How To Start Cooking Gas Business in Nigeria

5/4/2017 HowtoStartCookingGasBusinessinNigeria|WealthResult.
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How to Start Cooking Gas Business in Nigeria

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Darlinton Omeh Oil and Gas (https://www.wealthresult.com/./oil-and-gas) 25 Comments
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It is good news that more Nigerians are beginning to use cooking gas for various domestic cooking
purposes. That will help decrease the problems of deforestation and help conserve our natural forests
and prevent potential disasters that is inherent with desert encroachment such as erosion.
Apart from the environmental bene ts, the increase number of people especially in urban areas who
are using cooking gas has created good business opportunity for smart entrepreneurs who can now
trade on cooking gas and cooking gas equipments to make good pro ts.
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Cooking gas business is very pro table and you dont have to break the bank before you can start.
With N300,000, you will get your business setup and ready to go with almost everything necessary in
place. And this is a big business that anyone who is into it can be proud of.
(http://4.bp.blogspot.com/-V71_sUbG0sw/Un580uxGSsI/AAAAAAAAFpM/bCvyDHpdrSE/s1600/gas-cylinders.jpg)
How exactly can one start cooking gas business in Nigeria? Before we go into the details, let us rst
take a look into the pro t potential in this business as well as the risks involved.
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Pro table is Cooking Gas Business in Nigeria
Lets
Forex take the 12.5kg cylinder as a case study, the average pro t you make from 12.5kg cylinder of
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cooking gas is N500. You buy for unit cost of N2,500 or less and sell for N3,000 or higher. If you sell
ten cylinders in a day at the average pro t margin of N500, you will be making N5,000 daily. In a
month, you will be making N5,00030 = N150,000.
This is relatively the lowest pro t you can make in cooking gas business if you are in respectable
position where you get good patronage. Most people make much more than what I calculated here. So,
its not in any way by exaggeration.
For a business you started with N300,000, N150,000 pro t is a super pro t by all standard. Imagine if
you invest more resources and take it higher, your pro t will be much more mouth watering. Gas
companies, both the suppliers and retailers are making good money in the business. You can become
one of them today if you act now!
The Potential Risks in Cooking Gas Business
Every business has its peculiar setback and the biggest risk in cooking gas business is re explosion
which is very common due to the high in ammable nature of liqui ed natural gas. That isnt much
problem though since it can easily be mitigated or even avoided.
To be able to curtail this, you need to be alert at all times to detect when there is leakage in those
cylinders as leakages is one of the major cause of re and explosion. You also need to buy good re
extinguisher that can be very handy in time of minor re outbreak.
Another risk in the business is government regulation. Should government decide to increase the price
of LPG today, some consumers may nd it dif cult to take and have to go back to using kerosene or
rewood. If that happens, you loose some customers and your sales will drop.
However, government is always trying to reduce the price of cooking gas in other to encourage the
usage and discourage deforestation.
Now that you are aware of the risks in the business and you think it is what you can handle, how do
you get to start this business and what are the things you need to have or put in place? Lets proceed to
answer these questions
What You Need To Start Cooking Gas Business

Startup Capital According experts (people who are already in the business) you can start
conveniently with N300,000 and be able to buy more than 20 cylinders, get you a shop, and buy the
initial products. The cost of shop in this regard depends on the location. If you decide to locate your
business in a highbrow area, you will spend much more money to get a shop but the cost will be well
worth it.
Get Training You must get attached to any experienced retailers or even depots for about six months
to learn the important rudiments. You need to learn how to re ll the cylinder, how to transfer, how to
change valve. And everything necessary that you must know about the business. You equally need to
know where and how to buy cylinders.
If you decides to learn in a smart way, you can learn from any of those retailers you see by the
roadsides and if you are smart enough, you can get all the knowledge you need there. In anyway, it may
take you as much as six months to complete your apprenticeship.
Rent a Shop After your training is completed and you now have the required knowledge, the next
step is(https://www.wealthresult.com/forex)
Forex to go get a shop. The class of people that use cylinder gas cooker are more in the urban area.
almost every part of Lagos is good for the business but some places are better than the others.
Marketing When your business is up and running. You need to employ every marketing strategy you
can muster to increase your pro tability and stay a oat.
Firstly you
need less than 500k to start. The pro t margin per sale of 12.5kg
cylinder is about N600 which means you have to be in an area where the
threshold, that is population can afford you to do good volume sales per
day/week. A delivery vehicle from the point of purchase plant to your
intended location will be an added advantage and of great value to the
biz. Another way you can increase sales is a reduction of your sale
price instead of making N600 you will make N400. That will increase your
turnover fast. Marketing on a door to door basis and home delivery is
also not a bad strategy to employ. But remember that new businesses
always come with challenges and patience is the key. Like the bible
says Paul planted, Apollos watered but only God gives increase. Pray for
favor emmaoanidu (http://www.nairaland.com/emmaoanidu)
With all things setup according to plan, you are in good business. A business that is capable of giving
you all the money you want. I have a friend who is doing this gas business and he is doing very well. You
too can do even better. I wish you success!
+Darlinton Omeh (http://plus.google.com/110820375620941167382)

