Cement business is considered to be a very rewarding and profitable business in Nigeria. Cement is used for most construction activities, therefore cement supply business is in high demand nowadays.
Cement distributorship business in Nigeria has a huge potential and it can guarantee a significant profit. Do you want to know more about this business? Keep reading!

Overall view on the industry While demand for cement in the biggest consumer countries has significantly dropped, the estimated value of Nigerian cement industry has risen from N26 billion to approximately N134 billion.

Considering this information, we can come to the conclusion that Nigeria have a very high need for cement. Some of the plants either produce cement or are involved in the production of raw cement materials. The opening of a cement plant is a highly expensive type of the business.

Installation and maintaining of such factories require large sums of money. As a result of some significant actions taken by the Nigerian federal government, the amount of cement which is produced by local manufacturers, has risen to nearly 11 million tons.

It is expected that constant increase in production of cement will make Nigeria one of the biggest exporting countries. At this moment the number of companies that produce cement is less than 10. The difficult requirements for factories, the high cost of all the necessary equipment, the need for professional and skilled staff and the expensive distribution are the biggest problems for those who want to set up a business in this industry.

Key players The biggest company in the cement business is Dangote Group. This company constantly expands their markets by building new plants and increasing the number of distributorships in Nigeria. It has a huge potential to capture more of the market’s territories. Other companies such as Lafarge WAPCO and Ashaka cement share this industry too.

Ashaka cement dominates in the north-eastern region of Nigeria. Benue Cement and Obajana Cement Company play a major role in sales in the north and central parts of the country. The Cement Company of Northern Nigeria, together with The UNICEM Cement Company, share the north-western and south-eastern markets.

Also, this company has chosen to simplify the process of becoming their distributor. They are interested in reliable distributors from across Nigeria. The company offers 48-hour registration and assures that there is no deposit required for the process of registration to be completed. This offer is available for individual as well as corporate buyers.

Explore the distributorship opportunities in Nigeria If you are willing to start a cement distributorship business in Nigeria, then read the information below. This is an overall view of the general process of becoming a cement distributor.

We have previously mentioned that such immense player in the cement market as Dangote Group is constantly looking for distributors. You must fulfill their requirements which are listed on their website. Some of their requirements include a company registration and opening a bank account for your company. Reliable distributors are those who have a registered company. The registration process should be carried out by Corporate Affairs Commission of Nigeria.

But this process is neither very difficult nor it is expensive. The next step is to open a bank account for the business in any Nigerian bank. Check all the necessary requirements for this procedure in order to avoid any unpleasant situations. Logistics and warehousing

For your distributorship business, you also may need logistic facilities. In case if you don’t have clients with ready warehouses for your cement, you will need your own system of warehouses. A warehouse should be able to store approximately 600 bags of cement. Another important thing you need to do is to get a supply vehicle. It is good if you can buy it, but another possible option to get it is to rent a vehicle. Your customers pay for the loading of their cargo into the vehicle and for the transportation of their cargo to the place where they want to store it.

In this article we revealed the cement distributorship business opportunities in Nigeria. This business requires hard work and extra effort, but the more effort you put into your business, the bigger the growth and reward will be. Keep working hard and one day you will definitely get a great profit.

Source: https://www.naij.com/1108543-cement-distributorship-business-nigeria.html

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