Are you planning to start a kerosene business in Lagos? We have written this guide to help you.
Kerosene is one of the main petroleum products used in both the rural and urban areas of Nigeria. Kerosene is used for household purposes.
For instance, most homes in Nigeria depend on it for cooking and lighting.
The electricity demand becomes higher due to the lack of internet connectivity in most homes.
Starting the kerosene business in Lagos requires very minimal capital compared to other petroleum products.
What you must know before starting the kerosene business in Lagos
Here are the basic things you need to start a kerosene enterprise in Lagos:
1. Surface tank – a surface tank is very important for the storage of the kerosene
2. Have a source – have a source that will be able to supply you with legal kerosene to avoid trouble with the authorities.
3. Business location – look for a location where you can put your surface tank. You can also get a business premise where customers can easily spot you.
4. License – you need a license to operate the business legally. Register your business with an appropriate body.
5. Have appropriate suppliers for the kerosene supplies
6. Marketing – see what your other competitors are doing
7. Launch your business and start working on your business plan.
Benefits of starting a kerosene business in Lagos
1. The demand for kerosene is high because of the lack of stable electric power in Lagos
2. With the high population earning low income, their main source of energy is kerosene
3. Lastly, kerosene has made people in the kerosene business profitable.
Challenges facing kerosene enterprise
a) Prices of commodities change. This needs you to be alert anytime.
b) Getting business permits from the authorities might be difficult at some point
c) Enough capital is required to start the kerosene business
d) Balancing the business might be a challenge sometimes. Management might be intensive
e) The other problem is the problem of regular supplies
Reasons why starting a kerosene business in Lagos will be a good idea
1. Lack of stable access to electricity. Most people prefer using kerosene for lighting and cooking.
2. The population of Lagos has several low-income earners, whose main source of energy, lighting, and cooking is kerosene.
3. Kerosene is highly profitable
That is all you need to start a kerosene business in Lagos.