How to Start Block Industry Business in Nigeria (2022)

Do you want to start a profitable block business in Nigeria and you do not know how you can go about it or the step-by-step process, read this article to the end. In this article, I am going to share with you everything you need to know before going into a block industry business in Nigeria. 

The capital needed, whether or not it is a profitable business, feasibility studies on block industry business, business plan, challenges in block business and more. So read this all-in-one article because you will learn a lot from it and thank me later. 

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Table of Contents

Is Block Industry Business Profitable?

Block business is profitable in Nigeria because it is a major material used in building houses. Unlike developed countries where other materials like iron, concrete, wood or even plastics are used to build houses or skyscrapers. Blocks are majorly used to build houses in Nigeria.

This has made it a very important material to developers and real estate developers. However, to make sure your block industry business is having sales and increasing profits you must make sure your block business is in an area where blocks are needed.

For example; blocks will sell faster in a developing area – an area where there is still building of houses than a developed area. Depending on the area you establish your block industry business you can make as much as #500,000 monthly.

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Capital Needed to Start Block Industry Business

The capital needed to start a block industry business in Nigeria ranges because of the equipment most block industry owners in Nigeria go for. For example, there are two types of block making equipment in Nigeria. We have the manual block moulding and the vibrating machine. 

Small-scale block industry businesses use the manual block moulder while medium-scale and large scale block Industry businesses use the vibrating machine to mould their blocks faster. Manual block moulder are not expensive. They are often sold between ₦10,000 – ₦20,000. While the vibrating matching is from ₦100,000 – ₦600,000.

Asides from this, you also need money to buy equipment, materials and you need labourers. So averagely you will need between ₦300,000 – ₦1,000,000 to start a block industry business in Nigeria.

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How to Start Block Industry Business in Nigeria

The step-by-step guide on how to start block industry business in Nigeria.

1. Write a Block Industry Business Plan

Block business in Nigeria is a capital-intensive business. This is why you cannot afford to take risks in the business. If you are really serious about the business you need to write a business plan and do your feasibility report.

If you do not know how to write the business plan yourself you can get a professional to write it for you at a cost. The capital you want to use to start the block industry business will be used to write the business plan.

Read also: How to Write Business Plan in Nigeria

2. Get Capital Needed

How to get the capital needed to start a block industry business is one of the challenges in the business. Like I said earlier, the business is a capital-intensive business.

This is why it is best you use your money to start this business. Do not borrow or lend money from family or friends or get loans from banks. If you do not have enough money to start save towards the business or simply wait till you can self-fund the business.

3. Buy Block Making Equipment & Materials

There are different equipment used in block making business in Nigeria. These are:

1. Manual block moulder or Vibrating machine

2. Wheelbarrow

3. Shovels

4. Block plates or planks

The major materials needed in block industry business are sand, cement and water. The ratio at which you mix these materials make or mold blocks ranges. As for the equipment you need to buy them. You can either buy new ones or fairly used ones; it depends on the capital you have at hand.

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4. Look for Available Space

You need a space preferably an available land to start your block industry business. It is best if you rent land facing the road for easy visibility and availability to your customers. As for how big you want the space to be, make sure the land is up to at least half a plot. This is to make sure you are not restricted to the bricks you make.

Security on the land is also very important. You want a land where your workers and equipment are safe from thieves. Finally, make sure the rent you pay on your land is not much. Your rent should not be more than 40% of your initial capital.

5. Employ your Workers

Labourers are very important in a block industry business because you cannot do everything at once and you cannot be everywhere. You need a labourer to carry blocks for you. For example; they will help you move all blocks from the vibrating machine to the dry place.

They will also help you load the blocks on trucks when it is time to transport them. When cement is brought your laborers will help in carrying the cements to the store. The need for labourers in business like this cannot be underestimated. How much you pay your labourer depends. However, the daily wages for laborers ranges from ₦1,000 – ₦2,500 daily.

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6. Start Making Blocks to Sell

The method and percentage of mixing your blocks will determine how strong they will be. Some blocks are stronger because the cement added is enough while some are weak because the block maker did not add enough cement.

You need to make both your concrete block and normal blocks have enough cement in them. This is to make sure customers will always come back for its reliability. Immediately you have everything I mentioned above, you need to start making your blocks to sell. It takes averagely one week before you can start selling your blocks after moulding them.

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7. Advertise and Sell Blocks/Bricks

When you start making your blocks you need to advertise them so that customers can start coming in to order them. You cannot sit and be relaxed waiting for your blocks to be sold. There are different types of advertising.

The kind of advertising you go for is determined by the area your block business is. However, in this business, sharing of handbills and posters has been the best advertising method that has worked so far.

8. Profits in Block Industry Business

There are different ways you can increase profits in your block industry business in Nigeria. But these are the surefire ways.

1. Sell blocks to real estate companies: Selling your block to these companies will speed up your sales and profits fast.

2. Diversify your block industry business. When you diversify your block industry business by selling other building materials your profits will also increase drastically.

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The block industry business is a lucrative business in Nigeria. The business is scalable, you just need to be ready to get your hands dirty to make good money.

That is all in this article. As usual, let me know if I missed any part of this article. Also, let me know if there are topics you want me to write about on the blog or talk about on our YouTube Channel or maybe our podcast.

Do well by following us on all our social media platforms, listen to our podcast, and subscribe to our YouTube channel. We have awesome content there too. You can also support us by donating a little token for the sustenance of the blog. Check out our copyright terms here. Finally, share this article with someone you feel might need it.

About theinfoworth

Ralph Bamigboye is the brain behind blog and Finance Naija YouTube Channel. He has helped many individuals to start their businesses and make money online.
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