Untold Struggles of Nigerian Entrepreneurs (And How to Survive Them)

Have You Ever Wondered Why Most Nigerian Businesses Don’t Make It Past 5 Years?

Untold Struggles of Nigerian Entrepreneurs (And How to Survive Them)

Let’s talk real talk…

Everyone hypes entrepreneurship in Nigeria like it’s the golden ticket to success.

They’ll tell you, "Just start something, be your own boss, money go flow!" 

But what they don’t tell you is this—90% of Nigerian businesses don’t survive past their fifth year.

I know a guy, Jerry. This guy had a dream—big one.

He started a logistics business in Lagos, bought two bikes, hired two riders. Everything was going well until reality hit him like a trailer with failed brakes.

First, one bike got seized by LASTMA. Then, the other rider disappeared with customers' packages.

When he thought things couldn’t get worse, fuel scarcity landed like thunder.

Customers started complaining, riders were demanding higher pay, and before he knew it, the business collapsed.

Sounds familiar?

If you’ve ever tried running a business in Nigeria, you probably have your own war stories.

But why is it so hard?

What are the real struggles, and how can entrepreneurs navigate them?

Let’s dive in!

What You Will Learn

• The biggest obstacles stopping Nigerian entrepreneurs from succeeding

• The shocking truth about funding, infrastructure, and government policies

• Practical strategies to survive and grow despite these challenges

• How other Nigerian entrepreneurs are overcoming the odds

Table of Contents

1. Limited Access to Funding

2. Poor Infrastructure

3. Inconsistent Government Policies

4. High Competition

5. Security Concerns

6. How to Overcome These Challenges

7. Frequently Asked Questions

   
   

Untold Struggles of Nigerian Entrepreneurs (And How to Survive Them)

Limited Access to Funding

Every Nigerian entrepreneur knows this struggle.

Banks will ask for collateral that even Dangote will think twice about.

Investors?

Good luck finding one that isn’t just looking for quick returns.

Here’s the reality: Over 60% of Nigerian startups fail due to lack of funding.

Many end up bootstrapping or relying on family and friends, but even that is not always enough.

So, what can you do?

• Explore grants and government funding programs (Tony Elumelu Foundation, BOI loans, etc.).

• Use crowdfunding and alternative funding sources like angel investors.

• Start small and reinvest profits instead of waiting for big capital.

Poor Infrastructure

Let’s not even sugarcoat it. Nigeria’s infrastructure is bad.

• Unstable electricity (say hello to expensive generators).

• Poor roads (bad for logistics businesses).

• Slow and expensive internet (stress for online businesses).

The government has been promising improvement since forever, but as we all know, na talk full ground.

So, what’s the way forward?

• Invest in solar power or inverters to reduce fuel costs.

• Optimize supply chains to deal with bad roads.

• Use multiple internet service providers to stay connected.

Inconsistent Government Policies

One day, the government supports businesses. The next day, new regulations drop like a bomb.

A classic example? The 2020 Twitter ban that affected thousands of businesses relying on social media ads.

How do you survive?

• Stay updated on policy changes affecting your industry.

• Have a diversified business model that doesn’t rely on just one platform.

• Join business associations to have a collective voice.

High Competition

If you think your business idea is unique, think again. There are probably 100 other people already doing it in your area.

So how do you stand out?

• Offer something different or better than the competition.

• Use strong branding and marketing.

• Focus on customer experience so people keep coming back.

Security Concerns

From armed robbery to cyber fraud, security is a big challenge. Businesses lose millions every year to theft and scams.

What’s the best approach?

• Invest in physical security and cybersecurity.

• Work with trusted partners and staff.

• Use secure payment methods to avoid fraud.

How to Overcome These Challenges

So, with all these problems, how are some Nigerian businesses still making millions?

The truth is, the real survivors are those who:

• Adapt fast to changing circumstances.

• Use technology to scale (e-commerce, fintech, automation).

• Build strong networks and leverage partnerships.

Success is possible, but only for those willing to fight through the struggles.

Frequently Asked Questions

What are the challenges faced by entrepreneurs in Nigeria?

Limited funding, poor infrastructure, government policies, competition, and security issues.

What is the biggest challenge facing entrepreneurs today?

Access to funding is the number one challenge.

Can businesses succeed in Nigeria despite these problems?

Yes, with the right strategy, resilience, and innovation, many businesses thrive.

How do I get funding for my Nigerian business?

Apply for grants, consider crowdfunding, and reinvest profits.

What’s the best niche for business in Nigeria?

Tech, finance, agriculture, e-commerce, and logistics are some of the top industries.

Final Thoughts

Running a business in Nigeria is not for the faint-hearted. From lack of funds to unstable electricity, entrepreneurs face serious wahala daily. But here’s the thing—success is still possible.

The key?

Adapt, innovate, and don’t give up.

The road is rough, but those who stay the course reap the rewards.

Now, over to you. What has been your biggest struggle as an entrepreneur in Nigeria? Share in the comments!

Simon Taki Zaku

Founder, CEO, IbiFoundry Limited

For the IbiFoundry.com.ng E-magazine.