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How
start a lucrative Dredging Business in Nigeria
Dredging is fast becoming one of the emergent industries in
Nigeria for accomplishing projects belonging to federal, state
and local governments, as well as serving the various needs of
oil field operating companies. It is also now becoming useful
for private sector real estate development through the demand
for sand. It is widely agreed that one of the most basic needs
of man is shelter and in time past man has experienced with
different material in order to meet with his housing needs. In
modern day history, the use of cement along with sand and gravel
as come to be accepted as one of the best construction raw
material because they provide durability, firmness and can
withstand harsh weather conditions though other materials like
steel and glass are also used.
Dredging is the operation of excavating material (e.g. Gravel,
Mud, and Sand etc.) from a water environment. It can also be
said to be the removal of sediments and debris from the bottom
of lakes, rivers, harbors and other water bodies.
It is the digging of dirt, sand, gravel, pebbles, rocks and
organic deposit from the bottom of the creek, waterways and
lagoon by using a vessel known as Dredger.
Dredging Business Overview
The process of dredging comprises the use of a vessel called
dredger and the requirement for structures and buildings made
this business a significant one. However, the need to construct
one thing or the other have made dredging business to be highly
demanded for. Its products can also be utilize in production of
materials used in construction and the retrieving of boggy
zones.
Dredging business can be started by less than a Million Naira
and you will get a good and high return on investment. Moreover,
it has been proven that, active participants in the business,
will break even between 3 or 4 months of starting the business.
Meanwhile, Sand dredging activities can be found in Epe to
Ikorodu, Lekki to Ojo and Badagry area of Lagos. And, in Delta,
sand is mined in Uvwie Local government Areas, Ovwian, Ugolo,
Agbarho, Oteri, Ughelli towns, Udu, Ughelli North and Okpe.
Finally, most of the Lagoons area in those places mentioned
above are dredging site for sand dealers.
You need to know that, the main uses of materials gotten from
dredging is for building. Before technology boom, Sands and
gravel has been the major materials used in building, and even
after technology now brought and glass and steel building; sand
and gravel are still been used majorly in erecting a structure.
Therefore, Sand dredging industry became popular because of the
needs and requirements to cater for the housing industry in
Nigeria. So, here is the registration process of dredging
business and its categories:-
Although, dredging business succeeds in so many places in
Nigeria, but it is more rampant in riverine areas. Registration
of the business and its categorization includes:-
First Category – Manual Dredging: – In starting this category of
dredging business, you will first of all, send an application to
the Ministry of Waterfront and Infrastructural
Development. Then, you will install utility expense of
N50,000 or more and provide the details of the zone in which you
are to be carrying your dredging. Also, you will verify the
Ecological impact Analysis (EIA) and the Edge review of
the area. Finally, you will
provide dredging procedure account and these comprises of
payment of N200,000 and
N100,000 annually and proof of access towards the
portable barges and the payment of
N50,000 annually.
Second Category – Sand dealing and dredging:- In starting this
category, you will also
send an application to the Ministry of Waterfront and
infrastructural Development and
install utility expense of N50,000, as well as providing
details of the area. You will also
provide Environmental Impact Analysis and the hydro
graphics. Then, you will study the
area and the duplication of authentication and endorsing
with installation of the proportion
of expenses. After this, you will make payment for
Entirety installment which is N100, 000
and the accessing of boats and proof showing you owns
them (possession).
Finally, you will make entirety payment of N75, 000 and the
payment of N500, 000 entirely
on an annual basis.
Third Category – Dredging Companies:- In starting this category
of dredging business, the processing is quite much than others.
Because this is a company. And the process are outline below:-
You will send an application to the Ministry of Waterfront and
Infrastructural Development
You will provide details of the description of your dredging
location and the
payment of the use of N50,000
You will provide the report showing the Environmental Impact
Analysis and the Provision of the review on Hydro graphics
You will review the proposed area and the duplication of the
current duty freedom
For you to install charges, it involves endorsement and the
paying on annual basis and the ownership proof or access to
barber.
You will pay N75,000 and N500,000 on annual basis.
Accessing the Market for Dredging Business
Market Size and Demand of Sand
Nigeria population is increasing day-by-day and there is a dire
need for more infrastructure; that’s why dredging business has
been highly demanded for. However, for a structure to be
constructed you will need sharp sands, gravel and so on. So,
dredging make it possible for you to get those materials inside
riverine and coastal parts of the country. This is why states
like Rivers, Delta and Edo have more prospective for this
business.
Moreover, places like Lagos state (especially Lagos Island and
Lekki) has a high demand for sand because most of their lands
there are water-logged area, where they need to sand-filled
those lands to make it possible for them to build a structure on
it. Also, there are so many construction projects going on in
that area; they also need Sand in successfully carrying out the
project. So, Sand is so important for human habitation,
survival, social and industrial development.
Marketing Strategy of Dredging Business
In Marketing your dredging business, you need to make use of so
many marketing strategies and this strategies may include:-
Erecting a bill board at the closest junction to your Dredging
location. This billboard will make it easier for people to
identify where you are located and also know what you are
Advertising your business on Radio and Television sets
Advertising your business on social media platforms. Basically,
big firms used to go online to search for reliable dredging
company they can work with.
You can as well, design and print a handbill and distribute it
to people. Inside this handbill, your address will be there and
your company number.
Another way of marketing your dredging business is to pay a
one-on-one visit to various locations where some people that
stored sands for future sales are located. When you met
them, you will explain to them how you sell your sands
and also used a discount price to
attract them to you.
Process in Starting and running Dredging Business
In commencing the business, the first thing is to carry out the
analysis of the market and acquire details about the business.
You need to also know that, Dredging business involving gravel
and sand used to be successful in a place where new housing or
construction is taking place. Also, you need to check out the
prices charged for each tons of those gravel and sand and other
materials you are to be excavating from the water and compare
their tons prices among different existing dredging companies.
There are two sorts of dredger, which are:- The discontinuous
and The Persistent. The discontinuous one burrows and lift the
head while the persistent burrows constantly and raise and
transport the materials immediately.
Basically, dredging involves using hydropower and this result in
the cuts and sucks the material from below the waterway. So,
this cutting and sucking up utilizes a stool set up on the top
of the cutter head and this passes materials through the
sunction pipe.
Furthermore, sucking through a pump occur through a pipeline and
move towards the shore. So, when the materials arrive at the
shore, a tipper will now be used to move the sands, gravels or
any other type of materials gotten from the dredging to a
particular location, where it is now used to been stored for
people to come and buy.
Equipments/Tools used in Dredging: Excavator, Swamp buggy,
Dredger, Low bed, Pay-loader etc.
Dredging business is a profitable business because
infrastructures like building and roads are rampant in our
country, and materials gotten from dredging are needed for it.
However before starting the business fully, make sure you do
appropriate registrations with the government as well as
maintaining your boats, tipper and trucks adequately.
Get our Practical Guide on How to start a lucrative Dredging
Business in Nigeria. If you are interested in starting a
Dredging a Business
in Nigeria , you can reach us today so that we can work with you
to breathe life into your business.
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