Cement Business Plan In Nigeria

How to Start a Cement Business in Nigeria / Business Plan & Feasibility Study

The cement business in Nigeria, is a very lucrative business, one look at the economic situation today in the country, and then so many ways to make money comes to mind, and one sure way is starting up a business, not just any business, but a lucrative business, and that’s where this cement business is one sure business to put money on, the cement business along side other building business is very lucrative, that could fetch you fortunes monthly.

Cement sales or selling cement seems to be the most lucrative business currently in the country, you may wonder and ask yourself how possible is this?

Well I will explain, the cement business in Nigeria is one business is can engage in without doing too much hard work in this country.

Too many cement companies are in Nigeria, these include Dangote cement, Lafarge cement, Obajana cement, Ashaka cement, etc.
Let me use Dangote cement as a case study to ride in this very educational article about cement business in Nigeria, This is because there are so many ways one can be involved in the cement business in Nigeria, and I will gladly talk about most of them.

How Can I be Involved in the Cement Business in Nigeria?

If you are only interested in getting our sample “Cement Business Plan in Nigeria” pay N10,000 to

ACCOUNT NAME: UWADIA JOSHUA UCHE

ACCOUNT NUMBER: 0137025869

BANK: GT BANK

ACCOUNT NAME: UWADIA JOSHUA UCHE

ACCOUNT NUMBER: 0245684926

BANK : WEMA BANK

After payment, send your name, email address and “Cement Business Plan in Nigeria” to 07030465171 and Your business plan will be sent to your email within 15 minutes.

There are too many ways that I can tell you that houses every class of citizens in a country like Nigeria’s economy (both the rich, and the hustlers) it doesn’t matter, what matters is your determination to join the cement business in Nigeria

Firstly, I would start by the not so common Haulage, ( means of transporting materials that are heavy over distances or across the country.) Do not think this has nothing to do with the cement business, or how does it concerns you, well you can be right about that, but I would like to inform you that haulage isn’t a common aspect of this business, however it is not very easy for everyone to just get into the cement business, but if you can in any means there is every possibilities that you would make good money, I mean real cash without even sweating in a year.

Working with this example here, a man named Ronald Nzimora just started a haulage firm with just two trucks, and before the year ends he was smiling to the bank with about a million naira. You’d ask yourself how he did it, it’s simple, this was how he did it, he leased his trucks to Dangote.

There are not enough truck for the company to reach in a specific period of time, and there are lots of destinations to be covered, this is what to do in situations like this, just act like a subsidiary transport for them, and money will be pouring into your account with sweating, i mean lots of money, sometimes questions like one is this not for people with a lot of money?? Well I have answered that before, I said there is a particular branch of the cement business in Nigeria that’s for everyone in the economy of this country.

DISTRIBUTORSHIP
This also another way to be involved in the cement business in Nigeria, this us where you supply cement as a distributor to companies as an wholesaler. But this comes with terms and conditions especially in Dangote cement company and that’s what I will be talking on. Just read carefully and then you are good to go.

Register your company with the Corporate Affairs Commission. It is very important, this is because Dangote requires the services of only credible companies as their wholesalers, not only Dangote but household named companies What better way to prove your credibility than registering with the country’s company registry. To be fully registered as a business in Nigeria it won’t cost more than #50,000 and #70,000. Then you can also open a corporate account with any bank in the country.

To do this you will need to get the Economic Financial Crimes Commission (EFCC) Special Control Unit against Money Laundering (SCUML) to ensure the business is not illegal or has a criminal business activities. The Federal Inland Revenue Services to also requires you to get your Tax Identification Number. This is to show that you will not evade your taxes ir not pay at all, as and when due. With these you are sure to open your bank account.
We have listed some documents required by Dangote to be a distributor:

A certificate of company registration from the Corporate Affairs Commission.
A scanned copy of a bank reference letter.
A letter of application to the company for distributorship.
A passport photograph of the company’s proprietor.
A passport photograph of the company’s representative.

With these, you will become a registered distributor in about 48 hours. One thing that’s majorly required as a distributor is that you must at least buy a 600 bags/one trailer in one month.
Registering as a distributor with the cement company is one thing, having what it takes in your kitty is a whole different ball game.

What do you need to have as a distributor?

