How to Start Cement Business in Nigeria

Filed in Business, How To by on April 5, 2019 0 Comments

How to Start Cement Business in Nigeria will be discussed here.  Dealership in building materials is a very lucrative business in Nigeria.

This is because Nigerians have the penchant for randomly erecting buildings anytime and anywhere. The demand for building materials is always high, the inflation notwithstanding.

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How to Start Cement Business in Nigeria

How to Start Cement Business in Nigeria – Photo Source: https://www.graphic.com.gh

Cement is one of the building materials that is always in high demands. House builders need it. Sculptors need cement. Other artisans equally need cement.

You can key into this and make some cool cash for yourself. You can join the cement business in Nigeria as a wholesale distributor, a retail distributor or as a small retailer selling to final consumers.

If you are already selling other building materials, you can easily add cement to them. But you will need a larger space to stock your goods.

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There are many cement brands and companies in Nigeria. The popular ones are Dangote, Lafarge, Unicem, etc. you can go for anyone that builders in your locality prefer.

You can also look out for the company that will guarantee higher returns on investment. This post will however dwell more on how to start selling Dangote cement.

So here is a step by step itemization of what you need to do if you want to do cement business here in Nigeria.

How to Start Cement Business in Nigeria

Here are Guides on How to Start Cement Business in Nigeria:

1. Acquire your facilities

When doing cement business in Nigeria or anywhere else in the world, there are certain facilities that have to be put in place. Before you even approach cement supplier, ensure that you have a warehouse where you can store the cement pending when you sell them out.

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If you want to supplier directly to builders, you might not need a ware house. Another facility you must possess is the means of transport.

You need a vehicle that can convey the cement from the manufacturer or source supplier to your warehouse or to the consumers.

If you cannot afford a trailer of your own, you can hire. If you are a small retailer, a small truck can do. You also need a tarpaulin to cover the cements in the course of transportation.

2. Becoming a cement distributor

To become a legitimate distributor of Dangote cement, lifting your goods directly from the factory, you need to have a business venture duly registered with the Corporate Affairs Commission (CAC).

The company should have an account with a Nigerian bank with a balance large enough to procure at least one trailer load of cement.

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You need clearance from EFCC and the Federal Inland Revenue to expend such amount of money. A trailer of cement cost about N850, 000.

With these conditions met, approach Dangote with documents proofing the legitimacy of your company and person. It is rumored that Dangote has a policy of cash and carry. Pay for your goods and they are ready for transport.

Take your trailer there and the cements will be loaded for you. Have them driven to your warehouse or construction sites.

3. Retailing cement in Nigeria

If you cannot afford large scale distributorship, you can be a retailer. Just visit a nearby wholesale depot and buy from them. Notify them that you are retailing the cements so they can give you some discount.

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4. Getting orders for supply of cement

As a major distributor, your primary buyer is the retailer. Look around your area and identify them. Convince them to buy from you and offer some discount to attract them.

Also look out for civil engineers and building contractors who handle massive construction projects. They always buy cement in bulk.

For the retailer, look out for local construction workers and put words out across to them. Even laborers at construction sites can connect you with their bosses. Build a network with estate agents and other building material sellers.

We wish you success in your new cement business!

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