My face contorts into a frown whenever I stumble on threads where investors with a substantial amount of money are advised to invest in low-yielding or outrightly bad businesses.
As an enterpreneur who possesses a fairly rich repertoire of investment information and, one who has made a foray into several businesses, I can confidently declare that the LPG/Cooking Gas Station/plant business is one of the most lucrative businesses in Nigeria- more lucrative than having a Filling Station (Petrol Station).
Unfortunately, most people think you need several millions of naira to set up a Gas Station/Plant.
While a Mini-Plant (5 Ton Capacity) gulps at least 5 Million Naira to set up, you can be the happy owner of a 2.5 Ton Gas station with about 3.25 Million Naira only.
And what can be more irresistible; you can recoup your investment in a year or less, if your station is sited in a residenial area with a sizeable middle-class population.
To highlight how lucrative the business is, a Gas Plant (name witheld for security reasons- armed robbers, scammers and kidnappers) exhausted its 20 Ton transport tank within two days during the last gas scarcity period, raking in profit in excess of 600, 000 Naira.
For those who are wary of the danger of fire outbreaks at the station, let me allay your fears by stating that it is quite hard for a gas station to be engulfed in flames, if the basic safety principles are adhered to.
I deal with gas everyday at the plant and can safely say that gas, if handled properly, will not 'misbehave'.
I challenge anyone interested in investing in the fast growing LPG industry to get into the 'field' to conduct their individual research in order to verify or shoot down my claims.
And just in case you need LPG/cooking gas tanks of any capacity or need to construct a Standard Gas Station at an affordable cost, please don't hesitate to contact Avogadro Gas Services.
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1. No, the quoted N5/3.5m doesn't include the cost of land.
ReplyDeleteIt includes the LPG tank, dispensing unit (pump), piping work and digital scale units.
2. The DPR requires a standard plant to be sited on four plots of land. The minimum distance from a tank and a fixed source of ignition (residential buildings etc) is 15m.
However, several investors in Lagos and Ogun States, just find a convenient space that may not be even up to a plot of land to install 2.5 and 3 Ton tanks.
A good understanding with neigbours is very important for its successful operation.
Many others also partner with filling stations to place their 2.5/3 Ton tanks there.
3. The quoted sum is constant irrespective of the location within Nigeria, but the transportation cost of the tank (s) and other components will be borne by the investor.
P.S If you intend to construct a plant on a piece of land in a residential area, ensure that you seek the approval of the community (especially the house owners adjoining your plant) before proceeding.
This is important because you may find it diffucult or impossible to get the necessary permits if the community members write petitions to the regulatory authorities like DPR, State Land and Physical Planning, etc.
Alternatively, if you suspect the community will kick against it; maybe there are one or two enemies of progress in your community, never disclose to anybody that you are constructing a gas plant.
Apply for and process all the necessary permits before even bringing your tanks to the site.
Your DPR approval process must get to an irreversible stage before you commence visible construction at the site.
We are currently experiencing this very problem with a gas plant sited in a residential area.
The owner of the plant secured the support(albeit reluctantly) of the community at the inception of the project, but they changed their minds in the aftermath of the explosion at the Arakale Gas plant in November, 2014.
Consequently they wrote petitions against the project to DPR, State L&P, Comm. of Police, Town Planning and about four other agencies.
The project is at a standstill as we speak.