How to Start Petrol Station Business in Nigeria
This article was written to further explain the level of potential petrol station business has not just in Nigeria, but across the globe. In this case we are particular with Nigeria, since she is one of the biggest producers of oil, with an estimated seventh (7th) largest in the world. Blessed with natural oil and gas, the world has come to terms with the fact that oil business is a multibillion dollar business. Activities such as oil exploration, exportation, marketing of oil products or even an outright sale of crude products could yield a whole lot if investment is made properly.
In Nigeria for example, some certain areas are known for having the largest deposit of these crude oil, the South-South region boosts of the highest amount of oil deposit in Nigeria, followed by South East and South West regions of the country. This is great since report has it that the untapped oil areas are more than the tapped, with that been said, Nigeria has one of the biggest market for oil products, although the country depends mainly on the import of these petroleum products.
Due to the deficiency, people have been searching and seeking information on how to start petrol station in Nigeria, going by the fact that this is actually a money spinning business. Nigeria is estimated to consume between 40 million litres to 50 million liters of petroleum products. this is easy to calculate owing to the fact that Nigeria has the largest population in Africa, also Nigeria is somewhat a huge construction site, where work never stops, most of the machines used are powered via these petroleum products, such as Premium Motor Spirit (PMS), Automated Gas Oil (AGO) or diesel, the thing is these heavy duty trucks must be powered.
How Lucrative Can Petrol Station Business Be?
Let me begin by quoting the Nigeria bureau of Statistics, they according to their research estimated that the number of cars in Nigeria has hit 11.7 million cars, this simply means a part from cars that are being sold, we actually have over 11 million cars activity engaged with one thing or the other, the result of this is that more people will need petroleum products as a result, there will be high demands that in many instances in our history has never been met.
Now you understand the long queue you usually see at petrol filling stations across the country especially during scarcity. The 11.7 million cars are actually registered cars, report has it that when the unregistered cars are included in this statistics, the number of cars will move from 11.7 million to 14 million cars at least. The point to this is that, the more the cars, the more business opportunities for these petrol stations, don’t wonder why people are asking questions on how to start petrol station in Nigeria.
The reason is because the business is a lucrative one. In fact, ever wondered why there are many petrol stations and yet it seems they are not enough to meet customers demand, you still find cars queuing up at gas stations. Petrol filling stations business is so lucrative that you get to enjoy their services when you don’t even have a car, talk about petrol stations that added the sale of gas cooking products, almost every other fuel station has cooking gas section. it had to be done because that is the safest place to do such business and going by the number of families who now use gas for their cooking, and the sale of cooking gas can match that of fuel sales.
How to Start Petrol Station Business in Nigeria
First and foremost, you need to understand that there are steps you need to take at least to have your business set up, also take note of already established filling stations that have been around for a while now, from Oando, Mobile, Texaco, Total etc, these are about the founding fathers of the petrol filling station business in Nigeria.
Going by the prices of petroleum products in Nigeria with Petrol selling at the rate of N145 per litre, Diesel selling at N229.78 and kerosene goes for N320.47, it will be a lot easier to calculate an estimated gain, and then you get to know what you stand to earn from your investment. Take for example, in a situation here Nigeria is estimated to consume 50 million litres of petrol daily, going by the price above, it then means a total of N145 X 50,000,000 = N7,250,000,000.
This simple analogy shows that Nigerians spend a minimum of 7.250 billion Naira daily on the purchase of petrol only, imagine adding both diesel and Kerosene. This alone should be a motivating factor, on knowing how to start petrol station business in Nigeria; I have decided to outline a few things you will need to get your business started;
– The Location – The location of your station must be well sorted out. Reason being that you cannot site a petrol station in a residential area, the government will never permit that, even if you do through the back door, your business might be demolished in the nearest future. This means a proper research must be done; this will help your feasibility study and also the structure of your business. A good location means that your business can be approved easily and then you can begin construction, note that a whole lot of money is involved, that is why you must be thorough, also ensure that your location is along a major road, I am yet to see any filling station that is not along a major road.
– Get A Landed Property – This is the place you build your petrol station, two to three plots of land will go a long way. The essence is to reduce any possible chance of congestion, cars can easily queue up and also make their exit easily.
– Get A Storage facility – For a filling station, you need a sizable underground storage facility, between 30,000 litres to 80,000 litres, depending on the size of your filling station.
– Get Pumps And build A Cover – A standard filling station has at least four pumps, minus the pump for the sale of diesel, erect a canopy like structure for covering, this will be some sort of shade for petrol attendants.
– Get A Generator Set – Every filling station has this, you may not have seen it, but it as important as the business itself, and we already know the power situation in this country, hence the need to have a standby generator in cases of emergencies.
– Staffing – Here are the category of staff you must employ, (i) A manager (ii) Supervisor (iii) Cashier (iv) Attendants (v) Security. The manager and the supervisor are in charge of the entire set up, in the absence of the business owner, the cashier handles every monetary dealing with the approval of the manager, also ensure that weekly if not daily audit is perform on the business account, this is avoid stealing, petrol attendants are also important, one on each of the pump will make the job easier for everyone and the then security of the business is very important, you can contract any security outfit in your state for this purpose.