Diesel Supply

We all know that oil and gas business is one of the most lucrative business in Nigeria. People are making billions of Naira annually and the money in the industry just seem endless! Supply of Diesel also known as AGO (Automated Gas Oil) is one of the most profitable business in the Nigerian oil and gas industry.

I have been eying this business since when I was serving but there is no enough capital and I don't want to beg or borrow for this that is why I decided to start with Cyber Cafe the one I can easily afford without stress, and decided to dig deep around to find some facts that will enable me set up this business fast and easy anytime I'm ready by his grace 2016. As usual, I am going to share the findings with you so that you too can tap from the wealth in this sector.

Why supply of diesel is a good business

You know the quality of power supply we currently get in this country? It is nothing to write home about! All the giant diesel generators that power most of our industries run on diesel. MTN alone is said to have over 6,000 diesel generators that power all their base stations across the country and they run on average of 20 hours daily.

If each of those generators consumed 50littres for the 20 hours daily, that will be a total of 50 x 6000 = 300,000 Litres of diesel daily! In a month, MTN generators alone would have consumed 300,000 x 30 = 9,000,000 Litres of Diesel. What a waste!

Now multiply the above figure by all the four GSM Network operators in Nigeria, all the banks and their branches, all the factories, all the agencies and organization, all the media houses, and all the homes that runs almost 24 hours on generators! Needless to tell you that billions of litres of Diesel are avoidably burnt everyday in Nigeria.

In business and supply sense, the best product to deal on is the product that is in high demand. That makes diesel product one of the very product of choice when it comes to Nigerian oil and gas supply business.

Another good thing about Diesel supply business is that it is less complicated and less expensive compared to that of PMS because – Diesel is easier to store and transport due the fact that it is less flammable, unlike PMS that could catch fire from a distance and requires more elaborate storage system that cost fortune.

One of the best part of the business is that you basically do not need to store the product, all you need to do is to market your customers and supply on demand, cash your money and smile to the bank! You can even do the business on a small scare without keeping an office. However, to operate on the standard we are talking about, you must get an office. Don’t get me wrong – Diesel business is a serious business and requires careful planning.

If you get it right believe me, there is millions of naira waiting for you in this business – the issue of profit is like 120% guaranteed. Go ahead and invest provided you have the required capital.

Profit potential for Diesel Supply Business

Just like every good business, there is money to be made in Diesel supply and profit is always there. We are going to base our calculation per litres per truck. You can get 33,000 litres of Diesel from major distributors and NNPC at N2.5 at the unit cost of N78 per litres.

A truck of 33,000 liters of Diesel to retailers like Filling Stations supplied at unit cost of N88 will give you a profit margin of N10. In that case, you will be generating profit of 33,000 x N10 = N330,000 from each supply. That is the lowest profit you can make – profit for 33,000 litres are sometimes up to a million naira.

When you multiply that to how many trucks you are able to supply in a month, you will find out you are in money. The secret to success in diesel supply business in marketing. Expand your horizon, talk to as many companies and individuals as you possibly can. The more you supply, the more profit you make.

In all, a medium scale Diesel supplier that puts everything properly in place makes between 3-5 million naira monthly after expenses. Isn’t that great? 5million naira monthly is a good business by all standard, so go ahead and give it a go!

The figure above gives you idea of what is obtainable! It is by no means the final figures, prices can change and some other factor may come into play. However, everything remains relatively within the estimated range.

If you have additional information you think will add more meaning to this article, feel free to explain it in the comment section and lets expand the topic. We hope to make this article as comprehensive as possible to cover every necessary details we need in starting Diesel supply business in Nigeria because I need this too.

The Requirements for starting Diesel Supply Business

The requirements I'm talking about is the things you need to put in place to ensure a smooth starting of your business. Let us take it one after the other and see how it goes.

1. Register your Business – You need to Register your business either as a Business Name or Private Limited Company. Registration is very important in your business.

Some companies may not want to deal with non traceable individual. If you don’t have a registered company, you may loose out from their deals.

When your company is registered and with a permanent office, people feel more relaxed to do business with you because they know a place they can fall back to should they need to contact you physically at anytime. That is very very important in business.

