Starting a Bicycle Factory in Nigeria

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obong (m)
Starting a Bicycle Factory in Nigeria
« on: September 14, 2005, 06:23 PM »

Would it be possible to start a bicycle factory in Nigeria?  Are the raw materials, like steel, aluminum, rubber (processed) available to make the venture work or all these items will have to be imported and assembled in nigeria.

Anyone one know if these raw materials are produced in bulk in Nigeria?

Thanks.
joftech (m)
Re: Starting a Bicycle Factory in Nigeria
« #1 on: September 15, 2005, 12:12 AM »

The 'okada' (commercial motorcycle) has shown to Nigerians how unsafe it is to ride on two-legged vehicles here.  Hence, I am not sure if a 'keke' (bicycle) is going to be the next craze after GSM.
Bibi (m)
Re: Starting a Bicycle Factory in Nigeria
« #2 on: September 15, 2005, 12:11 PM »

there is already a bicycle factory in Kano for years.

I think you can find all you need in Nigeria, if you really want to go into it.
obong (m)
Re: Starting a Bicycle Factory in Nigeria
« #3 on: September 15, 2005, 02:54 PM »

what bike factory is that in kano? are they the ones that are black with big wheels and have not been upgraded in 40 years?

@joftech, youd be surprised who would buy it. I imagine the rural areas would use it a lot.
Rufus P. (m)
Re: Starting a Bicycle Factory in Nigeria
« #4 on: September 18, 2005, 05:52 AM »

Are you looking for any sponsors to start your little business venture off?
obong (m)
Re: Starting a Bicycle Factory in Nigeria
« #5 on: September 19, 2005, 02:04 PM »

no, im just looking for information on the possibility of this venture
Seun (m)
Re: Starting a Bicycle Factory in Nigeria
« #6 on: September 20, 2005, 09:37 AM »

But we have so many brands of imported bicycles in Nigeria, but they are used by only a small group of people - hunters, ice cream vendors, kids on holidays, people in rural areas.

What's the advantage of having bicycles that are made in Nigeria?  Doesn't this seem like a solution in need of a problem, seeing that there's no scarcity of bicycles nor are people complaining that the currently available ones are too expensive?
obong (m)
Re: Starting a Bicycle Factory in Nigeria
« #7 on: September 20, 2005, 02:18 PM »

why do you assume there is no scarcity of bicycles? Because you see just a few people using it. Thats liek saying there is no scarcity of the internet, because of so many internet cafes

The vast majority of people that would need bikes can't afford them. I can bet you that less than 10% of those that wish to use bikes can afford them.  For one, a made in nigeria bike would likely be of higher quality and cheaper because it wouldnt be a used bike like those imported.

there are many areas where bikes are used that nigerians don't think to use them because its not readily available, like the post office and the police, not to mention niche markets like athletics. 

The IFC, the finance arm of the world bank, is also considering such a project, so apparently there is a big market for it

http://ifcln1.ifc.org/ifcext/apdf.nsf/Content/RegionalProjectLagos
Seun (m)
Re: Starting a Bicycle Factory in Nigeria
« #8 on: September 20, 2005, 02:34 PM »

Quote
would likely be of higher quality and cheaper

No, it cannot be of higher quality and cheaper at the same time, unless you are using better technology than the foreign manufacturers, or you're manufacturing in much greater quantities.  And I saw lots of shiny new bicycles at Agege area in Lagos at one time when I was thinking of getting one, but what stopped me is that I couldn't really see myself using it very often!  So really I don't see the market!
layi (m)
Re: Starting a Bicycle Factory in Nigeria
« #9 on: September 20, 2005, 02:59 PM »

Move with the trend o. Really i don't see the success of such venture. Its lik sellin cold drinks during winter. Its not what people need now.
Anyway have u really done your market research and u've seen the demand? Dont invest your money in any venture if there is no ready demand (known through market research).
obong (m)
Re: Starting a Bicycle Factory in Nigeria
« #10 on: September 20, 2005, 03:03 PM »

considering the bike's that are imported into nigeria are generally used and of low quality, (like almost everything else) it can be cheaper and of higher quality at the same time.  Computers are cheaper and of higher quality in the US, than they are in Nigeria because they are made here. Especially with cheaper labor costs in nigeria and the availability of certain materials, like rubber, its very possible. Which is why i was asking about the ability to source these materials from nigeria. You don't need to use better technology, you just use the same technology. The machinery can be bought in India or china, depending on what you want to do.

