Cement Business in Nigeria: How to Get Started

You can engage in the building and construction business in many ways. One of such ways is by selling building materials. This is a very lucrative business where you can make huge amounts of profit monthly. Of all the building businesses, the sales of cement are one of the most lucrative. There are various cement companies in Nigeria. The popular ones are Dangote Cement, Lafarge cement, Obajana cement, Ashaka cement and others.

Cement Business in Nigeria: How to Get Started

Reasons you should consider the Cement business

Rise in population

Nigeria is the most populous country in Africa with a population of 206 million and still counting. The country is still recording a geometric rise in population. With the increase in population comes an increase in demand for housing, thus, more structures will have to be built to cater to the growing population. The need for more structures will result into an increase in demand for cement as the chief material used in construction in this part of the world.

Product availability

Cement is readily available as long as you have the capital to buy. Fortunately, Dangote, the biggest cement company in the world is situated in Nigeria. The company provides several modes of assistance to encourage people to go into the cement business. There are also several ways in which you can be involved in the cement business. In this article, we would explain how you can get started in the cement business. Read on below:

Becoming a Distributor

 This is one of the ways you can be involved in the cement business in Nigeria. As a cement distributor, you will act as a wholesaler supplying cement to retailers on behalf of the company. Using Dangote cement as an example, there are some conditions you must meet in order to become a distributor with the company,

Requirements to becoming a Cement distributor in Nigeria

In a bid to ensure distribution of cement all over the country, Dangote Cement is often seeking credible distributors form any part of Nigeria. However, there are requirements to be met before you can be allowed to be a distributor for Dangote. Credibility in this sense means that your company must be registered with the Corporate Affairs Commission of Nigeria. This is in a bid to ensure taxes are paid as at when due. There is no better way to prove a company’s credibility than to register with the country’s company registry. Registering a business in Nigeria will cost between #50,000 and #70,000.

Requirements to register your company with Corporate Affairs Commission

Registering a business in Nigeria takes between N50, 000 to N70, 000. The process is also simple. All you need to do is get to the Corporate Affairs Commission office or visit their website. After registering your company, the next is to open a corporate account (with your company’s name) in any Nigerian bank of your choice.

Open Business Account in any of the Nigeria Banks of your choice

In order to open a business account, you will need to get the Economic Financial Crimes Commission (EFCC) Special Control Unit against Money Laundering (SCUML) to approve of your business. They are the ones to ensure that your business is not a cover-up for shady or criminal business activities.

Obtain your Tax Identification Number

You are also required to obtain your Tax Identification Number from the Federal Inland Revenue Services. This is to act as a prove that you will pay your taxes when it’s due. After these, you are set to open a bank account.

These are the two major requirement for opening business account in Nigeria. Other necessities will be communicated to you by the bank. Your bank will also provide you with a reference letter for the company.

Dangote Cement Business Distribution Requirements

Ensure you have the following documents before you begin application for Dangote:

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

What do you need to have as a distributor?

A warehouse

As a distributor, it is important you have a place where can store your goods before selling to retailers. The largeness of the warehouse depends on the number of goods you will be purchasing per time. The warehouse must be a space that is protected from rainfall and unnecessary sunshine, to avoid damaging the cement during the rainy season and caking in the dry season. You can improvise and use a large tarpaulin, however, a warehouse is always best. Some people cover their cement with a large tarpaulin, but its best to get a large shop or warehouse for the goods. As a distributor, it is important that your warehouse is situated in a place that is accessible to the customers, your warehouse must also have enough security to guard against theft and other vices.

A distribution vehicle

For timely distribution which will in turn determine the success of your business, it is wise to get a distribution vehicle. Having a vehicle will allow for ease of distribution. You can charge the customers an extra fee for delivering to their shops.

Becoming a retailer

As you can see, the cement business is a capital intensive endeavor. If you do not financial capacity, you can still be involved in the cement business as a retailer. Retailing in the cement business is far easier and less capital intensive. All you need to do is get a good location for your shop. This should be near the road or an area close to where construction works take place. After this, locate the nearest depot to your shop, buy your goods and resell to your customers. As a retailer, you do not have to register with the CAC or with Dangote cement itself. As a retailer, you can make about #200 on each cement bag sold. If you have many customers and make multiple sales, you will make a lot of profit.