Previously, the liquefied petroleum gas (LPG) was used by 25% of Nigerian families while over 60% depended on the kerosene stoves and firewood. The remaining percentage use other alternatives like the biofuel, charcoal, sawdust and the electric cookers.
These alternatives are not bad but are not really the best. Many of them are not really as affordable as they appear. Apart from the electric cooker, gas remains one of the cheapest methods of cooking.
Why You Should Venture Into Gas Refilling Business
The cooking gas business is still new in Nigeria and demand for the cooking gas is far more than the supply. According to research, the annual consumption of cooking gas in Nigeria is put at 300 million kg. Out of this figure, Lagos State alone consumes over 35% while the other Nigerian states use around 65%. This is the reason why most filling stations are refiling gases and business minded Nigerians buying lands for this business.
Venturing into the gas refilling business will not only help you financially, you'll also be contributing positively towards the ecosystem. The rate at which firewood are being cut for the purpose of cooking will be greatly reduced if people embrace the cooking gas.
How To Start A Cooking Gas Refilling Business In Nigeria
A lot of things are involved in starting a lucrative cooking gas business in Nigeria and we'd explain many of them here. The goal of every business is to make profit while selling to your customers at affordable prices.
Some important things you should know before going into the cooking gas business include:
• Get trained
Before launching any online or offline business, the first step you need to take should be to contact an authority in the niche who would guide you though all you need to know. Business should be a trial and error process but should follow an already established business plan.
Some things you'd be learning include:
- How to measure the gas
Cooking gases are measured in litres, tonnes or kilograms. a kilogram is equal to 1.75 litres while metric tonne equals 1.750 litres.- How to refill the gases
T his is also a very important part of the training and something you must know before setting up your business. There are two ways of refilling cooking gases depending on the filling stations and we'd share them as we proceed.
• Precautions to take while handling the gas cylinders
Cooking gases are highly inflammable and precautions should be taken while handling them to avoid fire outbreaks or other harmful incidences..
Some precautions to be taken include:
- Ensure the gas cylinder is always well positioned to avoid toppling.
- Except otherwise stated by the manufacture, gas cylinders should always be kept in a vertical position.
- Always ensure that the cylinders are properly closed to avoid leakages.
- It is not advisable to place the cylinders on bare grounds, rather use pelleted woods.
- Always protect the valves with a valve cap to prevent damages when dropping the cylinders.
- Don't allow the gas cylinders to have contacts with each other.
- Avoid dragging or rolling the cylinders when loading or unloading them from the trucks to avoid damages.
• How to refill the gas cylinders
As I said earlier, there are two different ways of refilling the gas cylinders and they all depend on your filling system.
The two methods of refilling gas are:
- Automatic filling system
The automatic filling system is a filing system in which the nozzle is inserted into the customer's cylinder and the exact amount of gas (mostly in litre or kg) pressed. It is called automatic because it is programmed to stop immediately it gets to the quantity pressed.
- Pneumatic dispensing system
This involves placing the cylinder in a digital scale (which is adjusted to 0) and pressing the quantity of gas equivalent to the amount required. This is the most common among small scale gas dealers and it doesn't require much.
• Location
Your location really matters and a busy location would be the best for your business. Like I mentioned earlier, many Nigerians are yet to embrace the cooking gas so setting it up a busy area would sell better.
Another factor that will determine your location is competition. Explore the area to know how many gas stations are around so you won't be wasting money in setting up a business that no one will patronise.
• Capital and profitability
With a capital of ₦200,000 you can start a gas station and be making up to ₦150,000 monthly. Let's assume you make a profit of ₦50 per litre you sell, if you are able to sell up to 100 litres in a day, you'll be going home with ₦5,000 profit. This is very possible and you can even achieve more depending on your location.
Things you will buy before setting up your business include gas cylinders, hose, burners and regulators.The cylinders come in different colours and sizes like 3kg, 5kg, 6kg, 12.5kg, 25kg and 50kg.
The ₦200,000 we stated above is excluding your location and you can either rent or buy an outside space for your business. You can also attach a container to an already busy area so far it won't pose as a challenge to you in the later run.
You can source for your capitals from different means like personal savings, loans, donations or even by borrowing from friends.
Please also note that if you'd be venturing into a large scale gas refilling business you would be needing more than ₦1.5 million.
• Where to buy the cooking gases in wholesale prices
There are many big gas dealers in Nigeria that you can purchase from in wholesale prices and resale to your customers. Some companies you can buy from include Total, NavGas, NipCo, KiakiaGas, Ovhenergy and more.
• Marketing
One of the key factors that determine the success of every business is how well you promote it and you shouldn't toy with that. You can print fliers and distribute to houses or buy bill board spaces for some months.
You can also use any of the available targeted online advertisements to reach your customers. Online adverts are affordable and will help you reach a good number of people in any area of your choice.
Thanks for reading along, don't forget to drop us a comment and share with your friends. Before you go, also check out our previous article on how to start car wash business in Nigeria that will be bringing in more than ₦100,000 profit monthly in Nigeria.
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