How Much Does It Cost to Open a Pharmacy in Nigeria 2026?

Opening a pharmacy in Nigeria is a lucrative business opportunity, but it requires significant upfront investment. Understanding the complete cost breakdown helps you plan properly, secure adequate funding, and avoid costly surprises during setup.

This comprehensive guide provides detailed, realistic cost breakdowns for opening a pharmacy in Nigeria in 2026, covering everything from licensing fees to working capital, with separate budgets for small, medium, and large pharmacies.

Why Understanding Pharmacy Costs Matters

Common Financial Mistakes

Underestimating Costs:

• Running out of money mid-setup
• Compromising on essential equipment
• Inadequate inventory
• No working capital buffer
• Forced to open before ready

Poor Budget Allocation:

• Overspending on décor, underspending on inventory
• Buying wrong equipment
• Inadequate marketing budget
• No contingency fund

Hidden Costs:

• Unexpected regulatory fees
• Equipment maintenance
• Staff training
• Marketing expenses
• Utility deposits

Benefits of Proper Planning

Financial Security:

• Adequate funding from start
• Smooth operations
• Professional appearance
• Competitive advantage
• Stress-free launch

Better Negotiations:

• Bulk purchase discounts
• Better lease terms
• Supplier credit terms
• Equipment financing

Faster ROI:

• Right equipment from day one
• Optimal inventory levels
• Efficient operations
• Professional systems

Complete Cost Breakdown by Pharmacy Size

Small Pharmacy (40-60 sqm)

Target Market: Residential neighborhoods, small communities Expected Monthly Revenue: ₦2-4 million Break-Even: 12-18 months

One-Time Startup Costs

1. Licensing and Registration: ₦300,000 - ₦400,000

• CAC business registration: ₦50,000 - ₦100,000
• PCN premises license: ₦150,000 - ₦200,000
• NAFDAC premises registration: ₦50,000 - ₦100,000
• Local government permits: ₦20,000 - ₦50,000
• Fire safety certificate: ₦30,000 - ₦50,000
• Environmental health certificate: ₦20,000 - ₦40,000
• Tax registration (TIN): Free
• Professional fees (lawyer, consultant): ₦50,000 - ₦100,000

2. Premises (2 Years Advance): ₦1,000,000 - ₦2,000,000

• Annual rent (Lagos/Abuja): ₦500,000 - ₦1,000,000
• Caution deposit: 1-2 years advance
• Legal fees: ₦50,000 - ₦100,000
• Agency fees: ₦50,000 - ₦100,000

3. Renovation and Setup: ₦950,000 - ₦1,500,000

• Painting and finishing: ₦200,000 - ₦400,000
• Flooring (tiles): ₦150,000 - ₦300,000
• Electrical work: ₦100,000 - ₦250,000
• Plumbing: ₦50,000 - ₦150,000
• Air conditioning (2 units): ₦300,000 - ₦600,000
• Security (burglar-proof, CCTV): ₦150,000 - ₦300,000
• Lighting: ₦50,000 - ₦100,000
• Partitions/shelving installation: ₦100,000 - ₦200,000

4. Equipment and Furniture: ₦1,800,000 - ₦2,500,000

Dispensing Equipment:

• Pharmaceutical refrigerator: ₦250,000 - ₦500,000
• Shelving units (metal): ₦200,000 - ₦400,000
• Controlled drugs cabinet: ₦80,000 - ₦150,000
• Dispensing counter: ₦150,000 - ₦300,000
• Storage bins/organizers: ₦50,000 - ₦100,000

Technology:

• Computer systems (2): ₦300,000 - ₦600,000
• Pharmacy management software: ₦100,000 - ₦200,000 (annual)
• POS system: ₦150,000 - ₦300,000
• Barcode scanner: ₦30,000 - ₦60,000
• Receipt printer: ₦40,000 - ₦80,000
• Internet router: ₦25,000 - ₦50,000
• UPS/inverter: ₦150,000 - ₦300,000

Furniture:

• Office desk and chair: ₦80,000 - ₦150,000
• Customer chairs: ₦40,000 - ₦80,000
• Display shelves: ₦100,000 - ₦200,000
• Filing cabinet: ₦40,000 - ₦80,000

Small Equipment:

