How to Start Cooking Gas Business in Nigeria

Cooking gas business is one of the most profitable businesses you can easily start in Nigeria and make a lot of money. In this post, I will show you how to start a cooking gas business in Nigeria.

It’s a well-known fact that Nigerians consume over 100,000MT of cooking gas per year.

Cooking gas has been found as the best alternative to cook daily delicacy in Nigeria.

To start up a cooking gas business in Nigeria, you don’t have to ‘break the bank’. N300,000 is enough to set up the business.

Before I show you the steps to start a cooking gas business in Nigeria, let me first show you the profit potential and risk involves in cooking gas business.

How lucrative is cooking gas business in Nigeria

To make it easier for you to understand, I will use 12.5kg cylinder for illustration.

In case you don’t know the size of 12.5kg cylinder, see the picture below;

12.5kg cooking gas cylinderIf you buy 12.5kg cylinder of gas at N2,500 or less and sell at N3000 or higher, you will make a profit of N500.

If you sell ten (10) 12.5kg cylinders per day, your profit is 10×N500 = N5000.

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In a month, you will make N5,000×30 = N150,000.

This will be relatively less than what you will make in a month if your shop is in a busy area.

As an entrepreneur, if you have two shops at different good places, you will make up to N300,000 per month.

It is important to note that the profits as calculated is not in any way exaggerated.
I even know people that make much more than that.

If you want to make more profits, say N1million in a month, then you should consider setting up about 5 to 6 shops in different places or set up a whole sale gas company to sell to retailers.

Now, let’s look at the risk involves in cooking gas business.

Potential Risks in Cooking Gas Business

There is always a risk to take in business. Just like every other business, cooking gas has its own risk and setbacks.

The biggest risk in cooking gas business is fire explosion. Fire explosion is very common because of the high inflammable nature of liquified natural gas.

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However, it is not a much problem since it can easily be mitigated or avoided.

To prevent explosion, always check if there is leakage in your gas cylinders because that is a major cause of fire or explosion.
Also, you need to buy good fire extinguisher in case of minor fire outbreak.

Another risk in cooking gas business is government policies and regulations.
For example; if the price of cooking gas rise, many people who are your customers will go back to using kerosene or firewood.

But this is not a big problem since government is always trying to reduce the price of cooking gas, to minimise deforestation.

Another risk is price fluctuation. For example, you may buy 12.5kg cylinder at N2500 to sell at N3000, and the news will be everywhere that the price of gas has a fall to N2000. You will lose money, because you will be forced to sell at no profit.

Having seen the risk involves in venturing into cooking gas business. If you think it’s what you can handle, then congratulations! Let’s quickly move to how to start cooking gas business in Nigeria.

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How to start cooking gas business in Nigeria

To start a cooking gas business in Nigeria, you the following.

1. Startup capital: With N300,000, you will start a cooking gas business.

2. Buy Gas cylinder: buy about four (4) 50kg of cylinders. A 50kg cylinder is sold at about N30,000.

3. Rent a shop: You need a shop where you will packing your equipments or you can buy a small ‘container’ and use it as your shop. But you will still need to rent a land space to keep your container.

4. Get Training: You don’t just start cooking gas business like, you need a training to things like; how to change valve, how fill gas, how to buy gas, how to buy cylinders and other necessary things.
However, this is not a problem as you can easily attach yourself to someone who is already in the business.

5. Have a marketing strategy: When your business is up and running, try to have a marketing strategy to increase your profit.

If you have a question, you can use the comment section below.

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