Opportunity in Marine Support Services in The Petroleum Sector

An estimated $8 billion is spent annually on outsourcing of services in the oil and gas industry in Nigeria in operations such as fabrication, engineering procurement, construction (EPC), Front End Engineering Design (FEED), conceptual designs and seismic studies. This figure is projected to hit $15 billion within the next few years (Business Day, 2008).

Regrettably, despite these huge sums of money spent in servicing the industry, only a very little proportion of the accrue-able profit is spent in Nigeria. Majority of the amounts are repatriated abroad, where most of the equipment is manufactured; and providing employment opportunities for citizens of other countries. 

 

The major reason for this situation has been attributed to low local content (LC), which is a situation where most of the service contracts are awarded to foreign firms because local indigenous firms lack the requisite skills, technical expertise, manpower and production capacity and capability to compete favorably.

 

The passage and assent of the Nigerian Local Content Policy is an expression of the desire of the Federal Government of Nigeria to ensure that companies owned by Nigerians actively participate not only in the oil and gas trade of Nigeria but in all technical aspects of the Nigerian economy.

 

The entire essence of the new law is to increase indigenous participation in the oil and gas industry by prescribing minimum thresholds for the use of local services and materials and to promote the employment of Nigerian staff in the Industry.

Along with the Cabotage law in the maritime industry, which seeks to restrict the use of Foreign Vessels in Domestic Coastal trade to promote the development of indigenous tonnage and to establish a Cabotage vessel financing fund and for Related Matters, Nigerian investors can better harness the opportunity available in the oil and gas industry in Nigeria by providing maritime support services through leasing and rental of vessel, barge and tugboat.

 

Haulage of crew and equipment is an essential part of an oil and gas operation which requires the use of barges, tugboats and vessels.

A Barge is a flat – bottomed boat built mainly for river and canal transport of heavy equipment’s. Some barges are not self-propelled and need to be towed or pushed by towboats. In the oil and gas industry, they are mostly used in swampy operation for the haulage of crew and equipment.

 

A tug boat is a boat that maneuvers vessel by pushing and towing them. They are usually used to tow barges.

 

A vessel is a craft for traveling and transporting goods on water and is usually larger than boats and barges.

Providing marine support services in the oil and gas industry in Nigeria is surely a viable business but the investor needs to be armed with the right information to succeed in the business.

Business Opportunities in Trading & Brokerage of Nigerian Crude Oil

Nigeria has for long been a major producer of crude oil ever since the first commercial well was drilled in Oloibiri in present day Bayelsa state. The country presently has an estimated 35.3 billion barrels both onshore and offshore assets mostly domiciled in the Niger Delta basin. Nigeria presently ranks tenth in the most petroleum-rich nation, and by the far the most affluent in Africa producing about two million {2,000,000} barrels per day.

 

Nigeria's petroleum is classified mostly as "light" and "sweet", as the oil is largely free of sulphur. Nigeria is the largest producer of sweet oil in OPEC. This sweet oil is similar in composition to petroleum extracted from the North Sea. This crude oil is known as "Bonny light". Names of other Nigerian crudes, all of which are named according to export terminal, are Qua Ibo, Escravos blend, Brass River, Forcados, and Pennington Antan.

 

Sales of crude oil in Nigeria are usually done through the Nigeria National Petroleum Corporation {NNPC} on FOB basis. Prospective buyers can also source the product on the following delivery terms from other source CIF, TTT or TTO. 

 

FOB – Free On Board (named loading port): The classic maritime trade term, seller must load the goods on board the ship nominated by the buyer, cost and risk being divided at ship's rail. The seller must clear the goods for export.

 

TTO- Tanker-Taker-Over: As the name suggests refers to a situation where the buyer takes over the hiring of the pregnant vessel along with the product it contains.

 

TTT- Tanker to Tanker Transfer: This refers to a situation where the buyer hires his own vessel and uses same to purchase products from the seller.

 

Petroleum products are among the most valuable natural resources abundantly available in our country. Nigerians and people everywhere use petroleum products as a fuel in their automobiles, generating sets, industrial plants and for cooking purposes, thus making petroleum products an essential commodity that is needed for the daily operations of individual, industrial and national activities. 

