Filling station business also called petrol station business in Nigeria is one of the most lucrative businesses in Nigeria. With careful study of how the business works and cost of starting the business in Nigeria, you can venture into it.
As you know, Nigeria is one of the oil producing countries in the world and the largest in Africa, so it can be considered a lot more easier to start this business in Nigeria.
This business is also very lucrative in the sense that very many people rely on petrol and diesel gotten from filling stations. Almost every car, truck, motorcycles, bikes and industrial machines rely on these products to keep running. In many homes if not all, we require petrol to keep the Generator working and it is also helpful to us while cooking. With all these in mind, one can conclude that filling station business is one of the most lucrative businesses in Nigeria.
Researchers say that people in Nigeria only, consume more than 40 million litters of filling station products in just one day. So, I think if you are interested in venturing into this business, you must first consider the startup cost and set out your business plans.
Requirements to start a petrol filling station business
To start a successful filling station in Nigeria, you must do the following;
1. Market study: For you to start running your own petrol business, you really need to go out into the business market and do some research. I mean, getting to know people who can run the business around you, interact with them and let them share their market experience with you. You can as well ask questions regarding how the business is fairing, their challenges in the business etc.
2. Location/situation of business: You must also consider where you want to start this business. Well, I really think this depends on the kind of filling station you want to start. Whether it is small scale or larger scale. Small scale in the sense that you’ll have one or two pumps in a small environment. So, to choose your business location, I’ll advise you look for places closer to the main roads and at the same time nearer to some villages or communities., If possible a place where no one else is doing the same business.
3. Cost of construction: In this step, you need to contact an engineer and also a specialist in the field, discuss your plans with him and let him outline the setup cost for you. That is from building the station to getting the pumps.
4. Purchase equipment and machines: in this step, you need to purchase the things listed by the engineer and the specialist. These include, standby high voltage Generator, dispensers/pumps, forecourt control, spare parts, leasing, Automated tank gauge etc.
5. Get Business License and Authorisation from appropriate Authorities.
6. Get labour ready: In this step, employ capable hands who can run the business for you. I suggest you need people who might have had such experience beforehand to start it up first.
7. Market your business: you can do this by advertising through various means.
Cost of starting petrol filling station business in Nigeria
1. Land buying can cost some N2.5 million-N8 million depending on the location and size.
2. Building/setup: this should cost an average of N30 million or thereabout depending on size tho.
3. Equipment purchases: This should cost about N10 million
4. Business registration and related. This should cost around N100,000–N300,000.
5. Miscellaneous: about N2 million.
Cost of starting is totalling about N55 million on an average.
How much profit does a filling station make
Bearing in mind that the business is lucrative, you shouldn’t worry so much about loosing. Some researchers claim that some filling stations make very reasonable percentage of profit after each sale. Well, you can do more research on that during market study.
How to start a petrol filling station business in Nigeria
In order for you to start up a lucrative petrol filling station business, you don’t just jump into the market, you’ll first of all sit down and calculate the cost and expense. Considering carefully the requirements outlined in the beginning of this article will also help you to have an overview of what you are going into so that you don’t jump in and jump making losses. Rather, outshine your competitors, make more than them with minimal effort and dominate the market.
In conclusion, you’ve seen that a petrol filling station is one of the most profitable and lucrative businesses in Nigeria and for you to be successful within a short time, you need to carefully consider the cost of starting up the business here in Nigeria in your preferred location.