How to participate in the oil and gas industry in Nigeria

Posted by: Darlinton Omeh on Thursday, October 23, 2014 Category:
I had earlier written a post on Petroleum Products Marketing in Nigeria. Now, another question arose, how can you participate in the Nigerian Oil and Gas industries? In this article, I will discuss ways that you can participate in the Nigerian Oil and Gas Industries and to become fully relevant in the system. This article is the part 1 of 3 which covers the prequalification eligibility and how to get involved. Please read thoroughly.



There are different departments in the Nigerian oil and gas industry, you can get involved in the marine sector, gas sector or the oil sector. You can get involved in so many other parts (will be discussed in part II). You are advised to come in, get knowledge, understand what is in the law and how to leverage on it, seek and make use of this opportunity and embrace it.

I want to say that our people (Nigerians) are still at the back bench because of lack of information. Often times, if you ask somebody – what do you do? And the person says “oil and gas business”, on further enquiry, you’ll realize that he just owns a filling station. That is the level of involvement in the oil and gas by most people who claim to be in. 
That is not to say that petroleum products marketing isn't big enough, but beyond this, other people get involved in the real oil and gas business, they have equipment in the high sea making millions for them daily, their equipment is there in the upland making millions for them. What is making million for them daily are somewhere in the creek there and they are somewhere in Dubai enjoying themselves.

Why did we wait till now when others had taken the juicy areas in the industry? It’s still not late. What I mean is that our oil is still flowing and more are being discovered in other regions of the country. Our participation in the business of oil and gas is very lucrative.  Why it took us a long time to recognize this is lack of awareness and limited information. Now, it is a good thing that the FG, who brought this idea. The Nigerian Local Content Act was signed in 2010. This act was put in place so that people from the oil producing regions and the people of Nigeria would benefit from the oil, because, so much had been lost to foreigners.

What qualification do you need to participate in the oil and gas?

Any level at all that you are, you can participate in the oil and gas business, but you will be required to improve on your abilities.

If you are an engineer, you need to be a good engineer, a geologist, fabricator, or a welder; you need to be a good one. What ever you are doing, try to enhance and improve on your abilities. That means you must apply yourself to producing goods and providing services that are considered efficient in the oil and gas industry. In this case, you now understand that it is not your colour or where you are from that will determine your participation in the Nigerian oil and gas industries rather your qualification level of expertise.

How do you get to know the standard required?

How do you get to know the standard required in the oil and gas industry and be an effective participant? Where should you go for training?

I will give a clearer answer to this question.  


The Federal Government of Nigeria has established a Nigerian Content Development and Monitoring Board (NCDMB) which is in partnership with several training groups and consultants who assists all those who want to participate in the industry to go into training.

There is training for welders, engineers, fabricators and others. These training sessions are organized and coordinated by the NCDMB. If you want to participate, you will have to meet the coordinator of NCDMB (contact will be given later at the end of this article).

Participants will be selected and trained to improve on their abilities and this is being organized in a very efficient procedure. 


The Petroleum Training Development Fund (PTDF) is also in partnership with the NCDMB to do the training. At the time of writing this article, training is taking place in all the profession so that they can improve on their abilities. Training is going on in welding, AutoCAD, fabrication, and all sorts of professions relevant to the oil and gas industries.

In addition, I will like to emphasize the fact that local content does not mean compromising on standard and quality of product or services. Local content does not mean Nigerianization. Local content is in support of quality, standards that are obtainable in the Nigerian oil and gas Industries.

The NCDMB do not compromise standard and that is why the organization put in place a machinery to oversee the whole management of the law to (1) ensure compliance with the law, (2) develop manpower and (3) enhance capability in the oil and gas industries by training.

For you to be qualified for employment in the oil and gas industries, you have to go through training and be certified. The Nigeria Institute of Welding is currently training Nigerians and awarding certification to them to work in the Nigerian oil and gas industries.

Secondly the NCDMB also train people in other areas like environment remediation to cater for oil spill issues, Nigerians are trained on how to offer remedial services to environment. People are also trained on other jobs – electrical, mechanical etc. And this is done periodically and in partnership with so many other agencies like the NDDC, PTDF, and other agencies of government. There is also a proposal on ground to explore the maritime.

The Way Forward - What can you do to be a partaker in oil and gas business in Nigeria?
Prequalification eligibility in doing business in the Nigerian oil and gas industries.

1. You have to registeryour company with the Corporate Affairs Commission (CAC), first and foremost, register as a company and then you will also have to be a Nigerian citizen owning a Nigerian Company.

The law itself has defined what a Nigerian Company is as against what the Company and Allied Act has defined it before now. The beauty about this is that the Nigerian Company according to the Nigerian Oil and Gas Industry Content Development Act 2010 is defined as that company that has 50% and above shares that belongs to Nigerians in both home and abroad.

It means Nigerians in that company constitutes the board of that company, they might be 51+ (above and not below) out of lets say a hundred member board committee. Also, the Company and Allied Act define a Nigerian Company differently from what the emerging Nigerian Oil and Gas Industry Content Development Act 2010 defines it. So, you have to first and foremost have to be a legal entity in Nigeria to be certified as a Nigerian Company. Only then will you be allowed to participate in the Nigerian oil and gas industry.

2. Yes! You can get into the business at the community level

Community groups are also encouraged to come together and partner with people, register a company and take it to the International Oil Companies (IOCs) and bid for contracts.  For the communities, there is a provision for you in the law that says that certain contracts should be awarded to the host communities and gone are the days where certain people in our community will just go and collect money from the IOCs and pretends they have not, and then the whole community will suffer.

