Home Business 3 businesses that can leverage cheap labour in Nigeria.

3 businesses that can leverage cheap labour in Nigeria.


Labour is a powerful factor of production in any enterprise. It continues to represent a key source of operational cost for business. With all the talk of the use of robots in an industrial setting, humans continue to dominate the production process in most companies around the world.

Any company who seeks to control operational cost typically looks to trimming labour force as a starting point. Lowering operating cost enhance competitiveness of company product and service, leading to higher profitability.


China  dominated global production purely because of its cheap source of competent labour force. However, cheap Chinese labour from rural villages is drying up, making Chinese goods and services less competitive.

Companies are always looking for cheaper sources of production. They are looking out for locations that offers cheap source of labour.

There is therefore significant opportunities for business that can leverage cheap labour that is abundant in Nigeria.

Below are 3 top businesses that you can start, leveraging abundant cheap labour in Nigeria.

  1. Tailoring: Fashion is the world most active business sector, throwing multi-million companies across the world. Think of Zara, Mango, H&M to mention but a few. The reason is simple; clothing the world population is a tough proposition. Even in Nigeria, imagine what it takes to clothes fashion-crazy Nigerians. However, most people are aware of this opportunity and therefore the market is really crowded. This is why most businesses in this sector compete on price. A business can take advantage of this crave for lower cost of fashion products by starting a semi-industrial tailoring business employing Nigerians tailors. You might need to retrain a little to make them more effective. This production can serve the local market, but can also be exported to countries around the world.
  2. Organic foods: There is so much artificial and packaged food out there in the market. This range from drinks to food. The world is becoming more and more health conscious, with consumers demanding more healthy foods. You can tap into cheap labour in the country to produce fresh fruit juice for your city and environs. You can also venture into real time processing of food like fish, meat, or garri.
  3. Horticulture: Flower production, particularly for export is a hidden opportunity that requires large labour force. This is available across every city in Nigeria. I encourage you to take advantage of cheap labour to produce flower targeting the export market.

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