Costs and How to Start Rice Business in Nigeria

Nigeria’s most consumed staple food which is rice presenting a good business opportunity.

Rice consumption in Nigeria is very high and is as well a very good business opportunity for those willing to venture into rice business.

Rice is the major generally consumed food across Nigeria.

This means that whosever engages in rice wholesale distribution, farming and production will get patronages and will earn a lot money from Rice business and production business industry.

I will discuss the necessary requisites and steps to starting a rice wholesale business in this article, including why you need to get started in the rice distribution business in Nigeria.

Below are some o of the reasons why rice business in Nigeria is very profitable and lucrative.

These are some of the factors why you might consider the need to start the rice wholesale business in Nigeria.

Rice takes Long Before It Perishes

Rice can take up to years before it gets spoilt and non-edible for consumption.

So, it is a very ideal market as you will have a lot of hold onto goods, so you can get good customers without the fear of spoilage.

The Population of Nigeria

Nigeria population which is above 220 million is good numbers for investing in Rice business and that’s a very large economy to invest in.

Because, of the large population, there will always be ready consumers who are willing to purchase your product.

Statistics has shown that an estimate of 22 million bags of rice is consumed at the end of each month.

Rice Large Market in Nigeria 

The market is always open to you and ready to accommodate.

As soon as you start, customers will begin to flock to your store with endless demands for Nigeria’s most consumed food.

Rice is Very Popular Food in Nigeria 

Rice is an important commodity, just like Garri, sugar, and, salt. It keeps growing.

These are some of the reason why there is huge investment opportunities in selling of rice business in Nigeria be it local or foreign rice.

How to Start Rice Business in Nigeria

You’ll agree with me that there is hardly a household in Nigeria that does not eat rice.

This means that there will be good returns on investment in rice business in Nigeria.

The importance of rice to an average Nigerian can never be overstated.

This article will teach you just how to set up successful rice business in Nigeria.

Steps & Requirements for Rice Business in Nigeria

Here are some helpful tips on how to start lucrative and profitable rice business in Nigeria.

Also, in this post, the average minimum capital required for starting wholesale rice distribution business in Nigeria will be stated.

Rice Business Plan in Nigeria

Understand how the rice business works is every important before taking off as rice distributor in Nigeria.

you shouldn’t get too excited or carried away with how lucrative the business is, that you will now rush to dive in.

But first, take time to see how it works, the demands, pros and cons, requirements, stress, and based on all of that, conclude and be sure you have the neck for it before you proceed to invest in the business.

Decide on your location, target market, and the type of rice you would want to deal on.

Also, get important information like your supplier’s detail, issues with security officials, all those must be sorted before you venture into this trade.

Find Funding

Once you discover that you will be able to handle everything relating to rice business in Nigeria , then you’ll need to find money to fund the business.

The more you invest determines the profit you realize.

Aside from capital to purchase goods, you’ll need extra money for other expenses e.g rent, transportation, etc.

There are many ways to raise funding for your rice business, they include personal savings, loans, grants, and partnerships.

Warehouse / Storage Facility

Rice business needs spaces and larger warehouse.

So, the warehouse to be used for the rice business must be large enough, motorable and free from environmental factors such as rain, sun etc.

Distributorship License

This is will be important if you plan to buy your rice directly from rice companies in Nigeria.

You need to obtain a license to operate as a rice wholesale distributor of major rice companies in Nigeria like Big Bull, Cosharis, UMZA etc.

So depending on your state find out about the license and other legal formalities applicable to becoming rice distributor of top major rice producing companies in Nigeria.

Get your Rice Supply from Rice producers

You can decide to purchase your goods from rice farmers directly.

This will be very necessary especially if you plan to invest heavily in Nigeria local rice.

This is advisable because it is cheaper and it allows you to rebrand the rice to your taste.

Promote your Rice Business to Retailers

Having set up a Rice wholesale distribution business, it is pertinent that others rice retailers and those in the chain of rice business within your business area know that a new rice dealer has arrived.

It most likely these people are already buying from other distributors, so you need to give them a reason to patronize your products.

You can win the heart of your customers by using the list below:

Free samples

Discount

Free delivery

Cash on delivery

Credit offer

Accounting

Every successful business owner must keep good records of sales and purchases.

This helps you to draw a margin between profit and loss.

You must be able to account for every money that goes in and comes out.This is very necessary to be in business.

Capital For Starting Rice Business in Nigeria

This segments of the post will seek to answer questions such as how much capital will be enough to start rice business in Nigeria?.

Starting rice wholesale and distribution business in Nigeria requires a significant amount of money.

These money will be used for the following rice business logistics:

• Warehouse
• Transportation
• Stock
• Preservative
• Labour

So, you can see that despite how profitable and lucrative rice business is in Nigeria, it requires an average of N1 million Nigeria to start rice distribution or wholesale business in Nigeria.

To engage in marketing /sale of renowned and recognized rice brand in Nigeria and become distributor of top rice companies in Nigeria, an average of N4 million might be needed.

The chances of success in this business are very high and you will make a profit provided you follow the right steps.

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