The community now has a opportunity to be involved in the oil and gas business. They can come together as a group and register business and pass through the normal processes of contract award, i.e., If the prequalification stage, the technical and submission level complies with the entire Nigerian Local Content requirement, it is certain that they will have the contract award. Where they don’t have the award, then they can come back to the board and complain. Now the board will pick up from there to endure that the community is favoured in this direction.

3. You can Also Get Involved through Partnership

What if your community is not regarded as oil and gas producing community? 
In oil and gas business, partnership is allowed. A Nigerian, who has limited abilities, can go into partnership with those who are stronger with abilities and wealth to invest in the industry. Because of lack of financial strength, you can pull your resources together as a group to enhance effectiveness. Like I wrote earlier, local content does not mean compromise to quality. Different expertise levels can be shared among groups coming together to synergise the company strength and professionalism to meet the standard required in the industry. Then you can function well.

Everyone can come together with their individual effort to synergies so as to commence business, even though late, it is better that than not starting at all.  

Who to contact if you want to start business in the oil and gas industry.

Petroleum Products Marketing in Nigeria

Posted by: Darlinton Omeh on Thursday, October 23, 2014 Category:
Petroleum products marketing in Nigeria is one of the business that guarantees huge profit taking within a reasonable period of time from set up. This article contains practical guides and directions on how to go about the whole process of setting up your petroleum products marketing business in Nigeria.

The first step to be taken by the prospective investor is registration of limited liability company with Corporate Affairs Commission (C.A.C), Abuja. The investor should contact a competent lawyer to ensure that the company is duly registered.

It should be noted here that if touts are allowed to carryout the registration, one could fall victim of fake registration which can affect the company transactions in future especially when opening account with bank. Because, bank will definitely confirm the genuine status of the company with C.A.C (corporate affair Commission on). A minimum share capital of N500, 000 should be detailed enough to contain the primary objective of the company which is petroleum product marketing.

Land Acquisition - This is another important aspect of the business. The investor should look for a landed property of at least two plots, in commercial area and well located and accessible. I recommend that the land should be along the high way or any busy/heavy traffic route.

Survey and Building Plan - A competent surveyor must be used for this exercise in order to avoid mistake that could be expensive to correct. Also he could assist for the building plan by using qualified architect for the architectural design of the filling station. At the final stage of this exercise approve building plan is expected (given). Three set of approve plans showing the building existing or proposed on the site and the relation of the site of the roadways to the adjoining property. Soil test and permission to construct filling station by DPR.

Original Fire Certificate - This has to be signed by the chief federal/state fire officer or by an officer authorized to do so. That the arrangement proposed for the filling station fire prevention is satisfactory.

A letter of approval – You get this from the town planning authority of the area you want to construction the filling station on the proposed site. This is very important, else, your construction work will be suspended halfway.

Police Report – an original certificate signed by a station police commissioner or a superior police officer in charge of police motor traffic division that the site and layout of the proposed site will not create unnecessary traffic hazard.

Tax clearance certificate – You need to get this for the proceeding three years. Since the company has just been registered, one – year tax clearance could be accepted. The above documents are submitted under the company’s letter headed paper to the department of petroleum resources (DPR) for permission to construct or build a filling station.

Minimum Required Facilities

 

In Addition to The Storage And Dispensing Facilities at Petrol Station

Filling Station Building – The building in any filling station depends on the capital available to the investor. At least this should consist sales room, office, store s and toilet.

Fore Court – This very important aspect of station construction that the concrete floor of the station. This contains distinct IN/OUT.

Bound Walls – This involves fencing of the station.The bound walls of minimum height of 1:2 meters-demarcating the petrol station from the adjoining properties.

Adequate Draining System – These should be proper drainage system to prevent flooding. This is for easier movement of vehicle in and out of the station

Water & Electricity – These are also vital utility that is needed in any filling station. However, because of unreliability of PHCN in this country as of now, most filling stations have a stand by generator to compliment the service of PHCN.

Safety Devices – In any filling station, there should be potable fire extinguishers, service periodically at least one on each pump island and one each at lubricating bay office and generator house.

No Smoking Signs – Conspicuously displayed at the station’s premises. This information is very important to both operator of the stations and the customer (motorists). This is to avoid fire disaster because of highly inflammable petroleum products being sold in the station.

Dry Sand Buckets – This is another safety measure to avoid fire accident in the station. At least one should be each beside of the pump islands.

First Aid Box (Well Stocked) – At least there should be provision to take care of primary injuries to the workers before the help of health workers are required. The first aid box should contain; iodine, cotton wool, plasters, scissors, Violette paint etc

Refuse Containers – All around the premises, there should be refuse containers that will enable the workers at the station to dispose of soiled rags, empty oil cans etc.

Trained Petrol Station Attendants – This could be done in several ways. Training consultants would train the staff. They could be sent for training attachment in any existing and functional filling station in the area. Here, marketing strategies of petroleum products would be taught. Ways of dealing or relating to customers and handling of cash are also important aspect that training of attendants is inevitable. They should also be taught on good house keeping of the entire petrol station premises.

