The Basics Of How To Start An Engine Oil Business In Nigeria

Engine Oil Business In Nigeria

If you are interested in starting an engine oil business in Nigeria but don’t know how to go about it, then this article is for you.

However, as a result of the high value and demand for engine oil in Nigeria today, the engine oil business has become popular and is considered lucrative. And there is a growing population in Nigeria and a corresponding increase in the use of cars and machinery, hence the high value and demand for engine oil.

According to a report by Modor Intelligence, as a result of the increase in the use of cars and machinery in Africa, the engine oil industry which was valued at $2.8 billion in 2020 is expected to rise to $3.5 billion by 2026. This shows the potential the industry has, and your chances of succeeding if you decide to start an engine oil business in Nigeria.

From grease to diesel engine oil, brake and clutch fluid, automatic transmission fluid, and motor engine oil, to mention a few, there are different types of products in the oil business industry that can be explored.

In this article, we’ll be looking at what an engine oil business entails and everything you need to start and run a successful engine oil business in Nigeria.

What Are The Most Demanded Engine Oil In Nigeria?

According to our research, here are the top 20 most-demanded engine oils in Nigeria:

1. Total Quartz
2. Mobil 1
3. Valvoline
4. AMSOIL
5. STALLION
6. Shell Helix
7. Motul
8. ENEOS
9. Royal Purple
10. Castrol EDGE
11. Havoline
12. Chevron
13. Petro-Canada
14. Pennzoil
15. ELF Lubricants
16. Liqui Moly
17. Red Line Synthetic Oil
18. Mobil Super
19. Forte Oil
20. Nissan Motor Oil

How Big Is The Nigerian Lubricant Market?

Nigeria lubricant market was valued at 503.50 million liters as of 2021 and it is expected to reach 600.33 million liters in 2026. And also expected to hit $700 million in 2025 by value.

Besides, the increase in vehicle production and sales has been observed to be the major factor driving Nigerians lubricant market. However, the ongoing demand for advanced lubricants is expected to fuel Nigerian’s industrial lubricant market. But sadly, the rising prices of crude oil may affect this ongoing growth.

How Much Is A Drum Of Engine Oil In Nigeria?

The average cost of a drum of engine oil in Nigeria range from ₦170,000 to ₦250,000. And also know that these prices are subject to change any day and anytime.

What Is The Biggest Lubricant Company In Nigeria?

The leading and biggest lubricants company in Nigeria 2023 by market capitalisation is known to be the Total Nigeria Plc followed by Forte Oil Plc, Ammasco International, MRS Oil, Chevron Oil Nigeria Ltd and so on.

Is Engine Oil Business Profitable In Nigeria?

The business of selling engine oils is very profitable in Nigeria, and the profits that comes with it is so overwhelming. This is as a result of high demand for lubricants and other automotive products. And these engine oils play a vital role in our day-to-day activities. Therefore, you can make as much as 10% as profit of the amount invested.

How Much Can I Use To Start An Engine Oil Business In Nigeria?

You need approximately ₦300,000 to ₦700,000 to start an engine oil business in Nigeria. Other factors like the location of your shop and the varieties of the lubricants you are going to sell will also alter the total start-up capital.

Additionally, you can even start the sale of engine oils with less than ₦300,000. What actually determines your startup capital is the quantity of stock/inventory that you are going to purchase as you begin your business.

More so, you should know that your profit margins is directly proportional to the number of lubricant sales you have made. This is why it is advisable to invest a standard capital to enjoy the profit benefits of this business.

How Do I Start An Engine Oil Business In Nigeria?

To start an engine oil business in Nigeria you have to put some things in place to help you comment successfully, and they are:

1. Do Your Research: As you want to embark on the journey of selling lubricants, its important to do an extensive research on how the market operates, the business flows of the demand and supply. And even understand the maintenance process of the lubricant.

Ensure to have understand how to handle them to avoid product wastage.

2. Develop A Business Plan: It is necessary to draft out a solid business plan with much focus on your target market and marketing strategies. Nonetheless, your business plan should involve realistic objectives that can be fulfilled in a while.

3. Find A Good Space And Set Up Your Shop: To get the most value out of this business, finding a good location will be the ideal. In finding a location you must consider a place where vehicles travel everyday. Moving further, you now set up your shop in the ideal location.

4. Get Licenses And Permits: To avoid problems in the smooth running of your business, it is very important to obtain licences and permits for your engine oil business. Be sure to fulfill any of their requirements which is very necessary.

5. Source For Supplier: Ensure to have a supplier that can readily supply to you whenever you require them. Also, your suppliers should have access to the most upgraded lubricants readily available on the market.

Furthermore, if you really want to be successful in the sale of engine oils, you must be updated with the current assortment of lubricants in the market. So, look out for top-most supplier that will guarantee you with the latest update.

6. Sell At Discounted Prices: No other marketing strategy is more important than this. Either way you can think of it, selling at a discounted prices to your customers will definitely increase their number of daily demands from you. At the same time, most of them will persuade other car owners to patronize from you.

The majority of people don’t know that this strategy works perfectly, but those who understands this formular makes greater sales than the rest.

Conclusion

The engine oil business in Nigeria is promising. And with this guide explaining everything on how to get started, we believe you have already gotten an idea after reading through this guide.

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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