How to Start Quarry Business in Nigeria
A quarry involves the extraction of sands, gravels, stones, rocks, from the ground. Allow me enlighten you on how to make this business your source of income, as long as people will not stop building houses, doing all sorts of construction work that involves the use of sand or stone, you cannot be kicked out of business.
The most common use of quarry is for granite and sand, hardly would you see any construction going on without the use of granite, the availability of granite in Nigeria is as a result of the geographical location of the country. States like cross river, Ekiti, Kogi, plateau, Ebonyi,ogun,Oyo etc have it in abundance, this is not to mean it is not present in other states but it would take more process to finding it.
The demand for quarry products in large quantities by construction companies, cement making companies, is constant and considering the ever increasing demand for housing and other forms of development, there will be an increasingly continued demand for a quarry. In other words, money cannot waste.
To invest into a quarry business, you can decide to be any of this two depending on the capital available:
- A Middleman: If you are so sure of your interest in the quarry business, but lack enough funds to own one yourself, you can start out as a middleman. As a middleman, your job description involves sourcing for quarries and a prospective contractor or individual buyer as the case may be. I will not go any further without telling you this does not apply to just one gender, I recall then when my dad was building his house in the suburb of Lagos, it was a new estate owned by a family, so they decided to sell it to individuals, on few occasions when I went with my dad, I would see both women and men scouting for about-to-be landlords just so they can land themselves a contract of supplying granites or sand. It was a normal practice to see a woman or man sitting in front of the tipper that would be coming to develop the products, and they get paid. So even as a female, you need not limit yourself by saying it is a job for the men.
Being a middleman man entails you to be persuasive , you would need to go around building sites, these are common in new developed areas, sound convincing and let them know how reliable you are and establish a sort of familiarity, this would further propel your success.
- A Quarry Owner: This is the part where I tell you being a quarry owner is quite capital intensive, you have the option of either acquiring or leasing lands filled with rocks. And none of these options costs nothing less than five million naira (#5,000,000) you will need:
- Capital: This cannot be over emphasized enough, you need capital running into millions to start this business, in the event you do not have this type of money stored or stacked somewhere, there are few ways you can raise capital for this business.
- Loan: After submitting the necessary documents which would include your business plan, banks when accosted can decide to loan out the money to you, if they are able to deduce the credibility and are sure of much profit.
- There are individuals out there who are highly interested in getting involved in contributing to starting up a business in exchange of being a major stakeholder amongst other conditions. These set of individuals are called “angel investors”.
- You can also partner with friends or individuals who are like-minds, you will agree on what each individual should contribute to the success of the quarry.
Also Read: Quarry Business Plan in Nigeria
- Find A Location: Since we all know that quarry involves the excavation of mostly building materials, a rocky land is of utmost importance. You have to be very familiar with where these materials are in abundance, engaging a surveyor and/a geologist to help in this regards. The closeness to target market is also important when citing your location. You can also buy a ready made quarry which might have been abandoned by a previous owner due to one condition or the other.
- Registration: You have to be registered with the necessary bodies to ensure that you would not be accused of illegal activities. Bodies like Corporate Affairs Commission (CAC), Federal ministry of solid minerals, etc. and other agencies that might be peculiar to each state.
- Equipment: For this, you have the options of buying or leasing them, this equipments are cspital intensive. You will be needing excavators, granite crusher, pay loader,way bridge,tipper etc. you can use all or some of the equipment listed depending on what product you want to excavate. If it is sand or granite.
- Hire Employees: This business cannot be done alone, you need to employ more hands to help.
- Distribution of your Product: You will need to incorporate this into your budget, either you will have a tipper or you would rent whenever the need arises.
- Marketing: This is highly important, because no matter how good your services are, if prospective customers are not well informed about your company, there will not be room for trading, talk less of profit. You need to meet up with agents , suppliers and whoever else is in the chain of circulating these products. Visit construction companies in your area and possibly organize a meeting with them all, where you will discuss on how you can become their major supplier.
Examples of quarries in Nigeria includes: Sandcrete quarry in along Lagos-Ibadan expressway,Western quarry in Ogun state.
Reasons to Delve into a Quarry Business
- Availability of Raw Materials: the geographical distribution of Nigeria makes for the unlimited availability of rocks which is the raw material needed. You need not be bothered with where you can get a rocky land, they are well distributed around the country. All you need is to tidy up your own plans.
- Increasing Demand for Granite: The demand for granite is on the rise daily, as rural areas are on the verge of getting improved and at least be on the same level as urban areas in the area of construction of houses, roads, etc
- You Become Independent: Once you begin this business, you become your own boss, and do not have to anser to anyone. You can decide whatever way the quarry should be run.
- High Profit Rate: No matter how much was spent starting the business up, it is very sure that the capital would be gotten back as long as you take the necessary steps.
Hurry now and get your own quarry business plan in Nigeria + feasibility study.
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