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How To Manage A Filling Station In Nigeria & Cost Of Setting Up A filling Station

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How To Manage A Filling Station In Nigeria & Cost Of Setting Up A filling Station

How To Manage A Filling Station In Nigeria

If you have been searching for How To Manage A Filling Station In Nigeria & Cost Of Setting Up A filling Station, how to manage a filling station in nigeria, petrol filling station business plan, nnpc filling station franchise, how much does it cost to open a petrol station, petrol station for sale in nigeria, petrol station business plan in nigeria, how much does it cost to set up a filling station in nigeria, how to set up a filling station in nigeria, then you are in te right place.

Petrol filling station business in Nigeria has remained one of the businesses that is conserved for the very few in our society, that is because of the enormous amount of money needed to start up such a venture. However, it is one of these enterprises that spills in millions of money daily to their respective starters.

Nigeria is one of the biggest oil producing countries in the world and according to recent stat, about 50 million liters are said to be consumed daily. Imagine the profit potentials that lies within this business. It’s simply mind-blowing!

Imagine this, there are millions of cars running on our roads and they can’t move without petrol or diesel. Almost every home in Nigeria has a generator set and if we go further down the lane, you’ll discover that schools, hospitals, banks and numerous other offices and businesses can’t operate without light and judging from the epileptic power supply in Nigeria, petrol filling station business has become a literal goldmine.

The demand for oil related products is high. Even big players like Oando, Total, Texaco, Mobile etc are yet to meet demand. Do you know how much these companies make in a day? That is why their starters are among the TOP millionaires we have in Nigeria.

In this article, I’m going to guide you on how you can start this petrol filling station business and make a lot of money. If possible, bookmark this page and come back later. This post will expose the nitty-gritty, all the information which you need to succeed in this oil business.

How to Begin A Petrol Filling Station Business In Nigeria

1. Business Plan

A petrol filling station business plan is needed first before every other thing. You can decide to do this yourself or hire a professional business plan writer who is known to write great plans. A business plan will expose virtually everything about the business and the vital things needed to commence operation.

Many people refer to a business plan as a blueprint, a plan that an entrepreneur needs to succeed. Like they say, if you don’t plan to succeed, you plan to fail. From your business plan, not only will you know how the business operates, the total cost of setting up a petrol station becomes known. This should lead us to the next segment, capital.

2. Capital

Before you start this petrol filling station business, before you even conceive the idea, the first line of action should be trying to comprehend how much is needed to start such a lucrative business.

This is because this business is very capital-intensive. I’m going to run some estimates but please, don’t take my words for it. This is because the projected estimate might be higher or lower depending on your geographical location and the time you’re reading this article.



These are merely rough estimates. From your business plan, the accurate cost of start-up will be made known. That’s why a business plan is the first step every business person should take.

3. Business Location

Many petrol filling station starters usually prefer situating their station in urban cities like Port Harcourt, Lagos, Abuja etc. That however doesn’t mean that rural areas are a bad choice. In fact, the rural areas have been known to spring forth amazing result when it comes to demand of petroleum and other oil related products.

Make sure that your petrol filling station is located along the road, a good and accessible road is a must. One of the greatest mistake you’ll ever make is to be in a location where there is no traffic because of a bad road.

4. Scratch Or Franchise

Many starters usually start as a franchise, that is, working under the name and brand of another major filling station. Many people call them independent marketers. The benefits of operating as a franchise are countless, but you have to weigh the pros and cons before you decide if you really want to operate under another company or start a business from scratch.

Many prospective entrepreneurs have sought for my advice in this regards, asking if they should work under a company as a franchise/dependent marketer. The answer I usually give vary depending on the person asking, but starting from scratch opens a whole new world of possibilities in this petrol filling station business.

5. Building Your Station

This is where over 70% of your capital will go into. You’ll need a building engineer to guide you through the whole process of building your first ever petrol filling station business. By now, it is assumed that you have already gotten a location at a major road. If so, building should be next. Allow me to break some important components down.


After acquiring your property, sink the underground storage tank. They come in varying sizes and liters like, 30,000 liters, 35,000 liters, 40,000 liters, 50,000 liters and so on. Crosscheck your budge and make a decision.


No petrol filling station business can do without a bungalow. The size of this depends on you. Perhaps, you can even open up a supermarket, a car-wash alongside your filling station to boost revenue.

Canopy Over your Pump

That shade you see on petrol stations are called canopies. Tell the construction engineer how you want it and he will have it built. The more beautiful, the better.


Every petrol filling station business has a perimeter fence at both three sides, leaving one as entrance and exit. If you’re in a T-Junction, only two sides should be fenced, leaving one as entrance and exit

Hardcore Flooring

Remember, vehicles of varying sizes will be trooping into your petrol station, so make sure that the floor is hardcore concrete and that it can withstand any pressure from any vehicle irrespective of the weight

Standy Generator

Because of the epileptic power supply in Nigeria, you’ll need to have an alternate source of energy, like a big standby generator for the day to day operation of the business.

Eectric Pumps

This could be from 3 to 7 pumps. 1 or 2 for kerosene, 1 for gas, 3 for petrol etc. However, you want it. It is your choice. But the more pump you have, the more people you will be able to serve.

6. Staffing

You definitely will not even be around for the day to day running of the business, that’s why you need to employ serious folks in your petrol filling station business. Here’s another breakdown of how staffing should be in this business.


Major Challenges Faced In Petrol Filling Station Business In Nigeria

If you’re starting your business as an independent marketer, that is, not operating under any company, then the challenges faced are very discouraging. Sometimes, it will be best to have friends who are already in the business.

This is because they will expose some things which you don’t know. In this section, allow me to make known some of the struggles you’ll encounter in this business. Knowing this will prepare psychological on what to expect.

  1. The minimum quantity that NNPC will be able to sell to you is 30,000 liters which is over N2 Million naira. If you have less, you won’t be sold to.
  2. You must have your own tanker to avoid spending unnecessarily on haulage.
  3. 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.
  4. Each time you lift products, you pay the Independent Petroleum Marketers Association of Nigeria (IPMAN) N5,000 for insurance and Association fee.

Starting a petrol filling station business in Nigeria is very intensive when we talk about the amount required to start such a business. Its technicalities have also driven away some serious individuals who have the finance. Starting this business isn’t easy, but the stress and finance is worth the reward.

If you do this business well, you’ll not only be financially buoyant as an entrepreneur, you have helped the younger generation. By employing workers, you have created employment, thereby helping improve the economy of Nigeria. Today is hard, tomorrow will be harder, but the day after tomorrow will be sunshine. Thanks to Jack Ma, the richest man in China for that quote.

That’s the much we can take on the topic “How To Manage A Filling Station In Nigeria & Cost Of Setting Up A filling Station”.

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