I had a shop few years ago but had to close it down due to the stress of owning a shop in Lagos.

There are just too many levies associated with owning a shop and if you aren't careful, you'd be working for these people.

Then I used to pay the following:

Shop Rent = 8,000 monthly (for two shops)
NEPA BILL = 2,000 - 5,0000 monthly
SHOP Permit =5,000 yearly
Lawma = 300 - 500 monthly
Security = 2,000 monthly
Reconnection= 300 for whenever the light was disconnected.
Transport = 5,000 monthly
Feeding Nil as I always brought food from home

Total = 18,000 to 23,000 monthly

Which means I needed to make at least 18,000 monthly to not be running at a loss. Whatever else I made was then my profit.

At the end, I did a rethink and felt owning a shop was slavery and not just worth it in this part of the country.

Please share your own experience owning a shop in Lagos.

Because Lagos runs an extortionist system. Simple

It depends on the type of business.

For businesses like mine, owning a shop is importanter. I’m into computers and accessories and some days we make the money for shop rent and those other fees rendering services aside sales of laptops, computers and accessories. The type of business is really key.

Godmother:
I had a shop few years ago but had to close it down due to the stress of owning a shop in Lagos.

There are just too many levies associated with owning a shop and if you aren't careful, you'd be working for these people.

Then I used to pay the following:

Shop Rent = 8,000 monthly (for two shops)
NEPA BILL = 2,000 - 5,0000 monthly
SHOP Permit =5,000 yearly
Lawma = 300 - 500 monthly
Security = 2,000 monthly
Reconnection= 300 for whenever the light was disconnected.
Transport = 5,000 monthly
Feeding Nil as I always brought food from home

Total = 18,000 to 23,000 monthly

Which means I needed to make at least 18,000 monthly to not be running at a loss. Whatever else I made was then my profit.

At the end, I did a rethink and felt owning a shop was slavery and not just worth it in this part of the country.

Please share your own experience owning a shop in Lagos.

....Physical shops are no longer a feasible and reasonable way of marketing goods in Nigeria, its Online Business , that make all the money this days , When I mean online I mean Websites, make use of the social groups at your disposal , I remember when I had an IT shop selling gadgets and smartwatches in Opebi my business packed up within a year, I was downcasted a bit then I thought of the enormous potential of Nigeria's population , I mean 60% percent of Nigerians now browse the internet that's like 17 billion people easily, I started with paying some admins on Facebook with large groups so I can post my merchandize after a month I made over 200% profit , then I invested , I levereged on my Web design and IT skills so i created a top notch E-Commerce website like jumia and also bought 5 large Facebook groups of my own , now all my selling is done on those groups with ease of mind and major profits all round and I even rent out advertisement spaces to upcoming marketers and they too have been thanking me that they have never had it so good!

Move your business online while you still can .....

Sometimes I wonder how these shop owners break even talkless of making profits. As if the shop rents are not expensive enough, state will want to tax you, local government will want to levy you, even area boys will come for their share. As if those are not bad enough, customers will be haggling your goods at ridiculous prices (some will even pilfer right beneath your nose), your sales boy/girl will be looking for ways to steal from you without getting caught. Shop owners are trying biko, it takes a lot of discipline and shrewdness to maintain a shop in Lagos.

Easier to do business in Ibadan



Than lag

No wonder some things are expensive in Lagos.

For example, food items.

Last time I was in Lagos, I went to the market and felt like I was being robbed.

Semo of 350 per 1kg in Abuja is sold for 400 in Lagos.

With 500 in Abuja, I can buy shoko for 100 naira, pepper, 50 naira, small Titus fish, 250 naira and kpomo 100.

In Lagos, that money na just for shoko and kpomo.

Lemme learn too

op you're on a small scale, some serious business person will read your post and just smile



The young shall grow

Check Magboro landlord sef will pay u

It depends on your area and your pocket. I always tell people even though no more spaces in Lagos but if you have money I mean enough cash you can build house anywhere you like. Take for instance Dangote comes to me that he wants to buy my house for say 500m I will jejely collet money relocate.

But Incase you need shop space anywhere on Mainland you can chat me up.

