Building Materials Business in Nigeria: How to Start

Are you considering starting a building materials business in Nigeria? This is a great idea because of the rapid growth rate of the Nigerian population. Asides from the population growth rate, more people are migrating to urban areas. These reasons mean that there is a serious need for accommodation in this part of the world.

Interestingly, more businesses are springing up as well. This means that there is also a need for offices and business venues. As a result, the building materials business in Nigeria is quite lucrative. This post will teach you how to start this business in Nigeria. 

Explaining Building Materials and the Building Materials Business

From the name, you can guess what building materials are. They are the materials used in constructing residential and business buildings. These materials can either be man-made (such as blocks, glass, cement, roofing sheets, etc.) or naturally occurring (like gravel, sand, timber, wood, etc.).

Asides from constructing buildings, you can also use these materials to construct bridges, roads, and several other pieces of infrastructure.

The building materials business involves the purchase and sale of the materials described above. The sale of building materials could be done in several ways such as:

  • Wholesale.
  • Distribution.
  • Retail.

The level of operation depends on the capacity of the entrepreneur. There are several exciting business opportunities available in the building materials business in Nigeria. Some of them include:

  • Cement manufacture and sales.
  • Block production and distribution.
  • Roof sale and installation.
  • Sales and installation of ceramic tiles.
  • Carpentry.
  • Sales, distribution, and installation of Aluminum windows and doors.

With this out of the way, let’s show you how to start a building materials business in Nigeria.

How to Start the Building Materials Business in Nigeria

The building materials business is pretty wide. A novice might struggle to start and thrive in the business without access to the right information. This section will show you what you need to do to start and excel in this business.

Feasibility study

The first step to starting this business is to carry out a detailed feasibility study. This study should introduce you to the intricacies of this business. Find out what it entails to begin the business in terms of industry entry requirements and capital projections. Also, reach out to existing businesses to inquire about how the business is run, their challenges, and how they mitigate the effects of these challenges.

Study the market to find your target area as you cannot sell everything or satisfy the whole market. Check out the prices of the different items within your niche and how your competitors fix their prices. Finally, check out the profit potential of this business, and how you can excel.

Write a business plan

After completing your feasibility study, you should gather all the information at your disposal and use it to write a detailed business plan. Many people overlook the importance of a business plan in this part of the world. However, it is a very important document that provides you and your stakeholders with a clear picture of what your business is about and what you plan to achieve.

If you cannot write the plan by yourself, you can contract an agency to handle it on your behalf. Asides from acting as a map for your business, the plan can also help you to raise capital for your business.

Raise capital 

From your feasibility study, you have a clear picture of how much you need to start a building materials business in Nigeria. Once you are done with writing your business plan, your next line of action is to raise capital for the business.

There are several ways to raise capital and the one you choose depends on the level at which you want to operate. If you want to be a retailer, you can raise capital from personal savings, or small gifts and loans from loved ones. However, you might need a lot more money to become a wholesaler or distributor. In this case, you may need to consult the bank for a loan or sign a deal with an angel investor. 

Choose a suitable location

The location of your building materials business plays an essential role in how much success you attain. You cannot afford to site your business in an area where your products are not needed. Some of the factors you should consider when choosing your location include:

  • Target market.
  • Accessibility to your store.
  • Proximity to building sites.
  • Security and safety.
  • Proximity and accessibility to manufacturing companies and distributors.

Let’s say you plan to be a cement retailer. You should site your shop in a place close to where construction work is ongoing or likely to take place in the nearest future. 

Secure your store

Now that you have decided on a location for your store, it is time to pay for a store. The size of your store depends on the kind of products you want to sell and the scale at which you want to operate. For example, you don’t need a whale house for materials like iron. All you need is a space to store the iron and a small office for meetings with your clients. Ensure that your store is comfortable for you and your customers while being perfect for the products you want to sell.

Find a credible supplier

You are almost ready to begin your building materials business in Nigeria. It is time to find a supplier that you can purchase materials from to stock your store. We suggest that you choose a credible supplier. You should have found this out during your feasibility studies. The credibility of your supplier will affect your business so this factor is very important.

Purchase your materials and start marketing

Great job, you have just purchased the materials you want to sell. Do you just wait for customers to find your store? Of course, not. This is where many people in this line of business make a mistake. You must be aggressive in marketing your products. Employ different marketing channels to get better results.


That’s it for how to start a building materials business in Nigeria. This post has explained the different steps you should take to start this business. Do you have any questions? Kindly drop them in the comments section.