This is the required documents you need and the cost of becoming a dangote cement distributor in Nigeria.
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Do you know that Dangote Cement is always seeking new distributors for its product? The good part: the application process is very straightforward provided you have the required documents ready.
What you need to put in place
If you don’t have a shop or building for the storage, then you can get a container of 100 square feet which is enough to house a trailer of 50kg of cement (600 bags).
I called a professional welder at Owode-Ede in Osun, who specializes in iron doors and making containers. He gave me N450,000 to make a container that will be good enough for 600 bags of cement and with a little space for a seat.
So, 10 feet by 10 feet or 100 square feet of container cost between N450, 000-N500,000 (this price depends on your location)
If you will be going for a container, it means you need to rent a space, depending on your location, to rent a space between N100,000-N200,0000. This is cheaper in developing areas in some parts of Nigeria.
Required Documentation
After making arrangements for storage, Dangote Cement Plc will request that you have the following documents.
Evidence of a company registration:
You need to be registered as a Limited Liability or Limited Partnership company. You can get this certification from the Corporate Affairs Commission (CAC). As for the Limited Company registration, it is cheaper if you can manage the registration by yourself without passing through an accredited agent.
In case you want an agent to handle the registration on your behalf, the shared capital will majorly determine the service charge. Here is the quotation you will most likely get from CAC accredited agent to register a Limited Liability:
- If the shared capital of the company is between N50K-N1million: N60,000
- Share capital of N2 Million: N100,000
- Share capital of N3 Million: N140,000
- Shared capital of N4 Million: N180,000
- Shared capital of N5million: N240,000
Note: You will spend less if you can create a profile on the CAC pre-registration portal, but pay attention to the instructions so that you don’t have to battle with issues of query back and forth (check here to know what you need to register your company).
Open a business account with a bank
Take your CAC company registration certificate to a bank of your choice to open a business account. You will need referees who are either corporate or business account holders to sign the form for you. When your business account is activated, an account officer will be assigned to you.
In some cases, your bank may mandate you to get a SCUML certificate if you will be transacting a huge amount. The SCUML certificate is issued for free by the Economic and Financial Crimes Commission (EFCC) on their site. SCUML means Special Control Unit Against Money Laundering. Their functions are outlined in our article.
Bank reference letter (scanned copy)
After opening a business account, talk to your account officer to get a reference letter for you. Your bank has to recommend you. It is one of the requirements to become a distributor for Dangote Cement.
Application to become a distributor
State your intention to become the distributor and the value your company will add to the manufacturer. And make it shorter and request the information you want clarification on. Here is how to write a letter to become a distributor.
Passport photograph
You need to attach your photograph if you are the proprietor. If you have a company’s representative, then attach his/her passport photograph
Send the above details to customercare@dangote.com
Fill out the distributor registration form
You have to fill out the customer application form which can be downloaded from the site. Attach your means of identification with any of the following:
- Driver’s licence
- International passport, or
- National Identity Card
If you prefer to send your application by a courier service, the address to send your application to is:
You would want to use electronic means instead of sending a letter
Estimated cost of starting a cement distributorship
10 ft by 10 ft container = N450,000
Cost of transporting the container to your location: N50, 000
Limited liability company registration: N60, 000 (this come with Tax Identification Number TIN)
Order for a trailer of cement (600 bags at N7,000/bag): 4,200,00
Miscellaneous: N200,000
The price of 600 bags is based on the promise cement manufacturers made with the federal government sometimes in February 2024 that cement retail prices should not cost more than N7,000.00 to N8,000.00.
So, we’re pegged the factory price at N7,000 because most retailers in part of Osun sell at N8,500 per bag (500 kg)
TOTAL= N4,960,000 (tentatively)
You should get a response from the company within 48 hours, and the next step to take. Other details will be communicated to you via email.