I know a man who has 8 shops in Lagos ( mini mart ) and a woman with 4 shops(stationeries)
Now the question is how close are you to the main road/bus stop .

It depends on the area. Go to Ijeododo

dominique:
Sometimes I wonder how these shop owners break even talkless of making profits. As if the shop rents are not expensive enough, state will want to tax you, local government will want to levy you, even area boys will come for their share. As if those are not bad enough, customers will be haggling your goods at ridiculous prices (some will even pilfer right beneath your nose), your sales boy/girl will be looking for ways to steal from you without getting caught. Shop owners are trying biko, it takes a lot of discipline and shrewdness to maintain a shop in Lagos.

Concerning that of sales boy and girl
My dear na where them for dey work na im them dey chop

That is why it is called workshop

Ordinary 18k? Na tomatoes and crayfish u dey sell? Sorry am asking o

Godmother:
I had a shop few years ago but had to close it down due to the stress of owning a shop in Lagos.

There are just too many levies associated with owning a shop and if you aren't careful, you'd be working for these people.

Then I used to pay the following:

Shop Rent = 8,000 monthly (for two shops)
NEPA BILL = 2,000 - 5,0000 monthly
SHOP Permit =5,000 yearly
Lawma = 300 - 500 monthly
Security = 2,000 monthly
Reconnection= 300 for whenever the light was disconnected.
[s]Transport = 5,000 monthly
Feeding Nil as I always brought food from home [/s]

Total = 18,000 to 23,000 monthly

I don't see a problem with the above list.

RENT - 8000 monthly for 2 shops is very very cheap. Outskirt of Lagos, perhaps? Or main markets?

NEPA Bill - Yea, I think the bill is outrageous, but N2000 monthly for 2 shops? That's cheap, ma.

LAWMA - N300 monthly? So o?! You want to pay N30??

SHOP PERMIT - A form of taxation? N400 monthly? Not bad

SECURITY - You mean Vigilante levy? Angels can't protect the total number of shops in Lagos.

RECONNECTION - That happens when people fail to pay their bills on time. Be thankful you run on estimated billing. You can't share prepaid metre in peace with other shop owners.

You know why I cancelled transport and feeding, right?
Well, from what you've posted, your monthly operating expense for 1 shop is less than N10,000, rent inclusive. This is a very good deal if you ask me. I guess you just did not do a proper feasibility study.

dominique:
Sometimes I wonder how these shop owners break even talkless of making profits. As if the shop rents are not expensive enough, state will want to tax you, local government will want to levy you, even area boys will come for their share. As if those are not bad enough, customers will be haggling your goods at ridiculous prices (some will even pilfer right beneath your nose), your sales boy/girl will be looking for ways to steal from you without getting caught. Shop owners are trying biko, it takes a lot of discipline and shrewdness to maintain a shop in Lagos.

It depends on the kind of business you do and more importantly, the location.

Godmother:
I had a shop few years ago but had to close it down due to the stress of owning a shop in Lagos.

There are just too many levies associated with owning a shop and if you aren't careful, you'd be working for these people.

Then I used to pay the following:

Shop Rent = 8,000 monthly (for two shops)
NEPA BILL = 2,000 - 5,0000 monthly
SHOP Permit =5,000 yearly
Lawma = 300 - 500 monthly
Security = 2,000 monthly
Reconnection= 300 for whenever the light was disconnected.
Transport = 5,000 monthly
Feeding Nil as I always brought food from home

Total = 18,000 to 23,000 monthly

Which means I needed to make at least 18,000 monthly to not be running at a loss. Whatever else I made was then my profit.

At the end, I did a rethink and felt owning a shop was slavery and not just worth it in this part of the country.

Please share your own experience owning a shop in Lagos.

I own two shops and do not experience any of this. You can't also calculate your yearly running costs with your monthly running costs.

maybachmusic:
Easier to do business in Ibadan



Than lag

What the rent like

This is not that much honestly ! I was prolly thinking of seeing 500k-2M a month.