Again, you have a place you refer people back to when negotiating a deal, something like – My company is Dandy Oil and Gas Ltd. Our office is at No. 123 Ahmadu Bello Way. Then people know you are serious in business. It cost about N50,000 to register a Private Limited Liability Company with the Corporate Affairs Commission.

2. Invest in Brand Equity – This is really not official requirement but very necessary if you hope to Stay Ahead of Competition in your business. Your name do not make much impression as your brand, it is the brand that people get attached to in any business. When you think of MTN what immediately flashed into your mind is the Yellow square logo – Isn’t it?

In this part of the world, people tend to look down on branding while some do it very poorly. Branding is even more important than the business itself, good branding will go a long way to lift your business.

Get professional Graphic artists and brand experts to work on your company’s brand. Let them design professional logo for you and other things like your company letter head, business cards and stationary. Open a corporate account with your registered company’s name, etc. These are very very important in any business too.

The importance of these in your Diesel supply business is that when you present business proposal to your would be clients, every thing will look professional and that helps make very good first impression which is vital for winning contracts.

3. Purchase your Truck -  You can always rent one from haulage companies. However, buying yours is more beneficial and cost effective at the long run. A good truck/ trailer head from Germany or anywhere from Europe cost about 9Million Naira. If you can't get one, go for hire while you save money and buy later

Source for your Diesel Product

There are two major places to buy your product: From Major distributors like Mobil, Texaco, Oando, Total, Conoil, etc... They are major importers of the product and are always looking for distributors. In most cases, they always have the products available though at a higher prices.

The second one is NNPC. They are like the ultimate in terms of prices but not for availability anyway. Approach these two major sources and negotiate your way.

The ultimate when it comes to Diesel importation in Nigeria happened to be Zenon Oil. You can buy your product from Zenon.

Latest Trend! The product is said to be very cheaper in Niger Republic. Some fuel importers import their diesel from the Soraz refinery in Niger at cheaper rate and sell to distributors within the North. If you have your own truck and logistics, you may give it a try, buying from them up North at cheaper rate especially if you are from the North. Else, you may just make do with the others (Zenon, NNPC and Major Distributors) for convenience and security.

Once you have the product aspect covered, your major assignment is marketing. Reach out for potential buyers. Make advert on the daily newspapers and online.

Now throw your questions and add what you know into the comment box and lets expand on this post. I wish you success in your journey to become a Supplier of Diesel oil product.

Petrol Filling Station

Nigeria is one of the biggest oil producing nation in the world with a very huge crude oil deposits around the entire South South, South East, and South West region of the country, both tapped and untapped. Everything about oil is money, from exploration to exportation and marketing (crude or refined product), etc.

Further to being oil producing nation, Nigeria is also one of the biggest consumer of oil products in Africa with about 40 million litres said to be consumed everyday. Why not? All the millions of cars and trucks on the Nigerian roads run on PMS or AGO (petrol or diesel) everyday.

Almost every home in Nigeria have Generator that work sometimes all day to power our homes (I’m writing this article with my laptop powered by generator right now), and most of these millions of generators used in Nigeria run on petrol and diesel.

The Factories, Businesses, Schools, Hospitals, in fact everything in Nigeria depends of power generated privately from petroleum products consuming sets. And all these oil products are dispensed almost 100% through Petrol Filling Stations.Therefore, If you can lay your hands on petrol filling station of your own, to market all these products, you’re in for money. The demands for oil related products are very high, and suppliers seems to just can’t be enough. Even the major oil marketers like Mobile, Total, Oando, Texaco, MRS and so on are always looking for individual marketers who have the needed finance and logistics that they can sponsor in this business.

The current commodity prices for these petroleum refined products are high, and that guarantees more profits for marketers – As at now (Nov, 2013) the prices of petroleum products are:

Petrol – N97.00 per litre
Diesel – N160.00 per litre
Kerosene – N130.00 per litre

These means that in Nigeria where 40million liters is said to be consumed daily on Petrol alone, a total of 97.00 x 40,000,000 =  N3,880,000,000 are spent on fuel daily by Nigerians!

