Did you know that 80% of Nigerian businesses crash within their first five years? Not because the idea wasn’t good but because the planning was just based on vibes. The excitement of launching something new is real, and so is the risk of failing.
Picture This: Mr. Segun starts a photography business. He captures memories perfectly and starts getting booked for small events like children’s birthday parties. Two years later, he’s tired, confused, and unsure about what type of photography to pursue. His business is crashing.
To be honest, this is how it is for many Nigerian entrepreneurs, and it shouldn’t happen to you either. This article will explain reasons why most Nigerian businesses fail, using real-life examples, and show you steps to help you succeed.
Key Insights
Lack of planning and market research is a major reason many Nigerian businesses crash early.
Mixing personal and business finances leads to confusion, poor tracking, and unplanned spending.
Weak branding and poor customer experience make people stop buying from you, even if your product is great.
- Focusing only on daily sales instead of long-term customer retention weakens business sustainability.
5 Common Mistakes Nigerian Businesses Make (And What To Do Instead)
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Not Knowing What You Are Doing
Let’s be honest, too many people jump into business with “we’ll cross that bridge when we get there,” because they saw someone selling bags online and think it’s easy money. You go into it—no research, no plan, not even a pricing strategy. It isn’t all “vibes and Insha Allah.”
Why This Fails:
When you fail to plan, you plan to fail. You’ll make mistakes and even undercharge. You won’t even know whether your business is succeeding.
Example:
Mama Bola sells food beside a school. She thought, “Students will always buy from me because they love my food.” But she never checked the school calendar, so she ran out of money during the long holiday.
How to Fix This:
- Ask questions: Who is your customer? What are your competitors doing—and how can you stand out?
- Draw a simple business plan: Just 1–2 pages showing your product, target audience, costs, and goals.
- Do a test run: Try selling to friends or family first, and ask for honest feedback.
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Having Your Personal and Business Finances In The Same Bank
This is a trap. You might not know, but putting the money you earn from your business into your personal account is an issue—the same bank you use for your Uber, Chowdeck, and skincare.
Example:
Sewa sells lip care products. She collects all her payments into her personal bank account—the same one she uses for food, transport, and even partying. When it’s time to restock, she’s clueless about where the money went.
Practical Steps:
- Open a separate business account: Even digital banks like (Kuda or Palmpay) will do.
- Track your expenses: Use Google Sheets or a simple notebook to monitor cash flow.
- Pay yourself: Decide on a fixed weekly or monthly salary to compensate yourself and stick to it.
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Your Branding and Customer Experience Are Mid
Nigerian business owners forget that branding is not just about logos and aesthetics—it’s about how people feel when they interact with your business. Are you rude? Do you deliver late?
Why This Is Important:
People don’t patronize you because you sell cheaper; they buy because they can trust you to deliver.
Example:
Patrick and Israel both sell sneakers in Ikeja. Patrick uses WhatsApp status with blurry photos, responds rudely, and delivers late. Israel posts high-quality reels on Instagram, responds politely, and even adds thank-you notes. Guess who people will patronize more?
What To Do Instead:
- Use clean design templates for Instagram, WhatsApp, and your price lists.
- Keep your replies warm and respectful.
- Solve issues calmly and offer quick solutions.
- Fix your packaging
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You Are Doing Everything Alone (One-Man Mopol)
You design, post, reply to DMs, handle orders, and track payments alone. While it may work for a while, it’s a fast path to burnout and chaos. You’ll start forgetting tasks, missing orders, and getting overwhelmed.
Example:
Tola launched a pastry business. She baked, packaged, handled deliveries, posted content, and took orders—all by herself. By the third month, Tola was too tired to keep up. She stopped posting, and her business began to crumble.
How to Ease the Load:
- Use WhatsApp and Instagram auto-replies to make your work easier.
- Hire small: a delivery guy, a virtual assistant, or graphics designer.
- Use tools:
– Notion (for keeping track)
– Google Forms (if you’re tired of “Send your order in the DMs”)
– Canva (because no one has time to beg a designer every week)
- Take breaks, you are not a machine.
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You Are Only After Daily Sales
It is easy to focus only on today’s sales, but that mindset won’t grow your brand. You need loyal customers, not just random one-time buyers.
Why This Won’t Work:
You will be all about new customers instead of building loyal ones who buy again and refer others.
Example:
Katherine sells shades at Berger. She does well during the dry season. But when the dry season is over, she doesn’t make sales again. No follow-up, no plans, nothing.
Do This Instead:
- Build a list: Use WhatsApp groups, email lists, or Google Forms.
- Offer deals: “Buy 5, get 1 free” or special holiday discounts.
- Review monthly: What worked? What flopped?
Read Also
Maximizing WhatsApp Business: A Growth Tool for Entrepreneurs
How to Set Profitable Prices for Your Product as a Nigerian Business Owner
Top 10 Small Business Tools to Skyrocket Your Business
What You Need to Do Before Building a Business Website
Conclusion
Running a business in Nigeria is tough—NEPA drama, expensive things, data will finish, and there is always someone selling what you are selling. But Nigerian businesses don’t fail because they lack good ideas. They fail because they don’t have enough planning.
You can do better. Know what you want. Don’t be harsh to your customers. Be in control of your money. Starting a business is real. But the real win is when your business is still booming four years from now. Build a business that can survive without you.
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