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25 Comments
Anonymous (https://www.wealthresult.com/member)
is there any licence to be acquired
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PackXperts (https://www.wealthresult.com/member)
Very helpfulthat's all I needed to know
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Thanks that's good one
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What is the licencing requirement? By the way Darlington, I must commend you.
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Tony (https://www.wealthresult.com/member)
any inquiry of LPG cylinders and accessories, please contact with us.
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JOSHUA (https://www.wealthresult.com/member)
Where can I get the cylinders and its acessories cheap. Please I will appreciate if a phone
number is sent alongside the reply to my email so we can talk privately.
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Tony (https://www.wealthresult.com/member)
any inquiry of LPG cylinders and accessories, please contact us by skype:
tonysundy
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glo (https://www.wealthresult.com/member)
helo.can i ve ur number
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olf (https://www.wealthresult.com/member)
hello good morning,olease i will need theprice list of your lpg cylinders with there various
sizes.hope to hear from you soon.olufunmilayo80gmil.om
Log in to Reply
Please can someone tell me the rough estimate of setting up a mini cooking gas plant and requirement
from regulatory body in Nigeria
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mickey (https://www.wealthresult.com/member)
What does it take to have my own private Gas lling station on a virgin land ?
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Italian Cooking Gas and Autogas equipment for Cooking Gas cylinder lling
Please visit website http://www.europump.com (http://www.europump.com)
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chisom wisdom (https://www.wealthresult.com/member)
Gas lling is good,nd it pays well.am planin of startin my own very soon,am working obisco gas at d
moment
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Obas (https://www.wealthresult.com/member)
Please can I get estimate on starting a mini gas plant

If I can also get ur phone number Ill appreciate so Ill talk with u privately thanks your tips are helpful
Log in to Reply
Lekan Solaja (https://www.wealthresult.com/member)
just like OBAS requested, I need estimate on starting a gas plant. Also help with ur phone no
to enable me have private discussions with you. Many thanks
Log in to Reply
Sunday (https://www.wealthresult.com/member)
what are the requirements to set up a gas plant? please also include your contact
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SAMUEL OSISIOMA (https://www.wealthresult.com/member)
PIS Where can i get affordable gas cylinder and the asessories here in Abuja?
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Moses (https://www.wealthresult.com/member)
Thank you very much for this insight. I am interested in setting up a plant for cooking gas, the plant
owners i have met are always putting the setting up cost on higher side. I dont know if the strategy is
to scare away from the business. Please can you give me a form of guideline on how to go about it.
Thank you and i must commend you for you are doing a great job and may God continue to ll you with
his wisdom and knowledge.
Log in to Reply
Agboola Fadhilulah Tunde (https://www.wealthresult.com/member)
Thank you for this.may God be with you. Can you drop ur email,phone number(s) and pin mine is
Log in to Reply
Morolake (https://www.wealthresult.com/member)
Thanks for the insight. Am based in Akure and I plan start a cooking gas outlet. Can you help on how I
can get materials to start up
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Olayinka (https://www.wealthresult.com/member)
Pls help me out with breakdown of how to start mini gas business.
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OLUMUYIWA ALAGBE (https://www.wealthresult.com/member)
Hi, i really wish i can start this business if i can get a mentor.
moreover i will be needing price and quantity of equipment such as cylinders of various size, is there
any association to register with as a street seller with a shop and not a plant. kindly raach me via email
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Ameachi Austin (https://www.wealthresult.com/member)
You can contact me for adequate training / Apprenticeship / engineering or Cookers Repair abilities
and Start up requirements if you are within Lagos and Ota Environs. Fees are not Grievous- trust me!
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olumide (https://www.wealthresult.com/member/olumide)
Hi Mr Ameachi Austin. Im interested in learning about this business before venturing into
it. How may I contact you please? Im based in Badagry area of Lagos.
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phollarh (https://www.wealthresult.com/member/phollarh)
Please is is possible for unto.drop your email or mobile number, I will like to contact u
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5/4/2017 HowtoStartCookingGasBusinessinNigeria|WealthResult.

(https://www.wealthresult.com) Search at blog Register

Darlinton Omeh Oil and Gas (https://www.wealthresult.com/./oil-and-gas) 25 Comments

The Potential Risks in Cooking Gas Business

What You Need To Start Cooking Gas Business

+Darlinton Omeh (http://plus.google.com/110820375620941167382)

completion uids, well bore clea

is there any licence to be acquired

Very helpfulthat's all I needed to know

Thanks that's good one

Please visit website http://www.europump.com (http://www.europump.com)

chisom wisdom (https://www.wealthresult.com/member)

Please can I get estimate on starting a mini gas plant

Lekan Solaja (https://www.wealthresult.com/member)

SAMUEL OSISIOMA (https://www.wealthresult.com/member)

Agboola Fadhilulah Tunde (https://www.wealthresult.com/member)

OLUMUYIWA ALAGBE (https://www.wealthresult.com/member)

Ameachi Austin (https://www.wealthresult.com/member)

2017 Palness Media

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