It is good news that more Nigerians are beginning to use cooking gas for various domestic cooking purposes. That will help decrease the problems of deforestation and help conserve our natural forests and prevent potential disasters that is inherent with desert encroachment such as erosion.
Apart from the environmental benefits, the increase number of people especially in urban areas who are using cooking gas has created good business opportunity for smart entrepreneurs who can now trade on cooking gas and cooking gas equipments to make good profits.
Cooking gas business is very profitable and you don’t have to break the bank before you can start. With N300,000, you will get your business setup and ready to go with almost everything necessary in place. And this is a big business that anyone who is into it can be proud of.
How exactly can one start cooking gas business in Nigeria? Before we go into the details, let us first take a look into the profit potential in this business as well as the risks involved.
Let’s take the 12.5kg cylinder as a case study, the average profit you make from 12.5kg cylinder of cooking gas is N500. You buy for unit cost of N2,500 or less and sell for N3,000 or higher. If you sell ten cylinders in a day at the average profit margin of N500, you will be making N5,000 daily. In a month, you will be making N5,000×30 = N150,000.
This is relatively the lowest profit you can make in cooking gas business if you are in respectable position where you get good patronage. Most people make much more than what I calculated here. So, it’s not in any way by exaggeration.
For a business you started with N300,000, N150,000 profit is a super profit by all standard. Imagine if you invest more resources and take it higher, your profit will be much more mouth watering. Gas companies, both the suppliers and retailers are making good money in the business. You can become one of them today if you act now!
Every business has it’s peculiar setback and the biggest risk in cooking gas business is fire explosion which is very common due to the high inflammable nature of liquified natural gas. That isn’t much problem though since it can easily be mitigated or even avoided.
To be able to curtail this, you need to be alert at all times to detect when there is leakage in those cylinders as leakages is one of the major cause of fire and explosion. You also need to buy good fire extinguisher that can be very handy in time of minor fire outbreak.
Another risk in the business is government regulation. Should government decide to increase the price of LPG today, some consumers may find it difficult to take and have to go back to using kerosene or firewood. If that happens, you loose some customers and your sales will drop.
However, government is always trying to reduce the price of cooking gas in other to encourage the usage and discourage deforestation.
Now that you are aware of the risks in the business and you think it is what you can handle, how do you get to start this business and what are the things you need to have or put in place? Let’s proceed to answer these questions –
Startup Capital – According experts (people who are already in the business) you can start conveniently with N300,000 and be able to buy more than 20 cylinders, get you a shop, and buy the initial products. The cost of shop in this regard depends on the location. If you decide to locate your business in a highbrow area, you will spend much more money to get a shop but the cost will be well worth it.
Get Training – You must get attached to any experienced retailers or even depots for about six months to learn the important rudiments. You need to learn how to refill the cylinder, how to transfer, how to change valve. And everything necessary that you must know about the business. You equally need to know where and how to buy cylinders.
If you decides to learn in a smart way, you can learn from any of those retailers you see by the roadsides and if you are smart enough, you can get all the knowledge you need there. In anyway, it may take you as much as six months to complete your apprenticeship.
Rent a Shop – After your training is completed and you now have the required knowledge, the next step is to go get a shop. The class of people that use cylinder gas cooker are more in the urban area. almost every part of Lagos is good for the business but some places are better than the others.
Marketing – When your business is up and running. You need to employ every marketing strategy you can muster to increase your profitability and stay afloat.
Firstly you
need less than 500k to start. The profit margin per sale of 12.5kg
cylinder is about N600 which means you have to be in an area where the
threshold, that is population can afford you to do good volume sales per
day/week. A delivery vehicle from the point of purchase plant to your
intended location will be an added advantage and of great value to the
biz. Another way you can increase sales is a reduction of your sale
price instead of making N600 you will make N400. That will increase your
turnover fast. Marketing on a door to door basis and home delivery is
also not a bad strategy to employ. But remember that new businesses
always come with challenges and patience is the key. Like the bible
says Paul planted, Apollos watered but only God gives increase. Pray for
favor – emmaoanidu
With all things setup according to plan, you are in good business. A business that is capable of giving you all the money you want. I have a friend who is doing this gas business and he is doing very well. You too can do even better. I wish you success!
