The Basics Of How To Start A Building Materials Business In Nigeria

Building Materials Business In Nigeria

If you’ve ever thought about the building and construction industry, and the potential it has for businessmen and businesswomen in Nigeria, then you are not alone. A lot of people still ask questions if there are businesses they can start in the building and construction industry. Well, the answer to their question is an emphatic “YES.”

The building material business is one of the most profitable business you can venture into in Nigeria today. This is because every building or form of construction you see today is made up of building materials, and as a result of the high demand for these buildings and forms of construction, there is an equally high demand for building materials.

So by producing or buying and selling building materials like glass, block, cement, sand, gravel, among others, you can earn a decent income for yourself.

But then, it is one thing to know about building materials and it is another thing to know how the business of manufacturing or buying and selling them works.

This is why we’ve provided a detailed guide on the steps you can follow in starting and running a successful building materials business in Nigeria, from doing your market survey to writing your business plan, getting the needed capital, getting a warehouse or storage facility, getting customers, etc.

What Are The Types Of Building Materials Business In Nigeria?

There are different building materials businesses in Nigeria that are very popular. Some of them are:

1. Cement Business: Cement business involves the business of purchasing cement directly from the manufacturers and reselling to retailers. It also involves the buying of cement from distributors and then reselling it to the final consumers.

2. Block Industry: This is another type of building materials business that deals in producing and selling concrete blocks.

3. The Sale Of Housing Woods: This involves the selling of construction woods for roofing or other housing projects.

4. The Sale Of Roofing Materials: The sale and distribution of roofing sheets and materials is another popular building materials business in Nigeria.

5. Iron Rod And Steel Business: Iron rods and steels are essential building materials in Nigeria. And there are many dealers in this field of business.

Mentioned above are some of the building materials businesses in Nigeria. However, there are other ones like the sale of sharp sands, granite business, the sale of paving stones, the sale of pop cement & materials, the plumbing materials business, etc.

Which Building Material Is Most Profitable In Nigeria?

The following are the most profitable building material business in Nigeria:

  • Cement business
  • Plumbing material business
  • The sale of roofing sheets and materials
  • Block industry
  • An iron rod and steel business
  • The sale of housing wood
  • Sales and installation of ceramic tiles

But all in all, the cement business is the most profitable building material business among them. Without a doubt, it is the most widely used building material in Nigeria and the industry is so large.

How Profitable Is Building Materials Business In Nigeria?

The building materials business is very profitable in Nigeria for many reasons. First, the market segment of building materials is very high. Secondly, you can expect a profit margin of 10%-15% on your revenue. This is because the building materials business is a naturally high volume margin kind of business. And finally, the demand for building materials in Nigeria is insatiable.

How Much Does It Cost To Start A Building Materials Business In Nigeria?

The type of building materials business you are starting and the stock volume determines the total capital required. So the start-up capital relies on the variety of types of building materials you are going to start. However, on average, you should budget more than ₦500,000 to start a building materials business in Nigeria.

But if you are starting on a larger scale, you require a higher working capital of ₦7 million Naira and above. However, when calculating the expenses, you should include shop rent, utility bills, material purchases, employee salary, etc.

What Are The Challenges In The Building Materials Business In Nigeria?

1. There is always a huge drop in sales during rainy seasons.

2. Fluctuation of prices can affect the business which results in loss.

3. Overstocking of building materials can also be a major challenge, as most stock ends up being damaged.

4. If proper care and records are not taken, you may fall into debt. This is because most times dealers always buy materials on credit.

5. Bad roads can also be a challenge in this industry.

6. High competition.

What Is The Biggest Building Material Market In Nigeria?

There are several big building material markets in Nigeria, and they are incomparable. However, below are some markets for building materials business:

1. Ariaria International Market (Aba)
2. Ehere Market (Obingwa, Abia State)
3. Mechanic Village/Timber Market (Owerri)
4. District Market (Abuja)
5. Onitsha/Ogidi Markets (Anambra)
6. Odunade Market (Lagos)
7. Abakaliki Building Material Market
8. Kaduna (Zagina Building Materials, Habillah Building Material)
9. Building Material Markets (Warri, Sapele, Asaba)
10. Ibadan Building Materials Market (Elekuro, Amuloko Road Opposite Feb Gas)

Each state has it’s own biggest building material markets that you can source for both foreign and local building materials. Meanwhile, mentioned above are just a few of them.

How Do I Start A Building Materials Business In Nigeria?

Below are the ultimate steps to starting a building materials business in Nigeria:

1. Market Research: Before starting a building materials business, you should do market research first by taking a survey to find out all the pros and cons involved, and also the need for your services in such area.

Also, it is advisable to start a building material business in a fast-growing area. This should be included during your market research, as people in this environment are more likely to buy building materials.

Additionally, you also need to study the existing building materials businesses in your area to see the exact products they stock. This will enable you to identify the fastest-moving building materials in that area.

2. Choose An Area Of Specialization: There are different building materials in Nigeria. It is however important to identify a specific niche and focus on them. Meanwhile, it’s important to deal with a product that sells fast in your area.

In most cases, cement, roofing sheets, tiles, and wood are the fastest-selling product in many locations. so it’s now up to you to decide on the building materials to start with.

3. Develop A Business Plan: Developing a solid business plan helps you establish the direction of your building materials business. Of course, you have to outline your vision and mission of your business and plan out how to reach more people through marketing.

A budget should also be prepared to review the size and layout of your business, including the number of stock that will be made available.

Also, you need to establish a budgetary plan based on the business expenses, revenues, startup costs, and marketing plans.

4. Select The Right Location: The most important step in starting a building materials business in Nigeria is choosing a good location. Therefore, you need to find a location that has high purchasing power. And also you need a fast-growing area to open and operate a building materials business.

A building materials business thrives in places with high construction activities. In fact, when choosing a location, you will require a large area where big vehicles can easily move around.

5. Obtain Necessary Licences And Permits: For you to start a successful building materials business in Nigeria, you have to make sure that you fulfill the business permits and license requirements to avoid trouble & harassment from the authority. Meanwhile, the license varies based on your location.

6.Identify Building Materials Suppliers: The next step is contacting companies or suppliers that can supply you with the building materials once you made an order. Most importantly, get reliable suppliers to retain much profit. And always try as much as possible to deal with only one company or a brand.

If there is a need for you to contact other building materials businesses to get more information about where they source their materials, and how much they buy them, then do it. It will make things easier for you.

7. Hire Workers: Depending on the size of your store, you have to hire experienced and reliable workers for your business. You may require 1 to 3 workers. Their major work involved shopkeeping, loading, and offloading, etc.

8. Market Your Business: You may not get the desired result if you don’t have a strong marketing plan. However, the real game begins when you start to reach more people. First, you start by branding your business with your logo and name for people to easily identify you.

You can also open a social media page to help get more customers. It is therefore important to monitor and identify a marketing channel that works best for you.

Business Plan For Selling Building Materials In Nigeria

You can not start a building materials business in Nigeria without having a business plan. Of course, a business plan is the number one thing to get or develop before venturing into this business. Through a business plan, you will become successful in this field, because it puts you through everything you need before starting a building materials business in Nigeria.

However, we are here to help you out with a solid business plan for selling building materials in Nigeria.

CLICK HERE TO CHAT US ON WHATSAPP Or call/WhatsApp us directly at 09074859790 to get the business plan.

Conclusion

Running a successful building materials business in Nigeria requires attention to detail and careful planning. Also, you will need to provide excellent customer service and offer competitive prices to your customers.

To sum it up, if you are thinking about starting a building materials business you have to talk to other people in the line of business and get the experience.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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