How to Start Cement Business in Nigeria

Cement supply business is one of the best and easiest building material business anyone could start right now. People have been looking for information on How to start cement business in Nigeria without finding any substantial details. In this article, I want to explain in detail to the extent of my understand, how anyone could start cement business anywhere in Nigeria without beating about the bush.

Before we proceed to the detailed step by step how to start, let's first of all look at the merit and profit potential of this business using Dangote cement supply as study case. Like I said before, it's one sure business that everything in it almost seem guaranteed and I can assure you that people who are already doing it are making good money.

Dangote-Cement
Sample of Dangote Cement

A bag of Dangote cement from the factory goes for N1,000 with the minimum buy of one trailer load (600 50kg bags) quantity that cost N600,000 only. If you supply the six hundred bags at the retail price of N1600, you will be making profit of 600 x 600 = N360,000 from the single one trailer trip. When you subtract the cost of transportation, your take home becomes N300,000 per trip

If you decide to sell wholesale at the cost of N1,350 to retailers, your profit would be N350 x 600bags = N210,000 from a single trip. When you subtract the cost of transportation, you will be left with N150,000 per trip.

Now tell me - N150,000 to N300,000 gain per trip from investment of N600,000 without complex logistic and workforce, is it a good or bad deal? Write your answer as comment below and let's know how you feel about this. But in my own opinion, I believe it's a very good business.

If you supply 10 Trailers within any period of time, you are going to be smiling home with N1.5m to N3million depending on the method of supply.

To Start as a Distributor


1. Distributor - You need to fulfill certain simple requirement to become Dangote Cement Distributor. In effort to ensure distribution of cement all over Nigeria, Dangote Cement is currently seeking credible distributors form any part of Nigeria. In this regard, credible means, individuals who owns a registered company that is, whose business is registered with the Corporate Affairs Commission of Nigeria.

To qualify to apply as Dangote distributor, you need to put the following things in place:

Register your company with Corporate Affairs Commission

Read: How to Register Your Business in Nigeria

Once you have your company registered which is very simple to do and requires just little amount of money. Just about N50,000 plus waka waka will do that for you if you want to do it yourself. When you have that sorted out, the next is to open a corporate account in any Nigerian bank with the company name.

Open Business Account in any of the Nigeria Banks of your choice

To open a business account in Nigeria, you would require a clearance from EFCC's Special Control Unit against Money Laundering (SCUMIL) to ensure that you wouldn't carry money go hide in oversea :D

After that, you go to Federal Inland Revenue to get Tax Identification Number (TIN) which shows that you are willing to pay tax.

These are the two major requirement for opening business account in Nigeria, the bank will tell you other things you need to do. Within moments after you've provided all what is of you required, your account will be open. Then you get reference letter from the bank and proceed to Gangote.

Dangote Registration Requirements

Please ensure that you have the soft copy of the following documents before you begin Application:


1. Certificate of Company Registration from the Corporate Affairs Commission
2. Application Letter to become a distributor
3. Scanned copy of the Bank reference letter
4. Passport Photograph of the company's Proprietor/MD
5. Passport Photograph of the company's Representative

48 hours registration period guaranteed
Minimum purchase of one trailer i.e 600 bags monthly on cash & carry basis
No Application/Registration deposit required



Trailer-Loads-Dangote-Cement
Trailer Loads of Dangote Cement ready for supply

What strikes me here is the "cash and carry" clause after going through all the rigor to register company and get reference latter from the bank! If I am buying to pay you cash, why make me go through these process, or is it the Nigerians usual way of playing gods when the power is in their hands? Please kindly make us understand.

Anyway, this will be for next article but for now, lets proceed with our business.


Other Logistics You Need to Put in Place!


Whale House - Except you have standby customers you want to supply, you need a secure place to house your product. Get a whale house or any big shop that can accommodate minimum of 600 bags. 

Some but theirs in open place and cover it with tarpaulin for safety but that depends on the quantity you are buying, if you are buying very large quantity, you'd need to get a big whale house.

Arrange for Supply Vehicle - If you can buy yours, that would be nice. In fact, it is another business on it's own - whenever your customer buys, you'll supply them and make extra money from the transport and load fee. You can use it as marketing tool to sell faster than others by offering free delivery to customers buying certain quantity.

If you can't buy yours, just arrange for regular customer who would be assisting you get the cement to the final destination. 

