How to start cement business in Nigeria

Cement business is one of the best and easiestbuilding material businessanyone can start and make good money. People have been looking for information on howto start cement business in Nigeria without finding any substantial details. In this article, I will be endeavor to explain cement business in as much detail as possible to the extent of my understand. I will try to explain how anyone can start cement business anywhere in Nigeria without so much suffering.Before we proceed to the step by step how to start, let us first take a look at the merit and profit potential in cement business using Dangote cement supply as a study case. Like I said before, its one sure business that everything in it seems almost seem guaranteed and I can assure you that people who are doing the business are making good profit.

    As a distributor, you will get the cement from the company at about #2,300 per bag. That is about#1,380,000 for a trailer load (600 bags). Each bag can be sold for about #2,600 meaning you will bemaking about #120,000 profit after removing transportation 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.As stated earlier as a retailer you could be making #200 per bag which could be in multiples, depending on where your shop is sited and how many customers you have patronizing you daily.

To Start Cement Distribution Business

1. Distributor– You need to fulfill some simple requirement to become Dangote Cement Distributor. In effort to ensure distribution of cement all over Nigeria, Dangote Cement is currently seeking credible distributors form any part of Nigeria. In this regard, credible means, individuals who owns a registered company that is, whose business is registered with the Corporate Affairs Commission of Nigeria.To qualify to apply as Dangote distributor,you need to put the following things in place:

Register your company with Corporate Affairs Commission

Once you have your company registered which is very simple and requires just littleamount of money. About N50,000 plus waka waka will do that for you if you decides to do it yourself. When you have that sorted out, the next is to open a corporate account in any Nigerian bank with your company name.

Open Business Account in any of the Nigeria Banks of your choice

To open a business account in Nigeria, youwould require a clearance from EFCC’s Special Control Unit against Money Laundering (SCUMIL) to ensure that you wouldn’t carry money go hide in overseaAfter that, you go to Federal Inland Revenue to get Tax Identification Number (TIN) which shows that you are willing to pay tax.

        

        These are the two major requirement for opening business account in Nigeria, the bank will tell you other things you need todo. Within moment after you have provided all that is required of you, your account will be opened. After banking for a while, you get reference letter from the bank and proceed to Gangote.

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Dangote Cement BusinessDistribution Requirements

Please ensure that you have the soft copy of the following documents before you begin Application:

1. Certificate of Company Registration from the Corporate Affairs Commission

2. Application Letter to become a distributor

3. Scanned copy of the Bank reference letter

4. Passport Photograph of the company’s Proprietor/MD

5. Passport Photograph of the company’s Representative48 hours registration period guaranteedMinimum purchase of one trailer i.e 600 bags monthly on cash & carry basisNo Application/Registration deposit required

What strikes me here is the “cash and carry” clause after going through all the rigor to register company and get reference latter from the bank! If I am buying to pay you cash, why make me go through these process, or is it the Nigerians usual way of playing gods when the power is in their hands? Please kindly make us understand.Anyway, this will be for next article but fornow, lets proceed with our business.

Other Logistics You Need For Cement Business

1.ware House– Except you have standby customers you want to supply, you need a secure place to house your product. Get a ware house or any big shop that can accommodate minimum of 600 bags.Some but theirs in open place and cover itwithtarpaulinfor safety but that depends on the quantity you are buying, if you are buying very large quantity, you’d need to get a big whale house.

Arrange for Supply Vehicle– If you can buy yours, that would be nice. In fact, it is another business on it’s own – whenever your customer buys, you’ll supply them and make extra money from the transportand load fee. You can use it as marketing tool to sell faster than others by offering free delivery to customers buying certain quantity.
         If you can’t buy yours, just arrange for regular customer who would be assisting you get the cement to the final destination.Apart from these two, there is no other much things to worry about. Get down to business and starts making money asap.

2. Retailers– A retailer don’t need to go through all these process of application. Once you have your money, you are good to go.Go to the nearest depot and buy your cement and begin to sell. Each bag of cement you sell, you make profit of N100 – N200 which is a good deal considering that you do nothing more than go carry your cement.You need to have a shop by the roadside or near new site where building projects are ongoing in numbers.Many people sell as retailers even without a shop especially those that stays near theroadside. All you need to do is to raise up the ground a bit with blocks and cement, plaster the elevated ground and put some container and woods.You can build iron protector around your cement if the place is unsecured to avoid thieves visiting at night.One thing very good about cement business is that a single customer can buy hundreds of bays sometimes, giving you instant profit without breaking sweat.

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Note:We used Dangote as a study case in this article. There are other great cement companies around the country which you can patronize. If you think the process of distributorship application is more simple and straightforward in your company, write a detailed article about your company and its distributorship, we will be glad to publish it here on this site.