger markets—both locally and internationally.

Solution:
Go digital. Build a strong online presence through social media, websites, and e-commerce platforms like Jumia, Konga, and Shopify. Attend trade fairs and networking events. Don’t just sit and wait for customers—go out and find them. And please, don’t underestimate the power of WhatsApp marketing!

9. Customer Trust Issues

Nigerian customers can be skeptical—thanks to years of fraud and failed deliveries. As a result, they’ll ask you 50 questions before buying a ₦2,000 item. It can be frustrating.

Solution:
Build trust through transparency. Share testimonials, offer money-back guarantees, and most importantly—deliver what you promise. If you're selling something online, post real pictures, not Google images. And always communicate clearly with your customers.

10. Mental Burnout (A.K.A CEO Fatigue)

Let’s face it—running a business in Nigeria is mentally and physically draining. You’re the marketer, accountant, customer service rep, and cleaner—all rolled into one. Burnout is real, and it can make you lose passion for your business.

Solution:
Take breaks. Your hustle won’t die if you rest for a day. Delegate tasks when possible, and don’t be afraid to say “no” to things that don’t align with your business goals. Also, build a support system. Talk to fellow business owners, attend seminars, or simply find a mentor. You’re not alone in this.

Final Thoughts

Running a business in Nigeria is not for the weak. But guess what? If you can survive here, you can thrive anywhere in the world. The Nigerian market may be tough, but it's also full of opportunities. Every challenge you face today is preparing you for bigger wins tomorrow.

Don’t let the power cuts, taxes, or logistics delays make you give up. Instead, arm yourself with the knowledge, tools, and mindset to succeed. You are not just a business owner—you’re a warrior, a trailblazer, and a proud member of the Naija hustle family.

Stay strong, stay smart, and above all—keep pushing.