Small Capital, Big Profit: The Secret to Starting a Cooking Gas Business in Nigeria

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Starting a gas (LPG) business in Nigeria is now easier than ever, even with small capital. The demand for cooking gas keeps growing as more Nigerians switch from firewood and kerosene to LPG because it is cleaner, faster, and more affordable. Here’s how you can begin with little money:

How To Start a Gas Business in Nigeria with Small Capital (And Make Daily Profit)

1. Start Small - Think Smart

You don’t need millions to start. Begin as a cylinder refilling agent, roadside reseller, or gas retailer using a 3kg–12.5kg scale. You can start with as low as ₦300,000 to ₦1 million, depending on your location and setup.

2. Choose a Good Location

Select a place with high population and low competition, near residential areas, markets, or roadside spots where people cook daily. Accessibility and safety are key.

3. Get the Right Equipment

For a small setup, you’ll need:

• Filling scale (manual or digital)

• LPG hose and nozzle

• Cylinders (25kg to 50kg) or better still, you can invest in a 350kg or 1ton complete setup skid with dispenser.

• Fire extinguisher and safety gear

• Branding materials (signboard, apron, etc.)

4. Source Your Gas Supply

Partner with a nearby gas plant or depot that offers bulk refilling at discounted rates. Many plants now support small resellers through wholesale programs. Buying in bulk reduces your cost and increases profit margins.

5. Follow Safety and Licensing Rules

Even small retailers must maintain safety. Get approval or registration from:

• Local fire service approval (for fire safety clearance)

• Department of Petroleum Resources (DPR) or NMDPRA (for small business permit)

• This builds customer trust and avoids shutdowns.

6. Profit Potential

If you buy LPG at ₦700 per kg from a depot and sell at ₦850 per kg, you make ₦150 profit per kg.

Selling just 50kg daily gives you:

> ₦150 × 50 = ₦7,500 profit/day

That’s about ₦225,000 monthly - and your capital grows as your customer base expands.

7. Expand Over Time

Once you grow profits, you can move to a mini plant with a 2.5–5 metric ton storage tank. From there, you can supply other retailers, restaurants, and hotels, moving from retail to wholesale.

Final Words - Is it Worth It?

Of course, YES. You just start small, stay safe, build trust, and grow gradually. The LPG business is one of the few in Nigeria that guarantees steady daily income and long-term expansion, even with low capital.

Frequently Asked Questions (FAQs)

Q1: How much does it cost to start a small gas business in Nigeria?

- You can start with as little as ₦300,000–₦1 million, depending on your scale, equipment, and location.

Q2: Is a license required to sell gas in Nigeria?

- Yes. You need at least a Fire Service certificate and an NMDPRA permit for small gas retailing.

Q3: How profitable is the LPG business?

- It’s very profitable. You can make up to ₦7,000–₦10,000 daily depending on your sales volume.

Q4: Where can I buy LPG in bulk?

- From nearby gas depots or major filling plants in your area. They often sell at wholesale prices.

Q5: Can I operate from home?

- No. For safety, the business must be set up in an open, ventilated area, not inside residential compounds.