Lagos ranks lower on ease of doing business than cities like Kigali or Addis Ababa. But still, it is one of Africa’s most profitable cities. The market is enormous, the hustle is real, and the return is massive if your business can handle the heat. But not everyone has the blueprint for proper Business plans in Lagos. So if you’re an entrepreneur seeking expansion, maybe the real question you need to ask isn’t just “Should I move to Lagos? But “Is my model resilient enough to survive Lagos?” e.g., with traffic jams, “no light”, and cash reliance.
In this post, we’ll go over how to turn your fragile plan into a Lagos-proof engine, pinpoint the actual causes of company failure in Lagos, and provide doable strategies for thriving there. Let’s dive in!
Most multinational startups treat Lagos like any other city in Nigeria. And that’s a huge mistake. Market entry in Lagos isn’t one-size-fits-all because Lagos is in a league of its own. For example, QuickMed, a startup insisting on app prepayment in Agege, got no patronage, but as soon as it switched to pay on delivery, it experienced a 300% increase in orders.
In Lagos, traffic can turn 30-minute deliveries into a half-day ordeal, and many customers prefer voice notes over email messages. It’s all about knowing the peculiarities of the city and building with that in mind!
In Lagos, trust is earned through recommendations. All you need is for someone to vouch for your product or services. A flashy logo means nothing if nobody’s talking about you. But get one respected celebrity, trader, or even omo-onile to vouch for you, and suddenly, their audience is your customer base. Simply put, your network is your net worth, and word of mouth moves faster than any ad campaign. Also, for effective communication, master and speak Pidgin when needed, and remember. Lagosians don’t care how global you are; just be legit.
Lagos absolutely supports premium pricing, but only when it matches clear value for the right segment. While mass-market customers budget in small amounts, high-income pockets in Lekki, Ikoyi, and Victoria Island consistently spend on luxury, quality, and convenience (NBS 2024 shows only 22% of Lagos households earn above ₦500k/month). The major key is segmentation: price for your audience, not the whole city.
You don’t need to scrap your business plans because of some little failures you experience from Lagos. Instead, check it from your client’s perspective: Can they reach you on WhatsApp at 9 p.m.? Can they pay cash if their card fails? Will your delivery survive a 3-hour Danfo jam? If any of this is a ”No”, that’s where you need to correct.
Next is to replace fixed monthly pricing with flexible, small-ticket options that match how Lagosians spend in small amounts. And also, don’t go on a large scale until you have achieved success on a small scale.
1. Design for Real Lagos Life: Build your plan around traffic jams, cash payments, data drops, and WhatsApp-first communication. If your model assumes smooth roads, stable power, or card payments only, it’s already weak.
2. Price Like a Lagosian Spends: Avoid spreadsheet-based pricing. Test real willingness-to-pay at bus stops and markets. Always remember that value beats affordability, but only if it is pocket-friendly.
3. Let Trust Drive Your Brand: Skip celebrity influencers first. Get testimonials from local traders, or market “aunties.” In Computer Village or Oshodi, a neighbour’s recommendation sells faster than any ad.
4. Hire from the Hood, Not Just the CV: Bring on local operators. They’ll spot blind spots you’d never see and turn chaos into your competitive edge.
5. Start Hyperlocal, Master One LGA, Then Scale: Don’t launch citywide first. Dominate Surulere, Yaba, or Mushin first. Nail delivery, refunds, and customer response time in one zone before expanding. In Lagos, reliability in one corner beats visibility everywhere.
Lagos is one of Africa’s commercial powerhouses, and only business plans that value agility and long-term growth will thrive there. By paying close attention to the city’s unique business landscape, you can steer clear of deadly business blunders and achieve resilient success.