Opening a barbershop in Nigeria can be an excellent business opportunity. The men's grooming market is growing steadily, and more Nigerians are looking for quality services and a professional experience in modern barbershops.
In this complete guide, we explain step by step everything you need to know to open your barbershop in Nigeria: from legal requirements and CAC registration, to initial investment in Naira, strategic location, equipment, and management tools that will help you succeed from day one.
8 Steps to Open Your Barbershop in Nigeria
Research and Business Plan
Before opening your barbershop in Nigeria, it's essential to conduct thorough market research and create a solid business plan. Many barbershops we see struggle with unclear pricing and target market—this step helps you avoid that.
Key elements to research:
- Competition analysis: Identify how many barbershops are in your area, what services they offer, their prices (typically ₦1,000–₦3,000 for a haircut in Lagos), and what differentiates them. Use Google Maps and Instagram to analyze local competition.
- Target audience: Define your ideal client: age, budget, and preferences. In Nigeria, barbershops often serve students, professionals, and families—tailor your offer to your location.
- Average market prices: Research what other barbershops charge. Prices vary by city: Lagos and Abuja tend to be higher; other cities may be lower. Typical range: ₦1,000–₦2,500 for a basic cut, ₦2,000–₦5,000 for cut + beard.
- Service demand: Evaluate if there's sufficient demand. Consider population density, nearby schools or offices, and foot traffic in areas like Lekki, Victoria Island, Ikeja, Abuja (Maitama, Wuse), or Port Harcourt.
- Peak hours: One common issue in Nigeria is not matching operating hours to when people actually come—observe local patterns.
Legal Requirements and Permits in Nigeria
To legally operate a barbershop in Nigeria, you need to comply with the following. Requirements may vary by state and local government. One common issue in Nigeria is operating without CAC registration—this can lead to fines or closure.
CAC Business Registration (Corporate Affairs Commission)
Register your business with the Corporate Affairs Commission (CAC). For a small barbershop you can register a Business Name (BN); for a larger or partnership structure you may register a company (e.g. private limited). This is the foundation for opening a business bank account and dealing with tax.
Where: CAC portal (online) or CAC office
Estimated time: Few days to 2 weeks
Cost: Varies; Business Name registration is typically ₦10,000–₦30,000 NGN
CAC →FIRS Tax Registration (Tax Identification Number – TIN)
Register for tax with the Federal Inland Revenue Service (FIRS) and obtain your Tax Identification Number (TIN). You will need this for formal contracts, bank accounts, and remitting taxes. VAT registration may be required depending on turnover.
Where: FIRS office or online (FIRS e-Services)
Estimated time: 1–2 weeks
FIRS →State / Local Government Business Premises Permit
Obtain a business premises permit or similar license from your state and/or local government. Requirements and names (e.g. business permit, trade license) vary by state—Lagos, Abuja, Rivers, etc. have their own procedures.
Where: State or LGA revenue/ministry office
Estimated time: 1–4 weeks
Cost: Varies by state and size; can range from ₦5,000 to ₦50,000+ NGN per year
PENCOM (Pension) – If You Hire Employees
If you employ staff, you must register with the National Pension Commission (PENCOM) and remit employee and employer pension contributions to a PFA (Pension Fund Administrator). Many barbershops we see struggle with late or missing remittances—set up a simple schedule from day one.
Cost: Employer + employee contributions as per law
Health and Hygiene
Some states or LGAs require a health or sanitation clearance for barbershops. Check with your local government. Maintain clean, hygienic tools and premises in any case.
Estimated Initial Investment
The initial investment to open a barbershop in Nigeria can vary significantly. Here's an approximate breakdown in Nigerian Naira (NGN):
Note: A small barbershop with basic equipment can start around ₦500,000–₦1,000,000 NGN. A larger or more premium setup in Lagos or Abuja may require ₦1,500,000–₦3,000,000 NGN or more. In our experience working with barbershops, keeping 3–6 months of operating expenses as working capital reduces stress in the first year.
Strategic Location
Location is one of the most important factors for success. Look for areas with good foot traffic, visibility, and access. In Nigeria, being near schools, offices, or transport hubs often helps.
Key cities and areas:
Lagos
Lekki, Victoria Island, Ikeja, Yaba—high rent but high traffic. Good for premium or mid-range barbershops.
Abuja
Maitama, Wuse, Garki, Gwarinpa attract professionals and students.
Port Harcourt
Stable market; good for first-time owners with lower costs than Lagos.
Other cities
Ibadan, Kano, Enugu, and Calabar offer lower rent and loyal local clientele.
Equipment and Furniture
Quality equipment is essential for providing excellent service. Invest in professional chairs, mirrors, clippers, scissors, and good lighting. Add a management system like BarberíaClub to manage appointments and clients from day one.
Note: For a small barbershop with 2–3 chairs, equipment can cost roughly ₦200,000–₦800,000 NGN depending on quality and brand.
Staff Hiring
Hire barbers with good skills and a professional attitude. Define clear schedules, commission or salary, and policies. Register employees for pension (PENCOM) where required. A good team creates a memorable experience and brings clients back.
Management System and Technology
A good management system helps you organize appointments, manage clients, and send reminders. Many barbershops we see struggle with no-shows and double bookings—software like BarberíaClub solves this and offers online booking that Nigerian clients increasingly expect.
Marketing and Promotion
Effective marketing is crucial to attract clients. In Nigeria, Instagram and WhatsApp are widely used—post your work, location, and prices. Get your barbershop on Google Maps and encourage reviews. Offer opening promotions and rely on word of mouth by delivering excellent service.
- Google Business Profile: Register and keep your address, hours, and photos updated
- Instagram: Post regularly; consider paid ads for your area
- WhatsApp: Use for bookings and reminders (or link to BarberíaClub for a single booking link)
- Encourage happy clients to leave reviews and refer friends
Tips and Best Practices for Success
Frequently Asked Questions
Do I need a license to open a barbershop in Nigeria?
You need CAC business registration (Business Name or company), FIRS tax registration (TIN), and a business premises permit from your state/local government. If you hire employees, you must comply with pension (PENCOM). Some states also require health or sanitation clearance.
How much does it cost to open a barbershop in Nigeria?
The initial investment can range from ₦500,000 to ₦3,000,000 NGN depending on size, location, and equipment. A small barbershop can start around ₦500,000–₦1,000,000 NGN; a larger or premium setup in Lagos or Abuja may require ₦1,500,000–₦3,000,000 NGN or more.
What is the first step to open a barbershop in Nigeria?
Register your business with the Corporate Affairs Commission (CAC)—either a Business Name or a company. Then proceed to FIRS for tax (TIN) and your state/LGA for business premises permit. Doing market research and a simple business plan first will help you choose location and pricing.