Depends of what you selling and how the profit margin looks like . Your monthly stipend might be the cheapest around Lagos.

bloda...just use that your shop for barbing...you will never regret it........thank me later

That’s not too much for 2 shops tbh! But it’s all gonna depends on if your making your profit off or not!

This calculation shows the person doesn't know how to run a business.

Deduct Transportation cost of 5k, it shouldn't be added to your shop costs.
Deduct 5k for Shop permit. Divide 5k by 12, that's 416.6 Naira per month.

Your costs are still very very reasonable in a city like Lagos. If it's too much, consider switching to a food or food-related business. Food business is lucrative in Lagos. 20M hungry people is a market you should look at.

Godmother:
I had a shop few years ago but had to close it down due to the stress of owning a shop in Lagos.

There are just too many levies associated with owning a shop and if you aren't careful, you'd be working for these people.

Then I used to pay the following:

Shop Rent = 8,000 monthly (for two shops)
NEPA BILL = 2,000 - 5,0000 monthly
SHOP Permit =5,000 yearly
Lawma = 300 - 500 monthly
Security = 2,000 monthly
Reconnection= 300 for whenever the light was disconnected.
Transport = 5,000 monthly
Feeding Nil as I always brought food from home

Total = 18,000 to 23,000 monthly

Which means I needed to make at least 18,000 monthly to not be running at a loss. Whatever else I made was then my profit.

At the end, I did a rethink and felt owning a shop was slavery and not just worth it in this part of the country.

Please share your own experience owning a shop in Lagos.

What area is this so I can come and take over the shop if you don't mind.

Just2endowed2:


What the rent like

Lots of shops In the 100k to 200 region per annum

Difficult 'Having' a shop or difficult 'Owning' and 'Running' a shop

Why not opt for online marketing and home delivery, pending when you'd save enough to comfortably run a shop

Angelb4:
It depends on the area. Go to Ijeododo

You no nice...
That place is a forgotten zone....

Why do you think online stores are littered on every nooks and crannies of social media?
I remember renting a shop in 2011..naive me!

All the money I gathered from selling my products online, I carry am give agent and landlord. I fix and repair and up to TASTE.. spent all my money making the shop look attractive and all..
Hmmmm... I dey remember this thing I wan cry sef

In one week nobody has checked to see what I sell. Na products wey I no get them go dey ask me.
I was still managing my online store as that one was bringing small change.
After 6 months, I couldn't even make the transportation fare I spend from my house to the store anymore. Then I knew.. This shop matter no dey part of my destiny at all at all!

I sublet the shop to an interested person, moved all my products to my house. But I felt horrible and almost depressed everyday I wake up to see my products in my room.

But hey! It's 8years now and I still won't take a shop!! Maybe when I blow well sha.

Truth is if you don't have a strong financial backup, don't even bother renting a shop.

Have you been to Lagos Markets?
You'd cry at the extortion going on there.
They pay even for the signage in front of their 4x4 shops.

It's even easier to do business in the streets.

yettymuse:
Why do you think online stores are littered on every nooks and crannies of social media?
I remember renting a shop in 2011..naive me!

All the money I gathered from selling my products online, I carry am give agent and landlord. I fix and repair and up to TASTE.. spent all my money making the shop look attractive and all..
Hmmmm... I dey remember this thing I wan cry sef

In one week nobody has checked to see what I sell. Na products wey I no get them go dey ask me.
I was still managing my online store as that one was bringing small change.
After 6 months, I couldn't even make the transportation fare I spend from my house to the store anymore. Then I knew.. This shop matter no dey part of my destiny at all at all!

I sublet the shop to an interested person, moved all my products to my house. But I felt horrible and almost depressed everyday I wake up to see my products in my room.

But hey! It's 8years now and I still won't take a shop!! Maybe when I blow well sha.

Truth is if you don't have a strong financial backup, don't even bother renting a shop.

There is a payment startup that clocked 1Billion Naira worth of payments processed last year. As at when they clocked a billion Naira, they didn't rent an office, they were working online and from a virtual office.

In this Lagos, except you have compelling reasons to open an offline store, it is better to stay online and advertise vigorously. If you have orders, use delivery bikes. If you have meetings, use taxify.