The penchant for festivities in Nigeria has made event centre businesses flourish across the country. With people both in the formal and informal sectors of the economy having one thing or the other to celebrate, event centres have and are still springing up to meet these needs: From Annual General Meetings(AGMs) to birthday parties, marriages, burials, naming ceremonies, among others.
Renting out event centres is a rewarding venture if done correctly in Nigeria.
There are basically two types of event centres classified according to the type of ownership. These two event centre types are: Individual or privately-owned event centres, owned and run by individual investors. And government-owned event centres, specifically owned and run by government or its agencies.
However, for this purpose, we are focusing on privately-owned event centres.
Starting an event centre business in Nigeria is not easy. The costs of acquiring the land space is something you need to put into consideration. The architectural drawing, quantity surveying, structural design, and building facilities add to the cost of the land. Moreover, getting a land in a really good area, such as, in a high-brow location can be very expensive.
Hence, findings show a minimum of N10 million is needed to start this business in Lagos, Abuja and Port Harcourt while less could be required in other states.
Starting An Event Centre
To start an event centre, some steps need to be taken. They are: conducting a feasibility study, choosing a niche, writing a business plan, registering your business, choosing a location, acquiring the land, building, decorating the event centre, applying for the necessary permits, hiring your staff and publicising your business.
The average price of event centres / venues for rent in Nigeria is N240,000 per day. The most expensive event centre / venue costs about N7 million per day while the cheapest costs about N50,000 per day.
So, if the centre has a high occupancy rate, it can be generating between N3 million and N4 million weekly. Although, COVID-19 pandemic seems to have affected this line of business, but things would gradually come back to life as the pandemic eases off.
Advice For Starting
Olufunbi Akinyosoye, a certified entrepreneur and the CEO of Dunamis Events said:”Grit and grace are what it really takes to set up a company. You just need to roll up your sleeves and get to work. It’s more about being a strategist, planner, vision leader and a game changer. You have to be everything, like a psychologist to your client to scale through in your business.”