Requirements to Start Cement Distribution Business

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.

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 N300,000per 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

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

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

October 29, 2017

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