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Cement business is one of the lucrative businesses in Nigeria that few people know about, perhaps because of the heavy lifting that surrounds cement business, also it is not a white colour business, so if you are among those who take their cloth neatness seriously, it is not for you, which is a good thing for those thinking of going into it because there will be less competition.

Another reason why people don’t get into it is the mistaken belief that you need millions of naira to get started. While you will need millions of naira to start a cement distributor business, you can start with a retailer, which requires less capital.

If you’ve come here to learn how to start a cement business in Nigeria, or simply to increase your knowledge, be assured that we’ll cover every facet of the cement business in Nigeria, including how to become a Dangote and Lafarge distributor.

Before we get into the specifics, please keep the following in mind.

Why should you establish a cement business in Nigeria?

If you are still undecided about starting a business, the following points will demonstrate why you should do it right away.

Demand
Cement is and will always be in demand as long as people continue to build houses, structures, and expand. No matter how expensive it is, people cannot live without it. Even already built houses and structures will require cement for maintenance. Cement will continue to be used to build houses for the next 100 years.

Transitioning from coater to cement
It is now apparent that cement is superior to coater in the construction of roads. Most European countries and America have already shifted to cement, and you know Africa, we are copycats, we are also taking steps towards using cement to build our roads, and according to rumour Dangote keeps pestering the government to use cement, so it’s a win-win situation if you venture into the business.

It is widely available.
You do not need to go through the procedure of manufacturing or exporting anything; it is available as long as you are ready to buy.

Nigerian cement market segments

How to start a cement business in Nigeria is not an issue; you just need to identify what niche you want to operate in based on the funds you have. The cement industry’s niches are as follows:

Distributor specialties (Dangote and Lafarge)
Distributor is a large man’s niche; it takes a lot of capital to get started, but it’s also the most profitable of the two. If you chose this specialisation, your task will be to buy cement straight from Dangote or Lafarge, store it in your warehouse, and distribute it to retailers; it’s essentially a hold and sell firm.

What you must prepare as a cement distributor niche

Warehousing
Warehousing is essential in the cement distributor sector; here is where you would store your cement after obtaining it from the cement company. It should be large enough to hold the amount of cement you intend to purchase.

Vehicle and trailer
You must purchase a vehicle that will be used to purchase and distribute cement. It is a marketing advantage if you utilise it to deliver cement to your customers because you will charge transportation fees and you will also use it to attract customers.

Capital
You must have millions of naira ready, ranging from #4 million to #10 million naira. 

Selling of cement

This is where tiny boys live lol (just kidding) because it requires minimal cash and so yields little profit. If you chose this expertise, your task will be to purchase cement from a distributor and sell it to the final consumer. You are not need to purchase a vehicle in this sector, and your warehouse can be a shop or a tarpaulin as long as it is protected from rain and water.

How to Begin Cement Business in Nigeria

Feasibility
Your first task in realising your cement business dream is to conduct a feasibility study to see if it is feasible. Remember, just because it is profitable does not mean it will be profitable in every location; you must consider the number of buyers in your area.
If the location is easily accessible by vehicle
People’s purchasing power in your area

Competitor in your area
The volume of traffic entering that location
We will let you know if you should continue with the business based on all of this.

Knowledge
Once you are certain that the firm would be profitable in your proposed site, your next task is to acquire information about it, like you are doing now, but you must go farther. Find folks who are already making money with cement and learn the procedure from them; the learning period should not exceed two weeks. It’s not that you can’t start with trial and error, but I assure you that you will be frustrated and may eventually give up.

Business strategy
Next, compose a brief and basic plan of where you want to see your business in the next five years, including how you want to get there. If you intend to utilise the plan to obtain a loan, hire a professional; otherwise, you can draught a one-page business plan.

Location
Your feasibility study will tell you the best place to choose for your business, but it should be in a heavy traffic area, especially if you are starting as a distributor, and if you are starting as a store, I would advise you to go for a new town that is just starting off.

Register your company.
If you are a retailer, you can postpone this, but if you are a distributor, you must register your cement business with the Corporate Affairs Commission to avoid future government conflict.

You will also need a business registration number when applying for Dangote or Lafarge distributorship.

Request a distributorship.
You can skip this step if you are a retailer. Before you may buy cement from Dangote or Lafarge, you must first register with them, and the following documents are required.

• Company registration certificate
• Distributorship application letter
• Bank account number (scanned)
• Photograph of the founder/MD in his passport

Establish your warehouse or shop.
There aren’t many details to remember here; just make sure your cement is stacked on a pallet and isn’t too close to the wall to avoid caking. I will also recommend that you plaster your walls and clean the floor on a regular basis to eliminate dust, which can cause respiratory ailments.

Employ a worker
You can’t do it alone; you’ll need help loading and unloading cement, as well as with recording. My counsel here is to be cautious of people you engage; if they are not trustworthy, they will return you to the community.

The best way to find employees is to ask people who have worked in the industry; they will almost certainly know one or two people who are looking for job.

Marketing
Marketing will be a breeze if your feasibility research is thorough. Cement companies do not require much marketing because they do the majority of the advertising. The advertising mediums listed below can help you spread the word about your cement firm.

Flyers
It may appear little, but it is the greatest platform for showcasing your business if you are just getting started. Make it appealing so that people would want to look at it and share it with others.

Post a sign
Because a cement distributor or retail firm is focused on location, a sign post will suffice. Construct it near a crossroads near your location.

Social networking sites
This does not convert well, but do not disregard it; create a social media account for your company and upload images of what you are offering. Even if you don’t sell anything, it will let others know you exist.

Make a website
You should not be left out now that everything is done online. Make a website that shows what you’re selling and where people can order it. The key to making sales online is to post SEO content on your website that drives Google traffic. You can contact us for assistance in setting up your website and writing SEO content that will keep readers glued to the screen.

Nigerian cement industry challenges

There is no company without obstacles, and the following are the challenges of the cement industry in Nigeria.

Water / rain
If cement is not stored properly and water gets on it, it will cake, resulting in loss.

Solution
The solution is simple: keep your cement in good condition, and seal any gaps in your warehouse or shop.

Traffic
Moving cement from one area to another is a herculean task in Nigeria, there is high likelihood that you will run into traffic and when you do it can be frustrating and it will also waste your time.

Solution
Deliver and buy cent early in the morning or late in the night

Extortion
If you are delivering or purchasing cement in Nigeria, you should have some cash on hand for police if you do not want to be delayed.

Solution
Deliver and purchase cement in the morning or late at night.

Employee issue
If you let your guard down, your employee will steal your money. It is difficult to monitor things in the cement business, so stay alert, check the record book on a regular basis, and any errors should be corrected.

Starting a cement business in Nigeria is expensive because the price of cement fluctuates so much, what you buy today may be more expensive tomorrow, making it difficult to calculate a specific cost.

You will need between #4 million and #10 million for distribution.

You will need between #1 million and #4 million for retail.

Is  cement industry lucrative in Nigeria?

Cement company is highly successful, but it is not as profitable as crypto lol, it is “little small,” if your niche is retailing, you will earn between #200 and #300 each bag of cement.
Consider this: if you sell 100 bags of cement per day at a profit of #200, you will earn #20,000 each day.

If you work in the distribution niche, you can earn between #300 and #400 per bag of cement and sell more than a retailer.
Consider this: if you sell 500 bags per day at a profit of #300, you will earn $150,000 per day.

Conclusion

The above is how to start a cement business in Nigeria, and I am confident that you will agree that we have done it justice. The only problem now is that if you read it without acting on it, it will be a waste of your time.