 

Nigeria being an oil producing nation however still relies on imported petroleum products for the servicing of the economy. Such petroleum products as Petrol (PMS), Diesel (AGO) and kerosene (DPK) are products utilized by almost everybody on daily basis at an average of 60 million litres daily usage. 

 

Due to increasing level of standard of living, more Nigerians are increasing the number of cars on the road, the need for constant power supply to aid uninterrupted production of goods and services and also for domestic use more Nigerians are increasing the demand for fuel in order to enjoy the usage of their generating sets and industrial plants.

Make Money Supplying Soya Beans To Local Industries

Nigeria presently produces about 500,000 MT of Soybean annually making it the largest producer of the product on the African continent. Soybean is a legume which is produced in most the middle belt of the country with Benue state accounting for about 45% of the total production in country.

Soybeans are an important source of high quality and inexpensive protein and oil. With an average protein content of 40% and oil content of 20%, soybean has the highest protein content of all food crops and is second only to groundnut in terms of oil content amongst food legumes. Soybeans are used in the production of milk, edible oil and animal feed. It’s high protein content and price makes it the best option in terms of treating malnutrition and would continue to expand the international market for the product which currently is estimated at US$40 billion.

Nigeria currently produces soybean worth $85 million in the international market and though most of the nation’s soybean is consumed locally where they are used in the production of soya milk and specially formulated foods to help malnourished infants and children, the international market for the product is growing and sustainable.

Foraminifera Market Research seeks to highlight the investment opportunity in the supply of soya beans to local industries in Nigeria.

The market for palm and edible oil is national. With a population of over one hundred and fifty {150,000,000} million people and an estimated national population growth rate of 5.7% per annum ,an average economic growth rate of 3.5% per annum in the past five {5} years, Nigeria has a large market for edible oil.

In 2005, in order to stimulate local production and attain self sufficiency in edible oil production, the government introduced the presidential initiative on the development of edible oil over a period not exceeding three {3} years. Under this initiative, attention was focused on the promotion of eleven scheduled oil seed crops which are oil palm seed, groundnut seed, Soya beans seed, cotton seed etc and production target was set for each of the crops under the programme as follow

1. Oil Palm: 1 million hectares capacity of producing 15 million fresh fruit bunches
2. Groundnut: 15 million tones annually
3. Soya beans: 670,000 1 million tones per annum
4. Seed Cotton: 1 million tones over the plan period

After five {5} years of the initiative, the domestic edible oil demand far exceeds the national production. The short fall in supply being estimated at about 50,000 tones per year. From the above figures, it is clear that there is a large and sustainable market for edible oil in Nigeria.

Soybean is an important source of high quality and inexpensive protein and oil. With an average protein content of 40% and oil content of 20%, soybean has the highest protein content of all food crops and is second only to groundnuts in terms of oil content amongst food legumes.

Because of it numerous uses, soya beans are in great demand and this opens an opportunity for interested investors to export the product.

The return on investment on the export of raw cashew nuts is estimated between 10%- 15%.

Sawdust Briquette Export Business

One major achievement of the present civilian administration in the past twelve (12) years has been the revival and growth of the non-oil export market in Nigeria. Non-oil export has recorded a tremendous increase of 112.4 % in nine years spanning 2001 to 2010 with annual average growth figure of 10.34 %.

 

Hardwood charcoal is one of the key export commodities in Nigeria. Though a viable export commodity but the rate at which new entrant are coming into the business is increasing depleting the rate of return on investment of the business hence the need to diversify to a product with less competition and good rate of return on investment.

Sawdust briquette is compressed sawdust and just like hardwood charcoal is used as fuel. It has a greater advantage over charcoal and firewood because it is smokeless and combusts for longer hours. The export market for sawdust is also large, sustainable and expanding.

 

A briquette (or briquette) is a block of flammable matter used as fuel to start and maintain a fire.  They are produced from dry sawdust and the resulting compressed dust comes out in a solid and cylindrical shape. It can also be in different shapes. The conversation is done through the briquetting machine and the briquette does not require any binding agent or chemical adhesive.