Apart from these two, there is no other much things to worry about. Get down to business and starts making money asap.

2. Retailers - A retailer don't need to go through all these process of application. Once you have your money, you are good to go.

Go to the nearest depot and buy your cement and begin to sell. Each bag of cement you sell, you make profit of N250 - N300 which a good deal considering that you do nothing more than go carry your cement.

You need to have a shop by the roadside or near new site where building projects are ongoing in number. 

Many people sell as retailers even without a shop especially those that leave near the road. All you need to do is to raise up the ground a bit with blocks and cement, plaster the ground and put some container woods.

You can build iron protector around it if the place is unsecured to avoid thieves visiting at night.

One thing very good about cement business is that a single customer could buy hundreds of bays sometimes, giving you instant profit without breaking sweat.

Note: We used Dangote as study case in this article. However, there other great cement companies out there. If you think the process of distributorship application is more simple and straight forward in your company, write detailed article about doing business to you and send to us. I'll be glad to publish it here with a bottle of coke.

76 comments:

  1. Bro., you are God sent. I have learnt so much from you. May the Almighty God bless you TRILLION times. Amen. My confusion is how much is dangote cement from the depots? I was told by Enugu depot RO on the 31/8/2013 that the price is #1500 per bag. We even priced #1400 and she switched off her phone.

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    1. They are trying to sell at retail price. If you are buying in good number from a serous depot, the price should be around N1,300. Maybe you make them understand you're a retailer

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  2. Thanks[My mistake: Awka depot not Enugu]. We are meeting tomorrow and I will show her that I have attended DARLINTON OMEH University of Self Empowerment. God bless you.

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    1. LOL... Hope everything goes well. Sure they will accept your offer, except if they're not in business to sell or they want to use the cement for something else.

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    2. Hi Darlington, I am very impressed with your article on the cement industry in Nigeria. I would like to know what your take is on imported cement brands into Nigeria and how the price would compare to locally produced cement?

      Kind Regards
      Jenny

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  3. This is a nice lecture, thanks man, God bless you for the eye opening reality.

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  4. This is a nice lecture, thanks man, God bless you for the eye opening reality.

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  5. God bless you darl. Love you for this write up

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  6. I haven't found an institution with such a valuable, expensive & result provoking information, and as free as that. I don't know how much I can thank you. I am realy moved on biz. I'm now thinking on how to get capital.

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  7. I haven't found an institution with such a valuable, expensive & result provoking information, and as free as that. I don't know how much I can thank you. I am realy moved on biz. I'm now thinking on how to get capital. Pastor Ben

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  8. Hello Darlington,
    Please can you enlighten us further. Where do you get your cement to buy at 1000 Naira and how do you make a realistic profit of 300k because ex-factory cement price is btw 1300-1500 depending on if you want to use their truck. And this is main us loading and off-loading costs.

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    1. Dangote cement is N1,000 for distributors, not when you just work into the factory to buy. If you walk into the factory to buy when you have not applied and got approved as a distributor, you will buy at N1,300 - N1,500 you are talking about.

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    2. I am an authorized dealer even in January 2013 for 6 trucks you wont get a bag @ 1000
      I appreciate your effort but try to get real fact.to avoid misleading people

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    3. Wouldn't it be nice as a distributor you take the time to state clearly with authority how much a bag of cement goes for distributors? That way, you'll be able to educate many who are obviously looking for the accurate info. Instead, you're busy whining about getting the fact right when you are here with the fact but refused to share.

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  9. nice one sir. iv checked up d registered distributors in d country and i observed dat dere is just one distributor in d states except for major cities like lagos dat has abt 10. are there internal regulations? id like to know

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    1. No internal regulation that I know of. Once you have your money and meets Dangote's requirements, you are good to go

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  10. But do the distributors sell to Individuals who buy at small quantities? Am asking because a person willing to buy like 50 bags of cement would prefer to go directly to the distributors rather than a retailer.

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    Replies
    1. Yes, they do sell to end users who are buying in good number. Ask any distributor nearest to you

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  11. Gudmorni sir,i must say am very interested in this discussion, for me i have registered my own business name with CAC but is not a limited yet but as soon as i setup d business i will upgrade it to limited, well i will love to know how much dangote Port Harcourt depot sell there own, can i buy at the rate of N1000? when am done with registration as a distributor.

