How To Start Top 3 Cooking Gas Businesses In Nigeria

Cooking gas business
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Do you want to start your own cooking gas business? Do you know there are about three different cooking businesses you can choose to start now? I have written comprehensive details for you to get you started on these businesses.

I will show you want to do, how to do them and why you should do what I’m telling you to do. And it’s because I want to control your life. Every business has secrets and strategies that work.

The cooking gas business is shipment different. I will show you how to get started with a hundred per cent guarantee that you will be successful. And the little mind control sales strategies that work on every average Nigerian.


The good news about cooking gas business is that it has enormous profit potential. The profit margin can make you go green in envy. The retail price for one kilogram (KG) of cooking gas sell as much as N400 in most cities.

While this same one kilogram of cooking gas is supplied to gas plants at around N165 to N230 per kilogram. Now calculate the profit margin for each kilogram. With this kind of margin, anyone would like to go into cooking gas business.

But some cooking business will soon be restricted for everyone to invest in, like the cooking gas plant setup. It’s not like that kind of restriction though. But they will need to stop more investors from building new cooking gas plants at some point in time.

Only those who are able to get into it now can actually be the monopoly of the future in cooking gas business.

How it Works

The cooking gas business offers the most important product in the market. Every family need to eat cooked food. Even the restaurants all need to prepare their meals before they sell. And the investor who makes this important cooking gas available smiles to the bank.

However, there are three cooking as a business. I want to show you.

  1. Cooking Gas Plant Business
  2. Cooking Gas Supply Business
  3. Cooking Gas Shop Business

We are going to look at these three cooking gas businesses and how you can start any of them. Note that the capital outlay provided here are all estimates. The cost might be higher or lower depending on some circumstances.

Cooking Gas Plant Business

The cooking gas plant is the most profitable aspect of this business. It requires some bit of investment, but it has a higher return on investment. An average cooking gas plant can cost between N10 million to over N30 million to set up. But the profit margin is good enough to cover your cost within a short time.

Also, cooking gas plant by nature enjoys some form of monopoly that is as a result of government regulation and location requirements. This helps to eliminate competition and increases your profitability.

If you are looking at starting a cooking gas plant, I will advise that you first get some more detailed information, like How to Setup a Profitable Cooking Gas Plant Business Anywhere in Nigeria, by Atmosphere Publishing Company.

There are things you need to know about before starting the cooking gas plant. The report has in-depth information that will be of help to you as a startup cooking gas investor.

Here is the content of the report:

A. Introduction to Cooking Gas Plant Business

  1. Cooking Gas Potential, Target Market and Business Planning

– Why You should invest in cooking gas business
– the Future of Cooking Gas Usage
– How to find your target market
– Preparing a cooking gas business plan

  1. Cooking Gas Plant Setup
    2.A. Choosing the right cooking gas plant location

– Land size and documentation
– Importance of feasibility study
– Land lease agreement ideas

2.B. Cooking Gas Plant Government Approval
– How to process DPR approvals fast
– Why you may need a police report
– How to pass fire service approval conditions

2.C. Cook Gas Plant Cost and Installation
– Different tank sizes and cost
– Where to buy gas tanks
– Hiring a cooking gas plant consultant

  1. Cooking Gas Plant Management

– Cooking Gas Sales management
– Cooking Gas Supply management
– Cooking Gas Plant Maintenance

If you plan starting cooking gas plant, get as much information as you can get. Don’t rely on street information of those who think they know it all. It’s your money you are investing. Don’t throw it away on the advice of someone who’s not an expert in cooking gas plant setup.

It will cost you some money but it’s better to spend 1 or 2 million to save 50 or 100 million of your invested funds. Hiring a consultant will pay you in the end. It’s your best guide when starting cooking gas plant business.

Cooking Gas Supply Business

Another cooking gas business to invest in is the area of gas supply. The supply chain for gas is a huge potential to tap. As more cooking gas plant is significant the demand for cooking gas supply is also growing.

Although, as a startup, you may not get the chance to become a major cooking gas supplier. These major suppliers are big-time marketers and some top LNG staff who monopolies the trade with their proxies. But you can provide delivery logistics that might give you access to major suppliers.

What you need is a cooking gas truck and access to a major gas supplier. Your profit is in two folds. You earn from the markup on cooking gas price and also on the delivery cost.

Most delivery supplier charge as much as N20 per KG on delivery. While some cost based on a fixed amount, which is sometimes over N200,000 per delivery, depending on location from the supplier to the buyer.

To start the business, you will need to buy a truck head. The type of truck head is determined by the size of the tank you want to install on it. While the least tank you should install is 6 tonne. Trucks usually make empty space provision in the tank due to bad roads and shaking along the way.