Now let’s assume you buy a full tanker load of fuel with maximum load capacity of 30,000 litres. When the product is completely sold which usually takes less than six days to sell (depending on where your Petrol Filling Station is and the demand at that time), the cash returns expected from one tanker of each of the petrol product sells will be:

1 Tanker of Petrol = N2,910,000

1 Tanker of Diesel = N4,500,000

1 Tanker of Kerosene = N3,900,000

The Expected Profit Return from the sale of these products = N3,200,000. This means, in a week or so, if all the products are sold, you’ll be making profit of 3million Naira!

Your Petrol Station need not necessarily be in the city like Lagos, Abuja, Enugu, Port-Harcourt, etc. It can be located in the rural area as these areas are always neglected by the major marketers who prefer the urban areas. Having your Petrol Filling Station in the rural area is far less expensive to set up and to maintain and still guarantee sustainable profit.

In case you’re ready to hit the ground, here is a practical guide and requirements on how to go about setting up your Petroleum product marketing business either in rural or urban area. Enjoy it and drop me a feedback below in the comment box after reading!

Choose The Type of Marketer You Want to Be

There are two types of Petrol Marketers: Dependent Marketers and Independent Marketers. Each of them have both advantages and disadvantages. You’d need to understand these very clearly before choosing which one to go for. You can only be one at a time except you have enough investment capital to build more than one petrol station, use one for Franchise and the other for Independent Marketing.

Who is a Dependent Oil Marketer? -

You are an Dependent Marketer when you holds the Franchise of a Major oil Marketer to market under their name with your own facility fully branded by them. You’ll need to be clear on what the advantages are as that will help you make proper decisions. In my own opinion, it seems the advantages of being a Franchisee of a major marketer is more than the disadvantages

Advantages

1. You will build your business off the brand of The Major Marketer or what I called under the ‘umbrella’ of a Major Marketer.  The Major Marketers are the established brands like, TEXACO, Mobil, AP, Oando, Total, etc.

2. You will be riding on the back of your chosen Major Marketer and inherit their customer base within where your business is located, and as they keep marketing their brand, you keep making business off the popularity.

3. You wouldn’t need to assign Agent and representative to be at the depot on your company’s behalf, your Major Marketer already have that cover for you.

4. You wouldn’t have to pay for your petroleum products using bank draft, you pay directly into your Major Marketer’s account, taking away the hassles that come with it.

5. You will be having your products delivered directly to your filling station and on time by your chosen Major Marketer as they already have the logistics.

6. You will have no business with advertising, your Major Marketer overall brand advertising does that for you too. You just seat back while they do the marketing for you.

7. You will be enjoying some high level of logistic support from a well established brand and build your business off their credibility.

Disadvantages

1. You will miss out from the opportunity of building your own brand and pushing your name forward.

2. You will also miss out from gaining higher profit margin per litre of petroleum products you lift because the prices of products from The Major Marketers are higher. And the subsidy thing too will elude you.

3. Your operation will 100% dependent of your Major Marketer’s terms and conditions and policies. You will be regulated by them, including the prices, and the products you sell.

Who Is Independent Oil Marketer?

A Petrol Filling Station owner who run his business under his own name, buy products directly from NNPC and has a representative and assistant representative at the Petroleum Products Marketing Company (PPMC) depot by NNPC.

Advantages

1. You run your business under your own chosen name and build your own brand and marketing logistics.

2. You lift products directly from NNPC Depots at lower prices and earn certain amount per every litre of petrol products you lift, and you can source your product anywhere you like.

3. You are free of another company’s policies and standards, you deal directly with the authorities and agencies. You do your business under your own policy and terms.

Disadvantages

1. The minimum quantity of petrol product you can buy from NNPC Depot is one tanker of 30,000 litre that cost within 2million Naira. Therefore, you must find a way to afford it.

2. You must have your own tanker that will be transporting your products or you deal with haulage company which will cost money and delay sometimes in delivering the products.

3. You are in charge of marketing your brand, therefore you have to do some forms of advertising which cost money as well.

4. Payment for petrol products to NNPC requires bank draft issued in the name of NNPC and payable to The Central Bank of Nigeria in the state you intend to lift from. You must employ someone who will be doing that.

5. Each time you lift products, you pay the Independent Petroleum Marketers Association of Nigeria (IPMAN) N5,000 for insurance and Association fee.

