How To Start Oil Spill Cleaning Business in Nigeria or Africa: A Guide

How To Start A Lucrative Oil Spill Cleaning Business In Nigeria Or Africa: The Complete Guide | Image: AIChE

Oil spill is a major environmental hazard the world still contends with. Despite the improvement over time, the last decade (2010 to 2019) still suffered oil spillage in excess of 1.8 million tonnes. Oil spill, whether on land or water bodies, have ripple effects on humans, sealife, terrestrial organisms as well as the global economy at large, no thanks to its many chemical components. This makes cleaning oil spills cleaning a vital effort towards protecting the earth and at the same time a highly lucrative business venture.

As of 2015, the global oil management industry was valued at over $100 billion. Thanks to growth in oil spill cleaning technology, among other factors, the industry is expected to grow to almost double its size in 2025 at a CAGR of 3.2% within the forecast period. Oil spills happen across the globe from time to time and it is difficult to measure exactly how much quantity of oil is spilled in all. However, in recent times, Venezuela, Russia, Mauritius, the United States, Brazil, Nigeria, China and South Africa have suffered the most renowned oil spills.

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Going by historical data, Nigeria remains one of the worst hit countries in terms of oil spillage, no thanks to oil pipe vandalization and lack of proper oil management facilities. The Niger Delta region of the country, which houses the nation’s crude oil resources have frequently experienced oil spills in small and large volumes. However, this situation only makes Nigeria overdue for oil spill cleaning businesses. According to reports, the oil spilled along the creeks of Ogoniland alone could generate an excess of $1 billion for the nation’s oil spill cleaning industry.

No doubt, an oil spill cleaning business could be capital-intensive but it has a huge prospect in Nigeria and most parts of the world. If you’re planning to start an oil spill cleaning industry, here is a detailed step-by-step guide to help you.

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What Is Oil Spill?

Oil spill is the accidental release of oil into the environment, both land and water. Oil spill is common in oil-producing regions but it can also happen during sea transportation of oil products and ship trips. Although major oil spills in history have occurred on seas and oceans, oil spills also happen on land in small bits that are almost equally harmful to the environment.


What Is An Oil Spill Cleaning Business?

Oil spill cleaning refers to the response to oil spillage. It involves activities such as clean-up and recovery of petroleum oil from water bodies after a soil. The possibility of this relies heavily on the fact that oil has a larger density than water and, therefore, will always float. However, this does not make oil spill cleaning a walk in the park. Several equipment and methods are deployed to carry out an effective oil spill cleaning.

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Business Opportunities In Oil Spill Cleaning In Nigeria And Across The World

1). Oil Cleanup Services:

The crux of an oil spill cleaning business is to provide emergency cleanup services. These services require several factors, one of which is the labour. A typical oil cleaning business keeps several categories of skilled workmen and women in job, ranging from drivers to engineers.

2). Production Of Oil Spill Cleaning Equipment:

Cleaning spills involves the use of special cleaning equipment for effective cleanup. Such equipment, which include a fire boom, oil skimmers, incinerators, absorbent booms, containment boom and aerial surveillance devices, all require the expertise of engineers at one level or the other.

3). Safety Kit Production:

Safety kit and protection gear are very vital for oil spill cleanup. This is because workers come in contact with oil and will have to use safety kit to protect their body organs and skin from the toxic chemicals in oil. The production of these safety kit keeps paychecks on the desks of the personnel in charge.

4). Repair And Maintenance Services:

As a rule of thumb, equipment have to be routinely checked for faults and servicing needs in order to keep them in good shape for emergency oil spill cleanup situations.


Facts And Benefits Of Oil Spill Cleaning

  • Cleaning oil spill saves the environment from poisonous toxic materials.
  • Major oil spills are more common on water bodies than land.
  • Venezuela, Russia, Mauritius, the United States, Brazil, Nigeria, China and South Africa have suffered the most renowned oil spills.
  • Oil spills are products of human activities.
  • Oil spills can also result from tectonic occurrences.
  • The Gulf Mexico has reportedly spilled as much as 39 million gallons of oil over time.
  • Oil spills can result in air, land and water contamination.
  • The Iraqi force spilled over 250 million gallons as a war tactic during the Gulf war.
  • Oil spills can also be caused by explosion of oil tanks.
  • The Northeastern part of the United States has experienced over 75 oil spills across time.
  • In Nigeria, oil spills are common in oil-producing areas such as the Niger Delta.

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How To Start An Oil Spill Cleaning Business In Nigeria: A Step-By-Step Guide

1). Write A Comprehensive Business Plan:

The success of any business enterprise depends in part on how well the foundation is laid. To ensure that your business starts on the right foot, be sure to draft a comprehensive business plan that incorporates all actionable plans and objectives as well as the timeline of actualizing them.

2). Get A Suitable Business Site:

While siting your business office, do a quick survey of the area and its environs. Be sure you have no competitors close by and that the area is an oil-producing one or very close to oil-processing companies, refineries, etc.

3). Legalize Your Business:

Take all necessary steps to make your business a legal business entity. In Nigeria, you have to register with the Corporate Affairs Commission (CAC), the waste oil management agency, and other related government bodies. It also helps to get an insurance because the oil spill cleaning industry involves lots of risks.

4). Purchase Oil Spill Cleaning Equipment:

An oil spill cleaning industry could be really capital-intensive as far as getting equipment is concerned. The equipment to procure depends largely on the method(s) of cleaning you intend to use. The common instrument include fire boom, oil skimmers, incinerators, absorbent booms, vacuum tankers, tank truck, suctioning vacuum, containment boom and aerial surveillance devices, among others.

5). Employ Staff:

Employ the services of skilled and able-bodied individuals. It helps to train them for a specified period of time before they start work and also make them undergo continuous training on new methods and equipment.

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6). Create Awareness Of Your Business:

After setting up the basics of your oil cleaning business, you have to create an awareness of your services. At this point, you could network with refineries, petroleum companies, etc. You could also set up an online presence for your business and run ads on the internet.

See Also: How To Start A Lucrative Used Oil Recycling Business In Nigeria: The Complete Guide


Challenges Of Oil Spill Cleaning Business In Nigeria

  • High startup capital
  • Low government support
  • Poor attitude towards oil spill management
  • High cost of maintaining oil spill cleaning equipment.
  • Absence of proper oil management facilities in the country.
  • Poor road network impedes speedy response to oil spill emergencies.
  • Excessive risks and health hazards for workers
  • Oil spill cleaning could be extremely stressful.
  • Insufficient loan structures for interested investors.
  • Difficulty in procuring quality durable equipment.

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To Sum It Up

Going by the volume of oil spilled in the oil-producing regions of the country, Nigeria is already a huge market for an oil spill cleaning business. The oil spill cleaning business in Nigeria can be a lucrative and profitable venture to start-up, due to its vast market demand and on your ability to build a wide network. If you’re looking for a lucrative business to venture into, the oil spill cleaning business in Nigeria is a great option to explore.


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