03/12/2025
*FEASIBILITY STUDY FOR THE RETAIL SALES OF 2.5 METRIC TONS OF LIQUIDIFIED PETROLEUM GAS (LPG)*
*Executive Summary*
This feasibility study evaluates the viability of establishing a mini cooking gas station on a land very close to Mercy Medical University Teaching Hospital, Iwo/Osogbo Road,Telemu,Osun State. While focusing on the retail sales of 2.5 metric tons of LPG,the project requires an investment of 10 million naira, with a projected annual return on investment (ROI) of 50%. The business will be managed by me, with one sales attendant and one night guard.
*Market Analysis*
- *Demand:* LPG is a popular cooking fuel in Nigeria, with increasing demand due to its cleanliness, efficiency, and affordability.
- *Supply:* The market is competitive, but there is still room for new entrants, especially in underserved areas.
- *Target Market:* Residential households, small restaurants, and food vendors in the local community.
*Project Details*
- *Location:* It's a strategic location with high foot traffic and accessibility.
- *Capacity:* 2.5 metric tons of LPG storage capacity, with regular refilling and sales.
- *Staffing:* One sales attendant and one night guard, with myself being the proponent overseeing operations.
*Financial Projections*
- *Initial Investment:* 10 million naira (to be invested by the investor or investors with minimum of 2 million each.)
- *Projected Annual Sales:* 30 million naira (based on conservative estimates of 2.5 metric tons/month x 12 months x N1 million/ton)
- *Gross Profit Margin:* 20% (N6 million/year)
- *Operating Expenses:*
- Staff salaries: N1.2 million/year
- Rent: N600,000/year
- Utilities: N300,000/year
- Maintenance: N200,000/year
- Other expenses: N500,000/year
Total: N2.8 million/year
- *Net Profit:* N3.2 million/year (after deducting operating expenses)
- *ROI:* 50% per annum (N5 million/year, based on the initial investment)
*Use of Funds*
- *LPG Storage Tanks:* N6 million
- *Fittings and Accessories:* N1 million
- *Sales and Office Equipment:* N500,000
- *Working Capital:* N2.5 million
*Management and Operations*
- I being the proponent will oversee daily operations, ensuring efficient sales and customer service.
- The sales attendant will handle sales, refilling, and customer relations.
- The night guard will ensure security and safety of the premises.
*Risk Analysis*
- *Market Risks:* Competition, price fluctuations, and regulatory changes.
- *Operational Risks:* Safety hazards, equipment failures, and staff turnover.
*Conclusion*
The retail sales of 2.5 metric tons of LPG presents a lucrative business opportunity, with a projected annual ROI of 50%. The investment will be used to establish and manage a mini cooking gas station, creating a profitable venture for the investor.
*Investment Proposal*
We invite you to invest 2 to 10 million naira in this venture, with a guaranteed 50% ROI annually. The investment will be managed by myself, ensuring efficient operations and maximizing returns.
Thanks. Looking forward to hearing from you.
Fakayode Adewale Emmanuel
(Chief Executive Officer) COUNTENANCE INVESTMENTS LIMITED
Tel:08034396090 or 08054001926
