Monday, 8 October 2018

Cement Business In Nigeria: How To Start


I know a lot of people will be asking,is cement business profitable? How do I start cement business in Nigeria?

This article will clarify and explain to you every thing you need to know about cement business and cement retailing business in Nigeria.

For some reason this current economic recession doesn't seem to have an effect on cement business as people always keep on building houses and most often Nigerians associate building houses as evidence of success. 
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The business of cement has made a lot of people rich,some major retailers and wholesalers make as much as N300,000 -  N500,000 monthly. 

Apart from building of houses,cement is also used to build all the major construction projects in Nigeria.

Just like any business in Nigeria before you start cement business,you have to decide on which scale you would like to operate,whether you want to start big or start small and learn the ropes in the business.

Cement Business In Nigeria

1. Major Distributor

I guess you must have seen heavy trucks plying on Nigerian roads,conveying bags of cement to different locations,these are the major cement distributors conveying their product from one point to the other. 

If you want to start big scale,consider becoming a distributor.
Although it is very capital intensive,it is also very lucrative,some major cement distributors earn more than N500,000 a day!! 

Read Also: How To Register Your Business In Nigeria 

Before you can become a major distributor, you have to register with one of the major cement companies in Nigeria. 

The two major cement companies in Nigeria right now is Lafarge and Dangote,you can also register with any other cement manufacturing company  in Nigeria. 

In other to register,you have to provide some requirement,firstly register your company with Corporate Affairs Commission.
Open Business Account in any of the Nigeria Banks of your choice.
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To open a business account in Nigeria, you would require a clearance from (SCUMIL) EFCC’s Special Control Unit against Money Laundering.

Proceed to Federal Inland Revenue to get Tax Identification Number (TIN).

Once you have successfully opened the business account,request to get a reference letter,then proceed to the cement company. 

When you get to the cement company,you will be asked to present the following documents before you can apply to be one of their distributors. 

  • 1. Application Letter to become a distributor
  • 2. Scanned copy of the Bank reference letter
  • 3. Passport Photograph of the company’s Proprietor/MD
  • 4. Certificate of Company Registration from the Corporate Affairs Commission
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  • 5. Passport Photograph of the company’s Representative

After applying,you will get a response within 48 hours,make sure that you have the soft copy of all your documents with you,if your application was approved then immediately you can start your business immediately. 

Endeavor to have capital to make a minimum purchase of one trailer load of cement i.e 600 bags,the transaction is strictly on cash and carry basis. 

2. Retailers

If you do not have the capital to start off as distributor,then you can start off as a retailer.

You don't need certification and registrations to start your business as a retailer,all you have to do is to look for a wholesaler that will supply you with cement bags at a cheaper rate,then you resell to your potential customers and make your profit. 

Read Also: How To Start A Car Wash Business 

To start or invest in cement business in Nigeria you need to do the following: 

Warehouse/ Store / Shop

Your product ie your cement is perishable,so you need to keep your product in a dry secure place,a warehouse,store or shop in other to preserve your product.

Vehicle

You will attract more customers if you have a vehicle that will be used to deliver cements to your customers.

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In some cases all the customer has to do is to call your company and request for a supply of cement at a building site,all you will need to do is to deliver the products using your vehicle.

A small DYNA pick up truck will be ideal as a supply vehicle. 

Clients

This is the most important part of cement business,just like any business you need a steady influx of clients/customers to make money. 


To do this you have study your competitors and look at what they are not offering their clients,then you can add some extra services.
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Also visit different construction companies and building companies, you can even advertise online in other to attract individuals that are currently building. 

Another area that shouldn't be overlooked is cement block industry operators,try to pay them a visit and strike deals with them,you can be supplying cement to them on a regular basis. 

Finally make sure your store/shop is located at a strategic location. 





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