6. Movement of petroleum products on your own from the depots to your filling stations involves many risks, accidents, fire, extortion, and cost. You’ll have to bear all that.

7. Many times. you may find it very very hard to get a supply from the NNPC, but if you’re a Major Marketer’s Franchisee, you will get supply as much as you want, at any time you want it directly from them.

With these, you can now be able to chose the type of marketer you want to be, and having decided on your choice of marketing status, the next thing is to acquire a property and build your Petrol Station.

Building Your Petrol Filling Station

 

Picture of Petrol Filling Station in Nigeria

 

1. Carryout research and feasibility study about the business structure and the location you intend to situate your business. This is very important as it will help your decision making and form part of your documentation.

Remember, you are making a huge investment, you need to carefully study your Intended Petrol Filling Station environment. After this, you proceed to get Approval to Construct.

2. Basically, your Petrol Filling Station has to be along the major road so that passing vehicles could easily have access to the facility.

3. Closeness to a busy area like motor park, round about, or market is a plus so that vehicles engaging in commercial activities in those area could easily branch and make use of your fuel station to have their tank refilled.

4. If your intended location is by the double lanes express-way, make sure the proposed land for your petrol station is close to a U-Turn or round about.

LAND –

Two plots measurement of land is the minimum property requirement to build your petrol filling station. This will be able to afford enough space for vehicles to queue and make exit turns.

Carefully negotiate price for good landed property, the prices varies from places to places and locations to locations, no specific price could be placed on that here. You will need to find that out using property Agents.

 STORAGE TANK –

After acquiring your property, do the documentation, carryout the proper land survey, and structural design. The next thing is to sink the Underground Storage Tank, these tanks varies in measurements: 30,000 litres, 35,000 litres, 40,000 litres, 45,000 litres, 60,000 litres, etc.

I recommend that you go for high volume tank, like the 45,000 and the 60,000 litres if you intend to be storing extra fuel. If you go for 30,000 litres underground tank and you intend to be lifting full tanker of 30,000 litres, then you will have to always wait until the last drop of fuel in that tank is sold before going for another turn.

CONSTRUCTION –

The petrol station construction engineer will be able to handle that effectively, I wouldn’t go on to tell you the the measurements, construction specifications, and all that (those ones are matter of choices). The Engineers should handle that, but you will need:

A Bungalow – How big or small is entirely your choice depending on the space available and what else you want to add. Do you want Restaurant, Supermarket, and Car Wash? Then, you need bigger bungalow.

Canopy over you Pumps – The shade constructed over petrol station pumps is called Canopy, it protects the pumps and the petrol attendants against the sun and the rain.

Perimeter fence – It’s regulatory requirements to fence the three sides of your petrol filling station, leaving only the entrance open for entry and exit. If you’re on a T-Junction, only two sides would be required to be fenced, the rest two would remain open for easy entry and exit from both joining roads.

Hardcore flooring – Vehicles of different sizes and capacity would be making entry into your petrol filling station when operational. Your floor must be hardcore concrete to resist the pressure from these vehicles.

Standby Generator (25kva to 35kva and above) – Do you need to be told that power supply isn’t stable in this part of the world? As far as petrol station is concerned, power supply is non stop throughout the day, even when the business is closed for the day. Besides, standby generator is one of the requirement for approval.

3-6 Pumps (Electronic) – The pump that dispenses the fuel, you will need between 3 and 6 depending on your size and level of approval you get.

After all these have been done, next is to get your License and Approval.

Staffing Your Petrol Filling Station

Security - This is in my number one in the list of staffs because of the high security risk in the business of having a petrol station due to the expected flow of cash. Security in this country as you and I know is a total mess. Until the cashless policy becomes fully operational and adopted by every individual, security will always be a top priority in this business.

Armed robbers prefer to attack late at night and during the weekends when they hope to meet plenty of cash. Prepare to battle them in all front, enlist the services of private security operatives and pay them well.

Make sure you wouldn’t be leaving plenty of cash within your petrol station at all times, security or no security.

Attendants – You will need 2 petrol attendants for each pump, they would be shifting between them, one person at a time. Multiple that by how many pumps you intends to have, that’s the number of attendants you need to employ.

