There is no doubt that shelter remains a major socio-economic problem for many Nigerians. A recent statistics indicates that demand for housing is increasing by 20% in Lagos, Abuja, Ibadan and Kano yearly. In 2010, the building and construction sector registered strong growth of 12.09 percent, indicating greater investments in both residential and non-residential building. Early this year, administration of former President Goodluck Jonathan launched 10,000 Affordable Housing Mortgage Finance Scheme targeted at young working class Nigerians. These potent good omens for cement block makers in Nigeria’s main cities and environs. With the yearly growing demand for befitting houses in major cities and towns in the country, people with the exceptional skills and business knowledge in cement block making usually have the reason to smile to their banks daily.
Seizing the opportunity
Most of them seized the opportunity by starting small and think big along the process. They made a significant number of decisions towards successful cement blocking making business in their varied locations. Readiness to take any risk that might come of their ways on the business was their first utmost decision in their quest of exploring fortune in the business. Acquisition of a 60 by 120 plot of land in an emerging real estate area is what most done that opened door of success. The land accommodates their blocks and necessary materials such as Diesel Lister, Borehole, Block Molder, Wooden Block Carrier and a small shed, covering the land.
Starting on a small basis requires little workforce. Just ensure that you have an operator, two mixers, two carriers and a roofed shed, where the Lister and Molding machine will be set up and operated from. To sustain the customers’ demand, there should be a steady supplier of good cement, sand and diesel. Those who have achieved a lot in this business suggested that having a store for cement and Truck for quarrying of sand from places help tremendously in reducing inability of most sand suppliers in delivering the needed sand. The supply of diesel also needs crucial attention in order to avoid delay in production. The best way of overcoming inadequate supply of diesel is to contact more than two filling stations close to your location.
On the side of the equipment, experts believe that Chinese and German firms are in a position to produce best machineries for the business. The cost, however, depends on the categories of the machine one needs and appropriate for the structure of the business chosen. Though, there are a good number of companies that could produce the kinds of machinery manufactured by the Chinese and German companies in the country, but fact still remains that they are uniquely positioned in block making machines in the world.
The hidden fortune
Between 12 and 13 bags of cement, successful block maker said 500 of 9 inches blocks would be produced in a day. The price of selling each is at N140 or more depending on the location of the business and demand-factor. At N140, 500 blocks will be sold for N70, 000, while N45, 000 or N50, 000 will be the cost of production. The profit margin will be between N20, 000 to N25, 000 daily when we subtract cost of production from the sales. Therefore, in a month between N600, 000 to N750, 000 will be generated as profit. Despite this fortune, many people have closed down their businesses due to poor managerial skills, and adequate training for workers on modern techniques of moulding blocks. This is where it becomes necessary for the established block makers, who might have experienced profit dip or other challenges and those who intend to venture into the business to consult professional business advisors.