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is there any licence to be acquired
Very helpful…that's all I needed to know
Thanks that's good one
What is the licencing requirement? By the way Darlington, I must commend you.
any inquiry of LPG cylinders and accessories, please contact with us.
Where can I get the cylinders and its acessories cheap. Please I will appreciate if a phone number is sent alongside the reply to my email so we can talk privately.
any inquiry of LPG cylinders and accessories, please contact us by skype: tonysundy
i leave in Abuja
please i’m interested . can i get your contact?
helo.can i ve ur number
hello good morning,olease i will need theprice list of your lpg cylinders with there various sizes.hope to hear from you soon.olufunmilayo80″gmil.om
Please can someone tell me the rough estimate of setting up a mini cooking gas plant and requirement from regulatory body in Nigeria
What does it take to have my own private Gas filling station on a virgin land ?
Italian Cooking Gas and Autogas equipment for Cooking Gas cylinder filling
Please visit website http://www.europump.com
Gas filling is good,nd it pays well.am planin of startin my own very soon,am working obisco gas at d moment
Please can I get estimate on starting a mini gas plant
If I can also get ur phone number I’ll appreciate so I’ll talk with u privately thanks your tips are helpful
just like OBAS requested, I need estimate on starting a gas plant. Also help with ur phone no to enable me have private discussions with you. Many thanks
what are the requirements to set up a gas plant? please also include your contact
PIS Where can i get affordable gas cylinder and the asessories here in Abuja?
Thank you very much for this insight. I am interested in setting up a plant for cooking gas, the plant owners i have met are always putting the setting up cost on higher side. I dont know if the strategy is to scare away from the business. Please can you give me a form of guideline on how to go about it. Thank you and i must commend you for you are doing a great job and may God continue to fill you with his wisdom and knowledge.
Thank you for this.may God be with you. Can you drop ur email,phone number(s) and pin…… mine is
Thanks for the insight. Am based in Akure and I plan start a cooking gas outlet. Can you help on how I can get materials to start up
Pls help me out with breakdown of how to start mini gas business.
Hi, i really wish i can start this business if i can get a mentor.
moreover i will be needing price and quantity of equipment such as cylinders of various size, is there any association to register with as a street seller with a shop and not a plant. kindly raach me via email
You can contact me for adequate training / Apprenticeship / engineering or Cookers Repair abilities and Start up requirements if you are within Lagos and Ota Environs. Fees are not Grievous- trust me!
Hi Mr Ameachi Austin. I’m interested in learning about this business before venturing into it. How may I contact you please? I’m based in Badagry area of Lagos.
I likw this business, but i need training before i invest into it. How and where can I get the require training.
Please is urgent.
Please is is possible for unto.drop your email or mobile number, I will like to contact u
Brilliant stuff.
In Accra Ghana gas is the primary source used for cooking. Many citizens rely on small gas cylinders and simple cookers. The price of gas appears cheaper than kerosene.
Thank you soon much sir.
1. any license required?
2. What possible ways can I expand the business in the nearest future.?
wanna do business with u..av work in a gas plant but wanna have a shop of my own so I need avoidable price and where I can get cylinders and table cooker,regulator etc at a cheaper price pls send ur number to my gmail
I need your email address or nay other contact
1)pls is there any liecence to collect
2)want to get the lpg cylinders of various size to start my own buisness
Where can I get cheaper accessories and cylinders
Please where can i get cylinder and accessories at lower price. Please can you release your phone number?
I have an interest in this business, how can I get to the plant that will be supplying me the gas sir.
good job, pls I want to stratup a mini gas station, what are the requirements and how much to get it running! thanks.
Pls, Can I have your contact consigning cooking gas business, thank you
Thank you for the enlightenment. How much do I need to start set up a Mini Gas Station. Can I use my compound for the business? What is the government requirements for setting up the business?
Yaap this write-up is 100% for the setting up of gas biz,am in to the biz..you must learn it,after learning shop.
Good morning, I’m interested in training.
i leave in Abuja
please i’m interested . can i get your contact?
I need ur contact please
Pls, Can I have your contact consigning cooking gas business, thank you
Please i am interested in having my own Gas depot, like how much will i use to start the business , i do have a land by the side of the road wish i will be using i will like to know what it will cost me , and how can i go about it
Hi Darliton
First of all I thank for the info regarding the gas business, I need your contacts details thanks.
Fadekemi Gafar