In today's challenging economic climate, entrepreneurs are increasingly looking for ways to reduce operational costs and reinvest savings into growing their businesses. A recent analysis has identified seven Nigerian states where essential expenses—such as rent, utilities, food, and licensing—are consistently below the national average, making them ideal for small and medium-sized enterprises (SMEs).
These states not only offer lower living and business costs but also provide pro-SME policies like simplified registration processes, subsidized retail stalls, access to loans, and SME-targeted incentives. Here's a breakdown:
- Ondo State – Boasts the lowest inflation rate (13.4%) in the country. Entrepreneurs benefit from stable housing and food prices, government-subsidized market spaces, and an easy-to-navigate online registration platform.
- Cross River State – With 17.1% inflation, it offers affordable food prices and cheap business permits. Its emerging tourism and creative sectors in Calabar create unique opportunities for small businesses.
- Kwara State – At 17.3% inflation, Ilorin offers shop rentals at 30% less than the national average. The state waives startup licensing fees and provides no-interest loans to micro-enterprises.
- Osun State – Maintains low food and transport costs (17.8% inflation). Entrepreneurs can access matching grants and youth empowerment schemes in key sectors like fashion and agriculture.
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5. Ekiti State – With 18.2% inflation, Ekiti supports agribusinesses with duty-free equipment imports, subsidized industrial land leases, and mentoring through its Agro-Business Development Agency.
6. Delta State – Averaging 18.3% inflation outside oil hubs, towns like Ughelli and Asaba provide cheap utilities. SMEs benefit from marketing initiatives like "Made in Delta" and affordable co-working spaces.
7. Oyo State – Despite 18.7% inflation, Ibadan remains one of the most affordable major cities. Entrepreneurs gain access to low-interest loans, matching grants, and cost-effective retail locations.
By operating in these locations, Nigerian business owners can enjoy reduced overhead, allowing them to reallocate capital toward growth initiatives like inventory expansion, staff development, and market visibility—transforming tight budgets into long-term profitability.
