Before you go ahead with starting/opening up a gas plant, mini gas plant or the standard gas station - you must get the right documents and approvals. These documents are required by government agencies such as the DPR (now NMDPRA – Nigerian Midstream and Downstream Petroleum Regulatory Authority), fire service, and local authorities.
Without them, your gas plant or retail shop could be sealed, and you may face heavy fines. This article will explain the cost of all documents needed before starting a cooking gas business in Nigeria.
1. Business Registration with CAC
> Document Needed: Certificate of Incorporation (from CAC – Corporate Affairs Commission).
> Why: To make your business legal and recognized.
> Cost: Can cost as high as ₦50,000 – ₦100,000 (depending on business name or limited liability company).
Quite easy to get nowadays - you just need to head over there online postal, then submit every documents needed to confirm your identity and business ownership. Although fee applies.
2. DPR/NMDPRA Approval (Operating License)
> Document Needed: DPR/NMDPRA license for LPG plant or gas retail point.
> Why: To legally sell or store LPG.
> Cost: Hmm, this is a tricky one. And a lot of people approach me ask me questions about "how much will getting DPR licence cost them"? And my answer have been "it depends ".
* Small retail shop (filling cylinder only): ₦0 to ₦500,000 .
• Medium to large plant: ₦1,000,000 – ₦3,000,000+.
3. Fire Service Certificate
> Document Needed: Fire safety approval and inspection report.
> Why: To confirm safety standards and firefighting equipment are in place.
> Cost: This can cost about ₦50,000 – ₦150,000 (depends on the states you are).
4. Town Planning / Local Government Permit
> Document Needed: Land use approval and location permit.
> Why: To confirm the land is suitable for gas business (not close to schools or hospitals).
Expect this to cost you about ₦50,000 – ₦200,000 (depending on location and state). Plus small stress.
5. Environmental Impact Assessment (EIA)
> Document Needed: EIA certificate.
> Why: To check environmental and community safety before setting up.
> Cost: You see why you shouldn't avoid or neglect the need for getting your license, arh? It is actually for your own good. Expect this to cost you about ₦250,000 – ₦700,000 (depending on plant size).
6. Standard Organization of Nigeria (SON) Approval
> Document Needed: Approval for tanks, pipelines, and equipment.
>Why: To ensure all equipment meets Nigerian standards.
> Cost: ₦50,000 – ₦100,000. Note, this can go as high than this thou.
Other Minor Approvals
- Police report (for land and security clearance).
- Survey plan & land documents.
- Community approval (in some areas).
Let's just say, budget about ₦50,000 – ₦200,000 for all these listed here.
Total Estimated Cost of All Documents
> For a small retail shop: ₦100,000
> For a medium or large gas plant: ₦1,200,000 – ₦2,000,000+.
My advice, before starting your cooking gas business, budget for both setup and documentation costs. Many people spend money on equipment first and later struggle with licenses. It is better to start with documentation to avoid shutdown by government agencies.
If you plan well and follow due process, your business will run smoothly and legally.