Its sad that urban nigerians are so unware of the vast needs to the rural and poor. You don't see the need for a bike because to you it would be just a fun little yellow bike or something. For someone else, it would be their lifeline. They wouldnt have to work everywhere and could get their goods to market sooner.  Many 'modern' nigerians look at certain industries as beneath them, or not as hot an dprofitable as say tech industries, and because of that they overlook a ton of opportunities. 

http://www.earth-policy.org/Indicators/indicator11.htm

India produced more than 11 million bicycles. Most of these are ridden domestically or shipped to Africa. Africa is a potentially large bicycle market, but recently sales have declined in many countries despite the continued need for low-cost, non-motorized transportation. One reason for this trend is a shortage of moderately priced, modern bikes and bike parts.

This shortage is seen in Senegal, which levies prohibitive tariffs on imported cycles to protect a small domestic manufacturer that sells only 2,000 bikes annually. Until 1989, Ghana imposed similar tariffs and taxes on imports, but after their removal, bike sales soared.

To meet Africa's high demand for modern and sturdy bicycles, the Institute for Transportation and Development Policy, an organization that promotes environmentally sustainable and equitable transportation policies worldwide, and Afribike, a nonprofit South African company, designed the Africa Bike. This is an alternative to the traditional Black Roadster, which now sells poorly because it does not meet performance standards and because many associate it with rural, elderly, and poor people. Both models retail at about $60. Afribike alone has provided over 10,000 South Africans with low-cost transportation since 1998 and plans to expand its programs to Senegal, Guinea, and Ghana.
obong (m)
Re: Starting a Bicycle Factory in Nigeria
« #11 on: September 20, 2005, 03:04 PM »

Layi, i have done research, though i was looking for more info from these living in nigeria. How is it like selling cold drinks in winter (which is still a large industry) when most people in nigeria have no form of transportation
joftech (m)
Re: Starting a Bicycle Factory in Nigeria
« #12 on: September 20, 2005, 10:53 PM »

This thread made me to remember Ojo Maduekwe, the former transportation minister. I know he will be happy to hear about this business plan.

 


* ojomaduekwebicycle.jpg (10.09 KB, 146x176 )
obong (m)
Re: Starting a Bicycle Factory in Nigeria
« #13 on: September 20, 2005, 11:55 PM »

i remember him. my target is actually more rural people. I would like rural nigeria to look like rural india or china, with more peopple using bikes and rickshaws for transportation
Seun (m)
Re: Starting a Bicycle Factory in Nigeria
« #14 on: September 21, 2005, 08:11 AM »

If your aim is social change, to encourage people to use bicycles more for the their health and the environment, then maybe you can set up an NGO which can lobby the government for favorable policies, and publish advertorials in the media urging people to go for bicycles.

Then this NGO can sit to decide if it's necessary to promote the setting up of bicycle factories in Nigreria!
layi (m)
Re: Starting a Bicycle Factory in Nigeria
« #15 on: September 21, 2005, 11:00 AM »

Quote from: obong on September 20, 2005, 03:04 PM
Layi, i have done research, though i was looking for more info from these living in nigeria. How is it like selling cold drinks in winter (which is still a large industry) when most people in nigeria have no form of transportation

Most? Seems to me you've not done your research well because the statement (above..in bold) is absolutely wrong.

I'm not here to discourage you. Its just to advise you. Do it because you know there is demand not because you think there is a demand. Good Luck
obong (m)
Re: Starting a Bicycle Factory in Nigeria
« #16 on: September 21, 2005, 02:14 PM »

im not after social change, seun. I'm out to make money
obong (m)
Re: Starting a Bicycle Factory in Nigeria
« #17 on: September 21, 2005, 02:15 PM »

Layi, its a fact that most people in nigeria have no form of transport.  living in urban areas gives on a false sense of nigeria. go to the villaga and see how far and long they walk
layi (m)
Re: Starting a Bicycle Factory in Nigeria
« #18 on: September 21, 2005, 02:40 PM »

Obong its also a fact that only 20% of the populace leave in the rural areas.
Lagos alone claims more than 10% of naija population
Some percent of 20% isnt most my dear
Quote from: obong on September 20, 2005, 03:04 PM
...................when most people in nigeria have no form of transportation
obong (m)
Re: Starting a Bicycle Factory in Nigeria
« #19 on: September 21, 2005, 03:16 PM »

