Meet capital-starved entrepreneurs

By our reporters

In a country grappling with soaring inflation, rising unemployment, and a drastic reduction in purchasing power, coupled with limited access to capital, millions of Nigerians wake up daily to a difficult reality of survival.

Many aspire to be entrepreneurs but are confronted with the challenge of capital, especially given the high borrowing costs within the country’s financial ecosystem.

For aspiring entrepreneurs, starting a business isn’t always a tea party. Depending on the nature of the business, it most often requires capital. The prospective entrepreneurs would have to raise funds, secure loans, rent shops, and a whole lot of activities that require capital in order to keep the business started and going.

However, commercial bank loans are often inaccessible to low-income earners, while microfinance facilities frequently come with conditions many can’t meet, and at the same time, the cost of living continues to rise, leaving little room for savings.

Yet, across Nigeria’s cities, towns and villages, countless individuals continue to prove that entrepreneurship doesn’t always begin with money, but often begins with resilience, determination, and an ability to identify opportunities hidden within everyday life.

From water vendors in Bayelsa and bun sellers in Port Harcourt to market middlemen in Kano, domestic cleaners in Ilorin, and thrift clothing traders in major urban centres, Nigerians are building livelihoods from almost nothing, completely from scratch.

Their stories reveal a thriving informal economy where ingenuity frequently substitutes for capital and where survival itself becomes a form of entrepreneurship.

According to an Abuja-based entrepreneur, Precious Nandom, difficult economic conditions have forced people to become more resourceful.

“Entrepreneurs are compelled to think critically about how to make the most of limited resources, relying on personal skills, leveraging relationships, or turning hobbies into income streams,” she said.

Selling water without owning water

In Bayelsa State, where access to clean water remains a daily challenge in many communities, one man’s determination turned a simple observation into a profitable business.

For years, Bobito Sokari has earned a living as a water vendor in the Onopa area of Yenagoa without investing a single Kobo.

Rather than remain unemployed, he sought an arrangement with a borehole owner in his neighbourhood.

He noticed that the borehole operator possessed a truck and several jerrycans that were occasionally lent to customers. Seeing an opportunity, Sokari approached the owner and proposed a partnership.

Under the agreement, he used the truck and jerrycans to fetch and distribute water to households and settle payments after making sales.

The arrangement required trust rather than cash, one that instantly paid off for him.

“I didn’t need capital or any amount of money to start this business,” Sokari recalled.

“I decided that instead of staying in the house idle or joining bad boys, I should find something to do for myself.”

Initially, he bought water at N40 per jerrycan and sold it for N80. By delivering directly to customers’ homes, particularly busy workers who lacked the time to fetch water themselves, he quickly built a loyal customer base.

He stated that through consistent earnings, he has been able to save money to purchase his own truck and containers.

Today, despite rising operational costs caused by higher fuel prices, the business remains profitable for him.

“Now I buy a jerry can for N70 and sell it for N150. I still make my profit,” he said.

Also, in Port Harcourt, Rivers State, another entrepreneur found a way to earn income without spending money up front.

Adamma Chinaza, a buns hawker at Waterlines Motor Park, started her business shortly after the COVID-19 pandemic disrupted economic activities and left many families struggling.

With little money available and few employment opportunities, she searched for alternatives.

Her breakthrough came when she approached producers who fried buns in large quantities and asked if she could sell their products based on commission.

The arrangement was simple. She would collect the buns, sell them at motor parks, return the agreed amount to the producers, and keep her profit.

The only item she brought into the business was a transparent plastic container.

“I didn’t have much money on me a few years ago,” she said.

“God directed me to where they fried buns in large quantities, and I approached them.”

The trust-based model worked because the producers knew where she lived and sometimes required community figures, including church leaders, to serve as guarantors.

By consistently returning proceeds, Chinaza said she gradually built credibility and financial stability.

Eventually, she saved enough money to diversify into selling zobo drinks, which complemented her buns business.

Today, travellers and drivers often buy both products together, increasing her daily earnings.

Sachet water hawkers and the commission model

The commission-based approach is also common among sachet water hawkers.

At Waterlines Motor Park, also in Rivers State, Amarachi Ubima survives by selling sachet water supplied by major distributors.

Like Chinaza, she didn’t need start-up capital. According to her, distributors provide both the water and containers used for transportation.

The hawkers simply collect one or more bags of water, sell them throughout the day, return the principal amount to the suppliers, and keep the difference as profit. They have refrigerators which they use in cooling the water,” she explained.

“All we needed to do was to go get a bag or two in the container they provided. After selling, we give them their money and go home with our profit.”

The model allows individuals without savings to participate in business while suppliers expand their distribution networks without employing salaried workers. A model which works for both partners.

For many young Nigerians, such arrangements serve as entry points into entrepreneurship.

Kano’s invisible entrepreneurs

At Kantin Kwari Market, regarded as West Africa’s largest textile market, a unique category of entrepreneurs thrives without owning an inventory or operating shops.

Known locally as “Ka Yi Na Yi,’ these middlemen earn income by connecting buyers and sellers.

Their work relies entirely on market knowledge, negotiation skills, and personal networks.

A typical transaction begins when a customer enters the market looking for a specific textile product.

The middleman approaches the customer, identifies the desired item, and directs the buyer to the appropriate shop.

Once the sale is completed, the shop owner rewards the middleman with a commission from the profit.

In another variation, the middleman negotiates directly with the customer.