Cashier – This person will be in charge of handling the cash and keeping records of the cash transactions. Employ an Account and use functional efficient software to keep accurate record of your cash movements.

Supervisor – His duty is to go about making sure everything is in order, both the facility and the staffs. He sees to it that everyone is up to his task and he/she reports back to the manager.

This person must be very reliable and proficient at what he does, must not be a compromising individual.

Manager – He is the superior in charge of the overall function of the petrol filling station and must be experienced with the running oil business. Every other staffs reports to him while he in turn is accountable to you. Carefully chose this person, your business can be make or marred by him. I’ve seen managers run businesses down.

With every thing stated above in place, you are 100% ready for real business and good to go!

Oil and Gas Business

Nigerian oil and gas Industry is the engine of the Nations economy - an economy that suppose to be the biggest in Africa and one of the biggest in the world if not for mismanagement and corruption. Everything in Nigeria practically depends on oil. It funds The Government, the meager infrastructure, and the untold huge corruption that runs into hundreds of billions of dollars!

According to BBC report:  Nigeria is one of the world's biggest oil producers but most of its people remain mired in poverty. Anyway, that is the talk of another day. The business at hand now is that legitimate investors are making millions of dollars everyday and you could just be one of them if you take the step and invest in Nigeria's Oil and Gas sector today.

Oil and Gas is another name for wealth - you need to get close to some guys who are into oil business to understand what I am talking about. At my office complex in Apapa Lagos when I was still serving in 2010, you will see Mercedes Benz cars of N80 million, Bentley of N100 million, Porch cars of N80 million in different shapes models allover the place. Who own those cars? Oil Investors occupying some of the offices in the same complex! That tells you the extent of wealth in the business.

A look into the sector reveals that there is almost business for everyone, this means that no matter who you are and your financial capacity you can still invest somehow in the Industry and make your own mega buck.

Most of the activities is at Downstream sector and that is where most of us can afford to invest. The Upstream sector is mainly for multinationals and big investors who has the money and the expertise.

Before you talk of investing you need to know where to invest, the decision you make after this depends on your capacity. What I mean is: After reading through this post you decide if you can afford building a Refinery or a Kerosene Tank by the roadside. Whichever way you take, you are sure to make good money.

The Investment Opportunities

1. Oil Refinery - This one is the most ambitious of them all and the heart beat of the Downstream sector. It cost between $5 billion to as much as $500 billion to build one and take at least two years to complete. As you can see, this is not business for faint hearted Investors. Refinery requires huge deployment of fund, careful environmental and physical planning and technology.Nigeria-Oil-and-gas

People are trying hard to make me believe that building a refinery isn't economically viable but I don't believe them. I just wonder why people like Dangote and co can not do this even if only as a service to Nigeria and Africa? If I have the money I will surely invest in refinery. I remember in those days when Filling Station owners used to go to the nearby refinery to buy their product directly and the cost of fuel per litre was about N10 then.

If you can afford this or there is anyway you can pull together Investors who are ready to shell out huge fund go for this. You will be buying crude oil here in Nigeria, refine and sell locally to millions of dealers and distributors, export to other African countries and even Europe, plus you make millions of dollars from other petroleum by-products.

You will make your billions back - Dangote and other Billionaires where are you? I think the reason most Nigerian billionaire don't want to invest in this is because they prefer to steal money from Government through importation. We heard what happened during the fuel subsidy scam probe and thereafter?

2. Fuel Importation - This is where all the big men are falling over each other, making untold billions of legitimate and corrupt money. You too can invest in importation and make legitimate money. There is currently importation root from Niger Republic. One of the major requirement for fuel importation is having a Tank Farm or group of filling stations where the imported product can be stored.

Fuel importation is a big money business and heavy infrastructures are also required. To be able to get the importation license and permit, you would need to have fuel depot and functional jetty among other things. Those who are into it are making double kill from the sale of products and Government subsidy money. You can go into this on a very small scale and make good money.

3. Oil Servicing Business - Oil and Gas installations requires constant maintenance and servicing. This is where the business of oil servicing companies comes in. It is one of the most essential aspect of Upstream and Downstream sector of Oil and Gas Industry.

