Chinedu Nwaigene March 4, 2015

Have you ever heard about the sayings that Nigeria is a consumer-driven economy? The Manufacturing sector in Nigeria is currently growing faster than the telecommunications, oil and gas and agricultural sectors. Nigeria’s large population of upwardly mobile consumers, coupled with investments in power, implies that the strong growth of manufacturers, including food producers and breweries, is sustainable. Manufacturers in ….Nigeria had attributed the remarkable increase recorded in capacity utilization within the last year to favorable government policies, especially with respect to industry, trade and investment. Manufacturing in Nigeria also potentially provides you more leverage from your investment of money than many other categories of business. Since you are adding value to raw materials, equipment, and capital costs, you can often be quite profitable.

How to Start Manufacturing in Nigeria

 

 

 

 

Manufacturing can be challenging, but the rewards can be great — both emotionally and financially.
The first and the most important of all is, of course, an idea. I often hear people say, I need to make money and my question is, are you the government? It is absolutely illegal to make money. This idea- that you need to make money to have it – limits you to believing you must trade time for money. Quit thinking about making money and think in terms of collecting it. When you trade something of value with the public you will get money in return. However, if you are interested in how to start your own manufacturing business you most likely already know what you would like to produce. Nevertheless, it is crucial that you are absolutely sure that the product you wish to produce is actually needed. After all, you have to sell your product if you want to succeed. There are no guarantees that people will like your product, however, this is a risk every entrepreneur needs to take.

Things to do first:

• Idea about what to Manufacture
• Research on the products and its target market
• Find the location for your factory and office
• Register your company with the corporate affairs of Nigeria
• Raise funds from Loans, Savings, SMEs funding program, Donations.
• Buy the Machines needed (preferably from India or China).
• Assemble the Machines
• Employ few worker at first
• Start Manufacturing
• Promote your Products
• Sell Your products

Running Your Manufacturing Company in Nigeria

 

1. MANAGEMENT:

Management is an important aspect of business and many company fail simply because of the way they are managed. As the Owner of the company, it is your duty to set up a great team that will achieve the objectives of the company. You have to build a good team, inspire them to do more, acknowledge their success, avail a better working condition for them, give them task to do with limits, provide the opportunity to them in taking some key decisions, make sure they love what they do and promote them when necessary.

2. FINANCIAL PLAN:

This is another good aspect of business. Hire some good accountants to assist you on this area. Get advice from reliable accountants. Make sure everything is documented and done properly. Regulate their work and access their progress.

3. MARKETING:

Marketing is a good branch of business that is very important in making your products known to the people. Hire people with marketing knowledge who can identify the target market for your product. Create a marketing strategy and share it with them for effective implementation.

Marketing Mix:

The 4cs and 4 ps-

 

  • Consumer wants/needs-VS-Products: – You have to study consumer wants and needs and then attract consumers one by one with something each one wants.
  • • Cost-VS-Price: – One of the most difficult places to be in the business world is the retailer selling at the lowest price. If you rely strictly on price to compete you are vulnerable to competition – in the long term.
  • • Convenience-VS-Place: – Place is where the customer meets the salesperson. This may be a retail establishment, the customer’s home or office or some other places.
  • • Communication-VS-Promotion: – Promotion is the tool that the market uses to inform the population about the product. In order for somebody to know they can get the product from a place for a price, they’ll have to have that product promoted to them in one way or another. Promotion exists in many forms, and it continues to evolve to this day.

Continue Reading in  PAGE 2


22 thoughts on “How to Start a Manufacturing Company in Nigeria

  1. Sir
    My name is lawrence Akinboade a graduate of Env Health and highly experience in the local processing of cassava tuber flower called Garri but now i want to make use of advance technology in this process in a mini scale and needs financial back up
    i have done a lot of resarch and will need up to N5million naira incluting land and plant building on a very small scale which i hope will expand soon but i dont know how to get a loan for this venture i have a registered company name but no capital please how can you help me
    Thank you

  2. I actually want to go into Rubber(Latex) processing in Nigeria. I wish you can assist me in this area to be able to get started.

    Kind regards,
    Odiche Monday Iweobi

  3. Please, I’m very passionate and interested in soap and body cream manufacturing and I don’t even know where or how to start. How can you help me out please?

  4. Hi Admin, nice and great tips here. I am aspiring to become an entrepreneur and I have an idea of what I will love to go into I just need professional advice from you. I really wish you can contact me so I can have a 1on1 email discussion with you. my email addy is, efizzle09300@yahoo.com. will be anxiously waiting for an email from you. Thank you.

  5. HI Admin,

    Please, for the sake of legality, what should an entrepreneur do to ensure his food packaging plant is inline with government policies. Are there other bodies apart from the NAFDAC, CAC and SON to register with?

    Thanks

  6. I’m impressed with your article. Thanks, and hope to synergize with you as time goes on. I want to process Palm and Kernel Oil with future growth into Animal feed production. I am presently acquiring the Land for it.

  7. Weldone for the info. God bless u. I’m an entrepreneur, but I have also gained more from your article.i hope to work on them and get back to you along the line.

  8. Thank you sir for this vital information. I really appreciate your efforts. I am nursing an idea currently of starting detergent and bar soap manufacturing, but I don’t know how to go about it. If possible can you tell me more of that business and how to go about it. Thanks

  9. This is exceptionally excellent and highly commendable. Only very few Nigerians will hardly share this type of highly professional information publicly without asking something in return. I recently lost my job and wish to go into manufacturing having worked in food packaging all my life. I have only N700,000 ONLY for this business and need very fast return on my investment to enable me pay my children fees, my house rent and other exigencies. How can you help me meet my dream?

  10. I really appreciate this great tips. pls admin can i get an email contact to reach you. I have an idea and I wish to discuss with a professional like you.

  11. Firstly I will ask you ” Are you a Nigerian” because is hard to see a Nigerian giving out. Information like this without collecting one penny. I really appreciate you for your effort.

    1. Adebayo….Thanks for your comment. I am a Nigerian and I understand clearly your point. Most people collect money and give out half baked information but I am a passionate entrepreneur and I love what I do. I sincerely like to share ideal freely to people to educate them about starting and running a successful business in Nigeria.

      Go to About the founder and read about me.

  12. I am glad to come across this. Thank you so much. I am manufacturing bar soap but still growing. I started mid last year and will work on with this your marketing techniques to improve my sales and awareness.

    1. You start small and grow with time. That’s how many entrepreneurs started. Marketing is a crucial aspect of business and should be implemented thoroughly for business growth. Thanks for your comment!

  13. I found this publication very useful. Am also planning to start up a business, i will need your assitance. Thank u

Leave a comment.

Your email address will not be published. Required fields are marked*

error: Content is protected !!
Block selection by mouse plugin by JaspreetChahal.org