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How to Start Soap Making Business in Nigeria

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| Updated:
February 4, 2025
Soap Making Business in Nigeria
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Soap making is one of those businesses that can start as a simple hobby but grow into something much bigger. Some people do it because they enjoy working with scents and natural ingredients, while others see it as a way to earn extra income or even build a full-time business. But there’s a big difference between making soap for personal use and turning it into a profitable venture. It takes more than just mixing oils and fragrances—you need to understand the market, follow regulations, and find the right customers. This is very important if you want to start a successful soap making business in Nigeria.

In Nigeria, and across the world, the demand for soap is huge. People use it daily for bathing, laundry, and household cleaning. More importantly, there’s a growing preference for handmade and organic soaps as people look for healthier alternatives to commercial brands. This makes soap making a great business opportunity, especially for those who can offer something unique—whether it’s all-natural ingredients, skin-friendly formulas, or beautifully designed products.

One inspiring example is Sandra Letio, a young entrepreneur from Uganda. She started her soap-making business with just $15, using her mother’s kitchen as a workspace. With persistence and smart business decisions, she expanded her small operation into a thriving company. In 2017, at just 29 years old, her business is valued at $700,000, proving that anyone with passion and a solid plan can turn soap making into a profitable business. Source: UN Women

In this guide, we’ll break down everything you need to know about starting a soap making business in Nigeria—from learning the craft to selling your products. If you’ve ever thought about turning soap making into a source of income, this is for you.

How to Start a Soap Making Business in Nigeria

As mentioned before, starting a soap making business in Nigeria requires more than just knowing how to mix ingredients. It involves understanding the market, handling business registration, and having a strong marketing plan. Below is a step-by-step guide to help you get started.

Step 1: Understand Why You Want to Start a Soap Business in Nigeria

Before starting any business, it’s important to know why you are doing it. Soap making can be fun, but running a business takes time, effort, and patience. If you’re not clear on your reasons, you might lose interest when challenges come up.

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Some people go into soap making because they enjoy working with natural ingredients and creating unique scents. Others are drawn to the business because they see a chance to make money. Maybe you’ve noticed that more people are looking for organic, skin-friendly soaps, or you want to make a product that solves a specific problem, like soap for sensitive skin.

Whatever your reason, be honest with yourself. Ask:

  • Do I enjoy making soap, or am I only interested in selling it?
  • Am I ready to learn new skills and improve my products over time?
  • Can I handle the business side, like pricing, branding, and selling?

If you have a strong reason for starting, you’ll find it easier to stay committed and push through any difficulties.

See Also: How to Start a Liquid Soap Business in Nigeria

Step 2: Do Market Research

Before you start making and selling soap in Nigeria, you need to understand what people want. Many businesses fail because they assume there’s a demand without checking first. A little research will help you figure out what sells, who will buy it, and how to stand out from competitors.

See Also: How to Conduct a Market Research Step-by-Step

Who Are Your Customers?

Soap is used by everyone, but not all soaps appeal to the same people. Ask yourself:

  • Are you selling to households that need affordable everyday soap?
  • Do you want to make skincare soap for people with sensitive skin?
  • Will your soap be targeted at hotels, spas, or supermarkets?

Knowing your audience helps you create products that suit their needs.

What Types of Soap Are in Demand?

Visit markets, supermarkets, and online stores to see what’s already selling. Common types of soap include:

  • Bathing soap – Regular soaps for daily use.
  • Organic soap – Made with natural ingredients like honey, shea butter, and coconut oil.
  • Medicated soap – Helps with skin conditions like acne and eczema.
  • Laundry soap – Used for washing clothes.
  • Liquid soap – Popular for handwashing and cleaning.

Find out which type is missing in your area or which one people complain about. This will help you decide what to make.

What Are Your Competitors Doing?

Look at other soap brands—both big and small. Check their packaging, pricing, and marketing.

