All over the world, Nigeria is known as one of the countries were crude oil can be found and when refined, you can get PMS (Premium Motor Spirit), DPK (Dual Purpose Kerosene), AGO (Automated Gas and Oil) etc. which is used by virtually everybody making it a lucrative business to jump into.
The oil and gas business as we all know is a multi-billion dollar industry and the major source of revenue generation in Nigeria making it a competitive business as lots of top companies have taken over the business and are not ready to share with other start up. The oil and gas business requires a huge capital to start which also discourages people from going into. But there is a way you can also tap into the business and make some money for yourself.
In Nigeria, due to the difficulty of having steady power supply most organisation and business have to fall back to generators or bigger machines to generate light so their business can go on. As most of the generators, machines and even vehicles uses diesel to operate, you can use this medium to provide service to organisations.
How The Diesel Supply Business Works
Most big organisations such as Banks, Tele communication companies, hospitals, factories, manufacturing industries and so on rely on steady power supply to work, the demands for diesel is on the rise as they have to work every day. So this business involves you supplying diesel to these companies at a cost.
The diesel supply business is a serious business that requires lots of capital to start and if done properly can bring huge return on investment. There are lots of reasons why I prefer the diesel supply business to PMS as diesel is less expensive compared to PMS and when you check around most of the big generators and cars used by top industries no longer use PMS to run but diesel.
The business can be started but on small scale or large scale but for the purpose of this article we will be dealing with the large scale option.
Here are what you will need to start a diesel supply business in Nigeria
Register Your Business
No organisation will ever take you serious when you come to them with a proposal to do a service for them and your business is not registered with Cooperate Affairs Commission as a business name or a limited liability company, they will consider you a scammer. So it is very important you register your business. The registration of a company with CAC does not cost more than 60-70 thousand Naira and within 3-4 working days your business is set.
Get An Office
Getting an office is a good idea when going into this business as with an office people can locate you to do business. As the business require lots of capital and most times you might need a loan from bank, this will make the bank rest assured that they can locate you when the need arises.
For you to be able to secure a loan to start a diesel supply business, you must have some required papers which includes a supply order or a contractual agreement to get a loan.
Search For The Product
Getting the product is made easy as top oil companies such as Oando, Mobil, Shell, Conoil etc. and importers of the product are out there and are willing to sell to you. Well if you are ready to bypass these people and go a step further, there are countries where you can import these products at a cheaper price.
Get A Truck
When it comes to getting a truck that you will use to transport the product to its destination you will either have to but the truck or hire one. Though buying a truck is advisable but the amount of owning a truck is up to 9 -1 0 million Naira. So if you just starting out, you can hire a truck with the aim of purchasing one.
Brand Your Business
Though it is not very important but every serious business needs it to stand out. This includes the logo of your business, how effective and reliable you are when it comes to delivering your products to your customers etc.
Market Your Business
Most of the organizations out there that needs this product also have one or two other distributors they buy from so getting good clients can sometimes be difficult. For you to be able to get good clients you will have to make people aware of your business and this is where advertising comes in. there are various advertising means which includes newspapers, magazines, social media, TV and radio etc.