How To Start Cooking Gas Business In Nigeria (2024)

This post is about how to start cooking gas business in Nigeria currently in this year 2024. We shall be taking a look at starting big in this business and also touching the retail side of it for people who would like to start their cooking gas business in the country on a small scale. Take out time to read through to get the necessary information that you need in order to commence your gas business in earnest.

Presently in Nigeria, the consumption of cooking gas, also known as Liquefied Petroleum Gas (LPG), has increased significantly. This is because the demand for the product is very high and it is a cheaper cooking fuel than kerosene; it also cooks faster than kerosene, saving people the stress of staying longer in the kitchen. With this increase in demand comes a directly proportional supply of the product, making this business venture a very lucrative one for the entrepreneur who decides to go into it.

The oil producing states in Nigeria account for the production of petroleum and petroleum products in the country, this has firmly placed Nigeria on the world map as a major producer of crude oil in the world, and with the refineries in place to convert crude oil into different petroleum products, you can be sure to get Liquefied Petroleum Gas (LPG), a major cooking fuel in the country when the whole process of refining crude oil is complete.

If you are an entrepreneur who wants to venture into this business in the country, and you understand the importance of this petroleum product to millions of families in Nigeria, and you are sure to succeed in it, but you do not have the right knowledge on how to go about it, you will find this article very useful as the information provided below will enlighten you on the things to do in order to set up your cooking gas business in Nigeria successfully.

I will be focusing on those who want to start big in this business, and subsequently touch the retail side of it for the sake of people who want to start cooking gas business in Nigeria on a small scale. Kindly continue reading to get the information you need.

GUIDE ON HOW TO START COOKING GAS BUSINESS IN NIGERIA 2024

The following are the step by step processes on how to start cooking gas business in Nigeria this 2024:

GET THE NECESSARY KNOWLEDGE AND TRAINING

In order to venture into cooking gas business in Nigeria, you will need to get the necessary knowledge and training due to the risks involved in this business. There are a lot of things you should learn on safety before proceeding to open your cooking gas business and you should seek out places where you can get the necessary training before starting this business fully.

FIND A GOOD LAND TO START YOUR COOKING GAS BUSINESS

If you want to start cooking gas business in Nigeria on a large scale, getting a land for this business is very important. According to the requirements of the Department of Petrol Resources (DPR), the land you want to situate your gas plant on must be at least 15 metres away from any building containing flammable materials. Make sure not to site your land close to residential buildings, filling stations, etc, this is in accordance with the DPR, so that you will be passed fit to commence your business.

MAKE AVAILABLE YOUR CAPITAL FOR THE COOKING GAS BUSINESS

You need capital for this business as with any other business. A capital of about ₦10 million – ₦15 million should be enough to start your cooking gas business on a large scale. You can also make enquiries from trusted sources in the business on how much you will need to start it if you are not certain about the capital to make available.

Your capital should cover the necessary materials and equipment needed to commence your cooking gas business, so that the Department of Petroleum Resources (DPR) can assess them and possibly grant you the licence to commence your business.

Some of these required materials and equipment include the following: testing pool, valve screwing, electronic carousel, mechanic carousel, electronic scale, mechanic scale, to mention but a few. Also factor in the labour force for your business in your capital that you’ll be able to pay to help run your business smoothly.

GET LICENSED BY THE DEPARTMENT OF PETROLEUM RESOURCES (DPR)

In order to get licensed by the DPR to commence your cooking gas business on a large scale, you will need to put everything in place first, then approach the DPR to get a copy of the terms and conditions by which the DPR issues their operational license or you visit their website online so as to get the necessary details if you do not want to visit their office in person.

That said, in order to get the DPR to license you to operate your cooking gas business in Nigeria, you will be required to get the permits listed below:

• Police Report
• Town Planning Permit
• Fire Planning Approval
• State Land and Physical Planning Permit
• Department of Petroleum Resources License

REGISTER YOUR COOKING GAS BUSINESS 

For you to genuinely run your cooking gas business on a large scale, you will also need to register your business with Corporate Affairs Commission of Nigeria (CAC). With this approval by the CAC, your business will be recognized as genuine and you will not have to worry about having any issues with the relevant government authorities.

You will also need to find out if there are other relevant associations or bodies in your location that you can register with so that you won’t have any issues running your business.

GET INSURANCE FOR YOUR COOKING GAS BUSINESS

Because of the risks involved in operating a cooking gas business, it is advisable for you to get insurance for your business so that you do not run at a loss should any unforseen circumstances, chief of which is an explosion, should occur.

ADVERTISE YOUR COOKING GAS BUSINESS

Advertising your cooking gas business through the various advertisement channels available in this modern day and age will help you reach a large number of people that may be interested in your services.

STARTING A COOKING GAS BUSINESS ON A SMALL SCALE IN NIGERIA

Because the unemployment rate in the country is really high, many industrious youths have taken it upon themselves to be self employed through cooking gas business on a small scale level. Doing cooking gas retail business in Nigeria is quite different from what is obtainable on the large scale but both have one thing in common, and it is that in the end, they pay.

Retailers can start this business with a respectable amount of money and grow in it with the passage of time. It will even interest you to know that retailers have many customers patronizing them because of their proximity to residential areas, and by so doing, they make really cool profits to reinvest into their cooking gas business.

If you want to set up a cooking gas business in Nigeria as a retailer, you will need to get the necessary knowledge and training as well because of the risks involved in the business. This training enables you to know the necessary safety practices to adhere to when you fully commence your business.

Learning things like how to refill a gas cylinder, how to gauge gas cylinder, how to detect a leakage from a gas cylinder, how to identify different cylinder sizes and their fill prices, the right weighing scales for your business, etc should be part of the things you should learn as they’re very important for the smooth running of your business.

Once you are through gathering knowledge for your cooking gas business, the next thing to do is to find a good location for the business. The shop space should be spacious and safety must be top priority for you and your customers. A good location helps you attract more customers to your business place. Do not site your business where there is the tendency for fire outbreaks or where activities involving naked fire is frequent.

You can set up your business where there are no competitors in order to get more profits. Kindly make sure that your location is close to a gas plant that can serve you while you act as a middleman between the plant and your direct consumers. You wouldn’t want to run your retail cooking gas business on empty gas cylinders.

While you’re setting up your cooking gas retail business, endeavour to understand which gas cylinders to buy that will serve your purposes of refilling for your consumers. Gas cylinders are in different sizes and they cost differently, you are advised buy larger gas cylinders that can hold higher gas capacities for refilling purposes.

For starters, you will need at least 12.5kg cylinders or more for a refill; you will also need a hose, burner, regulators etc to run the business effectively.

HOW MUCH DOES IT COST TO SET UP A RETAIL COOKING GAS BUSINESS IN NIGERIA TODAY? 

In setting up a retail cooking gas business in Nigeria this 2024, you are advised to have a starting capital between ₦200,000 – ₦500,000 to help you with rent and purchase some of the equipment you will need pending when you make profits to expand your business. This business is very lucrative but will require patience, time and dedication before one see their returns on investment.