  • What makes their soap popular?
  • Are there complaints from customers that you can solve with your soap?
  • Can you offer something better, like a unique ingredient or a lower price?

You can visit soap producers, ask questions, and observe how they run their businesses. Learning from those already in the business will save you from costly mistakes.

Doing proper research before starting will give you confidence and help you create a product that people actually want.

Step 3: Learn the Basics of Soap Making

Making soap is more than just mixing ingredients—it’s a science. To create a good product, you need to understand the right ingredients, measurements, and processes. Even if you plan to hire people to produce the soap, learning the basics will help you manage quality and avoid mistakes.

Essential Ingredients and Equipment

Soap is made by combining fats or oils with an alkaline substance (usually sodium hydroxide, also known as lye). Here are some common ingredients:

  • Oils and fats – Palm oil, coconut oil, shea butter, and olive oil.
  • Lye (Sodium Hydroxide) – This is needed to turn oils into soap. Handle it carefully, as it is caustic.
  • Water – Helps dissolve the lye and mix the ingredients.
  • Additives – Essential oils, colours, herbs, honey, or charcoal to improve the soap’s scent, appearance, or benefits.

The equipment you need depends on the type of soap you are making, but some basics include:

  • A scale to measure ingredients properly.
  • A blender or wooden spoon for mixing.
  • A thermometer to check temperatures.
  • Moulds to shape the soap.
  • Gloves and safety glasses to protect yourself when handling lye.

Different Soap-Making Methods

There are several ways to make soap, each with its own process and benefits.

  • Cold Process – The most common method. It involves mixing oils with lye, pouring the mixture into moulds, and allowing it to cure for 4–6 weeks before use.
  • Hot Process – Similar to the cold process, but the soap is cooked to speed up curing, making it ready for use in a few days.
  • Melt and Pour – Uses a ready-made soap base that is melted, customised with colours and scents, and then poured into moulds. This is the easiest method for beginners.
  • Liquid Soap Making – Uses potassium hydroxide instead of sodium hydroxide to create soap in liquid form.

Go Beyond the Basics

Learning to make basic soap is good, but to stand out, you need to improve your skills. Consider:

  • Taking an online or physical soap-making class.
  • Watching experienced soap makers and asking questions.
  • Experimenting with different ingredients to create unique soaps.
  • Testing your soap on friends and family before selling.

The better your product, the more customers will trust and recommend it.

Step 4: Create a Business Plan

A business plan helps you stay organised and increases your chances of success. It gives you a clear direction, helps you avoid common mistakes, and makes it easier to get funding if needed. Even if you’re starting small, writing down your plans will keep you focused.

What Should Your Business Plan Include?

A good business plan doesn’t have to be complicated. It should cover:

  • Business Name and Branding – Choose a unique name and decide how you want your brand to be perceived. Do you want to be known for organic soaps, skincare benefits, or affordability?
  • Products and Pricing – List the types of soap you want to sell and how much you will charge for them. Make sure your pricing covers costs and allows for profit.
  • Target Market – Identify who your ideal customers are (households, hotels, spas, supermarkets, etc.).
  • Production Plan – Will you make the soap at home or rent a space? How often will you produce? What equipment and ingredients do you need?
  • Marketing Plan – How will you sell? Will you focus on social media, physical stores, or word-of-mouth?
  • Financial Plan – List your startup costs and estimate your potential income.

Estimating Your Costs

Starting a soap making business in Nigeria can cost anywhere between ₦100,000 and ₦5 million, depending on your scale. Here’s a rough breakdown:

  • Small-Scale (Home-Based) – ₦100,000–₦300,000 for ingredients, equipment, and branding.
  • Medium-Scale – ₦500,000–₦2 million for bulk ingredients, better equipment, and marketing.
  • Large-Scale – ₦2 million–₦5 million for industrial production, factory space, and staff salaries.

If you don’t have enough money to start, you can:

  • Start small and reinvest your profits.
  • Get family and friends to support you.
  • Apply for small business loans or grants.