They are used as cooking fuel in hotels, boarding school/hostels, eateries and factories where boilers are been used.

 

The product is marketed according to the grading briefly as follows:-

Grade "A"- void of cracks, hard with metallic sound when rolled and lengthy (not more than 4 pcs in a length of 390mm).

Grade "B"- with minimum cracks, hard and not less than 75mm in length.

Grade "C"- as "B" except the length is not less than 50mm in length.

During the era of late Gen. Sanni Abacha, sawdust ranked amongst the leading cooking fuel in Nigeria, due to the scarcity of kerosene. Sawdust, the chief raw material in the production of sawdust briquette, is produced as waste product in the processing and production of woods.

The market for sawdust briquette is both local and international though the international market is more developed than the local market.

 

The growing world population continues to fuel the demand for cooking fuel around the world and due to increasing awareness on global warming and its effects on the ecosystem, sawdust briquette is cheaper, faster and better than the regular firewood, natural gas, charcoal and kerosene. Opportunities exist in the production, sales and export of the product.

 

The exportable nature of this product makes it a goldmine for investors who wish to go into the export of the product or for existing exporters of charcoal to make greater profit as the demand is hot abroad.

The return on investment in the export of sawdust briquette is between 25% - 35%.

Car Washing Business

Car washing business is a very profitable business in Nigeria, considering the dusty and muddy nature of our environment. Cars get dirty even if they are just parked. Since people need to clean their cars regularly you are always sure of a steady market.

With a good location and excellent marketing concept, I assure you that you can make over N25,000 daily from this business. I may not be willing to state names for anonymity reasons but just take a stroll to some good car washing business centers in your city and calculate the inflow of vehicles daily and what the car washers stand to make at an average bill of N1000 per vehicle, you will be amazed that most of them earns much more than N25,000 daily.

You can follow this simple steps to start a profitable car washing business:

1. Make a business plan as this will be essential to plan out all the short and long term needs of the business and will help in smooth operations.

2. Find a location. Look for a location where car washing service is needed. Choose a busy intersection such as a main street which is visible to more people. More automobile visibility will increase business.

3. Register your business with the corporate affairs commission

4. Learn the requirements.

5. Buy the needed equipment such as water pumping machine and host, PVC tank, brushes, and buckets etc.  You can use local water supply if you don't have the needed funds to sink a borehole yet.

6. Concretize the floor, and create arena for customer relaxation while waiting for the services.

7. Research profitable extra services. There are different kinds of services such as additional waxing or self vacuuming you can offer.

8. Get adequate finances for the business and advertise the business by using creative and tested promotional methods such as fliers and referral coupons. Start-up costs for a car washing business is about N150,000

Make Money Packaging Raw Crayfish For Export

Agriculture is characterized by considerable regional and crop diversity.  Analysis of this sector, particularly the food sub-sector, is fraught with serious data problems.  However, the available statistics provide a broad overview of development in agriculture upon which we can make some broad generalizations about its role in economic development and structural change.

In the 1960s, the agricultural sector was the most important in terms of contributions to domestic production, employment and foreign exchange earnings.  The situation remained almost the same three decades later with the exception that it is no longer the principal foreign exchange earner, a role now being played by oil.

The sector remained stagnant during the oil boom decade of the 1970s, and this accounted largely for the declining share of its contributions.  The trend in the share of agriculture in the GDP shows a substantial variation and long-term decline from 60% in the early 1960s through 48.8% in the 1970s and 22.2% in the 1980s. Unstable and often inappropriate economic policies (of pricing, trade and exchange rate), the relative neglect of the sector and the negative impact of oil boom were also important factors responsible for the decline in its contributions.

On its diversity, Agriculture features tree and food crops, forestry, livestock and fisheries.  In 1993 at 1984 constant factor cost, crops (the major source of food) accounted for about 30% of the Gross Domestic Products (GDP), livestock about 5%, forestry and wildlife about 1.3% and fisheries accounted 1.2%.