Huge money is flowing in Nigeria oil and gas sector. You and your group can grab part of it take the step and invest now. To be in this, you will need to put together the technology, equipment, and highly skilled personnel.

4. Petrol Filling Station - Thousands of Investors across the country have been making billions of naira annually. It is one cool business, full of money for those who have the investment capital. I know a man some years back who only manage to sustain himself through his local tea making - gradually he raised money and built his first small filling station in a local area - today he has over ten Petrol Filling Stations spread across the states.

5. Petroleum  Haulage - This involves the transportation of petroleum products from one location to another as a service rendering. One Tanker is enough for you to be in this business and it is very lucrative. From one tanker, you can expand to build fleet of Tankers and huge Haulage company.

Tanker owners charge about N150,000 to transport product from Lagos to Kaduna. According to insiders information, the transportation of petroleum products from places like the Port Harcourt refinery to other various parts of the country is indeed good business.

The price for haulage services ranges from N20, 000 to N200,000 per trip, depending on the location the product will be taken to and the capacity of the tanker.

6. Diesel Supply - Many guys are going into this one now and I am considering joining the deal. I wrote article recently on Diesel Supply Business and based on my finding, it is a mega million Naira business.

Consider this:

Product N 139.00 X 33,000Litres of A.G.O         N 4,389.000

                                                            Clearance      N 16,000

                                                            Haulage          N100,000

 

Cost of product is                 ( 33,000Litres)          N 4,587,000

 

SUPPLY: - Supply of A.G.O depends on final destination e.g within Lagos is being supplied at N 150

N 150 X 33,000litres

                                                                                    N 4,950,000

Cost of product         ( 33,000Litres)                  - N 4,587,000

 

                                                                                    N 363,000

 

PROFIT: - For each 33,000lires supplied at the rate of N 150, per litre will yield profit of N 363,000

To start up supply of A.G.O will require at least N 5,000,000 for obtaining necessary documents / paper’s, hiring of truck and buying of product.

A serious beginner will go far at least with N 5million or more he/she will have a successful entrance into the market.

7. Kerosene Business - One thing most people don't know about Kerosene is that the product is actually gotten so cheap from NNPC. From NNPC you can land the product at unit cost of N50 per litre and sell for N120 per litre. That is what filling station owners and other dealers do.

If you lift 10,000 litres and gain at least N50 per litre, you will gain N50 x 10,000 = N500,000.

Share what you know with others by commenting...

How to Start Pure Water Business in Nigeria

Additional information and clarifications on How to Start Pure Water Business in Nigeria which I think will be important to you as you make effort to start your pure water business. While the first article dealt mostly with merits and benefit of the business, this one will take care of the costs of the materials and breakdown of resources involved.


Pure water business in Nigeria is very profitable but requires good amount of money. If you wish to invest in this business, I can assure you of the profit provided you do your home work very well which includes properly setting up of your business and applying good marketing strategy.

If you are ready, here is the complete list of what is needed to start a pure water production business in Nigeria. Feel free to drop your question after reading and let's further expand the article through discussion. If there is something you know about pure water production that is not included in this article, add it through comment. 

This estimated list deals with medium scale pure water production plant, but you can use it for all size and vary the cost according to your size. http://quicklinksystemsolution.blogspot.com  will keep bringing you more tips on how to excel in this business.



1. Write your business plan - While this article will help form the basis for your business plan, it does not replace it. You have to carefully write your business plan and how you plan to achieve your goal in the business. A detailed business plan should include everything about the business such as: The cost analysis, Market Research, Marketing, and Management. You may hire a professional consultant to help write your plan.

I case you are confused what business plan is - Business plan is a written document that includes all details of your pure water business startup and operational objectives and strategies. Startup and operating costs, marketing advertising and sales strategies, pricing and profit margins, supplier lists, insurance information and other topics are included to give you blueprint of your business.