• Weighing scale: ₦25,000 - ₦50,000
• Measuring cylinders: ₦20,000 - ₦40,000
• Tablet counter: ₦15,000 - ₦30,000
• Mortar and pestle: ₦10,000 - ₦20,000
• Spatulas and scoops: ₦15,000 - ₦25,000
• Amber bottles/containers: ₦30,000 - ₦50,000

5. Initial Inventory: ₦2,000,000 - ₦3,500,000

• Prescription medications (40%): ₦800,000 - ₦1,400,000
• OTC products (35%): ₦700,000 - ₦1,225,000
• Personal care (15%): ₦300,000 - ₦525,000
• Medical devices (10%): ₦200,000 - ₦350,000
• SKUs: 500-800 products

6. Signage and Branding: ₦150,000 - ₦300,000

• Illuminated green cross: ₦80,000 - ₦150,000
• Shop signage: ₦50,000 - ₦100,000
• Interior branding: ₦20,000 - ₦50,000

7. Utility Deposits: ₦100,000 - ₦200,000

• Electricity deposit: ₦50,000 - ₦100,000
• Water deposit: ₦20,000 - ₦40,000
• Internet/phone: ₦30,000 - ₦60,000

Total One-Time Costs: ₦6,300,000 - ₦10,400,000

Working Capital (3 Months)

1. Staff Salaries: ₦750,000

• Superintendent pharmacist: ₦150,000 - ₦250,000
• Pharmacy technician: ₦50,000 - ₦80,000
• Sales assistant: ₦40,000 - ₦60,000
• Security guard: ₦35,000 - ₦50,000
• Monthly total: ₦275,000 - ₦440,000
• 3 months: ₦825,000 - ₦1,320,000

2. Utilities: ₦150,000

• Electricity: ₦40,000 - ₦80,000/month
• Water: ₦5,000 - ₦10,000/month
• Internet: ₦15,000 - ₦25,000/month
• 3 months: ₦180,000 - ₦345,000

3. Restocking: ₦1,000,000

• Initial restocking needs
• Replace sold inventory
• Expand product range

4. Marketing: ₦200,000

• Grand opening event: ₦100,000
• Flyers and posters: ₦30,000
• Social media ads: ₦50,000
• Local advertising: ₦20,000

5. Miscellaneous: ₦300,000

• Unexpected expenses
• Emergency repairs
• Additional supplies
• Contingency fund

Total Working Capital: ₦2,400,000 - ₦3,165,000

Total Small Pharmacy Investment

Minimum Budget: ₦8,700,000 Realistic Budget: ₦10,000,000 - ₦12,000,000 Comfortable Budget: ₦13,565,000

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Medium Pharmacy (80-120 sqm)

Target Market: Commercial areas, busy neighborhoods Expected Monthly Revenue: ₦5-10 million Break-Even: 15-24 months

One-Time Startup Costs

1. Licensing and Registration: ₦350,000 - ₦450,000

• Similar to small pharmacy
• Additional permits for larger space

2. Premises (2 Years Advance): ₦2,000,000 - ₦4,000,000

• Annual rent: ₦1,000,000 - ₦2,000,000
• Prime locations cost more
• Longer lease negotiations

3. Renovation and Setup: ₦1,500,000 - ₦2,500,000

• Larger space requires more work
• Better finishes expected
• More air conditioning units (3-4)
• Enhanced security systems
• Professional lighting

4. Equipment and Furniture: ₦2,500,000 - ₦4,000,000

• More computers (3-4)
• Better pharmacy software
• Additional refrigerators
• More shelving and storage
• Better furniture
• Backup power (generator)

5. Initial Inventory: ₦4,000,000 - ₦7,000,000

• Broader product range
• 1,000-1,500 SKUs
• More stock depth
• Premium products

6. Signage and Branding: ₦250,000 - ₦400,000

• Larger, more prominent signage
• Better quality materials
• Professional branding

7. Utility Deposits: ₦150,000 - ₦250,000

Total One-Time Costs: ₦10,750,000 - ₦18,600,000

Working Capital (3 Months)

1. Staff Salaries: ₦1,500,000 - ₦2,700,000

• Superintendent pharmacist: ₦200,000 - ₦350,000
• Additional pharmacist: ₦150,000 - ₦250,000
• 2-3 pharmacy technicians: ₦100,000 - ₦240,000
• Cashier: ₦50,000 - ₦70,000
• Security guard: ₦40,000 - ₦60,000
• Cleaner: ₦30,000 - ₦40,000
• Monthly: ₦570,000 - ₦1,010,000

