Cement Business in Nigeria: How to Get Started

Nigeria is a fast developing country. I was in Lokoja, Kogi State in 2004 for a visit to my friends and in 2014 when I went back there to visit those same friends, I’m not exaggerating by saying I almost got lost.

I couldn’t believe my eyes — everywhere looked so different. Even places that were filled with bushes during my last visit had become fully developed.

Nigeria may be a Third World country with many impoverished citizens but one thing Nigerians don’t joke with is real estate; Nigerians love buildings and property and owning a house is usually seen as a symbol of wealth and success.

Cement is a major ingredient used in construction and its high rate of usage in Nigeria has made it a very hot and profitable product to sell. Some people make close to N400, 000 daily just from selling cement.

To start cement business, you have to first determine the scale at which you would like to operate. There are two ways to start your cement business in Nigeria;

1. Distributor

You can choose to start as a distributor. This would cost you a lot more money and would also mean that you have to register with Lafarge, Dangote or any of the other cement manufacturers in Nigeria. Some of the requirements for registration include;

  • Certificate of Incorporation
  • Letter of Application
  • Bank Reference Letter
  • Passport Photographs of the company’s director and the company representatives.
  • Capital to buy at least 600 bags of cement for a start.
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2. Retailers

If you don’t want to go through the process of registering with a cement manufacturing company, then you can settle for buying your products directly from the wholesalers. You don’t need any special documentation or minimum requirements for this.

When you finally get a grip on where and how to source for your goods at a favorable price, you would need to do the following-:

  • Set up a Warehouse/ Store-: You would need somewhere to keep your cement in order to prevent theft or damage therefore, you need to look for a warehouse or store for preserving your products.
  • Get a Vehicle-: You might also need a vehicle for supplying and distributing your products because not every customer that buys from you would own a vehicle. To attract more customers, you would need a vehicle to transport the cement to where it is needed after purchase. You would also find the vehicle very useful when you need to re-stock as well.
  • Source for Clients-: If you have taken time to conduct proper research and chosen a good location for your business, you won’t have troubles getting customers to patronize. However, you can still consider doing a bit of marketing. You should focus on companies that make regular use of cement like building contractors and construction companies. You should also not neglect building block manufacturers because they make use of cement in manufacturing blocks. Individual builders also purchase cement for their house building projects as well.
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When running cement business, ensure that you pay special attention to inflation in prices. This is because prices of cement are never stable and change from time to time. So, it is important that you don’t hold too much stock at a time to avoid losing your money.

 

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