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  12. Nice and educating write-up! However, I doubt if the author has ever gone anywhere near a Dangote Cement Factory as most of the figures he stated in the article are completely incorrect. You get a Dangote ATC for =N=840,000.00(an ATC is the document that authorizes one to drive into the factory and load 600 bags of cement). that put the unit price per bag from the factory at =N=1400. This is exclusive of transportation fare to your location.
    I am into cement full time and I can assure you that it is not as lucrative as painted here by the author. Cement is basically a game of numbers - turnover. Most retailers do not make up to a 100k after selling a trailer load. You can have a chat with a number of them in your neighbourhood. Even big distributors in the factory do not make more than 10k per ATC. It is all a founction of the number os ATC they sell per time...and the performance bonus Dangote doule out to them at the end of every financial year. No much difference with Distributors of Guiness, Nig Breweries etc...

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    1. ATC is the abbreviation that denotes - (Authority to collect cement from Dangote factory)which is a voucher that gives you authority to go direct to the factory to buy cement like a distributor.

      It's different from Distributorship.

      Before putting the price, I contacted more than one source to find out the actual price cement for authorized distributors. Pls, I'd like you to make further research while I make mine and let us arrive at a stable point.

      Thank you for adding more value to the article

      Delete
  13. am getting confused here.

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  14. Hello Darl,
    Could you please confirm the unit price of cement authorized for distributorship.
    Thank you.

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  15. Pls what's the finding about the price of a bag of Dangote cement bag from the factory.

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  16. The price is still N1,300 - N1,350

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  17. Hello mr darl, good day. I'm calling to tell you that God in His infinite mercy will continue to enlarge your coast with the knowledge and eye opening business ideas you've been giving to your fellow Nigerians free of charge. Thank you very much.... Mr. Darl, please I'm interested in doing the cement biz n getting my product direcly from the factory, I'm am in uyo Akwa Ibom state and there in calabar UNICEM cement as their factory. I think when we look at the distance where obajana is in kogi it will be prafarable to go for unicem instead of dangote cos of the distance. Pls, mr darl I will be glad if there is anyway you can assist me with every information needed to be getting the unicem cement product from calabar to my location in uyo

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    Replies
    1. Hello, I do not have details about UNICEM Distributors requirement for now but I'll post it as soon as I have it. Anyone else who know should post it.

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    2. There is a Dangote distributor in Ikot ekpene, market road - and he loads new stocks every week. I've been there before. Just ask of Pastor, he preches at an Anglican church in Obot akara. That's about all I know.

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  18. Hi Darl

    Pls which of the Dangote office can one register for the distributorship?.

    Thanks

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  19. darlinton, please i want to know if i can procced my registration of dangote cement. I have registered my company with CAC. But now i want to bank to open my company account so that i can get a bank reference letter, but the said after six months before i can be given a bank reference letter, what do i do now because i want start the next month. Femi

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    Replies
    1. You can start as a bulk buyer until you are able to process your distributorship

      Delete
  20. Can ou please post contact information of these dealers that would sell to wholesalers? I suppose that doing so will not only help people like me but also be a form of advertisement for them. Thank you

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  21. I can't thank you enough. Where can i buy as bulk buyer pls.

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  22. Pls darlinton what is the dangote cement distributors price at factory?

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  23. I have get there approval now but they stil told me a bag is #1450 & if i use myown traller i #1390per bag .where do i go to buy at #1000 and how do i get there . I need your help

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  24. How much would dangote require for me to have before they can register me as a distributor??

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  25. Hi, nice and interesting topic about how to be a distributor for Dangote Cement.

    My question is - Before one can apply for as a distributorship, will the company be registered as an Enterprise, LTD or PLC.

    Please advice.

    God Bless

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  26. Hello Darl. Please I want to ask if you must buy 600bags every month to retain your distributorship. What if you are not able to sell all the bags?

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    Replies
    1. 600 Bags is the minimum you buy anytime you wants to buy cement from the factory. It's neither on monthly nor yearly basis, just as regular as you want

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  27. Hello Darl. Please how long does it take to get the approved distributorship after obtaining the necessary documents mentioned above. Please which office in Lagos approves the distributorship? Also what e mail address can I reach you on.

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    1. After you meet the requirements and all documents verified, your approval is instant. You go to the respective factory of the cement company you wants to distribute their product

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  28. Please Darlington have you confirmed the ex factory price for a bag? As this is the only part of the article that's not clear yet.
    Thanks for your enlightenment. God will continue to bless you.

