Ranking the best Nigerian cities for starting a business in 2025

Factors such as access to finance, infrastructure quality, regulatory friendliness, talent availability and market size all influence a startup’s chance of success. In 2025, seven urban centres stand out for their balanced support systems and growth potential.

From the commercial vibrancy of Lagos to emerging clusters in the southeast, these cities combine local demand with improving business climates.

Below is our ranking of the top seven Nigerian cities in which to launch your enterprise this year, along with the key advantages each location delivers.

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Nigeria’s commercial nerve centre offers unrivalled market depth, a concentration of investors and the highest density of incubators and accelerators. World-class ports and transport links connect businesses to regional and international trade.

Access to skilled graduates from major universities and the largest consumer base make Lagos the premier launchpad for tech, retail and logistics ventures.

As the federal capital, Abuja benefits from relatively smooth bureaucratic processes, consistent power supply and greater security. Hosting government agencies and diplomatic missions creates opportunities in consultancy, event management and specialized services.

High disposable incomes among public-sector workers ensure demand for luxury and lifestyle brands, while the city’s planned infrastructure expansion continues to open up new commercial districts.

The oil and gas hub presents lucrative prospects for energy services, equipment leasing and industrial support firms. High per capita incomes fuel demand for hospitality, real estate and professional services.

The city’s strategic location on the Bonny River also supports marine logistics and agro-processing startups, tapping into both local production and export corridors.

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As northern Nigeria’s economic centre, Kano boasts established manufacturing clusters in textiles, food processing and leather goods. Lower operating costs and proximity to agricultural supply chains create openings for value-added agribusiness and light manufacturing.

Recent investments in railway rehabilitation and dry ports enhance connectivity to landlocked neighbours and expand market reach.

This fast-growing metropolis combines affordability with access to large consumer markets in Oyo State and beyond. Emerging tech hubs and university spin-offs foster innovation in health tech and agritech.

Improvements in road infrastructure reduce logistics expenses, while ongoing public–private partnerships aim to expand reliable power and broadband coverage.

Renowned for its vast wholesale markets, Onitsha offers instant access to a network of traders and retailers across West Africa. Entrepreneurs in consumer goods, fast-moving products and supply-chain solutions benefit from the city’s cash-and-carry culture.

Recent road upgrades along the eastern corridor enhance distribution efficiency to neighbouring states.

The oil-producing Akwa Ibom capital has diversified into construction, hospitality and creative industries. Government incentives for small and medium enterprises and the presence of offshore service companies fuel demand for specialized training, corporate catering and event planning.

Affordable office spaces and growing mobile penetration support digital startups targeting underserved local markets.

Each of these cities provides a unique combination of resources, markets and support structures. Choosing the right location based on your industry focus and operational needs will significantly boost your chances of building a successful business in 2025.

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