I have always wondered why every Business wants to set up in Lagos.
For most people, their mindset is that Nigeria starts and ends in Lagos.
There are some businesses whose Target Market do not form a critical mass of Lagos residents and thus should be strategically situated outside Lagos.
There are some businesses that cannot be profitable even if it is situated in Lagos
Several years ago, I was travelling from Lagos to Abuja by road and we passed through several villages and towns.
With the eyes of a Business Expert,I noticed that as we moved farther from Lagos,I saw several FMCG Brands i.e Soaps,Beer etc that I have never seen in Lagos visibly displayed and patronized by customers .
They were so popular in those locations that Household Walls,Roundabouts etc were branded in the toga of these brands.
These outside Lagos businesses were making cool money without the attendant multiple taxation,huge transport and logistic costs etc experienced in doing business in Lagos.
Nigeria Socio Economic class Dispersion clearly depicts that Lagos does not also have the HUGE population of Target Market that other regions have.
Available data shows that The High Net-worth Individuals (HNIs) – people in the A and B Socio-economic classes – are more clustered in Lagos than any other regions. The E-class have relatively insignificant presence in Lagos and South West, while they constitute more than 70% of the Northern population.(Source: AMPS 2019)
So if you are planning to set up a business for High Net-worth Individuals, Lagos might rank high in your consideration.
However,if you are going into a mass market business you probably should look up North.
Finally, there are more considerations before you take a final decision.
Consult a Business Expert who has current data on the Nigerian Socio Economic class Dispersion and who knows the Business terrain in Nigeria before you make that final call.
N.B-Featured Image credit to vc4a.com
NOSAK NIGERIA- Corporate Services , Corporate Communication, Business Development ,Integrated Marketing Communication ,Media and Legal Advisory Services .