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  29. Dear Darl, I finaly got there approval, they email me the approval letter, distributor code number & list of all there depot. I was told to transact at any of there depot or call Regional Director Funmi Sanni numbers 014630569 .I called the number to know current price per bag, she told me is #1450 & #1390 if i have my own truck to transport to Osun state. this where am confused becouse cement are salling between #1550-#1560 in my area now.Plz Darl, what else do i need, to buy it #1000 as you.Th said above

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    1. I have never had time to try and talk to anyone from the company, when I do I will. The best thing is to walk down to any of the main factories and ask. Maybe you did processed your registration from distributors instead of the main factory

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  30. Hello Darl. Your last response to Bello indicates that the 1000 naira per bag is unconfirmed by you. I have also taken my time to ask questions from the factory and the response I get is the same 1,450 per bag for distributors. Please you need to re confirm and re advise adherent readers of your blog. Thank you so much.

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  31. Does it require huge amount of money to start this business, because I can see is a very lucrative one. visit www.fuoye.edu.ng for academics request.

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  32. Description: PURCHASE A TRAILER LOAD OF DANGOTE CEMENT AT A LOW FACTORY PRICE. WE SHIP TO ANY PART OF THE COUNTRY UPON THE CUSTOMER(S) ORDER, AND DELIVERED TO YOUR DOOR STEP *PRODUCT: DANGOTE CEMENT (50KG)

    *ORIGIN: DANGOTE FACTORY.

    *PRICE PER BAG: 1,000 NAIRA ONLY.

    *TRAILER LOAD QTY: 600 BAGS.

    *Total Cost: 600 BAGS X 1,000 NAIRA: = 600,000.00 NAIRA *DURATION OF DELIVERY AFTER ORDER:2DAYS *TRANSPORTATION COST: DEPENDS ON DISTANCE/YOUR STATE. CONTACT US NOW TO PLACE YOUR ORDER

    NOTE: we deliver our goods to where ever state our customers may reside in stocks,sites or construction company.

    ReplyDelete
    Replies
    1. beware of the last poster above!!! spamming every online forum with his bogus cement deal, with no office or credible contact details. no were can u find cement below N1300 no matter the quantity in quote.
      @darlinton Umeh, nice job,ur intentions are noble and commendable but in addition please get the facts right before publishing and updating, so as not to mislead would-be investors.

      Delete
  33. Pls what is happening in cement now, what's the actual price of cement now
    L

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  34. Pls wat is d current factory price of cement? Sumbnodi pls help respond

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  35. Permit me to just air my views with the way some people are reacting about the unit price of cement not being 1,000 per bag from dangote, I believe this blogger is selling business ideas for free, prices of goods, commodities and services in Nigeria are never constant and changes at the slightest opportunity, be it increase or decrease in the exchange rate most especially the dollar, mere fuel scarcity or even if there is rainfall.

    Let me give or use this example, if Mr DARLINTON OMEH the blogger decided to introduce a biz plan of commercial transportation as a lucrative biz and mention the fare from Ojuelegba to CMS is =N=200.00 between the hours of 07:00am and 10:00am on a rainy Monday morning, and by the time anyone of us decided to do a survey and boarded a bus from this same ojuelegba to CMS and was charged =50.00 on a sunny day between 2:00pm and 8:00pm,, are we going to start nailing him to get his facts/prices correct? Let us all appreciate his effort. Many are out there online who will not give you this information for free, will ask you to pay into a bank account to get an ebook and at the end of it all this ebook is a waste of money and time. Please anything that has to do with price in Nigeria is never constant, The price of Cement from dangote as at when he got his information could have been 1,000 and before he would even finish compiling his write-up for the blog, the price would have changed. Another question is what if he stated it was 1,000 and by the time we all decided to do the registration and go to dangote the price fell to 500 per bag, what would have been our reaction? The bottom line is just have the idea, we all want to do biz and make profit fine but better to make steady/constant small profit and build the biz overtime to make it large. Thanks

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    1. Thank you brother(s). Some of us do understand the concept of analysis. They are the type that will expect practice questions in an examinations.

      Please what is the current price of cement from the depot. i am working on something with an existing distributor and need to get my CBA right.

