Here is what it takes to start a profitable Akara business

Inflation is raising the cost of entry for even some of the country’s smallest informal businesses.

Starting a roadside business selling akara in Nigeria now requires triple the minimum wage in startup capital, according to estimates from traders and a survey of equipment and ingredient prices.

For many Nigerians seeking self-employment as jobs remain scarce and household incomes come under pressure, the akara business has long been viewed as one of the cheapest ventures to start. But rising prices of cooking gas, beans, groundnut oil and basic equipment have significantly increased the amount needed to open a modest roadside operation.

A basic setup now includes a medium frying pan costing about N12,000, a 12.5kg gas cylinder priced at around N45,000 and an initial gas refill costing roughly N18,750. Ten litres of groundnut oil sell for about N21,000, while half a bag of beans costs approximately N65,000.

The supporting equipment also adds substantially to startup costs. A roadside umbrella costs about N25,000, while a table and bench cost around N19,000. Vendors also need bowls, sieves, frying skimmers, scooping spoons and packaging materials before making their first sale.

Taken together with the first stock of ingredients and other operating expenses, the amount required to begin trading easily exceeds N200,000.

“The business is still viable if you have a good location, but things have changed,” said Uchenna Ansalem, an akara vendor.

“One 5kg gas refill now costs over N10,000 and barely lasts a few days of heavy frying. With oil at N10,500 for five litres, you must sell a lot just to cover costs before making meaningful profit.”

Another trader, Inyamah Chinasa, said startup capital alone is no longer enough because operators also need cash to keep buying ingredients as prices fluctuate.

“Starting small is possible, but you need additional capital beyond your initial savings or any grant to keep the business running,” Chinasa said.

The higher startup cost has become a hurdle for many young entrepreneurs and women who depend on small businesses for income but have limited access to affordable credit. Without collateral or low-interest loans, many are forced to postpone opening their businesses or begin on a much smaller scale.

Although traders say the business can still generate steady daily income in busy locations, the rising cost of setting up underscores the financial pressure facing Nigeria’s informal sector, where thousands rely on micro-enterprises for their livelihoods.