Details of The Procedures of Obtaining DPR Storage License

When the filling station has been completed, under regular inspection by the department of petroleum resources (DPR). The marketer can then apply for DPR storage license by submitting the following documents. Three set of approved plans, an original fire certificate signed by state fire service officer, a letter of approval from the Town planing Authority, survey plan, An original certificate signed by a state police commissioner or superior police, Evidence that the company is dully registered with C.A.C, Tax clearance certificate for the proceeding three years, certificate/memorandum and Article of Association of the company; Also lead proof test of the storage tanks.

All the above documents with the photograph of the station are submitted under company’s letter headed paper to the Department of petroleum resources (DPR) for storage license.

Documents Required For Bulk Purchase Agreements

Once storage license is issued, the next stage is to apply for lifting right and bulk purchased from petroleum pipeline marketing company (PPMC). The following documents are required for lifting right and bulk purchase agreement.
  1. Storage and sale license of the filling station (from DPR) (1)
  2. Certificate of incorporation of the company
  3. Tax clearance certificate memorandum and Article of Association
  4. Certificate of occupancy or customary Rights of occupancy of the land where the petrol station is built (2)
  5. Letter of introduction from the bank. (3)
  6. Enlarge photograph of the station
  7. Verification Report from PPMC Area office on the petrol station
  8. Photographs and particulars of truck. (4) Bearing the logo and name the company.
  9. Fire Report
  10. Police report
  11. Approved building plan
  12. Marketer’s form
  13. Marketer letter headed paper
With all the above documents the marketer is qualified for bulk purchase and lifting right from PPMC. A marketer who has the foresight can easily spread his operations throughout all the depots in Nigeria by opening more outlets in other depots. In other outlets, it is only storage license from PDR that is needed to begin operation.

Depot Operations

Assuming storage license has been obtained from DPR, lifting right and bulk purchase agreement from PPMC. Now allocation to lift the following products at NNPC Depots – DPK, PMS, AGO even LPFO will be given. This however depends on nearest depot to your filling station SOME OF NNPC LOADING

Lists of Some of The Depots in Nigeria

1. Satellite Depot Ejigbo (Lagos)
2. Mosimi Depot Shagamu
3. Ibadan Depot Ibadan
4. Ore Depot Ore Ondo Gate
5. Ilorin Depot Ilorin
6. Benin Depot Benin City
7. Warri Depot Warri (Refineries)
8.Port Harcourt Depot P.H.C (refineries)
9. Owerri Depot Owerri
10. Suleja Depot Suleja (Abuja)
11. Minna Depot Minna
12. Kaduna Depot Kaduna
13. Kano Depot Kano
14. Markudi Depot Markudi
15. Maduguri Depot Maduguri
16. Eungu Depot Enugu
17. Gombe Depot Gombe


Moreover, if can not meet all you need quantity you can sell in your outlets, you could buy yours from private depots in Apapa area of Lagos state. Such private depots are:

1. Ascorn Depot
2. Obat Depot
3. Ibeto Depot
4. Honeywell Depot
5. Zenon Depot
6. NIPCO Depot
7. MRS Depot etc.


The beauty of these depots to the marketer is that he would always sources products from nearest depot to their filling stations. Having pass through all the above requirements and procedure, congratulations and welcome to the multimillion dollars industry. Yes; you have gotten every thing required to start this business. You need to secure an office space within NNPC premises. The cost is however very minimal since many marketers share the same hall.

You also need depot. The depot representative to be in charge of all company activities in the depot. The depot representative pays in draft issued in favors of NNPC on behalf of the company. NNPC expected each marketer to have sales representatives in each depot. For any marketer, it is expected that the company should have its own truck but this might be optional and depends on the available capital. There are always trucks at the depot for hiring.

Activities at Filling Station

The minimum pumps required by NNPC in station is 4-6 pumps for premium mild spirit (PMS petrol) one pump for Auto motive gas oil (AGO Diesel), one for Dual purpose kerosene (DPK), Also it is expected that one station manager, one supervisor and six attendants always in company uniform. Each attendant to man each pump. Island. The human relations of the staff matter a lot in determine the sales volume of the station.

Here, we are looking at normal situation of the market and not abnormal situation of scarcity of the products. It should be noted that profit in this business is base on the quantity of products you can sell in you station. However, under abnormal situation, no matter how remote your station is located, you will always make a sale. Once the loading truck arrived at the filling station. The truck is parked for about 15-20 minutes to allow product to settle down to its normal level.

The manager takes haulage using haulage bar and compare the figure to that recorded by the company depot representative. Once the recorded figure by both parties is confirmed to be correct, the truck is allowed to discharge its contents and haulage bar is further used in the underground tanks to confirm the exact quantity of the discharged products.

Construction of Underground Tanks

Construction of underground tank is one of the aspects of filling station that really consume money. For a standard filling station, you need at least four underground tanks of 30,000 45,000 litres capacity.

AGO = 30,000 – 45,000 litres
PMS = 30,000 – 45,000 litres
DPK = 30,000 – 45,000 litres


To have a storage and standard under-ground tanks that will be durable for a number of years, it is advisable to used 4mm plate (thickness). There are some companies that specialize in this construction.

The actual price of each tank might note be easily determined because of Hyperinflation in our economy. Therefore it is estimated that each tank may cost as such as N500,000. However, buying the plates, you can employ the services of local welders on order to reduce the cost.

