In Nigeria specifically, the combination of increasing remote work adoption, unreliable home and electricity infrastructure and a thriving startup ecosystem creates the perfect storm for guaranteed coworking success. By renting out co-working spaces, you can tap into this revolutionary transformation of Nigeria’s workspace landscape.
The Immense Potential in Co-Working Space Rentals
Nigeria’s workspace landscape is experiencing a revolutionary transformation. Traditional office setups are giving way to flexible, community-driven coworking spaces. Lagos leads the continent with 120 coworking spaces, largely due to the Nigerian city’s vibrant tech and creative startup ecosystem, while the demand for reliable workspaces with steady electricity, air conditioning and high-speed internet continues to surge.
For aspiring entrepreneurs looking to capitalize on this trend, starting a coworking space in Nigeria presents an exceptional opportunity. With the global coworking market worth $22.01 billion in 2024, and expected to reach $25.11 billion by 2025, the industry shows no signs of slowing down.
Understanding the Nigerian Coworking Market Opportunity
The Nigerian coworking market is unique and is driven by practical necessities rather than just trendy workplace preferences. Unlike in developed countries where coworking spaces are primarily about community and networking, Nigerian professionals seek coworking spaces as a solution to fundamental infrastructure challenges.
Key Market Drivers:
- Unreliable electricity: Steady power supply remains a luxury for many Nigerian homes and traditional offices
- Internet connectivity: High-speed, reliable internet is essential for Nigeria’s growing tech workforce
- Climate control: Air-conditioned spaces provide comfort in Nigeria’s tropical climate
- Professional environment: Many remote workers lack suitable home office setups
- Networking opportunities: The startup and freelance community thrives on connections
Flexible coworking memberships are available from ₦20,000–₦50,000/month. This indicates a healthy market demand and pricing structure that allows for profitable operations while remaining accessible to local professionals.
Step 1: Define Your Niche and Target Market
Success in Nigeria’s coworking industry starts with understanding your specific market segment. The diverse professional landscape offers multiple opportunities:
Tech Professionals and Freelancers
Nigeria’s burgeoning tech scene includes developers, designers, digital marketers, freelancers and IT consultants who need reliable workspaces with excellent internet connectivity and reliable electricity.
Small Business Owners
Entrepreneurs running e-commerce businesses, consulting firms, or service-based companies often can’t justify expensive traditional office leases.
Corporate Remote Teams
As multinational companies embrace hybrid work models, local teams need professional spaces for collaboration and client meetings.
Government Contractors and NGOs
Professionals working with international organizations or government projects require professional addresses and meeting spaces.
Creative Professionals
Content creators, writers, photographers and media professionals value inspiring environments with good lighting and collaborative spaces.
Step 2: Create a Comprehensive Business Plan
Your business plan should address the unique aspects of operating in Nigeria while following proven coworking principles. Start by defining your revenue streams:
Primary Revenue Sources:
- Monthly memberships (hot desks, dedicated desks, private offices)
- Day passes for occasional users
- Meeting room rentals by the hour
- Virtual office services (business address, mail handling)
- Event space rental for workshops and corporate functions
Secondary Revenue Opportunities:
- High-speed internet access fees
- Printing and document services
- Catering partnerships for events
- Equipment rental (projectors, cameras, laptops)
- Professional services partnerships (accounting, legal, marketing)
Based on market research, pricing should be competitive yet profitable. Depending on your location and amenities, consider offering tiered membership plans starting from ₦15,000-20,000 for hot desk access to ₦80,000-120,000 for private offices.
Step 3: Strategic Location Selection
Location can make or break your coworking venture in Nigeria. Focus on areas with:
Infrastructure Reliability
Choose locations with relatively stable power supply and strong telecommunications infrastructure. Areas like Victoria Island, Ikoyi, or Lekki in Lagos, and Wuse, Maitama, or Central Business District in Abuja typically offer better infrastructure. Areas like Enugu and Awka have a growing number of tech workers and freelancers.
Transportation Access
Proximity to major roads, bus stops and transport hubs ensures easy member access. Consider parking availability for members who drive.
Business Ecosystem
Areas with existing businesses, banks, restaurants, universities and cafes create a supportive environment for your members.
Competition Analysis
While some competition validates market demand, oversaturated areas may struggle. Look for underserved neighborhoods with growing business activity.
Security
Safe, secure locations with good lighting and security presence are essential for attracting and retaining members.