Because he understands prevailing market prices and knows where products are located, he purchases items from dealers at lower rates and resells them to customers at agreed prices, earning income from the margin.

Bello Sani, a trader at Kantin Kwari, notes that many people who lack shops or start-up capital depend on this system for survival.

“Kantin Kwari Market is big, and customers from outside Kano don’t know every part of the market. This allows the Yan Ka Yi Na Yi earn from transactions,” he said.

The system is particularly attractive to traders who have lost their businesses through bankruptcy.

Rather than exit commerce entirely, they leverage their knowledge and contacts to remain economically active.

The Ka Yi Na Yi people are also in Sabon Gari Market, Singer Market, and livestock markets across Kano.

At animal markets, middlemen assist buyers in identifying healthy livestock and receive commissions known locally as “La’ada.”

A successful goat or ram transaction may earn them between N500 and N1,000, while cattle transactions can generate as much as N5,000.

Their product isn’t  all about inventory taking but expertise.

Also, in Kano’s cement trade, commission-based distribution has become a lucrative occupation.

Large cement dealers often entrust middlemen with distributing truckloads to retailers across the state.

One such operator, Sani Maigemu, earns commissions on every bag sold. A typical truck carries about 900 bags of cement. Depending on market conditions, he earns between N30 and N50 per bag.

At N50 per bag, a single truck can generate N45,000 in commissions.

According to Maigemu, he often handles multiple trucks daily. “In a single day, I can sell between 20 and 30 trucks of cement through distribution to smaller dealers or sale outlets,” he said.

His earnings demonstrate how information, logistics coordination, and business relationships can become valuable assets even in the absence of financial capital. If  he makes N45,000 profit per truck and sells at 2o trucks a day, that comes to N900,00 profit daily without a single capital invested in the business asides trust.

Domestic cleaning jobs as a lifeline

In Ilorin, Kwara State, Mrs Stella Olunife Abejide survives through domestic cleaning jobs in homes and offices.

Unlike traders or middlemen, her business requires no merchandise, equipment, or inventory.

Her labour is her capital. Yet, despite working hard, she says survival remains difficult.

“It’s not easy to survive at all with the present economic situation in the country,” she lamented.

She earns about N2,000 for cleaning jobs and around N1,500 for laundry, though work is often irregular.

“Most times, I only get one customer in a day, and you don’t  get jobs throughout the week.”

The challenges extend beyond low earnings.

Many clients complain about completed work, while some assignments require carrying water over long distances due to a lack of running water.

Nevertheless, she continues because there are few alternatives.

Her experience reflects the reality of millions of Nigerians whose entrepreneurship is rooted not in ownership but in -service provision.

Without capital, they sell time, effort, and skill.

‘Why Nigerians are choosing no-capital businesses’

Commenting on the trend, Prof. Gafar Ijaiya, an economist, said the growing number of Nigerians taking up domestic and low-capital jobs reflects an expansion of the informal labour market rather than an entirely new phenomenon.

According to him, occupations such as home cleaning, laundry services, cooking, gardening, and other household services have existed for years but have become more visible because of prevailing economic realities.

“We have always had the informal labour market where people gather to offer services such as bricklaying, painting, tiling and other artisan jobs. What we are seeing now is simply an extension of that arrangement,” he said.

He explained that many Nigerians are increasingly searching for additional sources of income to complement their earnings as rising living costs continue to put pressure on household finances.

“Because of the current prices and economic conditions, people are looking for secondary sources of income. Many people no longer want to depend on only one source of income. They want something that can supplement or complement what they already earn,” Ijaiya said.

The economist notes that the trend mirrors what obtains in many developed countries where residents engage in multiple jobs, including domestic and care services, to improve their incomes.

He said Nigerians abroad often take up similar jobs in countries such as the United Kingdom, Canada and the United States, where they are paid on an hourly basis.

“The type of jobs people do overseas in the name of Japa are not necessarily different. Many people work in social care, domestic services and other support services. What appears attractive is the value of the earnings when converted to Nigerian currency,” he added.

Ijaiya observed that the sector has grown significantly in recent years, with many service providers now openly advertising laundry, cleaning, gardening and household services in neighbourhoods and on social media.

“It has become so prominent that people now advertise themselves. You see signboards offering laundry services, house cleaning and environmental sanitation. Some people even move from house to house asking residents if there is any work available,” he said.

He stressed that there should be no stigma attached to such occupations, noting that many people engage in them either as part-time jobs or as a means of survival.

“It’s not about shame. It’s about earning a living, either to supplement income or to support oneself,” he said.

The professor also pointed to the increasing demand for social care services, particularly for elderly persons whose children live abroad or outside their communities.

According to him, professional caregivers and domestic support workers are becoming increasingly important, similar to practices in developed countries.

However, he advised households seeking such services to exercise caution for security reasons.

“If people want to engage domestic workers, they should hire people they know, people living within their communities, or those recommended by trusted individuals or agents,” he said.

He further recommended the gradual formalisation of the sector through proper identification and registration of workers and agents to address security concerns.

“We have to be careful. There should be a way to identify and trace people engaged for these services. Proper documentation and trusted agents can help address security concerns,” Ijaiya added.

Contributions from Mumini Abdulkareem, Ilorin; Philip Shimnom Clement (Abuja); Ahmad Datti, Kano; Bassey Willie, Port Harcourt

UPDATE NEWS:

Nigerians can now invest ₦2.5 million on premium domains and profit about ₦17-₦25 million. All earnings paid in US Dollars. Rather than wonder,

click here to find out how it works.