2. Utilities: ₦300,000 - ₦600,000

• Higher consumption
• Backup generator fuel

3. Restocking: ₦2,000,000 - ₦3,000,000

4. Marketing: ₦400,000 - ₦600,000

• Larger launch event
• More advertising
• Professional marketing

5. Miscellaneous: ₦500,000 - ₦800,000

Total Working Capital: ₦4,700,000 - ₦7,700,000

Total Medium Pharmacy Investment

Minimum Budget: ₦15,450,000 Realistic Budget: ₦18,000,000 - ₦22,000,000 Comfortable Budget: ₦26,300,000

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Large Pharmacy (150+ sqm)

Target Market: Major commercial areas, hospital vicinity Expected Monthly Revenue: ₦10-20+ million Break-Even: 18-30 months

One-Time Startup Costs

1. Licensing and Registration: ₦400,000 - ₦500,000

2. Premises (2 Years Advance): ₦4,000,000 - ₦8,000,000

• Annual rent: ₦2,000,000 - ₦4,000,000
• Premium locations
• Long-term lease

3. Renovation and Setup: ₦2,500,000 - ₦4,000,000

• High-end finishes
• Multiple AC units (5-6)
• Advanced security
• Professional design

4. Equipment and Furniture: ₦4,000,000 - ₦6,000,000

• Multiple workstations
• Enterprise software
• Advanced POS systems
• Comprehensive equipment
• Premium furniture

5. Initial Inventory: ₦8,000,000 - ₦15,000,000

• Comprehensive range
• 2,000+ SKUs
• Deep stock levels
• Premium and specialty products

6. Signage and Branding: ₦400,000 - ₦600,000

7. Utility Deposits: ₦200,000 - ₦300,000

Total One-Time Costs: ₦19,500,000 - ₦34,400,000

Working Capital (3 Months)

1. Staff Salaries: ₦2,700,000 - ₦4,500,000

• Larger team (8-12 staff)
• Higher salaries
• More specialized roles

2. Utilities: ₦600,000 - ₦900,000

3. Restocking: ₦4,000,000 - ₦6,000,000

4. Marketing: ₦800,000 - ₦1,200,000

5. Miscellaneous: ₦1,000,000 - ₦1,500,000

Total Working Capital: ₦9,100,000 - ₦14,100,000

Total Large Pharmacy Investment

Minimum Budget: ₦28,600,000 Realistic Budget: ₦35,000,000 - ₦45,000,000 Comfortable Budget: ₦48,500,000

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Cost Comparison Table

Cost Category	Small Pharmacy	Medium Pharmacy	Large Pharmacy
Licensing	₦300K-400K	₦350K-450K	₦400K-500K
Premises (2 yrs)	₦1M-2M	₦2M-4M	₦4M-8M
Renovation	₦950K-1.5M	₦1.5M-2.5M	₦2.5M-4M
Equipment	₦1.8M-2.5M	₦2.5M-4M	₦4M-6M
Inventory	₦2M-3.5M	₦4M-7M	₦8M-15M
Signage	₦150K-300K	₦250K-400K	₦400K-600K
Utilities Deposit	₦100K-200K	₦150K-250K	₦200K-300K
Working Capital	₦2.4M-3.2M	₦4.7M-7.7M	₦9.1M-14.1M
TOTAL	₦8.7M-13.6M	₦15.5M-26.3M	₦28.6M-48.5M

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Hidden Costs to Consider

Often Overlooked Expenses

1. Professional Services: ₦200,000 - ₦500,000

• Lawyer fees
• Accountant setup
• Business consultant
• Architect/designer

2. Insurance: ₦150,000 - ₦400,000/year

• Professional indemnity
• Property insurance
• Inventory insurance
• Staff insurance

3. Training: ₦100,000 - ₦300,000

• Staff training programs
• Software training
• Customer service training
• Regulatory compliance training

4. Maintenance Contracts: ₦100,000 - ₦300,000/year

• Equipment servicing
• Software updates
• HVAC maintenance
• Security system monitoring