Purchase of Pumps

The minimum numbers of pumps required by the regulating body (DPR) is six pumps. This depends on available fund to the investor. You could go for new pumps or fairly used (“Tokunbo”). Fairly used pumps may cost as much as N150,00 each, while new pumps could also cost as much as N500,000 – N1,000,000 and above. Below are some of the series from Zcheng –







 

 

Setting up an Operational Filling Station Office

For any independent oil marketing company in Nigeria, it is expected that the organization should have an office of operation. A well established oil marketing company should have:
  • Office of the managing Director
  • Office of the general Manager
  • Accounts department
  • Sales/marketing department
  • Maintenance department/drivers.
The office of the managing director like any other organization serves as the chief executive officer of the company. This is where most of the decisions on how to manage and run the affaire of the company take place. The MD decides on how to control the finance and operation of the company.

The general manager sees to the over all operations of the company from filling station to the depot operation. He also sees to the account and the marketing department activities.

An accountant usually controls the account department. He is also in charge of the company’s activities with the bank. He ensures that the sales in station are adequately accounted for. He also ensures that Bank draft are obtained and given to the depot manager or representative to load any of the company product allocated by PPMC. The accountant must be vigilant and honest in order to be able to monitor fraudulent practices of the station managers and the attendants. Their sharp practices might affect the sales in the station.

Sales/Marketing Department

This is another important department as far as sales of petroleum products such as AGO, LPFO, DPK, PMS to industries. The sales officer or manager visits companies to obtain LPO (Local purchase order) for the company and also he ensure that a product is supplied to the company as stipulated in LPO. And prompt payment by the company supplied.

Some materials that are required in this department are as follow

  1. Daily sales records for each station
  2. Customers credit/Debit cards
  3. Invoice
  4. Receipts
  5. Waybills.
The waybill is usually attached to NNPC meter Ticket for each depot loading. The account department should continually liaise with the sales so that accurate record of the loading at the depot will be accurately recorded. If the company account department is computerized, then all records of payment by the customers and loading at depot should be stored in the adequate records for all refers records for an auditor of the company to prepare the company annual report to determine the performance of the company. That is, profit and the loss account of the company.

Maintenance Department

This department always employ the services of pump maintenance to service pumps at the stations. Some company also employs mechanics either full time or part-time base to maintain and repaired company trucks and vehicles. Drivers of the company are also included in this department.

Problems Arising in Petroleum Products Marketing in Nigeria

However, the following problems may arise in transit because transportation is usually handily by third party contractor by customers themselves.
  • Shortage in loaded quantity
  • Delay in supply of products
  • Adulteration, contamination and theft of products.
  • Armed Rubbery in the filing station
It is therefore necessary to have a good knowledge of the approved standard procedures for handling all petroleum products in the industry. All petroleum products whether Petrol, Kerosene, low-pour fuel oil and high-fuel oil are usually supplied in bulk truck of various capacities, Calibrated by approved independent petroleum inspectors. The problem associated with adulteration, contamination and theft of petroleum products are best addressed through proper understanding of the following:

– Name and address of the marketer
– Name and address of transporter, Truck registration number
– Date of calibration compartment tank heights
– Haulage certificate number
– Name, address, stamp and signature of the approved calibration firm.


LOADING: The petroleum marketing strictly ensures compliance with the rules, regulations and produces for loading petroleum products. The following information is provided on the copy of delivery invoices to the consumers.

– Depot location
– Date and time of loading
– Haulage measurement of the compartments
– Seal numbers on the ma hole covers and control valves.
– Authorized signature.


DELIVERY: At the arrival of the product at the consumer location, the designated receiving officer must ensure that the following guidelines are followed to ensure that quantity and quality of the products are maintained.

– Collect the dispatch note and haulage certificate form the truck driver.


– Note the time of arrival and ensure that the truck is positioned on level ground before commencing the process of discharging the product.


– Confirm that seal on the man hole covers and internal control valves are still intact and that their numbers correspond to those indicated on the dispatch note.


– Confirm the product quantity supplied as indicated, using a hydrometer thermometer, T- bar haulage paste and water finding paste.


– Confirm the product type with the color code on the truck as indicated by the waybill.


– Confirm that they’re no water in each compartment by smearing the water finding paste on the T-bar and lowering it through the man hole hatch. The paste changes from golden to a brilliant red colour if water is present.


– Confirm the haulage reading of each compartment by smearing the haulage paste on the T- bar and lowering it through the hatch cover into product.

Fire Control Measures

Petroleum products have high flammability and therefore fire hazards. The triangle of combustion consists of the fuel heat to raise its temperature from the ambient to the flash point and then fire or ignition point and oxygen to support combustion continuously. Therefore, the recommended method of extinction of petroleum fire is to remove any one or more sides of the triangle of combustion by:

(a) Starvation – removal of the source of fuel
(b) Smothering – reduction of source of oxygen
(c) Cooking – absorption of temperature.


Therefore, setting up petroleum products marketing company is a profitable venture and this depends on management of both human and financial resources of the company. Below is specimen Agreement between NNPC (DPR, PPML) and the petroleum marketing company.

(i) Approval to operate filling station.
(ii) Petroleum storage and sale license by DPR.
(iii) Agreement for the bulk purchase (Petroleum products for distribution within Nigeria)
(iv) Photograph of a standard filling station.

5 Positive Effects Of Adopting Time Management Strategies

Posted by: Darlinton Omeh on Sunday, August 17, 2014 Category:


Every manager wants to be productive because this could determine how fast he or she rises up the career ladder. Productivity has a strong connection to time and the effective use of time can make all the difference. Time management allows you to deploy ideal solutions that will maximize productivity.

