How to Start a Gas Business in Nigeria
How to Start a Gas Business in Nigeria: In Nigeria, there have been significant variations in propane gas use. While many would prefer to use electricity, its absence necessitates the adoption of alternative energy sources.
Many now recognize the gas’s use and convenience as a substitute for kerosene. Gas is unquestionably a superior alternative to kerosene because it cooks meals more quickly and is also less expensive. According to a recent study, Nigeria consumes 110,000MT of cooking gas each year. Gas is now a necessary commodity, and it is a business worth exploring. Even during times of recession, petroleum products, particularly gasoline used for cooking, remain profitable, as people will always eat and prepare.
HOW TO START A GAS BUSINESS IN NIGERIA
If you are an investor or simply want to start a business, the cooking gas industry is one to consider. This article discusses the gas business in Nigeria and all you need to know to get started and succeed.
Propane Gas is not a consumable product in the same way that raw food is. There are a number of factors to consider before you can begin this business in Nigeria.
CONSIDERING THE FACTORS TO CONSIDER WHEN STARTING A GAS BUSINESS IN NIGERIA
1. FEASIBILITY STUDY AND MARKET SURVEYS
A feasibility study and market survey are two essential components of any new business initiative. If you want to be able to make smart choices for your company, you should conduct a feasibility study. This will give you information on the best places to establish a presence for your company, potential rivals in the industry, the estimated costs and start-up capital your company will need, the kind of education you’ll need to run the company successfully, and any other aspects of running and operating the company that are necessary.
2. LAND OR OFFICE SPACE
To conduct business, every company that offers customers a product or service needs space. The availability of land, however, is an even more important consideration when it comes to the distribution of cooking gas. This is because of the effects for the environment and for human health, in addition to the increased safety requirements imposed by the cooking gas. One of the agencies that is responsible for the regulation of companies that deal with petroleum products is called the Department of Petroleum Resources.
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According to DPR (Department of Petroleum Resources) regulations and criteria, the plant must be located at least 15 meters away from any structure containing flammable materials. This comprises residential structures, among others. When the DPR comes for inspection, your place must be deemed safe, which can be verified by hydraulic cylinder maintenance professional. This is one of the initial tests that your application must pass before it can be authorized by DPR.
3. APPLY FOR A BUSINESS NAME REGISTRATION
When starting a business selling cooking gas, it is essential that you select a name for your company that is appealing to customers. In addition, the name of this company needs to be registered correctly with the authorities in charge of corporate affairs in Nigeria. In addition to this, it is essential that you maintain a healthy distance between yourself and your company. Consequently, this is an even more convincing argument in favor of registering a business name. This would give the company a recognizable name and face to go along with its brand.
In addition to supplying cooking gas to individual residences and commercial establishments, you may also choose to supply cooking gas to organizations, hotels, schools, and huge clubs, as well as dining establishments. If your company is not properly registered or formed as a corporation, many of these huge corporations will refuse to do business with you because of this fact. The act of registering your company name distinguishes you from any other form of roadside business and gives potential customers the impression that you are a reliable and serious business partner with whom they may collaborate.
4. CAPITAL AND EMPLOYEES
There is no type of business for which you would not require cash, and you will require a significant amount of this resources in order to launch your cooking gas business. It is vital to have capital in order to purchase the appropriate equipment. Capital is yet another criteria that will be investigated by the DPR.
5. BUY THE ESSENTIAL EQUIPMENT AND BUSINESS TOOLS
Several pieces of equipment and tools will be required to launch your cooking gas distribution business, including the following:
- Gas cylinders that have been emptied
- Gas pipelines made of rubber
- Gas regulator
- Weighing apparatus
- Transportation with a delivery van or bicycle
Additional equipment includes the following:
- The pool of prospective candidates
- Screwing valves
- Carousel with electronic components
- Carousel with mechanical components
- Scales electronic
- Mechanic scale etc.
YOU WOULD ALSO REQUIRE CAPABLE HANDS TO ASSIST YOU IN MANAGING THE BUSINESS AS IT EXPANDS AND GROWS. THESE ARE PREREQUISITES THAT THE DPR MAY REQUEST, BUT WITHOUT THIS EQUIPMENT, YOU CANNOT OPERATE.
This is another critical criterion that is unique to the Nigerian circumstance, as the criteria are based on the DPR’s specifications.
Note: The quickest and most accurate approach to obtain all of the information is to visit the DPR. Additionally, you can acquire a copy of the DPR’s procedure and conditions for the issue of the license online. This would provide you with more specific information.
To establish a cooking gas business in Nigeria, you would need the following permits:
- Report of the Police
- Permit for Town Planning
- Approval of Fire Planning
- Permit for State Land and Physical
- Planning Department of Petroleum Resources
Apart from the foregoing, you will require the following papers to process the state L&P and DPR permits:
- Assessment of Environmental Impacts
- Architectural Sketches
- Drafting Structures
- Mechanical Illustration
- Electrical Schematics
7. STRATEGY FOR MARKETING AND DISTRIBUTION
Each firm benefits from an effective marketing and distribution plan. Take the time to develop an effective marketing strategy. Your primary business strategy should be to locate the business in a strategic, conveniently accessible location with a strong demand for your goods.
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If your cooking gas firm is well-located, it will face fewer difficulties in the beginning. You can employ handbills with visually appealing advertorial content, as well as internet and social media. Additionally, you can employ word-of-mouth advertising to educate people about your business and attract consumers.
These are the processes necessary to start a gas business in Nigeria.