Your pure water production business plan can be used for obtaining business loans, securing investors and for other analytical purposes, and may be modified as the business matures to better outline and guide future operations. So, it is a very important document you must not do without. Cost of market research and business plan = N100,000

2. Purchase Land - Minimum of one plot will do for your business, except you are going for something much more bigger. But if it's a small scare pure water production plant, you will be good with one plot of land.A plot of Land in Lagos outskirts such as Ikorodu and Epe cost from N500,000 to N3M

Land may be cheaper in other states. You must go out there and ask for the prices of lands in the location you wish to setup your pure water production plant. Over all, budget N3M to N5M for land if you wants to situate your plant close to urban area. It is important to document your property. Hence, Price of land, Survey, C of O, and other documents = N5 million - N7 million

3. Construct Bungalow - To construct a bungalow that will serve as your factory together with fencing, finishing and furnishing, digging of borehole, and interlocking the compound. Depending on the size of the building, everything will take N5 million - N10 million.

4. Distillation System - Distillation is the single most effective method of water purification for pure water production and can be used on all types of incoming water. Unlike other treatment methods such as carbon filters and reverse osmosis, distillation systems are effective on virtually all contaminants and are not dependent on water pressure, water temperature, pH, or chlorine and can even be used on water containing bacteria and parasites and still produce safe, 99.9% pure water.

Distilled water is water that has been heated to the boiling point so that impurities are separated from the water, which itself becomes vapor or steam. Steam is then condensed back into pure liquid form. The impurities remain as residue and are removed. Most pure water makers in Nigeria use just ultra violet bulb for purification which is not that effective but cheaper.

Pure Water Distillation Systems remove waterborne biological contaminants such as bacteria, viruses, organic and inorganic chemicals, heavy metals, volatile gases, cysts and other contaminants. Distilled water contains virtually no solids, minerals or trace elements. It is clean, natural and healthy. Steam distilled water is the standard by which all other waters are measured. 

Nevertheless, Reverse Osmosis is one of the most widely used and easier to install. If also produce water with highest level of purity and very perfect for your pure water production if you can afford it.

Reverse Osmosis Water Purification System

Ultra Filtration System

Ultra Violet Light Filtration

You may use simple distillation machine which cost within one million naira or install standard distillation system that could take up to ten million naira. The projected amount you should budget for distillation system = N1 million to N10 million

If you can't afford any of those, then go for Ultra Violet Filtration. It is the most commonly used in Nigeria by small to medium scale pure water makers. It cost very little compare to the others, less than N100,000


5. Automatic Sealing Machine - Another important equipment which is the engine of your production line is Automatic sealing machine. You need just one but if you are planning for a very high volume production, you will need like two or three but on a normal production, one is very okay.

Koyo sachet water sealing machine type is very ideal. This machine is high precision packing machine and the one of most advanced liquid compound packaging machine available, which stands at the size of a double door refrigerator, three side sealing and intermittent. It can automatically complete Bag making, filling, sealing, printing, cutting and counting .Controlled by microprocessor and automatic photocell.

Pure Water Filling and Sealing Machines

See it in Action in Nigerian Factory

The price is between N400,000 - N650,000  and can take care of your entire production on daily basis. It works automatically and does it's work efficiently.

6. Buy a Supply Truck - Your next big budget acquisition after the sealing machine is a supply truck. Do not be economical in your budget when it comes to supply truck. You know the condition of Nigerian roads and in most cases, you will be going deep into the developing areas to supply. There is nothing as bad as buying a truck that breaks down so frequent, it can kill your business.

A decent European used truck with good history is what you need. N3 million can get you a very good Mitsubishi Canter.

7. Staffing - This is one of the most sensitive aspect of your business. Human resources is the lifeblood that drives the whole mechanism of your production. Be careful in your selection. Below are the personals your company requires.

One operator

Three packagers

One Cleaner

One Driver and one attending Loader

One Marketer

Two Security men

A Manager who may double as cashier unless you can afford the extra personnel.

8. NAFDAC Approval - Finally you have come to this level, your final step before production. How is this done?

Start by going to the NAFDAC office to obtain and fill the relevant forms. The process will take you as much as three months and up to six months before you get the certificate.

The best thing you need to do now is to Download the Application Requirement Here. Read it and start following the procedures as outline. You are not going to produce nor sell until your production is approved

I must tell you that NAFDAC Approval is the most difficult of it all and take much times. N30,000 is the processing fee for sachet pure water.

These are what your entire production line involves. At this point, I want to stop and let's carry on the conversation through commenting. Drop your comments and let's take it from there.