It Gives You The Ability To Know What To Turn Down


Deploying a time management strategy gives you the ability to what you can turn down. Engagement takes up time and if you are on a tight schedule, you may be deploying it for the wrong people. It is not about personalities but productivity. As a manager that has adopted a time management strategy, you should be able to know what you can use to occupy your time.

However, you should bear in mind that there are issues that will land on your table that you will not be able to turn down. Your boss may want you to handle something immediately and that thing may disrupt your time management plan for the day. Beyond this, you can use the concept of drawing up a time management plan to tackle such assignments and deliver on them in such a way that will leave him or her impressed.

It Makes You Target Oriented


Having a time management strategy makes you target oriented. It keeps you focused on trying to achieving as much as possible within a given time frame. This is great if you are in a workplace environment where there are always targets and deadlines to meet. Adopting a time management strategy in any sphere of life keeps you focused on the target. Staying focused on your target will influence your interaction and relationship with others.
  • You will know how to relate with people that will help you in achieving set goals.
  • If you are in a workplace environment, it will help you in developing the best time conscious strategy in meeting with given goals.

 

It Gives You Certain Kind Of Friends


Having a time management strategy can make an individual popular in a positive way. We are in a world where people have too many excuses to be distracted and they are looking for those that can help them stay focused. People want to relate with people that will add value to their lives. Being an effective time manager is an attribute they will like to associate with because it is something they will like to emulate.

The same thing applies in a workplace environment as it makes you noticeable in a workplace environment and you will be invaluable in team projects because you have trained yourself to focus on issues. You my quickly become a go to person and this could set you up for greater things. Others would want to include you in their network and this could lead you to meeting people that would be beneficial to you and your career.

It Makes You More Efficient


Following a time management strategy makes you more efficient in your workplace environment and anywhere else. You get to know what to do and when to do it. You focused on the job at hand. A good time management plan will help you to find the balance between completing a project and the cost of the project. In a workplace environment, cost is usually a major issue. Hence, this could be a great tool you can use to find that balance. You can to develop and implement the most efficient means of achieving set goals.

It Makes You Highly Visible


A positive effect of sticking to a time management strategy is that it makes you highly visible. This is advantageous to you in a workplace environment.
  • Implementing a time management strategy will help you get task completed before deadlines.
  • You get more tasks sent your way because of the efficient way you handle them
  • High visibility sets you up to receive assignments that could lead to more financial benefits
The benefits of being highly visible for the right reason apply in every sphere of life. It singles you out for more responsibilities as well as benefits associated with such responsibilities.

Adopting the concept of using time management strategies to get tasks done will make you stand out from the pack. Aside from the personal, it adds social and commercial benefits. People in workplace environments needs to train themselves in cultivating positive attributes like being able to deliver on time. Once they get to understand how to use the tools of time management, they can maximize how they use their time and how they tackle tasks.

How To Make Money Selling Rams During Muslim Festivals

Posted by: Grace Daniel on Friday, August 01, 2014 Category:
A few days before the Ramadan festival of this year, I was in a vehicle, passing through a place where people were buying and selling rams. Some of the passengers in the vehicle started complaining of how expensive rams were during the festive period and how economical and wiser it was, to buy the ram, long before the time of the celebration. I started to think about what they were saying and then it struck my mind that what they were making small talk about, was actually a good business idea. Further findings reveal you can actually multiply your income dealing in rams.


It is a common practice for Muslims to kill rams during their festivals. Especially during Ed-El-Kabir celebrations. Muslims all over the world, observe this festival at the end of the holy pilgrimage to Mecca and Medina (Hajj). Therefore, every Muslim who can afford it, kills a ram on Ed-El-Kabir and shares the meat with family, friends and the less privileged. In fact, it is compulsory for all adults and working Muslims to kill rams during this festival. 

Due to the high demand for it, rams are usually more expensive during the period of Islamic festivals. It is also at this period that ram sellers get most return on their investments in the business. Although, the price of the ram depends on its size. Smaller ones can go for N20,000, while the bigger ones can be sold for as much as N100,000.

The norm is that, when any Islamic celebration is approaching, cattle farmers and traders from the northern parts of Nigeria, take rams, cows and goats to other parts of the country, where there is no easy access to herdsmen, to sell their animals. Thereby seizing the opportunity to enrich themselves. The seasonal nature of the business makes it even more lucrative.  

Rams are usually expensive during festive periods, because of the increase in the cost of transporting the animals and also in the cost of animal feeds. According to some traders at Alaba Rago market during this year's Ramadan festival, it costs between N2,000 and N2,500 to transport each of the rams from Kano down to Lagos. Another trader at a market in Kaduna, revealed that a bag of food for the rams that used to cost N1,500, now costs between N2,000 and N2,500. Which led to an increase in the prices of rams this year.

Basically, the cost of buying, transporting, and feeding the rams make up the actual price they are sold. But if you are willing to invest your money in this business, you can be sure to make huge profit at the end of the day. 

Take for instance, you want to buy the rams from Kano to Lagos. You can buy up to 25 rams with N500,000, depending on their sizes. If it costs you N2, 000 to transport each of the rams, that will make it N50,000 as transportation cost for the 25 rams. If you buy 50 bags of feed for the animals for N100,000, altogether, it would have cost you N650,000 to do the business. The average price of a ram for consumers during this season is N40,000. When you multiply this by the number of rams you sell, you will be making up to N1,000,000. That leaves you with N450,000, which is about 40% profit margin.  