Any nation that requires economic development must look inwards to identify areas where it has comparative advantage over other nations and seek to develop the identified areas.

With a lot of fresh water bodies spread across Nigeria, the nation surely have comparative advantage in the production of crayfish. Crayfish, a crustacean of higher order found in fresh water is a very popular spice in the tropics where they are used in the preparation of food. It is estimated that about 12,000 MT of crayfish is produced annually in Nigeria and we seek to expose the investment opportunity in the packaging and export of crayfish through feasibility report.

The demand for African foodstuffs in Europe and America is rising due to increasing number of Africans, particularly Africans who sojourn to these countries for the proverbial greener pastures.

There are many small foodstuffs exporters in the West African sub region who depend on middlemen to export their produce in small quantities and sell to consumers or retailers running ethnic shops in the US and Europe.

The volume of Nigerian export of foodstuffs to these countries is still on a very small scale considering the estimation of well over 20 million Nigerians who reside outside the country, with the majority, living in the UK and the US. This is a great opportunity to sell to this category of people. The few exporters of African foodstuffs cannot meet with the demand of Nigerians whose population is increasing everyday abroad.

As one of the major food condiment in Nigeria, a large market exists for the export of raw crayfish abroad.

The return on investment on the trading of raw crayfish is estimated between 10%- 20% per transaction.

Sachet Water {Pure Water} Production. A Viable business Opportunity

Water is one of the most essential commodities for the survival of all lives. It is abundant in nature and occupies about 70% of the earth’s crust. However, safe drinking water is very scarce hence the need for processing, treatment and proper packaging of water before consumption.
In Nigeria, One major achievement of the present civilian administration in the past eleven (11) years as been the growth of middle class witnessed in the country. This growth continues to drive the increasing social and sanitary awareness of the need for hygienically and well produced food products like sachet and bottle water in the country.

The market for sachet and bottle water is national .With a population of over one hundred and forty million (140,000,000) people and an estimated national population growth rate of 5.7% per annum , average economic growth rate of 3.5% per annum in the past five (5) years ,Nigeria is a large ,expanding and sustainable market for sachet and bottle water. Though the market for sachet and bottle water in Nigeria, the business tends to sale more in the northern part of Nigeria where hot weather is prompting people into drinking more water than usual and lack of clean pump water contributed in giving the business a good push up.

Sachet and bottle water is consumed on daily basis by all and sundry irrespective of age, social class or religion. The raw material required for the production of sachet water is water while the other factors of production like land, capital, labour also comes to play.

In the production of sachet water {pure water}, the two most important equipment required for production is the water treatment plant and the sachet water filling machine.

Some of the machines needed for bottled table water production and their uses is given below.
Part One: Pure Water Treatment System.

This system is comprised of; activated carbon filter tank, sand filter tank, softer/ion exchange tank and also the reverse osmosis system. For control, it uses PLC system to monitor the operation of the entire system.

Washing, Capping, Filling Machine (3-in-1)
This machine can automatically wash, fill and cap plastic and glass bottles.

Cap Elevator : This machine is not necessary but it is convenient and it improves the hygienic operation of the line.

 

 Light Checker: After the bottles have been filled it is necessary to check that the finished products meet the set and acceptable standard. And that is exactly what this machine is designed to do.

Auto Cap Code Printer : This machine is used to print codes on the caps. The date of production and the batch number can be printed with this machine.

Cap Sterilizer : As bottled pure water is a cold process production, it is necessary to sterilize the caps before loading them on the washing, filling and capping machine.

Conveyor : To facilitate the production process the bottles have to be moved from one unit to another.

Steam operated Shrinking Tunnel (Labeling machine) : This machine shrinks the producer’s label on the bottled water. Please note that you will need a steam generator with this machine.

Wrapping/Shrinking Machine : This is a packaging machine. I will advise you to buy the manual type as it is much cheaper than the semi-automatic one.

The return on this project is quite attractive and impressive that it would be difficult for any financial institution especially banks with discerning credit officers to turn down any loan request for funding this project. Promoters of this venture will also feel comfortable to release their hard earned money to finance this project.

