How to turn small food vendors into billion-naira business

By Enitan Abdultawab

Nigerian entrepreneur and talent manager Ubi Franklin has shared an investment idea he believes could generate billions of naira by providing capital to small food vendors operating in busy and densely populated areas.

Franklin said the large number of Nigerians operating outside the formal banking system represents a major business opportunity for investors willing to provide them with working capital.

“You see the unbanked, the money in the unbanked is a lot,” he said.

According to Franklin, investors could focus on small food vendors, particularly those operating around motor parks and other populated areas.

“So anybody watching this video, if you are living on the mainland or in a populated area where all these Mama Puts come to give food at the motor parks, you can be a billionaire just investing in 500 of them,” he said.

He explained that an investor could provide each vendor with ₦50,000 to fund their daily cooking and sales, with the vendor returning an agreed portion of the proceeds.

“Give them 50k and every day come back. Do you know how much they make every day?” Franklin asked.

He acknowledged that the figures could vary, but said some food vendors could generate substantial daily revenue.

“Let’s say they use 30k to cook food. Those guys make almost 250%. I know the conversion is always crazy,” he said.

Franklin then illustrated how the model could work, using a hypothetical vendor who receives ₦50,000 as daily working capital.

“So just imagine that you give them 50k to cook every day and then they come back with 200k. Or maybe they come back with 150k. Just example,” he said.

According to him, the investor could take ₦50,000 from the proceeds and return the same amount to the vendor as capital for the next day’s business.

“And you take 50k, give them 50k and they use the other 50k to go and continue cooking. And every day you are taking 50k from them,” he explained.

Franklin then calculated the potential annual returns from one vendor.

“Calculate 50k daily times 365 days. That’s mad money. 18 to 50. That’s on one person, on just one person.,” he said.

He suggested that scaling the model across several vendors could potentially produce much larger figures.

“So 50k, 365. That’s 18,250. Let’s say you invested in 100 of them or 50. Let’s say you invested in 100. That’s 1.8 billion,” Franklin said.

His comments were based on a hypothetical investment model and the assumption that each vendor could consistently generate the stated daily returns. Actual earnings would depend on factors including sales, food costs, location, business performance and the terms agreed between the investor and vendors.

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