The fact that this business booms periodically, is even more reason why you should do it. Because, after the Muslim festival, you can go back to your existing business or work. You would have made enough money to sustain and to invest in other businesses while you wait for the next Islamic celebration.

To do this business, you must put the following in place:

First, you have to locate your market. Know where you want to sell the rams. It has to be outside of the northern states. Places where there are no easy access to cattle farmers. I will recommend Lagos because a good number of people in the state are Muslims -your target market.

You also need to register with the Ram Sellers Association in the state that you wish to sell the rams. Each state has its chapter of Ram Sellers Association. Joining the association gives you the right to display your rams at the combined cattle market in your location or any other location of your choice. As long as it is still within the state.

More so, it is important that you buy the rams before the period of the festival, because the rams will be more expensive during the festival. In order to avoid this hike in prices during the festival, plan your affairs few weeks or months before the time and take a trip to some northern states like Jigawa, Sokoto, Kano or Kaduna where you have a majority of herdsmen. Villages like Maitagari in Jigawa, Banki in Maiduguri, Darazo in Bauchi. These are some of the places where you can get rams in large quantities and at cheaper rates. 

After you have done all of the above, you must make sure that the rams are in good condition. Ensure that they are well fed and healthy. You can engage the service of someone who will constantly look after the rams, feed them and clean the cattle houses while you do other things.

The business of selling rams during muslim festivals is very lucrative. That is why you cannot run into loss if you decide to invest in it. 





How To Start The Supply Of Eggs To Shops In Nigeria

Posted by: olaitan hammed on Friday, August 01, 2014 Category: |
Are you an average Nigerian,  or you just graduated from the college and you are still waiting for that white collar job where you can knot tie and put on that corporate suit and jacket everyday? Well let me introduce you to a business that is fast yielding profit, not just a little one but profit that you can conveniently make a living from.

Poultry-Eggs
Eggs Freshly Removed From Poultry Farm


Egg business is a lucrative one, in this type, you can determine what you want your profit to look like. Before we analyze the potential profit of this business, let us know the advantages and uses of eggs.

Eggs are high in cholesterol and this makes it a perfect diet for growing children. It can reduce risk of many diseases, it supplies quality protein to the body, it is rich in vitamin A and this helps healthy eyesight, it contains choline and this is used to build cell membranes which helps in producing molecules in the brain.

The uses of eggs are numerous, we use eggs in baking different types of confectioneries like cake, bread, meat-pie and so on. It is  used as cosmetics like shampoo, conditioners, soaps, cholesterol, face mask and lots more. It is also used as glue, the sticky quality of egg white clean some certain surfaces like leather, its uses makes it so clear that eggs has a high demand.

For you to make success in buying and selling eggs there are some tips to put into consideration and here are few of the tips.


Have Your Own Vehicle


Egg business is more profitable in Nigeria when you make it a mobile business. Purpose of this is to make you distribute your eggs conveniently to your customers. Most shop owners usually feel too comfortable once they are seated in their shops, and so they feel reluctant to go to farms in order to pick eggs and also they consider the number of cracked eggs they will realize picking eggs directly from farm on their own. This is why being mobile is important in egg business.


Locate Your Target Market


Picking up eggs from farms is not a problem, your target market is what matters to you. Your target should be the highly populated environment. It could be markets any where, the mobility aspect makes you spread your distribution process all around. Once you know where and whom to distribute your eggs to, you will only need to go there directly.

Pick up Farms 


To start buying and selling eggs, you must locate two or more farms depending on what capacity you want to work on, a poultry farm is where you can pick up eggs for sale. Before you can start picking eggs from farms, you must be a registered customer with the farm, and you must be consistent there, meaning you have to always pick up eggs weekly.



Other Working Tools 


The basic tool needed for this business is empty crates, it could be paper crates or plastic crates. You can buy crates of 100 pieces at N10,000 or N5,000 if you choose to buy the paper crates , the total number you will need to run your business now depends on you. Note that the paper crates are more protective to your eggs, it reduces the number of cracks you will realize from transferring your eggs, and it's cheaper as well but damages more quickly than the plastic ones. 

Cost Of Starting The Business


Cost of acquiring a used vehicle constitutes almost 90% of your capital needed in this business. Once you are mobile, the only cost you will need to run this business for a start is N80,000, with this amount you can buy 120 crates of eggs. A crate of egg can cost N650 or less  from farm depending on the size you choose to buy, any balance left will be incurred on fueling your vehicle and other road expenses. 


Potential Profit


In this business, you are your own boss and you will decide how much profit you want to make in a week. Depending on any size of egg you choose to buy, you will gain profit of N100 on a crate of egg if you sell as a whole seller but if you choose to sell as retailer you can have profit of N300 on a crate. If you restrict yourself to selling just 100 crates of eggs weekly, that means you will realize profit of N10,000 weekly and this is just N40, 000 monthly. 

This is how you determine your profit. Setting a target to sell 1,000 crates of egg per week will mean you will realize  100 x 1,000 = N100,000 weekly, multiply this per month, that is a whooping sum of N400,000 profit monthly. If you deduct your monthly expenses from this amount am very sure you will still have a reasonable amount to save.

Buying and selling eggs might look odd to you but concentrate on how profitable it is and stop waiting for gainful employment in that oil and gas company that may not come until when your responsibilities are enormous. Keep yourself busy and be productive. 