Why Planning Matters

A well-thought-out plan keeps you from wasting money, helps you price your products correctly, and prepares you for business challenges. You don’t have to get everything perfect from the start, but having a plan makes a big difference.

Step 5: Build Connections and Network

Running a successful soap making business in Nigeria is not just about making good soap; it’s also about knowing the right people. Connecting with others in the industry can help you get better suppliers, learn from experienced soap makers, and find more customers.

Who Should You Connect With?

  • Raw Material Suppliers – You need steady access to oils, fragrances, lye, and packaging materials. Finding reliable suppliers ensures quality and reduces costs.
  • Experienced Soap Makers – Learning from those who have been in the business for years can help you avoid mistakes. Some may even become mentors or business partners.
  • Distributors and Retailers – If you want your soap in supermarkets, beauty stores, or pharmacies, you need to build relationships with retailers who can stock your products.
  • Business Groups and Associations – Joining groups like the Manufacturers Association of Nigeria (MAN) or small business networks can give you access to useful training, funding opportunities, and new markets.

How to Build Strong Business Connections

  • Attend Trade Fairs and Industry Events – These events bring together suppliers, manufacturers, and potential buyers. You can learn, network, and promote your brand.
  • Join Online Communities – Facebook groups, WhatsApp business forums, and LinkedIn groups for soap makers and small business owners can provide useful connections.
  • Collaborate with Other Entrepreneurs – Teaming up with people in related businesses (e.g., skincare brands, beauty influencers, or supermarkets) can help you reach more customers.
  • Be Active in Your Local Business Community – Visit shops where you want your soap to be sold, introduce yourself, and start building relationships.

In business, who you know can be just as important as what you sell. Making the right connections early can open doors that would be hard to access on your own.

See Also: Networking Tips for Small Businesses

Step 6: Register Your Business with CAC

If you want to run a serious soap-making business, you need to register it legally. A registered business gives you credibility, protects your brand name, and allows you to access bigger opportunities like selling in supermarkets, applying for loans, and getting government approvals. In Nigeria, business registration is handled by the Corporate Affairs Commission (CAC).

Steps to Register Your Business with CAC

  1. Choose a Business Name – Pick a unique name for your soap brand. Check if it’s available on the CAC website.
  2. Reserve the Name – If your preferred name is available, you can reserve it to prevent others from using it.
  3. Fill Out the Registration Form – Provide details about your business, such as the name, type (sole proprietorship or limited liability company), and address.
  4. Submit Necessary Documents – Depending on the type of business, you may need a valid ID, passport photograph, and additional documents for a company.
  5. Pay the Registration Fee – The cost varies based on the business structure.
  6. Get Your CAC Certificate – Once your registration is approved, you will receive a certificate and a registration number.

Why Business Registration Matters

  • Prevents Others from Using Your Name – If your business is unregistered, anyone can take your name and register it as theirs.
  • Allows You to Open a Business Bank Account – Most banks require a CAC certificate before opening a corporate account.
  • Gives You Access to Loans and Grants – Many funding opportunities require proof that your business is registered.
  • Makes You Look More Professional – Customers and retailers trust registered businesses more than informal sellers.

Need Help Registering Your Business?

Entrepreneurs.ng offers a seamless CAC registration service to help you complete the process without stress. Instead of dealing with paperwork and delays, we handle everything for you. Contact us today to get your soap-making business officially registered.

Step 7: Understand the Costs of Starting a Soap-Making Business

The amount of money you need to start depends on how big you want to go. A home-based business will cost less than setting up a full production unit, but no matter your budget, you can start small and grow over time.

How Much Does It Cost to Start?

ScaleEstimated CostWhat It Covers
Small-Scale (Home-Based)₦100,000 – ₦300,000Ingredients, basic equipment, and branding.
Medium-Scale₦500,000 – ₦2 millionBulk ingredients, better equipment, branding, and marketing.
Large-Scale (Factory)₦2 million – ₦5 millionIndustrial production, factory space, and staff salaries.