      Delete
  36. Mr Darlington omeh , am just coming from dangote's office in FOT onne port harcourt and was told they sell in 900 bags trucks and they sell a minimum of 5 trucks, so where is it available for N1,000 per bag?

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  37. @Charles Rectitude, how much did they tell you the price per bag is at FOT Onne, Port Harcourt?

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  38. hi, pls what is the current distributor and retail prices

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  39. please is there any dangote office in ibadan?am in osun state

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  40. please is there any dangote office in ibadan?am in osun state

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  41. I want to commend the effort of Mr Darlington, you are a noble man, and God will continue to bless you. please just be patient with your readers. you know some people can be nerve wrecking sometimes, but please you continue to give you quality advice to them. It is not everybody that can comprehend at the same pace. God bless you

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  42. Mr Charles, pls can you tell the house how much they are actually selling per bag at dangote's office in FOT onne port harcourt.

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  43. Chief Darl, permit me to be one of ur team of admirers. I salute ur pofitable article. It's really inflamed my desire to do cement biz; building from bottom-up. I want to bliv d purported inaccuracy of ur figures is conditioned by "Nigerian factors". Kip d gud jab ap!

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  44. hello guys please can any tell me how much is a trip of sand, filling sand and building sand, how much for a bag of cement, how much is for a bricklayer and service a day job.. all in EDO STATE .. please guys help ..thanks for the help in advance

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  45. hello sir, i really like your articles. i don,t have a company either do i have a shop, but i like to go into this cement business with the little amount of money i have. so how will i go about it?

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  46. oga darlinton dont mind them they are surprise at you telling the public the truth that is the clear truth not more than 1000 in Dangote factory

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  47. the figure is very accurate oga keep it up sir

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  48. I beg make una leave Mr. Darlignton alone oooooooooooo....Good job bro !!!

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  49. I beg make una leave Mr. Darlington alone ooooooooooooo...Good job bro !!!

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  50. Thank you everyone, I've been away from this post for a while due to the work we are doing at Bizham.com but I'm sure we've learned a lot. Thanks to my dear admirers and my dear critics. You all make me strong.

    I'm very sure that people from Dangote cement factory have browsed this page several times and none of them deemed it reasonable to comment and set matters straight even when their brand product is the source of controversy!

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  51. I beg make una leave Mr. Darlington alone ooooooooooooo...Good job bro !!!

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  52. I want to be a retailer so I find this article very useful.

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  53. Hello everyone,
    I am interested in shipping cement from Germany to Nigeria. I will like to have buyers ready before I bring in the shipment. I have not done any research yet with regards to price per bag or something but I am interested in knowing how much you think a bag will go for when I arrive with it in Nigeria. If I get good response and a large number, who knows, we might just be able to form a conglomerate and offset the whole Dangote monopoly. I am living in Heidelberg in Germany, although a Nigerian, I hold a German citizenship too and I can always get the cement on a regular basis. That being said, I would also like to know whether there is a ban on importation of cement into Nigeria. Thanks a lot for your anticipated responses.

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  54. This article is blatantly false! I'm a dangote distributor. The minimum truck to purchase is three trailer load of 900 bags and must be in the region. Please, depending on your location, you just make N5 gain per a bag. It is not as it sounds here. In your contract and approval it says, minimum purchase of one truck of 600 bags, but friends, it is NOT true. They will make you to buy minimum truck of three or nothing and you cannot take, for an example, from Gboko to Enugu and Ph, if may be you have shops different places.

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    Replies
    1. In other words, what you make is a total of N9,000 from your three trailer loads of cement? That is, when you sell your 1,800 bags of cement you make only N9,000???

      Delete
  55. Hahahaha! Can't stop laughing. The truth is many of this distributors don't want others to join the business.

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  56. Niz one from darl...

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  57. UNICEM distributorship is easier.
    I deal on Unicem and Dangote cement respectively.
    Average profit a distributor make per bag is N50 or N60 .
    A truck of 900bags ex factory price is N1,450,000

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  58. Pls the information on price of cement us false , as a distributor u dont make upto 10k on sale of full trailer load and even as a distributor u dont make morethan 30k on sale of full trailer load, the price of cement excluding loading and trasnsporting it from dangote factory is between 1400 to 1542 per bag while if are buying from dangote isolo depot is 1600 per bag.....i am a major distributor with dangote cement.

    ReplyDelete

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