It’s a known fact that oil and gas business is one of the most lucrative ventures in Nigeria. Periodically, the demand for petroleum increases, the supply chain expands and smart individuals take advantage to enrich themselves. Amongst many rewarding petroleum products is Automated Gas Oil; often referred to as Diesel.
Diesel supply is a viable business in Nigeria as a result of the epileptic power supply. The roaring sound of generators is popular, second to the National Anthem. I think it should be part of the constitution; a generator deserves to be on the Nigerian Coat of Arms.
If you walk through Broad Street in Marina, Lagos, where many commercial activities take place in the country, you can’t miss the noise from underground chambers that power many companies.
Many more locations come to mind, making diesel supply undoubtedly a good business in Nigeria. However, you need to play your part right by taking the necessary steps for this business. Below are the primary steps to consider when venturing into the supply of diesel.
- Create a Business Plan: It is common to hear people say “He who fails to plan, plans to fail”. As lucrative as it may seem, without proper planning, you may fail from the very first start. Some questions need to be asked. Who are your customers? Banks, schools, homes? At what price will you sell to them? Your SWOT analysis will lead to more questions that require answers. Ensure you have a roadmap that will guarantee a smooth operation.
- Register Your Business: In most countries, you must be licensed to distribute diesel before you commence operations. Consult appropriate authorities and get relevant permits. Do ensure to fill all documents correctly.
- Personnel: Having the right people on your team is a major issue for most businesses. Productivity can be slowed as a result of human error or laziness. It is proper to recruit individuals who are not just looking for a place to work, but also to add value to the business.
- Establish capital: The cost of starting a diesel supply business is usually high. From trucks, storage tanks to safety equipment, enough cash is required to fulfill all requirements. Ensure you pay attention to this aspect, perhaps you can get assistance from an accountant to go over every detail.
- Purchase an Oil Tanker: It is pertinent to get an oil tanker for efficient delivery. Due to the nature of the business, diesel has to be transported in a safe manner from storage to customers. You can start by hiring a truck to save money. Once the profits begin to roll in, you can purchase your truck.