Breaking Down the Costs

  • Ingredients (Oils, Lye, Additives) – ₦30,000 – ₦200,000 depending on the quantity.
  • Equipment (Moulds, Mixers, Scales, Safety Gear) – ₦50,000 – ₦500,000.
  • Branding (Packaging, Labels, Logo Design) – ₦20,000 – ₦200,000.
  • Business Registration and Legal Fees – ₦15,000 – ₦50,000.
  • Marketing (Social Media Ads, Promotions) – ₦30,000 – ₦300,000.

How to Raise Money for Your Business

  • Personal Savings – The best way to start without debt.
  • Family and Friends – Many small businesses get initial support from loved ones.
  • Small Business Loans – Microfinance banks and government programs offer funding for startups.
  • Grants and Competitions – Some organisations give grants to entrepreneurs in the beauty and skincare industry.

Even if you start with a small budget, reinvesting your profits can help you grow into a large-scale business over time.

Step 8: Get the Necessary Approvals and Certifications

Before you start selling your soap on a large scale, you need to meet the legal and safety requirements. This ensures that your products are safe for use and helps you avoid issues with the authorities.

Regulatory Bodies for Soap Making in Nigeria

  1. NAFDAC (National Agency for Food and Drug Administration and Control)
    • NAFDAC ensures that all soaps and cosmetic products meet safety standards.
    • You need a NAFDAC number to sell your soap in supermarkets or online platforms like Jumia and Konga.
    • The approval process includes product testing, factory inspection, and documentation.
  2. SON (Standards Organisation of Nigeria)
    • SON ensures that your soap meets Nigerian industrial standards.
    • If you plan to export your products, SON certification will help you meet international quality requirements.
  3. Trademark Registration
    • This protects your business name and logo from being copied by competitors.
    • A registered trademark gives you the legal right to take action against anyone using your brand name without permission.

How to Get NAFDAC Approval

  1. Register Your Business with CAC – This is required before you can apply.
  2. Apply for a NAFDAC Number – Submit an application with details about your soap ingredients, production process, and packaging.
  3. Factory Inspection – NAFDAC officials will inspect your production area to ensure it meets hygiene standards.
  4. Product Testing – Your soap will be tested to confirm that it is safe for use.
  5. Approval and Certification – Once your product meets the requirements, you will receive a NAFDAC registration number.

Why You Need These Approvals

  • Selling without proper approvals can get your products seized or banned.
  • Supermarkets and online stores won’t stock unregistered products.
  • Customers trust approved and certified products more.

Getting approvals may take time, but it’s worth it if you want to run a serious business.

Step 9: Get a Space for Production and Sales

Where you make and sell your soap depends on your budget and business goals. Some people start from home, while others rent a shop or set up a small factory. Your choice should depend on your production scale and how much space you need.

Starting from Home

If you’re making soap on a small scale, you can start from home. This saves money on rent and allows you to grow at your own pace. However, you must:

  • Keep your production area clean and organised to meet safety standards.
  • Store ingredients properly to prevent contamination.
  • Avoid making soap in the same space where food is prepared.

Renting a Dedicated Space

As your business grows, you may need more space for production, storage, and packaging. Renting a small shop or workspace can help you:

  • Increase production capacity without space limitations.
  • Hire staff to assist with production and packaging.
  • Create a professional business environment for inspections and approvals.

Setting Up a Small Factory

For large-scale production, you’ll need a factory with proper equipment and facilities. This requires a bigger budget but allows you to:

  • Meet NAFDAC and SON requirements for large-scale production.
  • Produce large quantities to supply supermarkets and wholesalers.
  • Expand your business faster with a fully equipped production line.

