Thinking about buying an existing business instead of starting one from scratch? Smart move — if you do it right.
In this guide, we'll walk you through everything you must know to successfully buy a business in Nigeria today.

negotiating a sale and signing the documents

Why Buy a Business Instead of Starting One?

Starting from zero is hard:

You need capital.
You need time to build customers.
You face high failure risk.

But buying an already-running business gives you:

Existing customers and cash flow.
Established suppliers and vendors.
Tested products or services.
Immediate brand presence.

In Nigeria, especially in Lagos, Port Harcourt, Abuja, and growing cities like Yenagoa, smart acquisitions are how many entrepreneurs quietly build real wealth.

Things You Must Check Before Buying Any Business

1. Financial Health

Request full financial records: Bank statements, tax filings, sales reports for at least the past 2 years.
Check outstanding debts: Many businesses hide unpaid debts, staff salaries, rent, or government taxes.
Verify profitability: Not just revenue — focus on net profit after expenses.

Pro Tip: Always get an independent accountant to review the books before paying anything!

2. Reason for Sale

In Nigeria, people sell businesses for 3 main reasons:

Relocation
Burnout or loss of interest
Hidden financial trouble

Ask the owner directly why they're selling.
If it sounds too good to be true — dig deeper.

3. Legal Ownership and Documents

Verify CAC registration (Corporate Affairs Commission).
Confirm business licenses (especially for food, logistics, pharmacy, finance-related businesses).
Ensure assets (like vehicles, properties, inventories) legally belong to the business.

Important: Get a lawyer to do a background check. It's worth it.

4. Brand and Reputation

In today's Nigeria, a business's online reputation matters more than ever.

Search their name on Google, X (Twitter), Facebook, Instagram.
Check customer reviews and complaints.
Look into ratings on sites like Google Maps, business directories, Nairaland (sometimes).

A hidden reputation problem could kill your investment after buying.

5. Growth Potential

Before you pay a dime, ask yourself:

Can this business scale?
Is the market growing or shrinking?
Are there modern upgrades you can bring (online sales, digital marketing, better customer service)?

A stagnant business is a sinking ship.

Common Mistakes Nigerians Make When Buying Businesses

Rushing because of fear of missing out (FOMO).
Not getting professional help (accountants, lawyers, business valuators).
Ignoring online reputation.
Failing to renegotiate lease agreements (for businesses tied to a physical location).

Avoid these mistakes, Slow is smooth. Smooth is fast.

Where to Find Good Businesses for Sale in Nigeria

Word-of-mouth referrals
Business listing sites (like BusinessHub Nigeria, DealRoom, or even niche WhatsApp groups)
Networking events (Chamber of Commerce, entrepreneur meetups)
Direct approach to struggling businesses you admire

Smart Tip: Often, the best deals are never advertised publicly. Build relationships.

Final Thoughts: Is Buying a Business in Nigeria Worth It?

Yes — if you do your due diligence.
In 2025, Nigeria is wide open for business owners who can modernize traditional businesses and unlock their true value.

Whether it’s a mini-mart, small logistics company, pharmacy, or even an online store, buying smart could be faster than starting from scratch.

Ready to Take the Next Step?

Stay tuned to The Lifesmith Club — We'll soon share step-by-step playbooks for negotiating, funding, and scaling your newly acquired business!