Sand business: A cool and rewarding venture

Sand-31-7-16
Sand is a crucial component, when it comes to building houses or constructing roads. Although other items, such as cement, roofing sheets and rods, among others, are also essential, but the fact still remains that sand is needed to hold together the structure. For a starter, the quality of the sand used in any construction can make or mar the whole process. So, the attention paid to sand quality can never too much.

It is this realisation that has nudged some people in the direction of setting up cottage firms to dredge rivers streams and lagoons for sand sales. Sand comes in different colours, just as their qualities and uses. While some are good for moulding blocks, others are better for plastering walls and doing road construction.

Sold to different categories of users and because of the huge profit involved, these sand dealers go out of their way to procure sand from anywhere, including canals, rivers, and even roadsides. It is a thriving business that is making dealers smile to the bank.
[ad]
Molikatu Afinni, a sand dealer in Bariga, said the business could be compared to that of a farmland, where one gets farm produce to sell. She explained that most small-scale sand dealers either rent some portion of a river or lagoon from the owner for specific amount, depending on the family involved and then start dredging.

She explained that it is possible to rent a portion of river/stream for a year or two, which enables one to dredge sand as much as possible within the period of the agreement. According to her, the rent paid also depends on the proximity of the river/stream to a major road. If the river is in a remote area, the rent may likely be less, and sometimes it goes for free. But in such situations, the cost of transporting the sand to the major road is usually high.

Another factor that could affect rent is the nature of sand from a particular river/stream or even sea. If it is white sand, one stands to pay higher because being sharp, this type of sand requires less paint, if used to plaster the walls of a building.

Differentiating sea sand from white sand, Isiaka Audu, a concrete block moulder and sand dealer, said sand dredged from river/stream is usually whitish-grey, has rounded grains and is good for plastering, while sea sand contains salt, which makes cement to lose its firmness, when mixed with it.

He said the prices of these two types of sand differ, just like their qualities and the demand for them. Audu explained that sand from flooded areas, canal and even the gutter is sometimes used to mould blocks, as they come out stronger and better than sea sand.

According to him, while the price of a truckload of plaster sand from the river/stream is between N20, 000 and N30, 000 for single load and N40, 000 and N50, 000 for double truckloads, depending on the location of excavation and place of use, sea sand goes for almost half that price.

So, how much does he make to stay in the business?
[ad]
“I have a depot at the side of a river in Egan,” he replied. “I make between N200, 000 and N300, 000 monthly, during peak period, which is usually during the dry season. I supply all categories of sand, including the one from canals. Sand business is a cool one and it involves less stress.

“It is unlike manufacturing business, where one inputs the cost of raw materials. Once I rent a portion of the river and employ people to dredge and bring the sand to shore, the business is ready to go. Builders would come to the shore to place orders. The business is highly rewarding.”

On what it takes for a beginner to be, he said: “Interest, in the sense that the business looks dirty, as one sometimes have to wade through muddy and smelly water to inspect the site and to get the sand.

“One must also be interested in buying and selling and with time, one would know the different types and quality of sands. It is a business that does not entail long period of training to acquire the right knowledge. Indeed, it can be undertaken by anybody, so long the person is mature enough to engage in buying and selling.”

Adetoro Salako said with the sum of N150, 000 and N200, 000, one can start small and gradually grow the business. He explained that the most important thing is acquiring a site for dredging. He disclosed that renting a portion of a river/stream between N500, 000 and N1m per annum and getting people to dredge would be cheaper in the long run, because within six months, one is likely to recoup the money many times over. But for those that cannot afford such, it is advisable to buy from dredgers at the riverside and resell.

“I started that way, but today, I have sand depots at five different locations in Lagos and Ogun States,” he said. “I have five canoes and two trucks that do the delivery. The business is a multi-million venture, but one needs to put in good money to get the right dividend.

“I may not be able to tell how much I make per month, but I must say I make enough to pay all my workers, built three houses and have enough to keep in the banks. Sand business is highly rewarding.”

On how a new entrant could grow in sand business, he advised those without trucks to rent one or get a fairly used one for supplies. According to him, not owing a truck should not deter anyone from making profit; so long the sand is of good quality.
[ad]
“The business is so elastic that both sand dredgers that own trucks and those that do not are able to make profit. Though, having a truck would increase the gain margin, but those without are challenged to work harder to get one,” he said.

On some of the challenges of the trade, Malomo Ifegbayi, an Agege-based sand dealer, noted that the best time for the business is during dry season, when most riverbanks would have receded, making it easy for boats and dredgers to go about their business freely.

“The low period of the business is during the rainy season, when some bush paths to locations become impassable for delivery trucks. Also, with the rains, the rivers/streams become deeper and sometimes dangerous to dredge. However, at such times, we depend more on sand from canals,” he said.

Join Our Channels