How to Start Cooking Gas Business in Nigeria

In this article, you will learn how to start a gas refilling business in Nigeria whether as a wholesaler or retailer. You will know if a gas refilling business is a profitable business to venture into or not and the required capital to start a cooking gas business in Nigeria. So read this article to the end to be informed on everything you need to about the cooking gas refill business in Nigeria.

The gas refilling business is a very profitable business in Nigeria today and this is because the population of Nigerians using gas to cook in their homes has tripled. Civilization has made many people, especially people living in urban areas start using gas. Asides from this, the continuous rise in the cost of kerosene and the health hazards of firewood have also chased many people to start using cooking gas.

Is Cooking Gas Business Profitable?

The gas refilling business in Nigeria is a profitable business for obvious reasons. The major reason why it is a lucrative business is that cooking gas is the most used in cooking today. It is clean and healthy. And like we know any product that is high in demand usually makes big profits.

Another reason why the roadside gas refilling business can be profitable is because of the low availability of mini gas plants needed areas in states in Nigeria. Due to the huge regulations of these establishments, many Nigerian are now going into the cooking gas retail business. This increases the profits because they can set shop in any area and neighborhood and customers will rather buy from them rather than go to gas plants far away.

Lastly, the gas refilling business in Nigeria is profitable because they are other things you can sell that are related to the business that can make money for you. As a cooking gas retailer, you can sell gas cylinders, gas stoves, hoses, and other gas cooking equipment. You can also make money repairing gas cylinders for customers.

How to Start a Cooking Gas Business in Nigeria

Here are steps on how to start a cooking gas retail business in Nigeria.

1. Write a Business Plan

The first step to starting a profitable gas refill business in Nigeria is to write a business plan. When you write a business plan for any business it shows you are serious about the business. It also shows that you want to really know the profits of the business and not want to guess. Business plans are very important especially if you want to go into the cooking gas business on a large scale or for a long time.

So if you want to start a mini gas plant you will need a business plan and if you want to start a small-scale or retail cooking gas business you may not need a business plan. As I said, it depends on so many things and what you want to do. Business plans are not easy to write so I advise employing a professional’s services, especially if you think you need one for this business.

2. Get your Required Capital

After writing your gas refilling business plan the next thing you need to do is to get the required capital to start the business. As I said earlier, the type of cooking gas business you want to start will determine how much capital you need. If it is a retail cooking gas refill business the capital you have will be used to buy different equipment needed to start the business. 

You will use your capital to rent a shop, buy big gas cylinders that will serve as your gas reserve, buy different gas cylinders and stoves to be selling, and more. You will also use part of your capital to get different permits under the state and local government for your cooking gas business.

Make sure the capital you are using to start a business like this is yours. Avoid borrowing from anybody or investment to start as this can be detrimental to your business. Please read our article on how to get funding for your startup in Nigeria.

3. Learn How to Refill Gas

If the kind of cooking gas business you want to start is a small scale you will need to learn how to refill gas. Yes, many do not know but the cooking gas business is a kind of handwork. To learn how to refill gas cylinders you can locate anybody in your area that is into the business and apply there as an apprentice.

This might be free or at a cost. After a period of 1 – 3 months of learning, you can be equipped enough to start your own gas refill business.

4. Get a Location or Shop for Business

You need a place where you can be refilling cooking gas and sell gas cylinders to your customers. This is where renting a shop for your cooking gas business comes into play. To rent a shop for your cooking gas business you need to consider a few things.

If you follow these few things to the core you will not have a problem increasing profits in the business in a short while.

1. You need to make sure your shop rent is not expensive. Your shop rent should not take more than 30% of your initial capital. Take your time to look for a shop with moderate rent so that you do not overspend.

2. You need to make sure that the shop you are renting is located in a popular or populated area. This area could be at a popular bus stop or facing a main road. This is to make sure that getting customers to locate you and patronize your business is easy.

3. You need to make sure that the shop you are renting is isolated from other shops. This is to make sure you can control the fire if and when there is a fire outbreak.

5. Start Refilling the Cooking Gas

After renting your shop and you have bought your gas equipment the next step for you is to start refilling cooking gas for your customers. Customers will start coming around asking how much you are selling gas in KG (kilograms). Get your prices right so that you will not make unnecessary losses.

You need to know how much you will sell your gas in 3kg, 4kg, 5kg, 7kg, 12kg, and more. For example, if you buy your 3kg gas for #3,800 from mini gas plants you can resell at #4,000 making a profit of #200. You can sell at more profits it really depends on you.

6. Profits in Cooking Gas Business

There are different ways or methods you can make money from the gas refilling business in Nigeria. You can make money filling gas for customers that need gas, selling gas cylinders, selling gas equipment, and repairing gas cylinders and gas stoves. With these different ways of making money, your profits are diversified in the business. 

Conclusion

The cooking gas business is a lucrative business as long as you are in the right location and the price of your cooking gas and equipment is fair enough. To continue to increase your customer base you can give a few discounts. Discounts of 2% can still go a long way in attracting and retaining customers.

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