Step 4: Design Your Space for Nigerian Needs
Nigerian coworking spaces must prioritize functionality over aesthetics, though both matter. Your design should address local challenges:
Power Infrastructure
Install backup generators and uninterruptible power supply (UPS) systems. This is non-negotiable in Nigeria’s power environment. Budget 15-20% of your startup costs for power backup solutions.
Climate Control
Reliable air conditioning is essential. Consider energy-efficient systems and factor electricity costs into your operational budget.
Internet Connectivity
Invest in multiple high-speed internet connections from different providers (MTN, Airtel, Glo, 9mobile). Install enterprise-grade WiFi systems with mesh networking for complete coverage.
Flexible Workspace Zones
- Open collaborative areas with modern furniture
- Quiet zones for focused work
- Phone booths for private calls
- Meeting rooms with presentation equipment
- Comfortable lounge areas with soft seating
- Kitchen facilities with refrigeration and coffee service
Security Features
Access control systems, CCTV surveillance and secure storage lockers build member confidence.
Step 5: Financial Planning and Funding
Starting a coworking space in Nigeria requires careful financial planning. For a medium-sized space (200-300 square meters), expect initial investments of:
Startup Costs
- Rent deposit and first-year rent: ₦1.5M – ₦3M
- Renovation and furniture: ₦2M – ₦4M
- Power backup systems: ₦800K – ₦1.5M
- IT infrastructure: ₦500K – ₦1M
- Legal and licensing: ₦200K – ₦500K
- Marketing and branding: ₦300K – ₦600K
Monthly Operating Expenses
- Rent: ₦150K – ₦400K
- Utilities (electricity, internet): ₦200K – ₦500K
- Staff salaries: ₦150K – ₦400K
- Maintenance and supplies: ₦100K – ₦200K
Funding Options
- Personal savings or family investment
- Bank loans (though interest rates can be high)
- Angel investors familiar with the local market
- Partnership with property owners or existing businesses
- Gradual expansion using revenue from initial operations
Step 6: Technology and Operational Systems
Modern coworking spaces rely heavily on technology for efficient operations:
Management Software
Implement coworking management platforms that handle bookings, billing, access control and member communication. Look for solutions that work well with Nigerian payment systems.
Payment Integration
Support multiple payment methods including bank transfers, card payments, and mobile money solutions popular in Nigeria.
Access Control
Keyless entry systems using mobile apps or access cards provide security while allowing 24/7 access for premium members.
Communication Platforms
Create digital communities using WhatsApp groups, Slack channels, or dedicated member platforms for networking and announcements.
Step 7: Marketing and Community Building
Nigerian coworking spaces thrive on strong community bonds and word-of-mouth recommendations:
Local SEO Strategy
Optimize for searches like “coworking space Lagos,” “shared office Abuja,” or “workspace [your area].” Create Google My Business listings and gather positive reviews.
Social Media Presence
Maintain active profiles on LinkedIn, Instagram, and Twitter showcasing your space, community events, and member success stories.
Partnership Marketing
Collaborate with:
- Local business associations
- Tech meetup groups and startup communities
- Universities and business schools
- Professional service providers (lawyers, accountants, consultants)
- Restaurants and food vendors.
Community Events
Host regular networking events, skill-sharing workshops and social gatherings that attract potential members and strengthen existing community bonds.
Referral Programs: Offer membership discounts or perks to current members who refer new clients.
Step 8: Deliver Exceptional Value
Success in Nigeria’s competitive market requires going beyond basic workspace provision:
Reliable Infrastructure
Ensure your power backup and internet systems work flawlessly. This is your primary value proposition.
Professional Services
Partner with service providers to offer members discounted access to legal, accounting, marketing, and business development services.
Networking Facilitation
Actively introduce members to each other and facilitate business connections within your community.
Flexible Terms
Offer month-to-month memberships rather than requiring long-term commitments and appeal to Nigeria’s dynamic business environment.
Additional Amenities
Consider offering services like document printing, snack vending, courier pickup/delivery and virtual assistant support.
Building Long-Term Success
The Nigerian coworking market offers substantial opportunities for entrepreneurs willing to address real infrastructure challenges while building genuine communities. Success, however, requires understanding local needs, investing in reliable systems and maintaining a member-first approach.
Start small, focus on operational excellence and expand gradually based on member feedback and demand. With proper planning, reliable infrastructure and strong community building, a coworking space in Nigeria can generate steady income while supporting the country’s growing entrepreneurial ecosystem.
The future of work in Nigeria is flexible, elegant, connected and community-driven. By providing the infrastructure and environment that Nigerian professionals need to thrive, your coworking space can become an essential part of this transformation while building a profitable and sustainable business.