5. Waste Disposal: ₦30,000 - ₦60,000/year

• Medical waste disposal
• Expired drugs disposal
• Regulatory compliance

6. Association Memberships: ₦50,000 - ₦150,000/year

• PSN membership
• Local pharmacy associations
• Professional development

7. Contingency Fund: 10-15% of total budget

• Unexpected expenses
• Emergency repairs
• Market changes
• Regulatory changes

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Cost-Saving Strategies

Smart Ways to Reduce Startup Costs

1. Negotiate Lease Terms:

• Request rent-free period (1-3 months)
• Negotiate lower caution deposit
• Longer lease for better rates
• Landlord contribution to renovations

2. Buy Smart Equipment:

• Consider refurbished for non-critical items
• Negotiate bulk discounts
• Request payment plans
• Compare multiple suppliers

3. Optimize Inventory:

• Start with fast-moving items only
• Negotiate supplier credit (30-60 days)
• Avoid overstocking slow movers
• Use consignment for expensive items

4. Phased Approach:

• Start smaller, expand later
• Add services gradually
• Hire minimum staff initially
• Upgrade equipment as revenue grows

5. Leverage Technology:

• Cloud-based software (lower upfront cost)
• Digital marketing (cheaper than traditional)
• Automated systems (reduce staff needs)
• Online ordering (expand reach)

6. DIY Where Possible:

• Handle own social media
• Basic bookkeeping initially
• Simple renovations
• Initial marketing materials

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Funding Options

How to Finance Your Pharmacy

1. Personal Savings:

• Most common source
• No interest or repayment pressure
• Full ownership control
• Recommended: 30-50% of total cost

2. Bank Loans:

• Commercial banks (First Bank, GTBank, Access Bank)
• Interest rates: 18-25% per annum
• Collateral required (property, guarantors)
• Repayment period: 3-7 years
• Typical loan: 50-70% of total cost

3. Microfinance Banks:

• Smaller loan amounts (₦2-10 million)
• Less stringent requirements
• Interest rates: 20-30% per annum
• Faster approval process

4. Government Grants and Loans:

• Bank of Industry (BOI)
• NIRSAL Microfinance Bank
• Youth Enterprise with Innovation in Nigeria (YouWiN)
• Lower interest rates (8-12%)
• Longer repayment terms

5. Angel Investors/Partners:

• Equity investment (20-40% stake)
• Shared ownership and profits
• Business expertise and networks
• Reduced financial burden

6. Family and Friends:

• Flexible terms
• Lower or no interest
• Maintain clear written agreements
• Avoid mixing business and personal relationships

7. Equipment Financing:

• Lease equipment instead of buying
• Preserve working capital
• Monthly payments
• Upgrade options

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Monthly Operating Costs

Ongoing Expenses to Budget For

Small Pharmacy:

• Rent: ₦40,000 - ₦150,000
• Salaries: ₦250,000 - ₦500,000
• Utilities: ₦50,000 - ₦100,000
• Restocking: ₦500,000 - ₦1,000,000
• Marketing: ₦50,000 - ₦100,000
• Maintenance: ₦20,000 - ₦50,000
• Miscellaneous: ₦50,000 - ₦100,000
• Total: ₦960,000 - ₦2,000,000/month

Medium Pharmacy:

• Rent: ₦100,000 - ₦250,000
• Salaries: ₦500,000 - ₦900,000
• Utilities: ₦100,000 - ₦200,000
• Restocking: ₦1,000,000 - ₦2,500,000
• Marketing: ₦100,000 - ₦200,000
• Maintenance: ₦50,000 - ₦100,000
• Miscellaneous: ₦100,000 - ₦200,000
• Total: ₦1,950,000 - ₦4,350,000/month

Large Pharmacy:

• Rent: ₦200,000 - ₦400,000
• Salaries: ₦900,000 - ₦1,500,000
• Utilities: ₦200,000 - ₦400,000
• Restocking: ₦2,500,000 - ₦5,000,000
• Marketing: ₦200,000 - ₦400,000
• Maintenance: ₦100,000 - ₦200,000
• Miscellaneous: ₦200,000 - ₦400,000
• Total: ₦4,300,000 - ₦8,300,000/month

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Revenue Projections and ROI

Expected Returns

Small Pharmacy:

• Month 1-3: ₦1.5M - ₦2.5M/month
• Month 4-6: ₦2M - ₦3.5M/month
• Month 7-12: ₦2.5M - ₦4.5M/month
• Year 2+: ₦3M - ₦6M/month
• Break-even: 12-18 months
• ROI: 25-35% annually after break-even

