Dropshipping business in Nigeria, as you might have learned, is currently one of the biggest business ideas to make hefty and income online, provided you choose the right e-commerce platforms available for dropshipping. In fact, after cryptocurrency (which is even risky), there’s no other legit business you can invest in, and earn substantial money.
Many smart entrepreneurs like you have made and currently, making thousands of dollars with dropshipping business after their initial and once-in-year investment. I know you’re also ready for this but before getting started, you need to be enlightened on choosing the right e-commerce platform that’ll be good for you.
There are lots of e-commerce platforms to build your dropshipping business in Nigeria but I’ve tailored it down to the top 5 of them.
Permit me to ask you this; do you know what dropshipping is all about?
I believe some of you know it and with confidence, you can say something about it. But in case of those guys who are hearing it for the first time or would like to know more, let recapitulate what dropshipping is all about.
What is Dropshipping?
Dropshipping is part of e-commerce business in Nigeria that deal with selling of products you really don’t have in stock. This involves partnering with a large e-commerce marketplace website with option for dropshipping and help them sell in return for commission.
But wait; don’t mix dropshipping up with “affiliate marketing”.
You all know Alibaba.com – The biggest e-commerce platform in China, you can use a plugin popularly known as “Alidrop” on WordPress to dropship their products to your own website and make money online in Nigeria.
The word “clone” would have been better to describe this. But because dropshipping is 100% legit, I won’t use such phrase.
How Dropshipping Business Work in Nigeria
In simple explanation, it’s just when you are sitting in your room but you put a banner outside your house that you sells “ice cream”.
Meanwhile, you don’t sell anything not to talk of ice cream but you have a friend nearby who sells ice cream.
So whenever customers comes for ice cream, you’ll immediately call your friend and he will come to deliver the ice cream instantly. To appreciate what you’ve done, your friend will give you a token.
Let say he gives you $5 on every $50 ice cream he sell through you, it means you’ll be making $100 on every $500 he sold.
If this continues, you’re going to keep making money selling ice cream without actually selling it yourself.
This is the best explanation to give on dropshipping business in Nigeria.
The “banner” you need to put outside your house to attract customers is when you choose the right e-commerce platforms for dropshipping. While the process through which people see the banner and your friend come to deliver the ice cream is called “dropshipping”.
Now you may be asking……
What are the benefits of starting a dropshipping business in Nigeria?
The benefits are as follows:
- You earn passive income without leaving your house
- Unlike other e-commerce business, you don’t have to own any goods in stock or in warehouse
- You don’t have to fear that a cargo is coming on sea
- You don’t have to deliver any goods purchase from your dropshipping store
- You don’t have to be afraid or trouble when customer doesn’t like the delivered goods
- Everything is automated, so no manual settings
- You can also do another job and still, make money on dropshipping business
- And so many benefits…
But you’re going to enjoy these benefits if you set up your store using one of these trusted platforms for dropshipping business available for Nigerians:
Top 5 E-Commerce Platforms for Dropshipping Business in Nigeria
Shopify tops our list of top E-commerce platforms for dropshipping business in Nigeria. Currently, there more than 800,000 stores which is powered by Shopify. This figure keeps increasing as the years go by, this has been the case for the past thirteen years.
I’m sure you will want to know why Shopify is used mostly for dropshipping and I’ll tell you.
Many reasons has led to store owners adopting Shopify as their preferred platforms. With Shopify you get access to lots of themes that should make your store amazing leading to more customers. There are more than 70 professional themes created by expert designers.
Besides this, you also get the chance to customize your store, tune it to your taste using the provided templates. These templates have been created to keep your store mobile friendly which is required in order to grow in dropshipping.
In terms of security, all stores powered by Shopify comes equipped with a 256 bit SSL certificate which secures customer’s personal details. Major forms of payments are supported and secured with security similar to those used by banks.
If you’d like to go with Shopify, here are some pros and cons you need to consider;
(PROs) Benefits of using Shopify for Dropshipping Business in Nigeria
- Getting started with Shopify is pretty easy and straightforward with various templates to choose from.
