How to Start Diesel Business in Nigeria

Since the discovery of oil,

Since the discovery of oil, the lives of so many has changed for the good. Like other product from crude oil, diesel is one source of energy that is high in demand.

There are a lot of countries that are profiting from the arrival of the oil business and the diesel business is simply one of that business that brings huge profits. Although you earn high profit but the capital required to start the business is huge too.

There are people who are earning a huge sum of the money from selling diesel in Nigeria already but there are still opportunities for those also wants to join in to earn huge from this business line.

You may be skeptical and have a little challenge on how and where to start, where to buy your products, how do I make a profit?

All the answers you need are in this article, simply follow the guidelines and you’ll have a full understanding.

Target Market for Diesel Business in Nigeria

Diesel is in high demand in Nigeria and it can be sold anywhere in as much as the price is not above the regulated price set by the government, you will have lots of customers to patronize you every day. A lot of vehicles are changing their engines to a diesel engine, creating more customers to the diesel suppliers.

You can decide to set up your station in any location in Nigeria but it is desirable to construct your station(s) in the cities where the demand is more. Obviously, the number of vehicles and power plants in demand for diesel is huge in the cities and the cities where you can set up includes:




Port Harcourt




The Demand Structure For Diesel Business In Nigeria

Many vehicles are designed to use this product and as stated earlier other vehicles are changing from their petrol engine to diesel. However, some generators use the product also. This shows that diesel is one of the highly demanded sources of energy in the country.

With the irregularities in the power sector in providing inadequate power supply in Nigeria, many transportation companies, industries even the banks depend on this product on a daily basis in order to function.

The availability of this product makes sure there’s a continuous market flow or supply of other goods as scarcity of diesel will prevent wholesalers from transporting their goods to their consumers which can lead to hike in the price of goods.

Necessities To Startup Your Diesel Business

There are basic needs that should be available while starting a diesel business and they are:

Start-up Capital:

Capital is the most important element needed to start up a business and for the oil business, you must have some huge amounts of money before you plan to set up. This needed especially where you plan on constructing a diesel station. There will always be a need for recurrent expenses in this business until the project is complete. Please avoid using a loan to set up this business as it could be very risky.

Purchase Some Pieces of Land:

You need to purchase some plots of land in which you intend to build your fuel station. You can buy 2 plots of land per one station but when you buy these lands, make sure they are close to the main roads, a highway for accessibility.

Is this business lucrative in Nigeria?

Because this product is regularly demanded, it proves that it is very profitable. Below are the benefits of selling diesel in Nigeria:

(1) It Is A Money Making Venture:

If you want a business that is lifelong profitable and you have the money to a startup, the diesel business is one of many you can set up for. There are a lot of people who have become more successful just by venturing into this business.

(2) It Is A Most Demanded Product in Nigeria:

This product is highly demanded by so many people because it serves as a source of energy for their vehicles; in order for them to supply their products to the market. High demand brings about high profits.

(3) Opportunity to discuss with the Government:

When there’s is less supply of fuel to the community, the government sought for oil marketers to discuss quick solutions to the problems and there you can make necessary demands from the government

Business Registration

In this line of business you need license in order to commence operations and this license is usually gotten from the government but before the government can give you the license to operate, you’ll need to register your business first under the Corporate Affairs Commission of Nigeria and it can be done in any state of the federation where your business is located. You will also need to pay regularly pay your tax in order for your business to run smoothly.

Equipment You Must Get For Your Fuel Station.

Here are some of the equipment you will need to buy for your fuel station to get your it running:

Pipe and valves: In order to get the fuel from the underground tanks, you need to connect pipe, valves.

Gauge or Fuel Management: This takes the measurement of the product which yourcustomers buys.

Fuel tanker: Every station has a fuel tank that helps to carry the fuel from the depot to your station(s) anywhere in the country.

Dispenser: This help control the quality of the product.

Storage tanks (steel): This is the reservoir for your fuel, as a storage tank for your product.

Canopies: Serves as a kind of shade or protection from the sun to the fuel station

POS: A gadget used for receiving payment in case the customer is not with cash.


You need to recruit workers in your company for proper administration and profit making and these are some of the workers needed:

Manager (Stock)

Account manager

Fuel attendants


Tips for Sustainable Business

There’s no need any special promotion or advertisement for your business.  Just sell at the ‘regulated’ price or below as long as it gives you profit and customers will patronize you continuously.


The structure for management should be in your business plan from the beginning. Just make sure that your staffs are paid as at when due. Carefully monitor what staffs to know how they are doing and track their performance.  You need to orientate your staff on how to achieve goals in what they do.

As an entrepreneur, you must possess good leadership skill and be a problem-solving individual who can persevere in challenging situations. Make sure the communication channel between you and your staffs functions properly


The oil business is a profitable business one can think of, with a product such diesel which highly demanded by the several individuals and industries. You need money in this business to make money.

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