How to Start Gas Filling Station Business in Nigeria


Do you want to start a gas filling station business in Nigeria? If so, read this article which will provide you with all the information you need to get started.

Gas filling station business is one of the most lucrative business in Nigeria, it has a high turnover rate compared to other businesses and also it requires a large capital to start such a business.

In this write up we would consider and look at the various factors needed to start a profitable and lucrative gas station in Nigeria, and how to start a gas station business.

Also you need to understand that gas stations are important because they provide services that do not require you to go anywhere else for them. They also have various types of fuel products which make it convenient for people who want their vehicle filled with the right type of fuel. Gas filling stations also offer repair service in case your car has an issue when running out of gasoline or getting stranded due to need for repairs at some point.


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Let’s look at the factors you need to consider before starting out a viable and profitable gas station business in Nigeria.

Make a Business Plan

One of the most important factor you need to consider before starting your gas filling station business is to write out your business goal and plans on how you are going to achieve your desired results. This will give you a clear direction for what needs to be done and it is also important because it can help motivate people working with you.

A business plan consists of various sections which include the ones below:

– The objectives, purpose or mission statement of the gas station company

– Financial projections that includes revenue streams, expenses and cash flow projection

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– Marketing strategy including pricing strategies among other things

The most important section in this regard would probably have been the marketing strategy as we all know that marketing makes up about 60% – 80% of any businesses success rate. This should outline everything from advertising methodologies to promotional techniques like discounts and coupons apart from detailing every price point factors of the business which in turn shows that pricing is a key factor.


Business Registration

You need to get the relevant  registration to start a filling station business in Nigeria. This could be done with the Nigerian National Petroleum Corporation, NNPC or any other regulatory body that has oversight of it at state level and form an agreement with them on all the conditions for operation.

In Nigeria there are various laws governing different aspects of gas stations from pricing to insurance cover among others so one should have knowledge about these before signing up into such venture which is why we would advise you take advice from a qualified lawyer who can help navigate through the legalities as well as represent your interests if need be when dealing with government authorities like NNPC.

Ease of doing business in Nigeria



Because these business is capital intensive you need to source for funding in the best way possible from loans and grants to investment as well as other sources of financing.

Also if you are planning a gas filling station business be ready to invest heavily on infrastructure, equipment/supplies and human capital because all these have high costs which is why we would advise you start small at first so that when it matures there will be enough revenue for continuous growth since if not then things may go awry in such type of businesses.

The initial cost varies across countries but with Nigeria being one of the most populated country in Africa this means that there will also be a lot more competition hence need to make quality investments up front. You can see how important it is by looking at what happened to some gas stations who didn’t have enough capital to run their business and they had to go into bankruptcy.

You can say that gas filling station businesses are a type of capital intensive industry because the infrastructure is costly which means it needs money in order to start up. There’s also equipment, supplies and human capital – all with high costs as well so this why we would advise you start small at first so that when it matures there’ll be enough revenue for continuous growth since if not then things may go awry in such types of industries.


Construction is another key factor to consider when beginning this business. It can cost millions of dollars to construct a gas station, and its better if you go into the venture with an idea beforehand about how much money will be needed for construction costs as well as other ongoing expenses such as labor and maintenance/equipment expenditures (e.g., fuel).


The first step towards starting a gas filling station is considering the location where you would like the station placed and this should be near major highways as well as residential areas such as estates and gated communities. You will also find other businesses nearby so there can be synergy between those two companies since they will complement each other.

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Services and Products Offered

The next step is to consider the services you would offer at this gas station such as car repair service, a convenience store with items like cigarettes, food stuffs and drinks for sale or you can also decide on offering snacks if there are major highways nearby so that drivers have something to eat while they are filling up their tanks. It’s important to know which products will be profitable because it will affect how much money one earns from each transaction – whether through purchase of goods or fuel. If possible, inculcate some form of entertainment in your business model in order to retain customers’ attention for more than just refuelling purposes. For instance, when people come inside the gas station looking for cold drinks they should have the option of watching television on their screens while they wait for service.


You need to decide your staff requirements before you set up your business. How many people do you need to run the place? You will also have to decide how much they should earn and what their benefits package should look like, including retirement savings plans.


This is another important question that must be answered in order for a gas station start-up to get off on the right foot. What type of buildings does one need to construct or rent? This includes offices, rest rooms, convenience stores and more – all depending on whether it’s an independent operation or not.

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Here you have it all you need to know about starting a gas filling station here in Nigeria kindly help share this write up with your social media network and if you have any suggestion drop your comments below.


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