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Oil and Gas

How to Start Diesel Business in Nigeria

In this post, I will show you how to start diesel business in Nigeria. The advent of oil has changed so many things for good in the world. Just like other oil product, diesel is one of the sources of energy that people look for.

Many countries in the world are enjoying due to the advent of the oil business in its many forms. Diesel business is one of the businesses that can fetch you a huge profit. Although the profit is high, the risk and capital involved in starting the business are huge also.

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A lot of people are in the business of selling diesel product in Nigeria already. But then, there are still lots of opportunities for you to make you huge money if you decide to venture into this business line. Perhaps you might have asked yourself these question:

  1. How can I start selling diesel product in Nigeria?
  2. Where can I buy it?
  3. Is it profitable?

In fact, you do not need to ask yourself too many questions. All you need to start the business is money. The necessary information to go about this business is carefully explained in this guide. 

How to Start Diesel Business in Nigeria

Target Market for Diesel Business in Nigeria

You can sell your diesel product anywhere in Nigeria. The demand for the product is everywhere. In as much as you do not sell above the price stipulated by the government, a throng of crowds will patronize you daily, day and night. You may decide to construct your station either in the rural or the urban areas in Nigeria

It is advisable to build your station(s) in the cities because demand there is more than in the rural areas. It is obvious that the number of vehicles and power plants in demand for diesel business products is enormous in the cities. Some cities where you can set up your business include the following:

  1. Lagos
  2. Abuja
  3. Abeokuta
  4. Port Harcourt
  5. Kano
  6. Kaduna
  7. Etc.

All the cities that serve as the capital for states in Nigeria are also good places for your market flow.

Demand Nature and Structure For Deisel Business In Nigeria

The major demand for this product comes through transportation. Many vehicles are designed daily to use this product. Apart from vehicles, some generators are using the product too. Essentially, diesel is often demanded a major energy source in the country.

In Nigeria, there is no regular power supply and it is this product that many industries and transportation companies rely on to function every day. This product is like the soul of other commodities in this country. The availability of it will help the supply of other goods and its scarcity will hinder the market flow, leading to hiking in the prices of goods and services.

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Apart from having your diesel station, you can also have another business venture within your station. I suggest that a supermarket is a suitable business that you can add to you diesel business premises. Customers coming to buy diesel are will likely patronize your supermarket. Since there will be a house in your station, there us need to equally include a store to cater for the supermarket.

Necessary Requirements For Startup

There are some crucial steps you must take before you have your diesel business thriving in the country.


You need sufficient monetary and infrastructural capital to start this business. As a matter of fact, you must possess some huge amounts of money before you start your business. This becomes imminent where you plan on building a diesel station. But where you don’t want to, then a basic capital is ok. Diesel business often demands recurrent spendings until you complete the project. Have your money first. Please do not use a loan to start this business because of the risk involved.

Acquire Some Pieces of Land:

You need to buy some plots of land where your fuel station will be built on. If you decide to have only one station, you just need two plots of land. But if you want to have many stations, you need two plots of land in each location. Make sure that the land you buy is beside a main road or highway either in the city, town or very close to the city outskirts. Capital and land, as well as other infrastructure often consume more money and stress in this business.

Profitability Diesel Business in Nigeria

Due to the fact that this product is often demanded, it is unarguable that the business is profitable. The following are the benefits of selling diesel product in Nigeria:

(1) It Is A Money Making Venture:

If you have money and you want to make it continue living, this business is the best for you to extend the lifespan of your wealth. A lot of people are successful in the business already and their success cannot hinder yours.

(2) It Is A Most Demanded Product in Nigeria:

This product is a source of energy for so many machines as well as vehicles. So people cannot afford to shun this product. Being a highly demanded product, you are sure to make daily sales and make regular profits.

(3) An Opportunity to Relate to The Government:

During the fuel scarcity, the government often look for oil marketers. This presents an ample opportunity for you to make your demands from the government. You stand the chance to get a share of the national cake, especially from the federal government.

(4) You Become A Part Of The Growth Of The Nation’s Economy:

Your business will also contribute to the growth of the country’s economy in so many ways. At least your company will reduce the rate of unemployment in the country and wealth will circulate. If this kind of development is happening in the country, kudos will also be given to you as an agent of progress.  

Business Registration

In order to get a license from the government to start running this business, you must register your company under the Corporate Affairs Commission of Nigeria. This can be done in any state of the federation where your business is domiciled. You also need to pay your tax regularly so that your business will keep running smoothly.

Fuel Station Equipment You Must Get

It is essential that you know some of the fuel station equipment you need to buy while construction your station. Some of them are listed below:

  1. Gauging and Fuel Management: This measures the product that your customers buy.
  2. Piping, Fitting and valves: You need to connect pipe, valves to get the fuel from the underground tanks.
  3. Dispensing: This will help the quality of the product.
  4. POS: It is used for receiving payment in case your customers are not with cash.
  5. Underground Storage tanks (steel): It is the reservoir for your fuel. This is where the whole product is stored.
  6. Canopies: This gives a kind of shade to the fuel station
  7. Vehicle (Fuel) tank: This is the truck that will help you to carry the fuel from the depot to your station(s) anywhere in the country.


You need to employ different classes of staff in your company for effective performance and profit maximization. Some of the kinds of staffs you need are:

  1. Stock Manager
  2. Account manager
  3. Fuel attendant
  4. Driver (for the vehicle tank) etc.

Sustainability Tips for The Business

You do not need any special advertisement for your business. One of the ways in which you can sustain this business is to sell at the ‘regulated’ price or below in as much as it gives you profit. Your gauging must also be accurate. If you do this, you will not lack customer and frequent patronage.


The management structure should be in your business plan already. Make sure that you pay your staff as at when due. You must monitor what your employees are doing. As the owner of your company, you need to teach your staff how to get goals in whatever they are doing.

As an entrepreneur, you must have a good leadership skill. You must be a problem-solving individual. You must also persevere during difficult times. Stay firm and focused to tackle the risk of the business.

Make sure that there is division of labour among staff. There should be proper communication channels in your company.


Diesel product is one of the highly demanded oil products in the country. It is a profitable business one can think of. But the business is not meant for everybody. You need to get some ‘cash’ before you venture into the business. Get more business ideas here

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Ekemini Ekpo

Ekemini Ekpo is a Content Developer at InfoGuideNIgeria.com. InfoGuide Nigeria is a team of Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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