Cooking Gas Business Plan in Nigeria

Executive Summary

The cooking gas business in Nigeria, driven by the increasing demand for liquefied petroleum gas (LPG), presents a lucrative opportunity for entrepreneurs. With over 60% of Nigerian households relying on traditional fuels like firewood and charcoal, which pose health and environmental risks, the shift towards cleaner LPG is supported by government initiatives like the National Liquefied Petroleum Gas Expansion Implementation Plan. This business plan outlines the establishment of Blessed Gas Solutions, a retail and distribution cooking gas company in Lagos, Nigeria, aiming to meet the growing demand with excellent customer service, safety compliance, and innovative marketing strategies.

Business Description

Name: Blessed Gas Solutions
Industry: Oil and Gas (LPG Retailing and Distribution)
Description: Blessed Gas Solutions is a fully licensed cooking gas retail and distribution business based in Lagos, Nigeria. The company focuses on providing high-quality LPG, gas cylinders, accessories, and repair services to households, restaurants, and small businesses. With a commitment to safety, reliability, and customer satisfaction, the business aims to capture a significant market share in Lagos and expand to other regions within five years. The company leverages modern technology for efficient operations and prioritizes compliance with regulatory standards set by the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA).

Official Website: www.blessedgassolutions.com
Address: 123 Gas Avenue, Lekki Phase 1, Lagos, Nigeria
Social Media Accounts:

Facebook: Blessed Gas Solutions
Instagram: @BlessedGasSolutions
Twitter/X: @BlessedGasNG
Founder and Owner: Mr. Linus Uchenna, a seasoned professional with over 15 years of experience in the oil and gas industry, holding a B.Sc. in Chemical Engineering from the University of Lagos.

Services

Blessed Gas Solutions offers the following services:

LPG Refilling: Safe and efficient refilling of gas cylinders (3kg, 6kg, 12.5kg, and 50kg).
Cylinder Sales: Provision of high-quality, certified gas cylinders.
Accessories Sales: Sale of gas burners, regulators, hoses, and other LPG-related equipment.
Repair Services: Maintenance and repair of gas cookers and cylinders.
Door-to-Door Delivery: Convenient home and office delivery of LPG and accessories.
Safety Training: Free safety awareness programs for customers on proper LPG handling and storage.
Bulk Supply: Supply of LPG to restaurants, hotels, and small businesses in large quantities.

Market Analysis

The demand for cooking gas in Nigeria is rapidly growing due to urbanization, population growth, and government policies promoting cleaner energy. Nigeria consumes approximately 1.3 million metric tons of LPG annually, with potential to reach 5 million metric tons by 2027, as outlined by the National LPG Expansion Implementation Plan. The target market includes:

Households: Middle-class and upper-class families in urban areas like Lagos.
Restaurants and Hotels: Businesses requiring bulk LPG for commercial cooking.
Retailers: Small-scale gas refill shops seeking reliable suppliers.
Students: Off-campus students in universities where cooking is permitted.

Competitors include established players like Kiakiagas and smaller roadside retailers. Blessed Gas Solutions differentiates itself through competitive pricing, exceptional customer service, and value-added services like free safety training and door-to-door delivery.

Operational Plan

Location

The business will operate from a strategic location in Lekki Phase 1, Lagos, chosen for its proximity to residential estates, high foot traffic, and accessibility. The site complies with NMDPRA regulations, maintaining a minimum distance of 15 meters from flammable materials.

Equipment

Gas cylinders (various sizes: 3kg, 6kg, 12.5kg, 50kg)
Gas filling systems and industrial hoses
Weighing scales for accurate measurement
Safety equipment (fire extinguishers, gas detectors)
Delivery vans for door-to-door services

Licenses and Permits

NMDPRA License: For legal operation of a gas refilling business.
Corporate Affairs Commission (CAC) Registration: To establish Blessed Gas Solutions as a legal entity.
Fire Service Approval: Ensuring compliance with fire safety standards.
Town Planning Permit: For site approval.
Insurance: To mitigate risks associated with handling flammable materials.

Staffing

CEO: Oversees operations and strategy (Linus Uchenna).
Plant Manager: Manages daily operations and safety compliance.
Accountant: Handles financial records and projections.
Attendants: Trained staff for gas refilling and customer service.
Delivery Personnel: For door-to-door services.

Staff will undergo comprehensive training on LPG safety, customer service, and operational procedures.

Marketing Strategy

Blessed Gas Solutions will employ a mix of traditional and digital marketing:

Traditional: Flyers, banners, radio ads, and community outreach.
Digital: Social media campaigns on Facebook, Instagram, and Twitter/X, targeting Lagos residents.
Promotions: Offer 2% discounts for first-time customers, loyalty programs, and referral incentives.
Partnerships: Collaborate with local restaurants and gas equipment retailers.
Online Presence: Maintain an active website for bookings and inquiries.

Financial Plan

Startup Costs

Land Lease: ₦2,000,000 (3-year lease)
Equipment: ₦5,000,000 (cylinders, filling systems, safety equipment)
Licenses and Permits: ₦1,500,000
Initial Stock: ₦1,000,000 (LPG and accessories)
Marketing: ₦500,000
Miscellaneous (office setup, insurance): ₦1,000,000
Total: ₦11,000,000

Price Range

LPG Refilling: ₦4,000–₦10,000 per kg (depending on cylinder size, e.g., 3kg: ₦4,000, 12.5kg: ₦10,000)
Cylinders: ₦15,000–₦50,000 (depending on size)
Accessories: ₦2,000–₦10,000
Delivery: Free for orders above 12.5kg, ₦500–₦1,000 for smaller orders

Revenue Projections

Daily Sales: 50 cylinders (average 12.5kg) at ₦10,000 each = ₦500,000
Monthly Sales: ₦500,000 x 25 days = ₦12,500,000
Monthly Expenses: ₦8,000,000 (stock, salaries, rent, utilities)
Monthly Profit: ₦4,500,000
Annual Profit (Year 1): ₦54,000,000 (assuming consistent sales)

Funding

The startup capital of ₦11,000,000 will be funded through personal savings (₦6,000,000) and a bank loan (₦5,000,000).

Risk Analysis

Flammability Risks: Mitigated through strict adherence to safety protocols and regular equipment inspections.
Inconsistent Supply: Partnerships with reliable suppliers like NNPC and local depots to ensure steady stock.
Competition: Competitive pricing and value-added services to retain customers.
Regulatory Compliance: Full compliance with NMDPRA and fire safety regulations to avoid penalties.

Conclusion

Blessed Gas Solutions is poised to capitalize on the growing demand for cooking gas in Nigeria, offering safe, reliable, and customer-centric services. With a strategic location, robust safety measures, and a comprehensive marketing plan, the business aims to achieve profitability within the first year and expand across Lagos within five years.

Sources:

National Bureau of Statistics (NBS) on household fuel usage
National LPG Expansion Implementation Plan
Industry insights on costs and regulations,,