This article is about how to start quarry business in Nigeria currently in this year 2022. We urge you, our esteemed readers to kindly continue reading to learn more as we examine a full, step-by-step guide on how to launch a quarry business in your local area today should you have interest in it.
Sand, stone, and other materials like limestone, granite, and gravel are all dug in quarries, which are open pits or excavations. The building and construction sector depends heavily on the quarrying industry. In reality, without the availability of materials from a quarry, building and construction activity are all but impossible.
Along with providing crucial building and construction materials, it also serves as the primary raw material supplier for the production of marble, slate, fertilizer, and cement. Quarrying has established itself as a very valuable industry over time in Nigeria, mostly for two reasons which are: that Nigeria has a large population and a severe lack of housing and other infrastructure, which has led to a thriving and active building and construction industry. As a result, there is always a ready market for quarry products.
And that a plentiful natural supply of quarry materials, which are simple to investigate, is also present in Nigeria. In the majority of situations, Nigerian quarries may be successfully operated without the need of any sophisticated technology.
Although it has been previously mentioned and demonstrated that operating a quarry in Nigeria may be a profitable business with significant returns, it should not be overlooked that this is a very capital-intensive industry. Do not give up, though, if you are truly interested in this business but lack the necessary funds. Even with little or no capital, there are still methods for you to profit from this profitable industry.
WAYS OF STARTING QUARRY BUSINESS IN NIGERIA TODAY
There are two major ways by which you can start quarry business in Nigeria, and they are:
- Entering the Business as a Middle Man, and
- Entering the business as a Quarry Owner.
ENTERING THE QUARRY BUSINESS AS A MIDDLE MAN
Going in as a middle man can be a really smart choice if you are eager to establish a quarry in Nigeria but lack the enormous money needed. This will not only put some money in your pocket, but it will also enable you to learn all there is to know about the quarry industry before investing any of your own money.
If you choose to enter through this route, you will need to look for both quarries and construction companies. Here, your job is to act as a bridge between the two parties in exchange for a little fee or commission. You must possess or learn the necessary negotiation, marketing, and advertising skills if you want to be successful in this industry. You will also need to be adaptable and have a strong network of contacts.
Making cold calls is an effective approach to get started on this path. You should contact as many construction sites as you can to let them know that you can supply them with sand and other quarry products on a consistent basis. It is ideal for new business owners to start off with this strategy even if it is mostly for those without the resources to invest heavily. This is so that they may get a sense of the complexity of the industry. Creating a strong network will also be beneficial.
ENTERING THE BUSINESS AS A QUARRY OWNER
This is the area where the big money is in the incredibly successful quarry industry. But as was already mentioned, it requires a lot of capital despite the promise of significant returns on investment. We shall take a detailed look at the steps involved in starting your quarry business as a quarry owner in Nigeria today below.
GUIDE ON HOW TO START QUARRY BUSINESS IN NIGERIA 2022
The following are the step by step processes on how to start your quarry business in Nigeria this 2022:
FIND A SUITABLE LOCATION FOR YOUR QUARRY BUSINESS
The land you want to excavate can be purchased or leased, but in most circumstances it is wise to choose a lease because the site may become unusable once you have finished excavating. Your quarry’s location is quite important. There are various considerations that must be made.
In a quarry, you must first remove rocks, sand, and other materials from the ground. Therefore, it is important to emphasize that these materials are not widely distributed and cannot be discovered in large numbers. It is crucial that you hire a surveyor or geologist to provide you with expert advise on the characteristics and economic value of the land that you intend to purchase for your quarry business in Nigeria.
The proximity to your target market is a key consideration when choosing a location. If your quarry is adjacent to an area where there are numerous development and construction projects underway, you will undoubtedly see faster returns. Additionally, choosing a site that is accessible to trucks will benefit you. You won’t have to spend money building your own road because of this.
REGISTER YOUR QUARRY BUSINESS
Running a business without registering your business with the proper authorities is against the law in Nigeria. Because the federal government has a specific interest in the exploration of natural mineral resources, it is much more crucial for a quarry. Your quarry must first be registered with the Corporate Affairs Commission (CAC). They are the government organization mandated by law to be in charge of maintaining the records of all companies within Nigeria.
The Federal Ministry of Solid Minerals is where you must also register. They are in charge of regulating and are also in charge of making sure you pay the appropriate taxes. Other than these two organizations, several states in Nigeria have their own organizations in place to keep an eye on quarries. To avoid any company delays, make sure you are properly registered for the area where you intend to set up your quarry business in Nigeria .
SOURCE FOR EQUIPMENT
You have two options when sourcing equipment: leasing or purchasing. Everything depends on the type of business strategy you intend to use and the available funding. Keep in mind that the cost of both purchasing and maintaining this equipment is high. Excavators, granite crushers, pay loaders, dump trucks (tippers), and other equipment are required for a granite quarry. All you might need for a typical sand quarry is an excavator and a tipper.
In conclusion, the equipment you need to buy mostly depends on your budget and the type of business you plan to run. You can lease the equipment or hire a third party if you don’t have the money to buy everything.