In this article, I will give you the breakdown of the capital needed to set up a petrol station in Nigeria. I earlier published an article on the how to own a petrol filling station in Nigeria. In that article, we outline the various steps you will need to register and kick-start your filling station business.
Before you start a petrol filling station, you need to know the estimated amount that will be needed to complete the task considering the cost of living in Nigeria. Today, we want to give the full break capital needed to set up a petrol station in Nigeria.
Please note that this breakdown is just an estimate. What I mean is that the amount stated here may be more or less than the real amount you will spend if you are setting up a new filling station.
Please confirm and crosscheck the prices before you make any financial transactions with anybody.
Capital Needed to Set Up a Petrol Station in Nigeria
Here are the basic things you need and their prices;
- Land: You need at least two plots of land. The price of land depends on your negotiation power and location. The land should be nearer to the road for easy accessibility by motorist, who will be your potential customers. You should budget at least 4 Million naira for land
- Site Registration with IPMAN: The Independent Petroleum Marketers Association of Nigeria (IPMAN) is the umbrella organisation that overseas the activity of the oil marketers. You will need to register your site with them and obtain the approval to start a filling station. As at the time of writing this article, registration with IPMAN is about N1.2 Million naira.
- Architectural Drawing: A typical cost of an archi drawing of a filling station is about 800 thousand naira. Well, it will also depend on your bargaining power.
- Construction: Depending on your design, you may need at least 6 Nozzle filling Station: i.e; 4 Petrol nozzlea, 1: Kerosene, 1: Diesel to make up a standard filling station. The construction cost will be around 30 Million naira (rough estimate).
- Bay: You will need to build a standard lube bay. Bay is one of the most important section of a standard filling station. Construction of a standard bay will cost about 5 Million naira (rough estimatte)
- Miscellaneous: These are transportation, electrical, logistics etc. This may amount to about 5Million naira.
In total, you should hold nothing less than 55 Million naira (rough estimate). This amount may be increased or reduced depending on your accessibility to materials and bargaining power.
Please if you are looking for the capital needed to set up a petrol station in Nigeria, you are advised to contact any trusted filling station owner. Liaise with him/her about the general cost.
In fact, you need to hire a consultant if you are totally new in this field. This will help you to stay away from unnecessary mistakes.
If you have any question, let us know in the comments sections below. We will answer them as soon as possible.
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