A warehouse: You would not that as a distributor you will require a place to store your goods before it will be sold to the retailers.
You will definitely need a large space jus like Nylon & Polythene Production Business Plan In Nigeria, base on the goods you are purchasing, this space must not be exposed to rainfall or too much sun shine, this reason u wouldn’t need places like that to store you product is to avoid caking of the cement be selling, because that could reduce your profit. To avoid you cement being covered by tarpaulin, its best to get a large warehouse where you can freely store your cement products.

For your distribution to be really effective and also to get other source of income, I always advise how wise it is to get a distribution vehicle, the kind if vehicle you will need depends on you, you could use a pick up van or any means you like. When you do that you could charge the customer for distribution service, because the goods were brought to her shop, that’s an extra cash, and also it is easier means to distribute to the customer.

To avoid thieves breaking in to steal your cement, make sure the warehouse is well secured, take an extra means to secure your warehouse, it really important you do that, and it also very important that the warehouse is very easy to locate and accessible to customers.

If your financial capacity at the moment makes you feel you do not have the capacity to become a distributor just yet, your involvement in the cement business in Nigeria is still sure, you can still be involved in the cement business by being a RETAILER. Of course, you can become a retailer, I can categorically tell you that, it is far easier and less capital intensive. This is all u need do, All you need to do is get a place to site your shop, this place should be close to the road or better still in an area where new constructions are taking place.

As soon as this is done, all you need do is to locate the depot that is nearest to your shop, buy your goods and resell to your customers. I believe this is very simple, you do not need to register with the CAC or any other form of registration. This way you can be making about #200 on each cement bag sold, and you can make very plenty of that daily since there are a lot of cement users presently and they usually buy more than one bag at a time.

Another question to answer regarding cement business is, how is the profit in cement business in Nigeria.

As a distributor, let say for instance you will the cement from the company at about #2,300 per bag. That is about #1,380,000 for a trailer load (600 bags). You can sell each bag for about #2,600 this means that you can make about #120,000 profit when you remove transportation and other miscellaneous expenses.

Operating a haulage company, you will be making about #50,000 for each haul. Note here that the amount of money you can charge is relative to the distance covered.

Like we said in the beginning as a retailer, its possible you could be making #200 per bag which could be in multiples, depending on where your shop is situated and how many customers you have patronizing you daily.

Why Should I Engage in the Cement Business in Nigeria?

I have set or written out few reasons that are very valid, why you should be part of the cement business in Nigeria

There is a geometric rise in the country’s population. There is no doubt we are going to be faced with a major challenge of housing the increasing population, therefore it is only wise to think that more structures should to be built. Of course it’s common knowledge that when its comes to building more structures, there would always need for more cement, because in this part of the world, cement is what is used primarily to erect houses.

According to reports, The federal government of the country is currently looking at implementing the use of cement to make roads. Any good businessman can forecast that with this move, demand for cement will skyrocket.

The product is always available as long as you have the financial means to buy.
Dangote, the biggest cement company in the world is situated in Nigeria and provides several modes of assistance as well as bonanzas to teeming customers so many times in one year.

Always remember that all business cannot exist without challenges, the cement business in Nigeria is not different , some if the few challenges that comes in the business have been listed below, and they are:

Weather effects.
When it rains, and the cement is not properly guarded or the cement isn’t well stored, it can result for the cement to cake, and once it does, it can render the businessman to run a great loss, because the cement will become useless.

Capital intensive. If you have been following, you will realize at this point that you require a great amount of capital if you are going to start and be successful in this business. Of course you could cut your coat according to your size, but it will be better to start with a good amount of cash to be very successful.

Transportation of goods. If you stay quite far from a depot, you might face the challenge of moving your goods to your shop, especially with the hike in transportation prices in the country.

Just Like any business, you will need a detailed feasibility study, a proper business plan, adequate capital and an efficient accountability system, with all these be very confident your business will blossom. It is also very important that before indulging in this business, you seek counsel from your predecessors, this is to avoid costly mistakes, mistakes that could ruin the business at its early stage, Your guess is as good as mine, it is time to make some good money.

If you are only interested in getting our sample “Cement Business Plan in Nigeria” pay N10,000 to

ACCOUNT NAME: UWADIA JOSHUA UCHE

ACCOUNT NUMBER: 0137025869

BANK: GT BANK

ACCOUNT NAME: UWADIA JOSHUA UCHE

ACCOUNT NUMBER: 0245684926

BANK : WEMA BANK

After payment, send your name, email address and “Cement Business Plan in Nigeria” to 07030465171 and Your business plan will be sent to your email within 15 minutes.

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