Where to Sell Your Soap

No matter where you produce, you need to think about where your soap will be sold. You can sell through:

  • Local shops and supermarkets – Approach store owners and offer your soap at wholesale prices.
  • Online platforms – Sell on Jumia, Konga, Instagram, and WhatsApp.
  • Markets and trade fairs – A great way to showcase your products to potential buyers.
  • Spas, salons, and hotels – Many businesses prefer locally made organic soaps.

Choosing the right production space and sales channels will help you scale your business efficiently.

Step 10: Market Your Soap Business

No matter how good your soap is, people need to know about it before they can buy. Marketing is what brings customers to your business and keeps them coming back. A strong marketing plan will help you stand out from competitors and grow your brand.

Branding and Packaging

Your soap’s look and feel can make a big difference in attracting buyers. People are more likely to buy a well-packaged product that looks professional.

  • Choose a unique brand name that is easy to remember.
  • Use high-quality packaging that protects the soap and looks appealing.
  • Add clear labels with your brand name, ingredients, benefits, and contact details.

Set the Right Price

Pricing your soap correctly ensures you make a profit while staying competitive.

  • Cost-based pricing – Calculate the total cost of making each soap and add a profit margin.
  • Market-based pricing – Check the prices of similar soaps and set yours within that range.
  • Bulk discounts – Offer lower prices for customers buying in large quantities.

Sell Online and Offline

A mix of online and offline sales will help you reach more customers.

  • Social Media (Instagram, Facebook, WhatsApp, TikTok) – Post product pictures, customer reviews, and behind-the-scenes videos.
  • Jumia & Konga – List your soap on eCommerce platforms for wider reach.
  • Local Markets and Supermarkets – Approach stores and offer to supply them.
  • Spas, Hotels, and Beauty Salons – Partner with businesses that need high-quality soap.

Word-of-Mouth and Customer Referrals

  • Give free samples to family and friends to spread the word.
  • Ask happy customers to recommend your soap to others.
  • Offer discounts or rewards to customers who refer new buyers.

A good marketing plan will help your soap business grow steadily and attract loyal customers.

See Also: Marketing Strategies to Grow Your Business as an Entrepreneur

Key Takeaway

To succeed in your soap making business in Nigeria depends on careful planning and execution. Before jumping in, take time to learn the craft, understand the market, and register your business properly.

  • Start small if you have a limited budget, but focus on making high-quality soap that stands out.
  • Research your customers and competitors to find a gap you can fill in the market.
  • Build connections with suppliers, experienced soap makers, and retailers to grow faster.
  • Follow all legal and safety requirements, including CAC registration and NAFDAC approval.
  • Invest in branding and marketing—good packaging, fair pricing, and social media promotion can help you attract more customers.

Like any business, soap making requires patience, consistency, and a willingness to learn. Keep improving your products and customer service, and over time, you can build a thriving business.

Conclusion

The soap making business in Nigeria offers great opportunities for those willing to put in the work. Whether you’re starting small from home or planning to scale up, the key is to stay committed, learn continuously, and adapt to customer needs.

If you’re serious about turning this into a real business, don’t wait—take the first step today. Register your business, start creating your products, and put them in front of the right audience. With determination and smart strategies, your soap business can grow beyond your expectations.

Here are ways Entrepreneurs.ng can help you start or scale your soap making business in Nigeria:

FAQs on How to Start a Soap Making Business in Nigeria

1. How profitable is the soap making business in Nigeria?

Soap making is a profitable business in Nigeria because there is a high demand for bathing, laundry, and organic soaps. Profit margins can be as high as 40–60%, depending on your production costs and pricing strategy. The key to success is creating quality soap, setting the right price, and marketing effectively.

2. What do I need to start a small-scale soap making business at home?

To start a small soap making business at home, you need:

  • Basic ingredients (oils, lye, water, and additives like essential oils or herbs).
  • Equipment such as mixing bowls, a thermometer, a scale, and moulds.
  • Protective gear (gloves, goggles, and an apron) for safety.
  • A clean and organised workspace.