- Customer support is great—a live chat, phone and email support channels is available to customers 24/7.
- You can set up a store with multiple languages.
- There are tons of themes to choose from.
- Security is provided by default to all stores—you don’t pay extra for this.
(CONs) Demerit of using Shopify for Dropshipping Business
- SEO isn’t top notch and it’s sadden.
- Expensive for beginners
This is plugin from WordPress which powers most of the world’s e-commerce platforms. WooCommerce is been used in 30% of active online stores. This platform can be likened to Linux open source system—its open source thereby supporting lots of customization.
WooCommerce give you lots options to tweak things up, even more than shopify.
WooCommerce comes with lots themes—as it should. There are unlimited themes to choose from which comes by default, there also theme providers which create themes that are readily compatible WooCommerce.
Still on customizations, there are many templates — hundreds of them which makes customizing seamless and straightforward.
Unlike Shopify, hosting doesn’t comes by default, there lots of hosting providers to choose from, Bluehost is recommended and there are many more to choose from such as Namecheap, Siteground etc.
SEO is great, using WooCommerce ensures better SEO performance among all other e-commerce platforms for dropshipping business in Nigeria.
Some advantages and disadvantages this platform if you choose to go with this platform are as follows:
(PROs) Benefits of using Woocommerce for Dropshipping business in Nigeria
- Great SEO performance
- Lots of themes and templates to spice up your e-commerce website.
- Seamless social media integration into your online store.
- Multiple form of payments to choose from
- Plugins are available for almost everything you want to do
CONs of using Woocommerce for dropshipping
- Below par customer support
- Poor multi-lingual support
Magento is another top E-commerce platform for dropshipping business in Nigeria, they make owning an online store quite easy. There are lots of cool features available when using Magento for dropshipping.
Opening an e-commerce store using Magento doesn’t require much of technical knowledge, you are provided with lots of easy to customize templates. Using these templates, you don’t need to build from scratch, just drag and drop, and you’re good to go.
Aside templates, there is a page building tool that lets you edit individual pages.
Stores created on the Magento platform are well optimized for every device—they are mobile friendly. With this, SEO performance is better.
Security wise, Magento is compliant with level 1 PCI, this provides adequate security for its users.
(PROs) Benefits of using Magento for Dropshipping Business in Nigeria
- Ease of use
- Highly customizable
- Awesome security system
- Good customer support
CONs of using Magento for Dropshipping
- Relatively expensive
BigCommerce is another top brand that makes it to our list, they strife to give customers a worthwhile dropshipping experience with their wide array of products and services.
In 2009, BigCommerce was launched and since then they’ve powered lots of e-commerce websites, making over $200 million in profit.
Aside making profit, they do provide great services to all customers. Like with most platforms, they provide lots of themes to aid customization easier. With BigCommerce, your dropshipping store is well optimized for mobile viewing which helps in SEO rankings.
Still on SEO, your links are customizable; this can lead to a much better SEO performance. You could also integrate social media platforms like Facebook and Instagram to leading, this should let you capture more customers.
BigCommerce is PCI level 1 certified with this your customers are safe whenever they’re on your BigCommerce powered site. There also multiple data centers to back up your data in an event of failure.
(PROs) Benefits of using BigCommerce for Dropshipping Business in Nigeria
- Mobile friendly
- Highly customizable store themes
- Multiple language support
- Fast servers with Google cloud support. Additionally, servers are always available for 99.99% of the time.
CONs of using BigCommerce for Dropshipping
- Insufficient amount of themes—this make your store comes alive but unfortunately there isn’t much of this by BigCommerce.
Last on our list is Wix, which is a pretty good platform for dropshipping business in Nigeria. Wix lets you create professional looking website that can rival any top site.
Building your online store on the Wix platform is pretty much easy, there lots of templates to help you as a first time user and also subsequently. Similar platforms lets you drag and drop different properties on your website, this feature is also available on Wix.
You could also add multiple payment gateways to your store, there are lots of payment gateways including Authorize.Net and PayPal.
The payment platforms supported by Wix have track record of securing payments. Also there no charge in terms of commissions—they’re free to use.
