Catering business plan for Nigeria, with registration costs and a free Excel model

Who you cater for, and why the plan starts there

Nigerian catering splits into a few very different markets. Owambe parties and weddings mean large volumes, jollof and fried rice by the cooler, small chops, a long buffet and staff working late. Corporate clients want packed lunches, small chops for meetings and end-of-year events, with invoices and payment terms. Burials, naming ceremonies and birthdays sit somewhere in between.

Your plan should say clearly which of these you serve first and why. A caterer in Ibadan doing weekend parties needs different equipment, staff and cash flow from one in Victoria Island supplying offices on weekdays. Lenders and partners want to see that you know your client, your average event size and how you will win bookings, whether through referrals, Instagram, event planners or venue partnerships.

Be realistic about seasons. December, Easter and the dry-season wedding months can fill every weekend, while other months are quieter. Plan your cash for the quiet months, not the busy ones.

Step by step

1. 1

   Register with CAC

   Reserve and register a business name, or incorporate a company if you want partners or investors. Under CAC's new schedule of fees in the Gazette of 29 May 2025, a business name costs ₦1,000 to reserve and ₦20,000 to register.

2. 2

   Get your tax identification

   Register for tax and keep records from day one. VAT at 7.5% applies once your turnover passes the small business threshold, and state taxes apply in some states.

3. 3

   Register your kitchen and certify staff

   Register the food premises with your state or local health authority and get medical fitness certificates for every food handler. In Lagos, the Ministry of Health examines food handlers twice a year.

4. 4

   Cost your packages

   Price every dish at current market rates, add gas, diesel, staff and transport, and set a price per head or per pack with a margin for price swings.

5. 5

   Run the numbers

   Enter your packages and costs in the Excel model to see break-even, monthly profit and how long it takes to earn back your startup spend.

Registrations, health requirements and tax

The table below lists what to budget for. CAC fees are national and published. State and local government charges vary, so ask your local government and state health office for their current figures and put them in the plan.

Food handler certificates and kitchen inspections

State health authorities regulate food premises and food handlers. In Lagos, the Ministry of Health's environmental and occupational health team inspects and registers food premises and hospitality establishments, carries out surveillance, and conducts medical examinations of food handlers twice a year, issuing a certificate of fitness to those who pass. Other states have similar arrangements through their ministries of health or environmental health departments.

Treat staff medicals as a fixed cost in your plan, not an afterthought. Count your permanent team and your regular casuals, multiply by two examinations a year and the fee your state charges, and include it in your monthly overheads.

NAFDAC registration is aimed at food products, especially packaged ones. If you cook and serve food at events, the state health authority is your main regulator. If you start selling packaged items, such as bottled zobo, chin chin in branded packs or frozen meals in shops, plan for NAFDAC registration of those products before you sell them.

Costing packages when prices keep moving

Price swings are the biggest risk in a Nigerian catering plan. Rice, oil, tomatoes, pepper, chicken and gas can all move between the day you quote and the day you buy. Build your price from a recipe cost for each dish, then add a buffer, and state in your contract how long a quote is valid.

Add the costs that are easy to forget. Diesel for the generator during long cooking days, LPG, ice, transport for staff and equipment, hiring extra coolers, and the cost of food that is cooked but not served all belong in the price. Many caterers sell party jollof by the cooler or small chops by the pack. Whatever unit you use, know your cost per unit before you quote.

Collect a deposit that covers at least the food purchase. Your plan should show when money comes in relative to when you buy ingredients, because a profitable event can still leave you short of cash on the Thursday before a Saturday wedding.

How the free Excel model works

The model has four sheets. Startup costs covers equipment such as industrial burners, pots, chafing dishes and coolers, a generator, a vehicle deposit, registration and medicals, branding and opening stock. The monthly profit and loss builds revenue from your event mix and applies a direct cost percentage for food, gas and consumables, then subtracts your fixed monthly costs.

The model works out gross and net profit, net margin, the monthly sales you need to break even and how many months it takes to recover your startup spend. A twelve-month sheet applies a growth rate you choose, and the final sheet lists assumptions and sources.

Every naira figure in the file is an illustrative example, not market data. Replace each yellow cell with your own quotes from suppliers, your actual package prices and the fees your state and local government charge.

Running and growing the business

After every event, compare what you quoted with what you actually spent on food, gas, diesel, staff and transport. Within a few weeks you will know your real food cost percentage and which packages are worth pushing.

Keep records good enough for a bank or a tax officer: invoices for every event, receipts for deposits and balances, and supplier bills. They also make it easier to apply for a loan or a grant when you want to buy a van or a bigger kitchen.

Venura's catering app keeps each booking with its menu, guest numbers, quotation, invoice and payments in one place on web, Android and iOS, so your actual figures are ready when you update the plan. You can try it free for 30 days, and pricing outside India is shared on request.

Catering business plan: questions from Nigeria