How To Start Filling Station Business In Nigeria (2023)
In the present article, we will plunge into how you can begin a filling station business in Nigeria. In Nigeria, crude oil is the new gold. And it has been like that for some time, especially since Nigeria stopped exporting agriculture, which was the main source of its income at the time.
It is safe to say that Nigeria's filling station industry is a profitable one until the entire world switches to battery-powered vehicles and Nigeria is able to provide electricity 24 hours a day, seven days a week. So, if you want to learn how to start and run a profitable filling station business in Nigeria, stay with us until the end of this article.
Is the business of filling stations profitable?
Yes. There are four products you can sell every day in a business like a filling station. You can sell petroleum, diesel, gas and kerosene. Due to Nigeria's high demand, all of these products are profitable. For instance, cooking gas, which was only used by the lower and middle classes, is now used by all people, even in rural areas.
The sale of gasoline and diesel accounts for the majority of the profits made by filling stations. You will make a lot of money year after year even if you only sell these two products. As a filling station entrepreneur in Nigeria you can make up to #5,000,000 week by week in the event that you can draw in clients consistently by given great client assistance.
Capital Expected to Begin Filling Station Business
Putting into a filling station business as a business visionary in Nigeria can be capital requesting as the cash required runs into a large number of naira. The necessity of beginning the business makes the business a capital concentrated business.
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Before starting the business, you must meet these requirements from the Department of Petroleum Resources (DPR), or the business could be closed before it even starts. A portion of these prerequisites are the area and land being utilized for the gas station, tank, number of fuel siphons and others. you can also read on how to start cucumber farming
As a result, you'll need $50,000,000 to $90,000,000 to get started. It is acceptable to form a partnership or limited liability company with others who share your beliefs if you do not have this capital.
Types of Petroleum Marketers in Nigeria
- Dependent Marketers
- Independent Marketers
There are two major types of petroleum marketers in Nigeria. These are:
1. Dependent Marketers
Petroleum marketers who hold the franchise of a major oil marketer are known as dependent marketers. Under this establishment, subordinate advertisers can work utilizing the name to offer oil based commodities to the general population. It is essential to comprehend the advantages and disadvantages of starting a franchise business with a well-known Nigerian filling station and determine whether or not this type of business will be successful for you.
2. Independent Marketers
Petroleum marketers who operate a filling station under their own name are known as independent marketers. They may have a family name or a name that is only theirs.
You can buy your petroleum products directly from the Nigerian National Petroleum Corporation (NNPC) as an independent marketer. From the vibes of things there are more benefit in turning into a free advertiser than a reliant advertiser.
How to Start a Petrol Filling Station in Nigeria
- Write a Business Plan
- Register your Business Name
- Build your Filling Station
- Build Underground Tankers for Fuel
- Hire Construction Engineers
- Hire Attendant and other Staff
1. Write a Business Plan
The initial step to beginning a filling station business in Nigeria is to direct a market overview and compose a strategy. Because of the way that beginning a filling station is capital serious you want a field-tested strategy to direct you on the most proficient method to approach the business. You can also read on guide to start fishing business
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You won't have to worry about missing any steps in building your filling station because of this business plan. The marketable strategy will work the capital required, guide you on fundamental necessities to begin and illuminate you on the most proficient method to create gains inside the initial not many long stretches of opening.
2. Register your Business Name
It's Important to Register Your Business Name with the Government Aside from this, you must also register your business name with the Corporate Affairs Commission (CAC), one of the few registrations required by the Department of Petroleum Resources (DPR). Enrolling under CAC is vital in Nigeria particularly for an efficient this.
You must have obtained your desired business name and location before you can complete these registrations. A tax identification number will also be given to you following your registration at the CAC. When you finally get your business up and running, you will pay taxes with this tax ID.
3. Build your Filling Station
In accordance with DPR, you must adhere to certain guidelines when building a filling station. Nigeria. You want to follow these suggestions. You want to ensure that your filling station isn't in a neighborhood and it is confronting a significant street.
Are you selling everything or just fuel and other petroleum products? If you are selling everything, you must prepare for it. Obtaining two land plots will be ideal for this. You also require every piece of equipment. Meters, nips, lights, a generator, and others Build fuel tankers underground When tankers purchase and deliver petroleum products, these products must be stored somewhere.
4. Build Underground Tankers for Fuel
This is where the structure of big haulers underground becomes possibly the most important factor. Underground, petroleum products are thought to be safe; Because of this, all stations keep them there.
You'll need fuel, diesel, and petrol tanks separately. These three tanks will be placed in various underground locations. Because it is the most frequently used fuel, a 60,000-gallon tank is ideal. Involving such a tank for putting away fuel underground will ensure you can top off before the tank goes void.
5. Hire Construction Engineers
There are various architects that will deal with the development of your filling station. There are those in charge of your station's structure. He will construct the bungalow, which will typically house the manager's office, car wash, and wheel balancing mart. The proposed land size determines this bungalow's size.
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We likewise have engineers that will deal with the fuel siphons. There are four to six fuel pumps needed for a medium-sized filling station. You want the administrations of an electrical expert for lightning and you will likewise require security administrations for wired fencing, CCTV. Every one of these should be thought about.
6. Hire Attendants and Other Staff
At this point, you must hire all necessary staff, including a manager, car washers, and gas station attendants. According to the information I received, most filling stations employ managers with a master's degree and hire fuel attendants with Ordinary National Diploma (OND) or B.Sc. degrees.
However, how you hire your attendants is dependent on you and your financial resources. You will also need to hire engineers to regularly inspect your pumps to ensure that they are dispensing correctly.
Conclusion
The gas station industry is successful. However long their balanced governance the business can run for ages. The business can make you quite possibly of the most extravagant business visionary in Nigeria in the blink of an eye on the off chance that you are reliable and tenacious business.