Feel free to leave a comment, and if you have any challenges, don't hesitate to ask us questions, locating a farm where you can pick up eggs can also be a challenge to you, ask us any question we will gladly respond to you.
Wish you all the best in your business career.


How To Start a Computer Game Centre in Nigeria

Posted by: Tolulope Awoku on Friday, July 25, 2014 Category:
In Nigeria today,  many individuals are associated (directly or indirectly) to different kind of games, these range from indoor games, outdoor games, and video games. Nigeria harbors game enthusiast and these can be used as an advantage to entrepreneurs who are looking for viable business that can generate profit in a small amount of time. Game center business is quite lucrative in Nigeria, you only need to know the nitty-gritty of its start-up and operation and you can be sure of a viable business. 


What is a game center?


A game center is a place where activities of indoor (and maybe outdoor) games take place. a place where game (video, board) fans meet to play games against each other. Video centers are quite common in Nigeria, some of the game centers has outdoor games (swimming pools, tennis court, Golf, etc) while some just focus on the indoor games. the reality is;indoor games are cheaper than outdoor games. we will focus,however, on the indoor games.

What do I need to start up?


First of all, get a good location. it could cost you the rentage of a big space. it should also be located in a domestic area; this is because your prospective clients are located within the domestic axis. you need to be well informed about the features of games that you intend to use. we suggest video games, board games as well as snooker game. the cost of setting up boils down to the following.

  • Big open indoor space: this could amount to N 300,000 /year depending on the area you want to set it up in.  
  •  
  • Television sets: it is advisable to start with 4 sets and ,of course, the television set should be of standard quality. this could amount to about N 300,000 for the sets.
  • Standard gaming furniture is also needed. this includes comfortable chairs, good tables, and quality appliances such as stabilizer, socket extensions, etc. we evaluate all these to cost N 200,000.
  •  
  • Games: you need four set of video games to start with. you can get a new Sony play station 3 for about about N 60,000. the price for 4 should amount to N 240,000. you should also ensure that you download games on the hard drive of the game system, this will ensure that you don't spend so much on buying game Compact Dics (CDs), they don't only cost more, they also have tendency of spoiling or make the lens of the console wear, and you might soon find yourself running back to the market to either buy lens, or more CDs. you also need to get a snooker table, couple with some board games like chess, monopoly,e.t.c.
  •  
  • Generator set: you need a power generating set that will serve as an alternative power source should PHCN light should go off, this should be estimated as N 150,000. 
  • Advertisement: You will be needing an advertisement post in front of the location, you should also get another post at a public stop. the cost of these should be approximated at N 30,000. you should know that you will pay LASAA (Lagos state signage and advert agency)  you should also consider making flyers that will reach out to the gaming public.
Bargain 1 million naira for the cost of setting this business up

Customers in a computer game center in Lagos.

How do I run the place?


You should start by employing 3 people that will ensure the efficient operation of the place. these people should be well knowledge in the handling of hospitality. You should also get a consultant technician that will ensure the smooth operation of the Equipment of the place.  You should ensure that your prices are quite competitive, ensure also, that you deliver best of quality to your customers.

How do I keep my customers?


You can keep your customers by firstly getting information from them on what they really like. try and meet up with their desires. you should also create tournaments, competitions. This will make customers to be attached to your place. You should also ensure that your customers are treated special. you should also create special package for them, like play 3 games and get the last game free, etc. this will encourage them to come back and play more games from you.

How do I make profit?


Get competitive price and fix a good price for your games. video games should cost N 50/10 mins game and snooker board should also be the same price. board games can go higher (because the games tend to use up more time) to N 100 each.  here is the breakdown of the viable profit you can make in an hour

1 PS 3 console game = N 100/ 10 minutes (2 players) =N 600/ Hr

4 PS 3 games = N 600 X 4 = N 2400/ Hr

Snooker games = N 100/game (2 players, at least 3 games in an Hr) =N 300/Hr
Board games = N 200/game (2 players, at most 2 games in an Hr) = N 200

2 Board games =N 400

Total viable profit / Hr (peak period) = N 3100.
Average =1550/Hr.

When do I start?


As soon as you have read this article and have the capital. it is a very good business and it has the capacity of taking your investment to greater heights...Good luck!!!

How To Start a Frozen Chicken Business In Nigeria

Posted by: olaitan hammed on Friday, July 25, 2014 Category: |
Frozen chicken production business is a multi-million Naira industry. It is rightly so because many prefer to buy frozen chicken basically because its convenient to cook. You will not go through the stress of slaughtering the chicken, boiling water, peeling off the feathers and dividing the chicken into parts. Frozen chicken gives you the opportunity to choose the chicken parts you feel like eating.

For the purpose of convenience, the demand for frozen chicken is on the increase. Any who invests in the business can never incur loss. This article will tell you what you need to know before starting your frozen chicken production business. You will also be enlightened on how to market your frozen chicken production. Meanwhile, let us learn more on some of the health benefits of chicken.


Health Benefits of Eating Chicken

As we all know, chicken is a very good source of protein. Protein builds our muscles, skin, cartilage and blood vessels.

Many consumers attest to the fact that chicken soup or stew is more delicious than those prepared with beef or other sources of protein.

Chicken prevents bone loss, because it is rich in calcium. It is not difficult to acquire the calcium because most chicken bones are very soft and they can be easily chewed. Chewing chicken bones  does not just give strong bones, it gives strong teeth too.

Chicken is rich in phosphorus that helps to aid strong teeth, bones, kidney as well as the liver.

Consuming higher rate of chicken increases our metabolic performance.

