Small scale manufacturing remains a viable sector in Nigeria but highly underrated as lots of Entrepreneurs are impatient & don't understand the sector.
Nafdac has an SME package now to Fastrack the ease of product registration for those starting small. See here , SON also has a similar thing. See here. The pandemic has also shown us how much the consumer goods industry can thrive even in the face of the harshest of conditions. So, now is the best time to be a small scale manufacturer. I know a guy that started detergent manufacturing a few years back in Nigeria and the growth has been consistent over the years.
You can learn how to make soap, detergent, etc, but without the right product & marketing mix, you won't make or sell anything. Knowing the right product is as important as knowing how to market it. The marketing side is a discussion for another day. I want to highlight some ideas for you if you're considering venturing into small-medium scale product manufacturing.
1. Custard, Cereal
I've lost count of new brands of this in the Nigerian market. Visit the Custard section in your local shop & you'd understand. Some even have flavours now like banana and so on. But have you wondered why new ones keep coming up? Demand & Supply, plus barrier to entry into the market - there's literally none. You can make these and start small scale, with the right distributor, you'd be in the big league soon.
2. Insecticide
Remember when Raid, Rambo & Mortein were the only brands? Lol, now there are 30 of them and more keep coming into the market. Again, this is representative of market conditions and how easy it is to enter the market. For you, you can also start small.
3. Detergents (liquid, bar and other types)
This can be in "bar" form, liquid or powdered. Honestly, this is one of the highly competitive products out there because of how easy it is to make these. But they're still selling, so why not.
4. Branded Paper/nylon bags
Here, i want you to focus and be strategic, Target a niche. You can target retailers for instance, if you land a big retailer with branches, you've hit jackpot. Imagine supplying the whole of Everyday Supermarket in Ph branded shopping bags or Market Square. Scratch that, go on Instagram & target vendors that sell hair, clothes, etc. Send them a sample, branded with their logo. You get the idea. Okay, if this doesn't work for you, target Pharmacies.
5. Glue or Adhesive
There are many forms for different surfaces, items or uses. But i want to draw your attention to the type used in plastic car parts, repairs by Mechanics. (if local production seems too complicated here), consider outsourcing to China.
6. Hair Dye
There are lots of these guys too. Most hair dye formulas are complex, with dozens of ingredients, and this differs considerably from manufacturer to manufacturer. My grandma used to make this back in the day, and she didn't have a factory, lol.
7. Brake Fluid
The bulk of these used in the Nigerian market are imported, most common of them is the A1 brake & clutch fluid. This is an indispensable companion to the driver or auto mechanic.
8. Butter & Margarine
A variety of these are used for domestic & industrial purposes, and this area is also highly competitive which means you stand a better chance if you target specific users. For instance, if you set out to create an affordable butter brand for small & medium sized bakers (confectioneries).
9. Dried Split Ginger, Garlic & Other Spices
You also see new brands of these every day in the market. For spices, you might be better off outsourcing manufacturing to China. See how here.
10. Aloe Vera/Coconut Oil Soap
These guys will swear Aloe Vera and Coconut oil was cure anything, lmao. People still buy these soaps & products everyday & surprisingly, they're easy to make. Someone started a mini factory in Benin making these recently.