Thanks for proving my point about urban nigerians knowing nothing about the rest of the country.  if only 20% of nigeria's population lived in rural areas, nigeria would be the most urbanised country in the world. Thats not true, and thankfully so. Can you imagine what it would look like if 100 million people lived in the cities?  by the way, when people say lagos has 10% of nigeria's population, they are referring to the whole state, not the city.



http://en.wikipedia.org/wiki/Nigeria


The most populous country in Africa, Nigeria accounts for approximately one-fifth of Africa's people. Although fewer than 25% of Nigerians are urban dwellers, at least 24 cities have populations of more than 100,000 and 45-60% of the population are expected to reside in or around metropolitan areas by the year 2015.
Missworld (f)
Re: Starting a Bicycle Factory in Nigeria
« #20 on: September 23, 2005, 05:11 AM »

Wow! sounds like strict business. Can't really contribute now as I have to "upgrade my brain to pentium 4".
inyang
Re: Starting a Bicycle Factory in Nigeria
« #21 on: September 23, 2005, 06:07 PM »

Obong,
You r talking to/and getting replies from people who are not familiar with the concept of a bicycle as a means of private and commercial transportation.
I came down to Ph in the mid Eighties with some classmates from the western part of Nigeria. At Owerri and surrounding villages and towns, there were always lines of people going to/from farms and other businesses on bicycles.
My friends had to ask me:
Why r all these people on bicycles?
I was a little taken aback as to me, this was not a proper question, it was self evident why they were on bicycles (to move around and carry stuff).
It took some time for me to realise that the questions were coming from people who probable had never seen a farmer load up goods on a bicycle or gone to a rural market where 90+ percent of the people came to on bicycles.
I did a little explanation on how it was a mode of transport around where we were but my friends still had that suprise/farlook on their faces and did not look  convinced on why people should use bicycles when cars and buses 'were all over the place!'

Anyway, there is a huge market for bicycles in Nigeria.
If you can get your ecomonics right, locally made/asseblied bicycles should be able to give the imported models a run for their money.

Guys in Lagos, please, a lot of our people still stay in rural areas and actually use bicycles as a daily tool!

When I was growing up, I found it a stretch to imagine people buying water or having water shortages.
inyang
Re: Starting a Bicycle Factory in Nigeria
« #22 on: September 23, 2005, 06:13 PM »

Quote
Would it be possible to start a bicycle factory in Nigeria?

Yes

 
Quote
Are the raw materials, like steel, aluminum, rubber (processed) available to make the venture work or all these items will have to be imported and assembled in nigeria.

Start with imported and switch over to locally sourced as you understand the terrain


Quote
Anyone one know if these raw materials are produced in bulk in Nigeria?

Try the various chambers of commerce, you never can tell, they may actually be helpful at times.


Quote
Thanks.
hey, you're welcome.
obong (m)
Re: Starting a Bicycle Factory in Nigeria
« #23 on: September 24, 2005, 04:08 PM »

inyang, thanks a lot your your response.  I'll contact the chambers of commerce first to see what info they have. I was also told that importing may be the way to begin at first, then later get into making parts of the bikes, then making the entire bikes.

I tell you some of these urban folks probably think yam grows on trees.

My father and brother's  first name is inyang, as is my middle name :-)
owo (m)
Re: Starting a Bicycle Factory in Nigeria
« #24 on: November 12, 2005, 12:55 PM »

....and try the esport processing zone authority in Calabar too...
obua (m)
Re: Starting a Bicycle Factory in Nigeria
« #25 on: December 22, 2005, 11:17 AM »

 importation of bicycle is banned.
Why not motorised trycycle> I think that is better and safer
Dewalex (m)
Re: Starting a Bicycle Factory in Nigeria
« #26 on: March 01, 2006, 12:06 AM »

Well that is a good idea, Bicycle is a good form of exercise,in Germany , Holland belgium etc  its  average of 4 Bicycle per househood.
But safety is the problem in Nigeria.However, it make me to remember palm wine tapper in my Village Smiley
Have a look at this bike stand in a German train station


* bike stand.jpg (4.68 KB, 148x98 )
adconline (m)
Re: Starting a Bicycle Factory in Nigeria
« #27 on: January 15, 2007, 09:58 PM »

Huge business in Naija. i know some guys who import bikes and parts from china and they are making good money. North is a very good place to cite such a factory.
Seun (m)
Re: Starting a Bicycle Factory in Nigeria
« #28 on: January 16, 2007, 02:15 AM »

What do Nigerians use bicycles for?  Hunting? Huh
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