Medium Pharmacy:

• Month 1-3: ₦3M - ₦5M/month
• Month 4-6: ₦4M - ₦7M/month
• Month 7-12: ₦5M - ₦9M/month
• Year 2+: ₦6M - ₦12M/month
• Break-even: 15-24 months
• ROI: 30-40% annually after break-even

Large Pharmacy:

• Month 1-3: ₦6M - ₦10M/month
• Month 4-6: ₦8M - ₦14M/month
• Month 7-12: ₦10M - ₦18M/month
• Year 2+: ₦12M - ₦25M/month
• Break-even: 18-30 months
• ROI: 35-45% annually after break-even

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Frequently Asked Questions

How much does it cost to open a small pharmacy in Nigeria? Opening a small pharmacy in Nigeria costs ₦8.7-13.6 million total, including licensing (₦300K-400K), premises (₦1-2M for 2 years), renovation (₦950K-1.5M), equipment (₦1.8-2.5M), initial inventory (₦2-3.5M), and 3 months working capital (₦2.4-3.2M). Realistic budget: ₦10-12 million.

What is the biggest expense when opening a pharmacy? The biggest expense when opening a pharmacy is initial inventory (₦2-15 million depending on size), followed by premises rent (₦1-8 million for 2 years advance), and equipment (₦1.8-6 million). Inventory alone represents 20-35% of total startup costs.

Can I open a pharmacy with ₦5 million in Nigeria? No, ₦5 million is insufficient to open a pharmacy in Nigeria. Minimum realistic budget is ₦8.7 million for a very small pharmacy. With ₦5 million, you can only cover licensing (₦300K), partial rent (₦1M), basic renovation (₦950K), minimal equipment (₦1.8M), leaving only ₦950K for inventory and working capital—inadequate for operations.

How much working capital do I need for a pharmacy? You need ₦2.4-3.2 million working capital for a small pharmacy, ₦4.7-7.7 million for medium, and ₦9.1-14.1 million for large pharmacy. This covers 3 months of salaries, utilities, restocking, marketing, and contingencies. Working capital represents 25-30% of total startup costs.

What is the monthly operating cost of a pharmacy in Nigeria? Monthly operating costs for a pharmacy in Nigeria are ₦960K-2M for small, ₦1.95-4.35M for medium, and ₦4.3-8.3M for large pharmacies. Major expenses include restocking (50-60%), salaries (25-30%), rent (5-10%), utilities (5%), and marketing (5%).

How long does it take to break even with a pharmacy? Pharmacies in Nigeria break even in 12-18 months (small), 15-24 months (medium), or 18-30 months (large) depending on location, management, and capital. Factors affecting break-even include location traffic, competition, inventory management, customer service, and marketing effectiveness.

Can I get a loan to open a pharmacy in Nigeria? Yes, you can get loans from commercial banks (18-25% interest), microfinance banks (20-30% interest), or government programs like BOI (8-12% interest). Banks typically finance 50-70% of total cost requiring 30-50% down payment. Collateral (property or guarantors) is required.

What percentage of pharmacy costs should be inventory? Inventory should represent 20-35% of total pharmacy startup costs. For a ₦10 million budget, allocate ₦2-3.5 million to inventory. Start with fast-moving items (500-800 SKUs for small pharmacy), negotiate supplier credit (30-60 days), and avoid overstocking slow-moving products.

Conclusion: Plan Your Pharmacy Investment Wisely

Opening a pharmacy in Nigeria requires ₦8.7-48.5 million depending on size and location. Proper financial planning, adequate capital, and realistic budgeting are essential for success. Don't underestimate costs—it's better to have excess capital than run short mid-setup.

Key Takeaways:

• Small pharmacy: ₦10-12 million realistic budget
• Medium pharmacy: ₦18-22 million realistic budget
• Large pharmacy: ₦35-45 million realistic budget
• Inventory is biggest single expense (20-35%)
• Working capital critical (25-30% of budget)
• Break-even: 12-30 months depending on size
• ROI: 25-45% annually after break-even

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Related Resources:

• How to Start a Pharmacy Business in Nigeria
• Top 10 Pharmacy Management Software Nigeria
• Best Guide to Setting Up a Pharmacy in Nigeria
• Top 7 Side Hustles for Pharmacists in Nigeria