Pricing wise, setting up a store starts at $23 dollar monthly which is relatively less expensive. All there isn’t additional charges for extra features—you only pay once.
Furthermore, tax and exchange rate are automatically calculated by Wix, you don’t need to rack your brain in order to come up with the final price.
(PROs) Benefits of using Wix for Dropshipping
- Lots of templates to aid you in creating a professional store
- Support numerous payment plans
- Good SEO performance
- Relatively cheap
- Easy to use
CONs of using Wix for Dropshipping
- Average customer support
- Most features are available to only those in the US.
Rounding off – Best Platforms for Dropshipping Business In Nigeria
If you’re really serious about dropshipping in Nigeria as I’m sure you are, I will advise you to be patient while choosing any of these e-commerce platforms and don’t forget to consider your budget.
Honestly, there are two best platforms for dropshipping which are having Head-2-Head presently in eCommerce industry. They are WordPress’ Woocommerce and Shopify.
We’ll be writing on the comparison very soon – I mean the differences between WooCommerce and Shopify including their CONS, PROS and other things you need to know about the two content management systems (CMS).
So here guys are the top 5 platforms for dropshipping business in Nigeria, they all offer great products, services and nifty features. But as with all things, they’ve got their pros and cons.
What do think? Which do intend using? Let us know in the comments!
How To Start a Logistics Business in Nigeria – (10 Easy Steps)
Have you ever want to launch your own logistics business in Nigeria but don’t know how to start or what exactly to do? I’m going to show you an easy and practical approach to starting a profitable logistics or delivery business in the country.
Do you know that some businesses are complementary to others? Yes, they work for the benefit of both businesses. And in this age of the Internet, the tendency to shop online continues to increase as the days go by, hence, the need for a complementary service, that’s a service to fulfill the deliveries.
Logistics or delivery business in Nigeria or any place in the world is not ending soon because almost all e-commerce business owners or companies are now on the internet and they need a logistics company to help bridge the gap between the end of the buyers.
Just in case you don’t know much about the logistics business, below is a quick explanation;
Understanding How Logistics Business Work
In a business sense, logistics aid the movement of goods/services from the manufacturer/wholesaler to the consumer. By definition, it sounds simple but by the implementation, it is rather complex. This is why manufacturing firms sparingly have their own logistics team—relying on an independent logistics company.
Logistics companies are tasked with the responsibility of the planning, implementing, and movement of goods, services, and other valuables from the point of origin to the final consumer. The origin of logistics can be traced back to world war 1 (WWI) and WWII where the military had to make supplies available for their soldiers.
Logistics is now a full-fledged business today and lots of money can be made. This is why I’ve made this post to guide you on starting a logistics business in Nigeria.
If you have ever shopped on Jumia, Konga, Amazon, Aliexpress, and other top online shopping sites, I’m sure you understand that the guy or company that picked the products from the manufacturer’s warehouse and delivered to you, in operating under what we know as logistics business.
Now, let’s talk about starting your own logistics business in Nigeria or anywhere in the world!
How to Start a Logistics Business in Nigeria: 10 Steps!
#1. Develop Your Business Plan
Writing your business plan is the first step to take when starting a logistics business in Nigeria. Many take this for granted but having one is pretty important. You really don’t need to have good writing skills or be a business expert before crafting a good business plan.
Although, there are a lot of services that can assist you in generating a business plan I advise you to write manually or hire the someone who can personally do it for you.
Since your business plan will be your guide as you grow your logistics business, a personalized version will always come in handy. I won’t go into great detail here as we already have a post on writing a business plan and a free template.
Check this guide on how to write a good business plan.
So, let’s talk about the next important step!
#2. Get Your Capital
After your business plan, the next thing is to get your capital – which you know is very important. And there are several ways you can source for your capital. You can choose to finance it personally or get a loan from the bank.
Getting a loan or financing your logistics business yourself has its pros and cons and it’s totally up to you. Lots of commercial banks would be willing to offer you a loan, you can as well apply for business grants which will save you from the stress of providing collaterals.
