One of the many building materials that spin money, aside cement, is roofing sheets. Roofing sheets has become a cash cow, especially in developing areas where construction are going on daily basis.
According to a roofing sheets seller, Rahman Sikiru, starting a roof sheet business is not challenging, but one needs to have a deep pocket.
Initial Capital
To break even, one can start with a minimum of N3million to purchase the roofing sheets from accredited distributors nearest to one environment or straight from the company if one can start with N10million.
Profitability
He says roofing sheet is a straight business, with minimal losses and risk and a very wide profit margin, because people buy in large quantities.
“Now, a roofing sheet sells for N3,000 but one can buy for N2850 from the company. This means, N150 per sheet. The least one can buy to cover a three bedroom flat is 250 pieces. If we multiply that and if it’s a developing area, he can finish 5,000 pieces in one week.”
To this end, Sikiru says one must have gained about N750,000 on the 5,000 pieces within a week.
Another roofing sheet distributor, Muideen Kolawole, says, its a business that needs little or no prior knowledge but basic mathematics calculation.
He says, anyone who desires quick turnover can reduce the product price by N50 and customers will patronise the business.
Challenges
The managing director, Plusworld Roofing, Mr. John Igbaifua, urges government to provide foreign exchange for roofing manufacturers to import raw materials.
“Some of the chemicals and substances that we use are imported and the issue of inflation and foreign exchange affects our business at this time. Like every other sector offering goods and services, there is an increase in prices at the moment all over the world and supply chain is disrupted. So, items that should take two or three months to bring in, now takes like six months,” he says.
Another major challenge is the lack of adequate insurance for home users and contractors when there is an accident.
Also speaking, the managing director, Imran roofing, Ayyub Gboyega, says the inflationary trend is affecting the business and purchasing power of most Nigerians, as many cannot afford the increasing cost of roofing sheets.
Gboyega says, “Dollar to naira rate that used to be N300 before is now over N500. Government needs to put in place a policy that ensures an enabling environment for operators.
“Three years ago, the cost of aluminum, which used to be N2, 500 per metre now ranges from N3, 000 to N4, 000 at the building material market due to inflation and foreign exchange crisis.
“Due to customs clearing cost, most dealers would have to add that cost to their selling price. The business now requires huge amount of money for investment.”
