Bitumen Importation, Storage and Marketing in Nigeria; The Feasibility Report.

Bitumen is a mixture of organic liquids that are highly viscous, black, sticky, entirely soluble in carbon disulfide, and composed primarily of highly condensed polycyclic aromatic hydrocarbons.

Naturally occurring or crude bitumen is a sticky, tar-like form of petroleum which is so thick and heavy that it must be heated or diluted before it will flow. At room temperature, it has a consistency much like cold molasses. Refined bitumen is the residual (bottom) fraction obtained by fractional distillation of crude oil. It is the heaviest fraction and the one with the highest boiling point, boiling at 525 °C (977 °F). It can also be refined to produce commercial products such as gasoline, fuel oil and asphalt.

The Nigerian bitumen deposit put at 42.74 billion metric tons is the second largest in the world and was first discovered in 1900. It covers 120 kilometres costal belts of Lagos, Ogun, Ondo and Edo States.

The occurrence of Bitumen deposits in Nigeria is twice the amount of existing reserves of crude petroleum. When fully developed, the industry will no doubt meet local requirements for road construction and also become a foreign exchange earner for the country.

Presently, Nigeria, which has 59,892 km of paved roads with an additional 1,194 km of dual carriageway, the longest in Africa, spends an estimated N 2,000,000,000 (two billion naira) annually on importation of asphalt, a bitumen derivative.

In the year 2016-2019 the federal government of Nigeria has promised many Nigerians both at home and in Diaspora of their plans to embark on lots of road construction projects with a lot of emphasis on the south east, south west and south-south.

This report examines the financial viability of importing five thousand (5,000) tons of bitumen monthly, storing and marketing same in the local market.

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Critical Success Factor of the Business 1.4 Current Status of Business 1.5 Description of the Business Industry 1.6 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of product 2.2 The Opportunity 2.3 Pricing Strategy 2.4 Target Market 2.5 Distribution and Delivery Strategy 2.6 Promotional Strategy 2.7 Competition 3. Product Plan 3.1 Description of the Location 3.2 Product Storage and Preservation 3.3 Procurement and Import Process 3.4 Machinery and Equipment 3.5 Product Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start – up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6. Profit and Loss Account 5.7 Cash Flow Analysis 5.8 Viability Analysis 6.0 Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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