Once the funding is acquired, the next step is to;
#3. Get an Office Space
You don’t need a big warehouse, but an office where you can attend to clients and enquires in case a company or a customer need to see you before transacting with your company.
Ensure your office is well decorated, not beautifully but professionally.
- Your main office should be separated from where you keep customer goods
- Your office should be easily located, don’t rent an office space very far to the main road
- Your business location should be google (You can hire me for this)
If you’ve got your office space, then do this:
#4. Choose Your Delivery Mode
Logistics business in Nigeria can take different forms. We’ve got companies who make use of motorcycles, buses, mini-vans, or trucks. You can start with one of these, or you could mix them up for flexibility.
Knowing what means to use for transportation will determine what you choose to use as your capital. Using a motorcycle/bike means less capital expenditure but also, it limits you to carry certain goods.
Also, you’d be choosing between:
- Intra-state (e.g within Lagos state)
- Inter-state (e.g Within and outside Lagos state – to Kwara State, etc.)
- Inter-countries (e.g from the USA, China, etc to Nigeria)
Or perhaps, you can decide to do both but keep in mind that you’ll have to learn more travel routes in a short span of time.
Okay, the next up in purchasing the tools needed for your business and also, hiring some personnel to fill out different positions. From our definition of logistics, it is very evident that you will be needing a good number of workers to ensure everything is carried out seamlessly.
#5. Buy Necessary Equipment & Vehicles
You need to buy important Items like computers, stationery, dispatch box, telephones are some of the important items needed to run a successful logistics business in Nigeria. With these and more in place, it is expected that you have an effective logistics business like the top brands in the country.
Considering your mode of delivery, you can buy some motorcycles or small buses and brand them with your business identity, just like the like of Jumia, etc.
Some logistics companies also partner with taxi drivers and okada riders to fulfill the deliveries instead of using their own cars, motorcycles, and drivers.
If you want to deal with inter-countries, then you need to grow your network with aviation companies.
#6. Setup a team or Employ Staff
About getting the necessary requirements, the next big deal is to set up your own team or employ some people to work with you.
Also, make sure to hire staff to fill out different positions and not just drivers. Asides from delivery, business management, customer care service, and planning need to be top-notch which the driver can’t do.
This team or staff includes;
- The drivers (if you have motorcycles or buses)
- The customer care agents
- The marketing team
If you don’t have enough money to pay staff, you can hire university students, or those people who are smart and conversant enough, then train them yourself or hire an expert to come and train your team.
#7. Register Your Business
If you want your logistics business in Nigeria to be taken seriously as a business entity, then getting your business registered should be a top priority for you. These days people are getting more aware of fraudulent businesses. Failure to register yours puts up a red flag for potential customers.
Looking at it critically, the cost of registering your business with the Nigerian Corporate Affairs Commission isn’t expensive, so why not do it? Starting with N10,000, you can register your business in Nigeria. If you have a business name already for your logistics company but don’t have enough funds to register, you can reserve your business name for 6 months with just a little token of N500.
Check out our post on how to register a business name in Nigeria.
If you need me to register the business for you, it cost N25,000 and I will get your business approved and your business registration certificate will be sent to you, or you collect it yourself.
#8. Go Digital with Your Business
The world is digital itself, all businesses are going digital and if you’re not on the internet, then you don’t have a business yet. And when I say you should go digital, I’m not saying you should just open social media pages and that’s all.
You should try and get a professional website, do your google business listings, list your logistics business on business directories, do Search Engine Optimization (SEO) and of course, your business social media pages are important.
If you need a professional website design or development, my Web Design and Digital marketing agency can handle that for you. Kindly contact me here or visit our website here >>> https://www.gbolabyte.com
We can also handle your digital marketing, google business listing, SEO, and other digital or remote tasks you need us for.
Remember that most of your customers are online, you also need to get your business and the first approach is to get a business website for your logistics business in Nigeria.
#9. Brand Identity Design & Branding
Business identity and branding will really differentiate your business from other logistics businesses in Nigeria. When it comes to branding, you need the service of a professional graphics designer.