The successful implementation of this project begins with the preparation of detailed and bankable feasibility study report to ascertain the actual cost/benefit status of the project. As a part of the legal requirements , the promoter has to register its product with NAFDAC.

Starting a frozen food business

Starting a frozen food business is fairly simple and can be done with very little overhead. However, it will take some planning, as several different kinds of frozen food business models are in the marketplace. This article will help you choose one that suits you and develop a delivery method and a marketing plan so you earn a solid reputation that, in turn, will result in residual income for you in the future.

Things You'll Need

    Business plan
    Capital
    Proper equipment

Instructions

1. Choose your products. Virtually thousands of foods are sold frozen. From pizzas to pickles, the gambit is being covered by many. This means you will likely never be all things to all people. However, it also means opportunities to specialize are ample. Choose products that are simple to obtain and market at first. Look for wholesalers that sell unique products that are not currently available in your area.

2. Write a business plan. Your business plan should be written around your product or products and how you plan to market them. It should include studies of the frozen food business in your area, your intended marketing plan, a budget, a list of equipment you will need to operate your business and your niche.
      
3. Choose a delivery method. Selling frozen foods often involves several delivery systems. You may decide to market your products online and deliver them, pedal your foods to businesses and homes face to face or open a store. You may also have an idea that's completely unique. It's up to you.
     
4.Raise capital. You will need some cash to start, especially if you plan to buy a delivery truck and kitchen equipment or lease a storefront.

5. Find storage space. It is important to keep an ample inventory on hand at all times. In the beginning, this may involve you buying a deep freezer or two.       

6. Get a food license. To sell food in almost all areas of the country, you must have a food-distribution license and/or a license to prepare food for sale.
       
7. Consider a franchise. Many companies with proven business models are looking for franchisees. Although this type of model will likely require a sizable capital investment, it's a good option if you wish to bypass the process of building a business from the ground up.

Some frozen food wholesalers are always looking for independent contractors to market their products. This type of arrangement may work well for you, in that you won't be required to get a license, find a kitchen or storage space, or cross market with other businesses.

Grasscutter Farm Business

The rate at which people consume bush meat these days has given rise to the increasing demand for grasscutter variously known as the marsh cane-rat, ground hog and in francophone West Africa the aulacode. Grasscutter meat is a delicacy that is served in big hotels and restaurants as well as some joints patronized by middle to high level people.

Depending on your experience, grasscutter can be packaged to outfits as pepper soup meat, suya, frozen or dried meat. Most Chinese are looking for the meat as regular meal and also to entertain most of their guests from abroad.

If you rear grasscutter in commercial quantity under good hygienic condition, fast food restaurants will be your regular customers. They will only need your assurance of regular supply per week. There is also good market for grasscutter meat in the international market if only you can do a good packaging. You can make millions of naira from this vast and inexhaustible market breeding this animal either on a part-time or full time basis.

Many who are into the business of grasscutter farming are unwilling to let others know about the farming methodology. The techniques are often shrouded in secrecy.

Importance Of Grasscutter Farming

· The demand for grasscutter meat is so large that it is not being met.
· They are easy and very cheap to raise.
·  Gestation period of the grasscutter is about 154 days or five month
· Each female gives birth to an average of 5 to 12 offspring every 5 months.  A serious and dedicated farmer can have close to 200 families at a time
· They command a very good selling price
· They are herbivorous animals, so they feed mostly on grass.
· It is a multimillionaire business, if one can take the courage of breeding them on commercial scale.
·  It is a business venture that can be started on small scale with a space of less than one room.
· Source of income and employment: one can depend on grasscutter for his livelihood. In fact, grasscutter farming should create a job opportunities for urban and rural dwellers. The business of producing, processing, transporting, storing, financing and servicing grasscutter products should give employment to many people.
· You can conveniently earn income a thousand fold higher than your present earning. You can keep your present job and do this on part time.
· The meat has high carcass quality and protein is comparable to that of poultry.
· Grasscutters do not compete with man for food it feeds on some types of grass