The best way to set up this business is to hire a cooking gas consultant to help you fix all the puzzles together. And make the business functions within a specified period, like Three to six months. You can also add this business to your gas plant to meet your own delivery as well.

Cooking Gas Shop Business

The lowest cooking gas business to start is the gas shop. Anyone can start it. What you need are a shop and cooking gas products to sell. It also has the least capital requirement. And you can also refill cooking gas as well.

The most important things to consider when starting a cooking gas shop is your location and the kind of products to sell. Some gas products sell well in certain areas. Like the single gas burners and 3 KG cylinders sell more in low-income regions and school environment.

Once you can get your location and king of products on demand, you can set up for business. Also, finding a supplier for your products is easy. Most cooking gas product importers are in Alaba market in Lagos. You can also buy from importers in Onitsha if you stay around the south-south and south-east region.

Another big potential in cooking gas shop is becoming a major distributor for a gas product. Rhino gas regulator accepts exclusive distributors for their gas regulator in every city in Nigeria. The minimum requirement for an exclusive distributor is N2,500,000.

Action Points For Gas Business

You need to take action fast if you want to invest in the cooking gas business. Although your primary need is finance. Cooking gas business requires capital investment. You need to know the require cash and inject it into the business.

But once you are ready to get started, here are the steps to take to setup your own cooking gas business.

Step One: Get More Information

Some people think investing in knowledge is too much. But going into a business without the proper education will cost you more than you need to invest in training and materials.

Atmosphere Publishing Company offers special MasterClass training for cooking gas investors for N150,000, and you can also get the cooking gas plant report for just N35,000. But investing such amount before putting in millions in the business is a wise move.

For example, the MasterClass amount covers six months of mentoring, which you will get valued over N150,000 if you hire a gas consultant. And you will still get a cooking gas business plan with feasibility study worth N80,000 customised for your location.

Step Two: Get Startup Funding

When you have gathered the right information and equip yourself for the business, it’s now time to get started. But you will need money to do that. Depending on the business you want to start, the capital outlay might be different.

For cooking gas plant, you will need a piece of land. You can either buy one or lease one. Your choice will also depend on where you want to locate the gas plant. While for cooking gas supply business what you need is a gas truck. You have to determine this cost yourself. A land in lagos and a Lang in Delta cost different. And what you need is a 100 meters by 100 meters land size. In most cities, you will require two plots of land to get that size. Except in Delta state where a plot of land is approximately 100 meters by 100 meters.

And for each of them still, require a gas tank. While gas plant uses exact tank requirement, gas trucks need to have empty space inside the tank for shock absorption. But you should budget from N5.5 million and above for gas tank construction and installation.

Step Three: Setup Your Plant Or Supply Business

Once you have arranged your funding, the next step is to invest the money rightly. Always buy a gas tank from companies established here in Nigeria. Don’t buy from companies in China, even though they might be cheaper.

Local companies have an advantage that you won’t get from Chinese companies. And also, when you buy from local companies your save cost of transportation and installation. Buying from China means you pay your shipping, transportation from port to your location and also installation cost.

You also have to consider maintenance as well. The company that built the tank is in a better position to maintain and service it as at when due. The Will also have the required parts to change and fix broken ones.

Step Four: Location, Location, Location

If you don’t get your location right, you might as well never invest in cooking gas business. Imagine have a gas plant in the middle of the town. That would give you all the foot traffic and motorised traffic as well.

But most gas plants are located outskirts of town due to regulatory policy. But if you have a small plant of 2.5 tonnes, you can get approval to establish near residential.

So, choosing the right location for the business is essential. It’s even more critical now that the major consumer of cooking gas has shifted to the average people with 1kg, 3kg, 5kg and 6kg cylinders. It’s easier for them to buy from gas plants near them rather than take another trip off the town to purchase small KG gas.


The profit potent of cooking gas business is high. Although it’s not right to estimate the return on investment with due consideration for the target location. But we can look at possible profit margin to see how lucrative the business can be.

In most cities, one kilogram of cooking gas cost around N400. This rate may not be stable, but it floats around that amount. While the purchasing price for a KG of gas can be as low as N165. That leaves you with a lot of margin as profit.

When compared with a similar product like petrol which sells for N143 per litre, an equivalent of one KG, there is more profit to make from cooking gas business.

Chinedu David
Chinedu David is a business consultant, trainer, marketer and strategist. I founded Mystore, an eCommerce business in 2013. I have a vast experience in eCommerce, digital marketing and startup consulting. Having worked with SuccessDigest newspaper for over 10 years, as a telecom editor. You can contact me by phone, email or social media.You can also reach me via email: or Call/Text/WhatsApp: 07087770518
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