How to start filling station business in Nigeria (from start to end)

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How to start filling station business in Nigeria (from start to end)

Fuel is what everybody can’t live without. Fuel is the second most used product in the world after recharge card. As you are reading this post, millions of people are buying or using fuel. Hence if you start filling station business in Nigeria, there’s a high chance for you to make huge profit.

To start doing filling station business in Nigeria, you have to obtain a license from CAC. After you have obtained the license, now you can invite the engineers who will construct your station for you. Construction of filling station is quite expensive, though it depends on how you want it to be.

If you are planning to establish filling station business, here, we have discussed everything for you from start to end by including the cost of the things required to buy and procedures to buy it. Are you interested to know how to start filling station business? If yes, then let’s start now.

There are three or more types of engineer needed to be invited to construct a standard filling station, for example, mechanical or civil engineer, architect, electrical engineer, etc. However, if you know that placing it in contract add advantage to you, then consider placing it that way.



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The cost of constructing a very standard filling station in Nigeria ranges between 25 to 30 million Naira including the cost of drum, pumping machine, working fee of the engineers, etc.

Can we start discussing how to start filling station business in Nigeria now? Let’s start!

How to open filling station business in Nigeria

  1. Make a Business Plan.
  2. Register your business
  3. Make the construction.
  4. Buy tanks and everything needed
  5. Invite engineers.
  6. Employ workers.
  7. Employ general manager.
  8. Open bank account for it.
  9. Have sales accounting manager.
  10. Get connected with oil depot.
  11. Get closer with security agency.

1. Make a plan for it

If you are intending to start a filling station business in Nigeria or any other part in the word, you should first of all make a strong business plan. Without a strong business plan, it won’t last long. Making a plan like how much it will really cost to construct filling station from start to end is very important.

To make a business plan when intending to open filling station business, it is ideal to meet those who have been doing it since decades. Meeting them will expose everything you need to know concerning how to establish it, proper engineers you should meet/invite, best fuel depot, etc.

At the early period of opening filling station business, meet the manager or if possible the owner of the top best filling station of your choice which you also want to open its alike and discuss with him. However, he will tell you everything. Make him your business partner or coach.

2. Register your business

Another step to open a filling station business is registering with CAC. If you want your business looks professional, then it is very good to register it with appropriate governmental company registrar like CAC. Any company that is registered with CAC is assumed to be legitimate and trustworthy. Hence, CAC may send an agent to physically visit your business and test it to know if you are honestly doing your business.

After the successful completion of your company with them, you will be issued a certificate and registration number which you can place on the banner at your business venue or office to let your customers build more trust in your business.

Although, business registration is not compulsory but it is ideal if you want your customers to build in your trust.

3. Make the construction

When opening filling station business, it is a must to consider the design of it. In this step, you should hire a professional engineers, civil engineers to construct a specific best design for you. You must also hire electrical and electronic engineers to run power around your filling station for you and mount electricity appliances where needed.

First of all, hire a professional architect to draw the skeleton of your filling station for you depending on the shape of the land, then meet those who construct or if an architect can handle everything, then let him continue (depending on your mind).

If you are constructing filling station, don’t emulate the design of the other nearest ones but make your own different design.

4. Buy tanks and everything needed

Every working filling station must have underground petrol storage tank for storing the fuel underground. Hence, it neccesary to buy them and other needed things like pumping machines.

I recommend that you go for high volume tank, like the 45,000 and the 60,000 litres if you intend to be storing extra fuel. If you go for 30,000 litres underground tank and you intend to be lifting full tanker of 30,000 litres, then you will have to always wait until the last drop of fuel in that tank is sold before going for another turn.

After acquiring your property, do the documentation, carryout the proper land survey, and structural design. The next thing is to sink the Underground Storage Tank, these tanks varies in measurements: 30,000 litres, 35,000 litres, 40,000 litres, 45,000 litres, 60,000 litres, etc.

5. Invite engineers

The petrol station construction engineer will be able to handle that effectively, I wouldn’t go on to tell you the the measurements, construction specifications, and all that (those ones are matter of choices). The Engineers should handle that, but you will need:

A Bungalow: How big or small is entirely your choice depending on the space available and what else you want to add. Do you want Restaurant, Supermarket, and Car Wash? Then, you need bigger bungalow.

Canopy over you Pumps: The shade constructed over petrol station pumps is called Canopy, it protects the pumps and the petrol attendants against the sun and the rain.

Perimeter fence: It’s regulatory requirements to fence the three sides of your petrol filling station, leaving only the entrance open for entry and exit. If you’re on a T-Junction, only two sides would be required to be fenced, the rest two would remain open for easy entry and exit from both joining roads.

Hardcore flooring: Vehicles of different sizes and capacity would be making entry into your petrol filling station when operational. Your floor must be hardcore concrete to resist the pressure from these vehicles.

Standby Generator: Do you need to be told that power supply isn’t stable in this part of the world? As far as petrol station is concerned, power supply is non stop throughout the the day, even when the business is closed for the day. Besides, standby generator is one of the requirement for approval.

3-6 Pumps (Electronic): The pump that dispenses the fuel, you will need between 3 and 6 depending on your size and level of approval you get.

6. Employ workers

Attendants: You will need 2 petrol attendants for each pump, they would be shifting between them, one person at a time. Multiple that by how many pumps you intends to have, that’s the number of attendants you need to employ.

Cashier: This person will be in charge of handling the cash and keeping records of the cash transactions. Employ an Account and use functional efficient software to keep accurate record of you cash movements.

Supervisor: His duty is to go about making sure everything is in order, both the facility and the staffs. He sees to it that everyone is up to his task and he/she reports back to the manager.

This person must be very reliable and proficient at what he does, must not be a compromising individual.

Manager: He is the superior in charge of the overall function of the petrol filling station and must be experienced with the running oil business. Every other staffs reports to him while he in turn is accountable to you. Carefully chose this person, your business can be make or marred by him. I’ve seen managers run businesses down.

With every thing stated above in place, you are 100% ready for real business and good to go! When the cash starts flowing, don’t forget me here.

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7. Employ general manager

Employ one person as a general manager. He or she must be the one what is going on in your filling station because you don’t have to be there. General manager must has his/her own office waiting for any request, inquiry, etc. of other staffs and customers.

It is your general manager the one who inform other staffs about what you say and he/she can make a rules and regulation that favors you and your business.

8. Open bank account for it

If you have registered your business with CAC, now it is time to open bank account with your business for all daily sales to be deposited in it by your manager.

9. Have sales accounting manager

You should have to employ sales accounting manager to record daily sales. After he/she has recorded, then he/she should then forward it to general manager for crosscheck. Note that accounting must be done after the completion of every day business operation.

10. Get connected with oil depot

If you want to make huge profit from your filling station business, then buying the fuel or oil from the depot directly

11. Get closer with security agency

Operating a filling station business, it is a must to get closer with security agency in order to be there for you in case the criminals will visit for stealing your money and property. Get in torch with security agency like MoPol, Army, Navy etc. and pay them very well in an agreed price.

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