Starting an online business in 2025 doesn’t have to break the bank, but it does require some smart budgeting. Whether you’re planning to sell physical products, offer services, or start a digital brand, this guide breaks down the essential costs you should expect — in Naira.
1. Domain Name & Hosting – ₦20,000 to ₦50,000/year
Your domain name is your online identity. Hosting is what keeps your site live. Most domain names (.com or .ng) cost around ₦10,000 – ₦15,000/year, while basic web hosting ranges from ₦10,000 to ₦35,000/year depending on the provider.
Pro tip: Some local hosting companies offer bundled deals (domain + hosting) at discounted rates.
2. Website Design – ₦30,000 to ₦200,000+
You have options: DIY website builders like WordPress (with a free theme) or hiring a designer.
- DIY: Free – ₦50,000 (with premium themes or plugins)
- Custom-built website: ₦100,000 – ₦200,000+, depending on complexity
3. Business Registration – ₦20,000 to ₦35,000
Registering your business with CAC (Corporate Affairs Commission) helps build trust with customers. The cost depends on whether you do it yourself or through an agent.
4. Branding & Graphics – ₦15,000 to ₦100,000
From logo design to social media templates, good branding sets the tone. You can hire a designer on platforms like Fiverr, Instagram, or work with a local creative agency.
5. Marketing & Advertising – ₦30,000 to ₦200,000/month (scalable)
You need eyes on your business. Budget for:
- Social media ads (Meta/Instagram): Start from ₦5,000/week
- Email marketing tools: Some are free; others cost ₦7,000 – ₦30,000/month
- Influencer marketing: Pricing varies depending on their reach
6. Inventory or Service Tools – Varies (₦0 to ₦300,000+)
- Product-based business? You’ll need stock. Start lean with ₦50,000 – ₦300,000 depending on your niche.
- Service-based business? Invest in tools: video conferencing, design software, CRMs (some free, others like Canva Pro or Zoom paid versions start from ₦5,000/month).
7. Payment Integration – Mostly Free or Up to ₦5,000
Services like Paystack, Flutterwave, and Monnify allow you to accept online payments at little or no setup cost. Just make sure you factor in transaction fees.
Summary Table of Startup Costs in 2025 (in ₦)
| Item | Estimated Cost Range |
|---|---|
| Domain & Hosting | ₦20,000 – ₦50,000 |
| Website Design | ₦30,000 – ₦200,000+ |
| Business Registration | ₦20,000 – ₦35,000 |
| Branding & Graphics | ₦15,000 – ₦100,000 |
| Marketing & Ads (monthly) | ₦30,000 – ₦200,000 |
| Inventory/Service Tools | ₦0 – ₦300,000+ |
| Payment Integration | Mostly Free – ₦5,000 |
Final Thoughts
You can realistically start an online business in Nigeria in 2025 with as little as ₦100,000 to ₦150,000, depending on your business model and how lean you want to begin. What matters most is starting smart, testing your idea, and scaling gradually.
Want a pro tip? Spend less on fancy stuff and more on getting your first customers.