How to Start Cement Business in Nigeria will be discussed here. Dealership in building materials is a very lucrative business in Nigeria.
How to Start Cement Distribution Business
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This is because Nigerians have a penchant for randomly erecting buildings anytime and anywhere. The demand for building materials is always high, inflation notwithstanding.
Cement is one of the building materials that are always in high demand. Housebuilders 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 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 a 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 a 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 supply directly to builders, you might not need a warehouse. Another facility you must possess is a 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 one. If you are a small retailer, a small truck can do that. You also need a tarpaulin to cover the cement 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 an amount of money. A trailer of cement costs 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 cement 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 cement so they can give you a 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 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!