Note that some graphic designers are not experts when it comes to branding.
Branding is more than designing a logo, it involves anything that will make your business stands out. Brand Identity designer offers everything ranging from your logo, icons, social posts banners, ID cards for your staff, brand your company vehicles, brand your office equipment, and everything brandable.
This is very important and it goes along with your marketing, that’s what I’ll be explaining last!
#10. Market Your Business.
You’ve come a long way in starting your logistics business in Nigeria. As a new player, unless you’re extremely lucky, no one is going to find out about you. Which is why you’ve got to market your brand.
The top logistics firms in Nigeria like GIG Logistics, Creseada International Limited, Ocenj Logistics, and more didn’t get to where they are today by chance. They sent the word out about their business and then delivered on the customer’s expectations.
And in this age of the Internet, it’s much easier to market your business by using available tools like social media. Remember, you’ve got to offer something different from the rest, or make a service offered by your competition better. With these, your logistics business will soar to great heights.
Part of your marketing strategy is to try and connect with e-commerce website owners or companies in Nigeria so that they can recommend you to their customers. Try to reach out to these companies and your business network will continue to grow.
CONCLUSION – How to Start a Logistics Business in Nigeria
E-commerce is getting bigger by the day in Nigeria and this is why the logistics business in Nigeria as a complimentary service is getting more traction. And yes, like every business, this has its own risks but with a good management team, these risks can be reduced to its bare minimum.
At the moment, the logistics space in Nigeria isn’t that saturated which is a good reason to start as soon as you can. As you do, keep in mind the steps above as they’ll be your guide when you experience obstacles.
So, over to you, when do you wish to start your logistics business in Nigeria? And if you own one already, how did you start yours? Let’s hear from you!
President Muhammadu Buhari’s Full Speech on #EndSars Protest
Have you watched the broadcast of President Muhammadu Buhari’s full speech on the #EndSars protest? Well, many of us are opportune to watched it live on NTA (their YouTube channel).
We all know what’s happening in the country since two weeks ago and the President hasn’t until today, address the citizens of Nigeria. Before he went live to deliver his speech, Nigerians had set their expectations so high to listen to see what Mr. President planned to do with Lekki Toll gate’s Massacre, Police brutality, bad government, corruption and other things happening in the country.
But, well… Nigerians are left disappointed.
I know by now, you have being seeing some posts on social media by Nigerians, saying they need need to leave this country and travel to Canada and sort of cruise like that regarding President Muhammadu Buhari’s full speech on #EndSars protest.
You’re eager to listen to it right? Worry no more! You can watch the video below or read the speech.
VIDEO: Full Broadcast of President Muhammadu Buhari on #EndSars Protest
You can read the speech speech below;
ADDRESS TO THE NATION BY HIS EXCELLENCY, MUHAMMADU BUHARI, PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA ON THE ENDSARS PROTESTS, 22ND OCTOBER, 2020
It has become necessary for me to address you having heard from many concerned Nigerians and having concluded a meeting with all the Security Chiefs.
2. I must warn those who have hijacked and misdirected the initial, genuine and well – intended protest of some of our youths in parts of the country, against the excesses of some members of the now disbanded Special Anti-Robbery Squad (SARS).
3. On Monday 12th October, I acknowledged the genuine concerns and agitations of members of the public regarding the excessive use of force by some members of SARS.
4. The choice to demonstrate peacefully is a fundamental right of citizens as enshrined in Section 40 of our Constitution and other enactments; but this right to protest also imposes on the demonstrators the responsibility to respect the rights of other citizens, and the necessity to operate within the law.
5. As a democratic government, we listened to, and carefully evaluated the five-point demands of the protesters. And, having accepted them, we immediately scrapped SARS, and put measures in place to address the other demands of our youth.
6. On approving the termination of SARS, I already made it clear that it was in line with our commitment to the implementation of extensive Police reforms.
