Engine Oil Business in Nigeria: How to Start

The engine oil business in Nigeria is growing in popularity. We can trace the rapid growth of this business to the increase in the number of vehicles and other machines in the country. Engine oil is also known as “lubricant” and the engine oil industry covers a variety of oils.

Would you like to start an engine oil business in Nigeria? This post will show you the steps you should follow. It will also provide insight into the products in this industry and other important pieces of information. 

Types of Lubricants in the Engine Oil Industry

Engine oils are used for domestic, commercial, and industrial purposes. Because of this, the products in this industry are among the most consumed in the world. Several investors have put effort, time, and money into this industry and are reaping huge profits daily. Before we show you how to start the engine oil business in Nigeria, let’s first highlight the different lubricants in the industry.

Motor engine oil

This is probably the most consumed of all the lubricants in this industry. The oil can either be 5W40 or 5W30 depending on the treatment and the manufacturer. Your location determines the extent of demand for the products in this category. Most urban cities with high vehicle volumes have a lot of competition in this regard. Regardless, there is still a high-profit potential if you understand the market and employ the right marketing strategies.

Brake and clutch fluid

This is another very popular product in this industry. They are either Dot 3 or Dot 4 depending on the treatment, manufacturer, and function. Survey the market in your location to find out which one they use more. Build your business around this product before diversifying into other categories of brake and clutch fluid.

Automatic Transmission Fluid

Most of the vehicles in use today work with automatic transmission systems. Because of this, there is a need for more distribution and sale of automatic transmission fluids. Vehicle owners are expected to change this oil depending on their car’s mileage. This is another area you can consider investing in if you plan to start an engine oil business in Nigeria.

Oil treatments

While this is not classified as a lubricant, mechanics and car owners use it after working on their gasoline engines with engine oil. Oil treatment cleans the vehicle engine while dissipating the heat that it generates. It may not be in demand as much as the other products on our list, but it is worth investing in.


This is another lubricant that is growing in demand. Mechanics, industries, and private vehicle owners use grease for a variety of purposes. grease protects engines and their vehicle metal parts from rust. The most popular grease sold for machines is SAE J310.

Diesel engine oil

Similar to the engine oil for gasoline engines, diesel engine oil is also in very high demand. Different kinds of heavy machines make use of this lubricant, not just vehicles. The most common specification used by these machines is 15W40. 

How to Start an Engine Oil Business in Nigeria 

Now that you know the kind of lubricants to sell, let’s show you how to start an engine oil business in Nigeria.

Carry out a feasibility study

The first step you should take is to carry out a feasibility study. This process allows you to find out about the demands of your target audience and gather the opinions of different stakeholders. You also learn about the amount of money you need to begin and run this business. Another important lesson you draw from your feasibility study is who your competitors are and how they operate.

Ensure that you learn the ropes of the business as you carry out your feasibility study. The information you gather at this stage will be instrumental in building your business plan and setting up the business for success.

Write a detailed business plan

A business plan is a document that shows clear information about a business. Usually, entrepreneurs prepare a business plan before starting the business. However, they need to update the plan as the business grows so that they can make adjustments where necessary.

Include your mission and vision statements in your plan. Also, draw up a clear marketing and pricing strategy for your products. Finally, ensure that you have clear financial projects to guide you. One of the main benefits of a business plan is that it can help you raise the capital you need to start the business.

Raising capital

After studying the market and writing your business plan, it is time to raise capital. The amount you need to start this business depends on the scale at which you plan to run. Running at a small to medium scale, you need between N300,000 and N700,000. For a larger venture, you may need as much as N2 million.

There are several ways to raise funds for your business including personal savings, grants, bank loans, and angel investors. Your choice depends on the capital outlay of the business and the documents available.

Get a store

Invest in renting or leasing a store and warehouse for your engine oil business. You may not need a warehouse if you are running a small engine oil outlet. However, as a supplier or distributor, you cannot do without one. When choosing a location for your store, ensure that it is accessible and in a location that attracts your target audience. 

Stock your store

Your next line of action is buying stock to fill your store. Study the market for the most in-demand products and purchase them. Remember that every business aims to satisfy the needs of its customers. Don’t just invest in products because they look good or are from a popular brand. Only purchase products that your customers are willing to buy. With time, you can add other products that are tested and trusted to your shelves.

Market your products

Begin to create awareness about your business among the general public. You might have to run a few promos and gift customers a few items to attract patronage. Find out the best marketing strategies for your business and utilize them as much as you can. If you are running a large engine oil outfit, you should consider purchasing a delivery truck.


That’s it for how to start an engine oil business in Nigeria. Do you have any questions? Feel free to drop them in the comments section.