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The short answer
To start a catering business in Nigeria you need cooking equipment, serving equipment you can buy or hire, trained staff and a pricing method based on cost per plate. In our labelled 200-guest example, jollof rice, chicken and salad cost about ₦4,044 a plate to deliver and sell at ₦5,500, and a 60% deposit covers the ingredients, gas and packs before the event.
How catering makes and loses money
Event catering is paid in lumps. You spend heavily on ingredients and staff a day or two before an event, and the client pays the balance after. The two things that decide whether you profit are an accurate cost per plate and a deposit large enough to cover what you must buy before the event. Caterers who get either wrong end up funding their clients' parties.
Catering also includes regular contracts: staff lunches for offices, school meals and daily canteen supply. These pay less per plate than weddings but give steadier cash flow, and many caterers mix both.
Equipment: buy or hire
| Item | Buy or hire? | Why |
|---|---|---|
| Large pots, burners, gas cylinders | Buy | Used at every job and hard to hire clean |
| Coolers and food flasks | Buy | Needed for every delivery |
| Knives, boards, basins, ladles | Buy | Cheap and personal |
| Chafing dishes and serving trays | Hire at first | Expensive; needed only for buffet events |
| Plates, cutlery, glasses | Hire, or use disposables | Breakage and washing add hidden cost |
| Canopies, tables, chairs | Leave to the event planner or hire | Not core to cooking |
| Delivery vehicle | Hire until volume justifies it | Large fixed cost |
A basic buying list of pots, burners, cylinders, coolers and utensils might cost around ₦1.5 million in an example, depending on how many guests you plan to serve at once. Hire the rest until you are booked often enough that hire fees exceed the purchase price.
Cost per plate: a 200-guest example
This example is jollof rice, a quarter of chicken and coleslaw for 200 guests, delivered and served.
| Cost line | ₦ |
|---|---|
| Rice, 30kg at ₦1,800/kg | 54,000 |
| Chicken, 200 portions at ₦1,500 | 300,000 |
| Tomatoes, pepper, onions | 60,000 |
| Oil and seasoning | 40,000 |
| Coleslaw ingredients | 50,000 |
| Gas: two 12.5kg refills at ₦22,382.20 | 44,764.40 |
| Takeaway packs, plates, cutlery | 40,000 |
| Staff: 8 at ₦15,000 | 120,000 |
| Transport | 40,000 |
| Chafing dish hire | 60,000 |
| Total | 808,764.40 |
The gas line uses the NBS average refill price for a 12.5kg cylinder in April 2026, reported by NAN; gas prices rose sharply that year, so check what you pay today.
- Cost per plate
- ₦808,764.40 ÷ 200 = ₦4,043.82
- Example price per plate
- ₦5,500
- Revenue
- 200 × ₦5,500 = ₦1,100,000
- Margin
- ₦1,100,000 − ₦808,764.40 = ₦291,235.60
Then add 5 to 10% extra food for guests who arrive unannounced, which most clients will not pay for unless your contract says so.
How much deposit to take
A deposit should at least cover what you must buy before the event. In the example above, ingredients, gas and packs come to ₦588,764.40. A 60% deposit on ₦1,100,000 is ₦660,000, which covers them with a little to spare. A 30% deposit (₦330,000) would leave you funding over ₦250,000 of the client's food from your own pocket.
- State the deposit, the balance date and the guest number in a written agreement.
- Fix a date after which the guest count cannot fall without charge.
- Set out what happens if the event is cancelled or moved.
- Charge for extra plates at the agreed price per plate.
Contracts: offices, schools and canteens
Daily contracts are priced differently from parties. The portion is smaller, the menu rotates, and the client expects the same quality every day for months. You can buy ingredients on a weekly cycle and plan staff hours, which makes the cost per plate more predictable. The risk shifts from deposits to payment terms: many companies pay monthly in arrears, so you carry a month of food and wages before the first payment arrives.
- Agree a price per plate and a minimum daily number.
- Agree how often prices are reviewed when food costs rise.
- Invoice weekly if the client will accept it, rather than monthly.
- Keep a daily delivery note signed by the client's staff.
A contract that pays reliably at a lower margin is often worth more than a wedding season that pays well but leaves your team idle for weeks.
Food safety and permits
Event clients increasingly ask whether staff are tested and the kitchen is inspected. In Lagos, LASEPA's checklist for restaurants, bars and clubs includes a food handlers' test every six months, quarterly fumigation, a grease trap and fire safety items. It is written for premises, so confirm with your state environmental agency what applies to a catering kitchen. A registered business name also helps with corporate clients: the CAC fee schedule dated 29 May 2025 lists ₦20,000 for business name registration with a certified copy.
Steps to start
- Choose a narrow menu you cook well for 50, then 100, then 200.
- Cost each dish per plate using today's market prices.
- Write a one-page event agreement with deposit and cancellation terms.
- Buy core cooking equipment; hire serving equipment.
- Build a small trained team and pay them promptly.
- Photograph your set-ups and collect reviews from every event.
Where Pryme fits
Corporate clients often want an invoice and a receipt: invoicing and verifiable receipts through VerifyDoc.ai (receipts) cover both. Staff can be paid in one approved run with bulk payouts. For menu costing ideas, see how restaurants price a menu, and for smaller events, the small chops business guide.
Questions people ask
How do I start a catering business in Nigeria?
Pick a narrow menu, cost it per plate, buy core cooking equipment, hire serving equipment, and use a written agreement with a deposit for every event.
How much do caterers charge per plate in Nigeria?
It varies by menu and city. Our labelled example costs about ₦4,044 a plate for jollof rice, chicken and coleslaw and sells at ₦5,500.
How much deposit should a caterer collect?
Enough to cover everything you buy before the event. In our example that means at least about 54%, and we used 60%.
Should I buy or hire chafing dishes?
Hire them at first. Buy only when you are booked often enough that hire fees exceed the purchase price.
Sources
- NAN: Cooking gas price continues to rise, NBS (29 May 2026) · accessed Oct 2026
- LASEPA: Checklist for restaurants, bars and clubs · accessed Oct 2026
- CAC: New Schedule of Fees (29 May 2025) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.