7. Sadly, the promptness with which we have acted seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.
8. The result of this is clear to all observers: human lives have been lost; acts of sexual violence have been reported; two major correctional facilities were attacked and convicts freed; public and private properties completely destroyed or vandalised; the sanctity of the Palace of a Peace Maker, the Oba of Lagos has been violated. So-called protesters have invaded an International Airport and in the process disrupted the travel plans of fellow Nigerians and our visitors.
9. All these executed in the name of the ENDSARS protests. I am indeed deeply pained that innocent lives have been lost. These tragedies are uncalled for and unnecessary. Certainly, there is no way whatsoever to connect these bad acts to legitimate expression of grievance of the youth of our country.
10. The spreading of deliberate falsehood and misinformation through the social media in particular, that this government is oblivious to the pains and plight of its citizens is a ploy to mislead the unwary within and outside Nigeria into unfair judgement and disruptive behaviour.
11. On the contrary, both our deeds and words have shown how committed this administration has been to the wellbeing and welfare of citizens, even with the steadily dwindling revenues, and the added responsibilities and restrictions due to the Coronavirus pandemic.
12. Government has put in place measures and initiatives principally targeted at youths, women and the most vulnerable groups in our society. These included our broad plan to lift 100 million Nigerians out of poverty in the next 10 years; the creation of N75 billion National Youth Investment Fund to provide opportunities for the youths and the Micro, Small and Medium Enterprises (MSME) Survival Fund, through which government is:
a. paying three months salaries of the staff of 100,000 micro, small – and medium – enterprises,
b. paying for the registration of 250,000 businesses at the Corporate Affairs Commission,
c. giving a grant of N30,000 to 100,000 artisans; and
d. guaranteeing market for the products of traders.
13. These are in addition to many other initiatives such as;
e. N-Tech and
14. No Nigerian Government in the past has methodically and seriously approached poverty-alleviation like we have done.
15. With regard to the welfare of police personnel, the National Salaries, Income and Wages Commission has been directed to expedite action on the finalization of the new salary structure of members of the Nigeria Police Force. The emoluments of other paramilitary services are also being reviewed upwards.
16. In order to underscore the importance of education in preparing youths for the future, this administration has come up with a new salary structure and other incentives for our teachers.
17. Let me at this point reaffirm the Federal Government’s commitment to preserving the unity of this country.
18. We will continue to improve good governance and our democratic process, including through sustained engagement.
19. We shall continue to ensure that liberty and freedom, as well as the fundamental rights of all citizens are protected.
20. But remember that government also has the obligation to protect lives and properties, as well as the right of citizens to go about their daily businesses freely and protected from acts of violence.
21. To our neighbours in particular, and members of the international community, many of whom have expressed concern about the ongoing development in Nigeria, we thank you and urge you all to seek to know all the facts available before taking a position or rushing to judgment and making hasty pronouncements.
22. In the circumstances, I would like to appeal to protesters to note and take advantage of the various well-thought-out initiatives of this administration designed to make their lives better and more meaningful, and resist the temptation of being used by some subversive elements to cause chaos with the aim of truncating our nascent democracy.
23. For you to do otherwise will amount to undermining national security and the law and order situation. Under no circumstances will this be tolerated.
24. I therefore call on our youths to discontinue the street protests and constructively engage government in finding solutions. Your voice has been heard loud and clear and we are responding.
25. And I call on all Nigerians to go about their normal businesses, and enjoin security agencies to protect lives and properties of all law abiding citizens without doing harm to those they are meant to protect. Let me pay tribute to officers of the Nigeria Police Force who have tragically lost their lives in the line of duty.
26. I would like to thank those state Governors, traditional and religious leaders who have appealed for calm and restraint. I also thank youth leaders who have restrained their followers from taking the law into their hands.
27. This government respects and will continue to respect all the democratic rights and civil liberties of the people, but it will not allow anybody or groups to disrupt the peace of our nation.
Thank you all. God bless the Federal Republic of Nigeria.
That’s the full speech of President Buhari on #EndSars protest 😉
I don’t know what to say on this… But someone commented on Twitter that the President Buhari’s speech make the whole country “speechless” — Maybe that’s why I don’t know what to say.
But I know most Nigerians are disappointed.
