Quarry Business in Nigeria: How to Get Started
Quarry business is a highly lucrative business, although capital intensive. The quarry business is an important sub-sector in the Nigerian construction industry. Buildings for shelter, road for transportation and others are everyday necessities; hence this business can never run out. Investing in a quarry business can be profitable to anyone, who wishes to own a business in Nigeria.
Availability of raw materials in Nigeria
Granite stone is an essential item and core product in construction. Fortunately, Nigeria is blessed with this raw material and has it in commercial quantity. Hence, supply is not a problem and this takes off the stress of looking for the raw materials needed for the quarry business. Nigeria is endowed with granite stone and other solid minerals such as Marble, Dolomite, Basalt, etc. These raw materials can be found in places such as Ekiti, Ogun, Oyo, Kogi, Plateau, Enugu, Osun, Ebonyi etc. Granite is one of the most readily available raw materials needed in construction. Granite is used as a raw material in the production of flooring tiles, marbles and other antiques, etc. If you have money to invest and are thinking of a profitable venture to go into, you should consider the quarry business. This article provides information on the basic requirements needed to start a quarry business in Nigeria. Read on below:
If you want to start a quarry business, you would require millions to set it up and get it running. Firstly, you will need to source for a way to get the required capital. The quarry business is a capital intensive business. The actual capital and cost largely depend on what scale the investor wants to start the business. This could be on a small scale or large scale. All the same, the quarry business is a capital intensive one in which the returns are also huge.
The cost of machinery needed in a quarry takes the bulk of the money spent on establishing a quarry. The capacity of the machinery required is based on the input of the granite and its output. Some of the machines needed include crushers, excavators, carriage trucks, payloaders, excavator rubbers, dumpers, generators, Way Bridge, etc. These equipment are mostly sourced from China, the USA or Europe.
Lease a land
You will need to acquire or lease a rocky land from the government from which you will derive your products. These lands are usually leased for a period of 1-5 years
An investor can also decide to lease a quarry with all the equipment already purchased. There are rocks in different parts of Nigeria. Often times, these land filled with rocks cannot be managed by just one company. Investors can lease some of these lands that is endowed with rocks so others can explore the materials there for a number of years, as agreed on in the contract, the minimum is 10 years. You can take up such an opportunity so as to run a quarry business in Nigeria. The lease cost rages from 2 million to 5 million per year. In order to do this, one of the titles you must have is a deed of ownership. In order to own a quarry, you will need to submit an application at the ministry of solid minerals. You can get these done easily if you have lawyers that are familiar with the processes of getting approval of exploration.
Having the knowledge and technical know-how is essential and a key to the success of a quarry business. It is important you devote time to learning the basics of the technicalities in running a quarry business.
Hiring efficient hands
You can also employ capable hands to run the quarry business for you. Ensure that these ones have experience running a quarry
Every business requires an effective marketing strategy. No matter how good your production is, with effective machinery and staff, without a good marketing structure, the business will fail. People need to know about your business and also have to come to trust you as a reliable business person and supplier.
Haulage has to do with the process of transporting goods from one location to the other. Haulage involves the use of heavy-duty vehicles such as Tippers, Trailers, and Trucks. Remember that after the production of granite, you will need a reliable distribution system to move the goods from one place to the other. This is a business on its own. Therefore, some make use of third party haulage services. These ones lease their vehicles to you and you make payments monthly or as agreed. You can also choose to purchase heavy-duty haulage vehicles such as tippers or trucks if you can afford it.
With about 5 million naira, you can begin a small quarry
People that will patronize the quarry business include:
Manufactures of cements and bricks
Manufacturers of tiles
Wholesalers and retailers
Things to get done when setting up a quarry:
Perimeter survey of the quarry
Register your company name
Exploration information, this includes GPS reading, report writing, findings and investigation
Fill an application form for Abuja to start a quarry
Attestation form to be filled by a lawyer