Eating more of chicken will keep blood vessels healthy thereby increasing your energy level.

Chicken is rich in vitamin-B that helps prevent cancer.

Chicken consumption improves healthy eyesight.

Consumption of chicken reduces skin problems, and it repairs dry and damaged skin.

Chicken increases appetite because it consists of zinc and this helps in maintaining a healthy appetite.

Having known the importance of chicken to the body, let us now emphasize on how it can be produced locally. In my previous article titled 6 reasons you should invest in frozen chicken business, we discussed about the federal government placing a ban on the importation of frozen chicken.
Since there is ban on frozen chicken, it is better to produce it locally. The steps needed to start frozen chicken  production are as follows:



There are two basic sources to get life chicken to process into frozen chicken and they are
  1. Rearing birds in your poultry farm, the type of birds for frozen chicken are either layers or broilers.
  2. You can buy birds from poultry farmers. 
A lot of people prefer not to go through the stress of preparing life chicken and so this makes them have preference for frozen chicken, there are some start up requirements needed for the production of this business and they include

Initial Capital

To start frozen chicken as a medium scale investor, you will need a minimum of N2,000,000. Your initial capital will be invested in purchasing all equipment needed to run the business. Your source of finance can be loan from any bank, your personal savings, it could come from partners or any other source you can think of.

Start up Point


Your start up point might not necessarily be a shop, you can start this business from your home if you have the sufficient space. However if your home is not spacious enough, that means you will need to acquire another piece of land. This place should not be too far from your target market. To minimize your cost, you can acquire a plot of land in an under-developed environment. Depending on the part of Nigeria you are, you may not need to spend more than N300,000 

To erect fence around your piece of land, you must at least buy 1,000 pieces of block. One costs N120, and so 1,000 will cost N120,000. You will need 30 bags of cement to erect the fence. This will cost N49,500. Set aside N100,000 for sharp sand and cost of labour. You will also need N200,000 for mounting gate and doing other miscellaneous. Construct a less expensive shed or better still construct a standard room on your piece of land. This will serve to house your freezers. 

Equipment


There are some basic equipment needed to run this business. Having achieved a standard start up point, it is
important to purchase your working tools. These are as follows:
Deep freezers
Generator
Knives and Axes
Bowls and Basins
Sealing Machine
Automatic weighing scale
Lovely polythene bags for packaging
Tables for cutting
Chairs
Heat source (stove or heater)
Soap
Hand Towels

Hire staff


In this type of business, you can not work alone. You will have to hire staff, to make your production and distribution faster.There should be different sections in your factory, the slaughtering and feather removal section, dividing section, packaging section and the distribution section. The sectioning depends on how large your production is. In hiring staff, make sure you hire dedicated staff and make sure you treat them right by paying their salary as at when due. This will make them always happy and more dedicated to their jobs.

Birds  


There are two types of birds that can be used for frozen chicken, and these are broilers, and old layers. So if you want to buy your birds from a farm you know what type to source for, and if you are going to rear it on your own farm, you should take note of the type to invest on.

Getting Started


You have your equipment ready, you know what type of birds to source for, your space is available, the next step is starting the business. Interestingly,  once the birds have been slaughtered, all the parts are useful.

We have discussed about the production process of this business, let us go further to branding, and selling aspect. After your production, there are some steps to consider to make your products acceptable to the public and they are as follows

Create a business name


Frozen chicken is a consumable product and so you must create a sweet name. It must be simple and short, easy to pronounce. The more appealing your name sounds, the better for your business.

Register with NAFDAC


You will have to register your business with the national agency for food and drug administration and control. This body is involved in regulating and controlling the manufacture, importation, exportation,advertisement and distribution, sale and use of food, drug, cosmetics.To know more about this agency,visit them on www.nafdac.com.   you will get a detailed information about this body.

Locate Your Target Market


Where and how you intend to sell your production matters a lot, so locating a target  market is very important. Your target should basically be those shops that are involved in buying and selling of frozen foods, hotels, restaurants, institutions with catering facility, fast food owners, party planners/host. This will definitely help you increase your production process.

Branding


There is more to branding than just creating a unique name, it also involves creating unique image for your product. The image must describe your product and this simply means that your product must be meaningful. Your product name and image will automatically advertise your product if there is consistency. You can develop strategies on how you can advertise your product, or better still use the existing advertising media like online, or offline, advertisement.  Tell family, friends and neighbours about your product. Remember, advertising your product goes a long way in promoting your business.

Retail selling


 As a producer of frozen chicken, you can as well sell in retail, to achieve this means you need to have a shop, it could be in a residential environment or market environment where you know that people in that environment will not depend on their locally reared chicken before they can eat one. What we mean invariably is that you should locate a strategic area and a high profile one. Your shop must be easily accessible for your potential and existing customers to locate you.

Quality Control


This aspect is an essential one in frozen chicken processing, its purpose is mainly to protect consumers from dangers and to ensure quality service for what they pay for. QC will ensure that the laws guiding chicken production process are duly followed.

Potential Profit


This business is a profitable one no doubt about that. Once you or your staff have gone through the process of washing and dividing into parts, chicken heads, necks, legs, laps, wings, chest, gizzard are sold separately,and the minimum amount a kilogram is sold at N700, this price can  increase during festive period because the demand will be higher.

Invest in this business today and  realise the potential profit in it. Feel free to ask questions we will gladly respond. Also share your success story with us. Wish you all the best.