But just in case you’re thinking of traveling out of the country and you don’t know how to start, here is how to get your international passport in Nigeria
What do you think about the 10 minutes speech? Kindly use the comment box below.
8 Effective Ways to Reduce Your Household Expenses
Are you finding it quite difficult to reduce your household expenses? Okay, don’t feel depressed, this page is what you need to get motivated and take that action!
Among all lessons we have learned during this COVID-19 “pandemic period”, one good lesson we should always stick to, is how to manage our funds and resources. Millions of people across the world became unemployed as a result of this world-renowned virus, but how do they survive? By simply cutting their expenses and wise management of their savings.
It is very important we learn how to manage our money wisely, or hence, we might end up becoming financially broke or a debtor. I know you don’t want that!
Today I’ll be showing you how to reduce your budget and lower your household expenses. These tips work for everybody, regardless of who you are, either you’re a 9-5 employee or an entrepreneur.
So, let’s check them together!
8 Ways To Reduce and Manage Your Household Expenses
Tip #1. Cut Off Your Cell Phone Plan
Having and using a cell phone is quite expensive when studied critically. No doubt they’re beneficial… but we also get charged for services, tax, etc., that we can’t even explain. This is why it’s important to choose a good cell phone plan.
According to NCC (Nigeria Communication Commission), Nigerians collectively spent about N450 Billion per month on recharge cards and data connections. That is approximately $1.17 million spent every month on cell phone plans.
You know what?
The amount of money spent on recharge cards and data connections covered about 73% of Nigerians’ expenses while the remaining 27% covered foodstuff, emergency funds, skincare, and other personal stuff.
I’m sure you’re one of those people enriching these telecommunication companies every month, I personally buy data worth N15,000 every month!
We need to learn how to reduce these expenses, and the best way we can do that is to reduce the hours we spent on social media apps (especially, Instagram and Facebook), YouTube, and online streaming sites.
Also, a prepaid plan is the most suitable option. You can get it with the major carriers at almost half the price of the regular plan. The beauty of prepaid plans are the added bonuses and incentives. Things like unlimited calls, unlimited SMSs, reduced call rates, and lots more.
If you’re looking to save some bucks, cut the regular plan and switch to a prepaid plan.
Tip #2. Do Away With Cable Subscription
One of the best ways you can reduce your household expenses is by ditching your cable plan. I know it feels good to lay on the couch after the day’s work… sipping your favorite drink… watching a good movie. I get it. But you’re on a budget and some things have to go.
Thankfully, we have digital platforms today where you can watch your favorite TV and sports shows. You can watch TV on YouTube, Netflix is a good option—it costs less per month, Showbox for Android users is great, or you could get a fire stick.
There are lots of these services out there, using any will help in maximizing your finances in the long run.
Tip #3. Get an Insurance
We live in a world where everything is risky either on land, in water, or at home. Accidents can happen anytime, you can start developing a kind of sickness any day, your car might develop faults and different unforeseen circumstances that may suddenly require you to spend money.
Sometimes, you have to borrow money from your friends, co-operative society, or take a loan from your bank, in order to take care of those issues.
But to help you manage your funds and reduce your expenses, Insurance plans are ready to cover that for you.
If you are a car owner, it is very important to have auto insurance. It comes in handy because you never know when uncertainties or accidents may occur. But the cost of these plans does take a toll on your finances.
You can always shop around for a less expensive plan. The big carriers tend to charge you higher than necessary. This may be due to you having certain covers you don’t need at the moment, or you’re probably in a wrong plan.
Take out time to review your current insurance plan, do away with covers you don’t need. Or better still, check out smaller firms with similar benefits but at a lower cost.
Tip #4. Cancel Memberships
Membership plans do get you exclusive features and other juicy benefits. This could be membership plans from your gym, Netflix, Amazon, or Audible. Whatever it is. If it’s not necessary at the moment, cancel it.
You wouldn’t miss much. There are alternatives you could check out: YouTube for Netflix, visit a local library in place of Audible, and work out at home instead of going to the gym. Remember, you’re trying to cut costs.