3. Do I need NAFDAC approval to sell soap in Nigeria?

Yes, if you plan to sell your soap commercially or supply supermarkets, you must register with NAFDAC. However, if you are selling small quantities informally, you may start without it and apply later as you scale up.

4. How can I sell my soap in Nigeria?

You can sell your soap through:

  • Social media platforms (Instagram, Facebook, WhatsApp, TikTok).
  • Online marketplaces like Jumia and Konga.
  • Local supermarkets, spas, hotels, and beauty stores.
  • Trade fairs and open markets to reach more customers directly.

5. What is the best type of soap to sell in Nigeria?

The most in-demand soaps in Nigeria include:

  • Bathing soap for everyday use.
  • Organic or herbal soap made with natural ingredients like turmeric, honey, and aloe vera.
  • Medicated soap for treating skin conditions like acne and eczema.
  • Laundry soap used for washing clothes.
  • Liquid soap for handwashing and cleaning.

6. How much does it cost to start a soap making business in Nigeria?

The startup cost depends on the scale of production:

  • Small-scale (Home-based): ₦100,000 – ₦300,000
  • Medium-scale: ₦500,000 – ₦2 million
  • Large-scale (Factory production): ₦2 million – ₦5 million

7. Where can I buy soap-making ingredients in Nigeria?

You can buy ingredients from:

  • Local chemical markets like Ojota and Oyingbo in Lagos.
  • Wholesale suppliers in major cities.
  • Online stores that sell soap-making materials.

8. How long does it take to make soap?

The time depends on the method used:

  • Cold process soap takes about 4–6 weeks to cure before use.
  • Hot process soap can be ready in a few days.
  • Melt and pour soap is the quickest, ready for use in 24 hours.

9. Can I make soap without using lye?

No, lye (sodium hydroxide) is necessary for the soap-making process. However, you can use a melt and pour soap base, which has already gone through the lye process, making it safe and easy for beginners.

10. Do I need to register my soap business with CAC?

Yes, if you want to operate as a legal business in Nigeria, you should register with the Corporate Affairs Commission (CAC). This allows you to:

  • Protect your brand name.
  • Open a business bank account.
  • Apply for loans and grants.
  • Build trust with customers and retailers.

11. How can I make my soap stand out?

To make your soap unique, focus on:

  • Quality ingredients (use skin-friendly and organic materials).
  • Attractive packaging that looks professional.
  • A unique selling point (e.g., anti-aging, acne-fighting, eco-friendly).
  • A strong brand identity with a memorable name and logo.

12. Where can I learn soap making in Nigeria?

You can learn soap making from:

  • Online courses and YouTube tutorials.
  • Physical training workshops.
  • Experienced soap makers offering paid training.

13. How can I get funding for my soap making business?

You can raise money through:

  • Personal savings.
  • Loans from family and friends.
  • Government grants for small businesses.
  • Microfinance banks and business loan programs.

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ABOUT THE AUTHOR

Aminat Sanni-Kamal

Aminat Sanni-Kamal is a legal professional and content strategist with over five years of experience in content creation, writing, and editorial management. As the Associate Managing Editor at Entrepreneurs.ng, she works with the editorial team in delivering high-impact content that informs, empowers, and inspires entrepreneurs and business enthusiasts across various industries. With a Bachelor of Laws (LL.B) degree and a Barrister at Law (B.L.) qualification, Aminat Sanni-Kamal combines a strong legal background with a passion for storytelling to produce content that is both insightful and sound. In this role, Aminat Sanni-Kamal ensures content excellence, manages editorial processes, and contributes to the platform’s growth by aligning strategic content with the needs of the entrepreneurial community. Aminat Sanni-Kamal is committed to fostering innovation and promoting entrepreneurial success stories, positioning Entrepreneurs.ng as a leading resource for actionable business knowledge and growth strategies.

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