Tip #5. Consider Reducing Your Rent
It’s time to do away with luxurious living if you stay in a rented apartment. Take for instance you live in a 3 bedroom apartment…you could switch to a 2 bedroom or 1 bedroom to reduce household expenses.
Also, if you can, assuming this wouldn’t affect your work: try switching locations if possible. Certain areas are characterized by huge housing costs but you can change to less expensive areas if possible.
I know a guy who spent up to $2,500 (N800,000) on his new rented apartment, he had enough money in his savings to take care of feeding and other necessary stuff for the few months. But as an entrepreneur, he invested the savings on a business which went against him!
Dude is broke, and the next thing for him is to relocate to a small apartment which will cost N40,000 per year ($100/yr) instead of his previous N90,000 per year ($220/yr).
So, don’t be afraid to reduce your rent, change the location, and start looking for the bigger picture (stabilizing your business and getting your own house).
Tip #6. Cook in Your House, Stop Eating Outside!
Yes, you read right. And you’re asking if it’s possible? Of course, it is possible. We don’t tend to keep records of how much we spend on food and restaurants. I don’t do that.
And so we go ahead without knowing because we think the amount we spend per meal or snack is little. No, it’s not. When summed up, we could see how much we’ve spent and how big the amount is.
I was a regular fan of a restaurant close to my house. I spent up to N1500 on every meal. To me, I thought that’s cool and not too much to satisfy my belly. But at the end of the first 30 days, I realized that N45,000 has left my pocket on just a 1-square meal per day. And that doesn’t include the transport fare to buy the food, the tips, and money spent on food for another 2-square meal.
Averagely, I spent up to N60,000 in that month on food.
Again, you may think it’s very small when you’re spending it, but when you calculate the total money spent at the end of the month, you’ll see how much you’ve spent.
So, I decided to start buying foodstuffs and cooking at home (I have kitchen utensils already). I spent an average of N15,000 per month on foodstuff, and like N200 per day on other things I need to buy, that is N6,000.
It means I spend N21,000 on food I prepare myself instead of the previous N60,000 on outside food (saving N39,000)!
So please… stop eating out. Start cooking at home and see how much of an impact it makes. Yes, it might be difficult but you need to stop.
Tip #7. Reduce Your Grocery Bill
Staying with our previous tip, I asked you to cook at home. But wait! What if you’ve been spending more than you should on groceries? If you’re guilty of this (maybe you’re not) here’s how you can reduce your grocery bill.
You can start patronizing stores that offer discounts. Others may have deals like “By One, Get One Free”, or you could shop online using coupons. Don’t tell me you don’t love those deals…those discounts. You do, right? So go ahead and change your grocery store or supermarket.
Buy your groceries in bulk instead of buying at a very expensive price per one or two.
Also, notice those things you don’t really use and stop buying them or maybe, reduce the quantity.
Tip #8. Fancy Grooming… Are They Even Necessary?
Sure they are! I know we all crave those fancy stuff such as good shoes, chains, clothes, coffees with milk, cream, sugar, or whatever. But there comes a time when we need to sit back and ask: Do I really need this? Especially if you’re like me who is grinding to save some money.
Go get yourself a coffee maker and start making yours at home. If you’re not going to any occasion that demands you for new clothes, don’t buy it, if your shoe leather is getting worn-off, fix it by giving it to a professional shoemaker instead of disposing of it.
I know it’s convenient to get out there and fix your nails, make your hair, or do some makeup. Right now you need to consider doing these things yourself.
Are they difficult?
Not at all. Unless you’re too busy. If you’re not, pick up your phone and head over to YouTube to start learning these things and start saving money.
CONCLUSION – These Tips Will Help You Manage Your Funds and Reduce Your Expenses
There you have it: 8 Ways to Reduce your household expenses. I know we love to do all these things: we love to eat out, live in luxurious homes, have some fancy coffee daily, then come home to watch our cable TV.
But right now, you need to implement these tips above. If you can’t do it all, no problem. But make sure you implement the ones you can.
So over to you, which of these things will you be cutting? Let’s hear from you.
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