Economy
Details of How to Start A Profitable Beer Parlour Business in Nigeria
By Adedapo Adesanya
One of the most profitable businesses that a would-be entrepreneur can establish in Nigeria is a bar business because many Nigerians like to be happy amid the sufferings and drinks, especially those with alcohol, provide that happiness option.
Like many other businesses, running a bar, usually called beer palour, has things one should put into consideration before venturing into and they would be highlighted in this piece.
Interest
The first consideration is interest. This comes in many forms. The interest of the entrepreneur will determine whatever mission and vision he or she has for the business. Without interest in the beer parlour business, a lot of things can go wrong.
Size
Based on a number of factors, a beer parlour business varies is size; it may be small scale, medium scale, or large scale. A small scale can contain a maximum of 50 customers, a medium will take between 50 to 100 customers, and anything more than that means that is a large scale establishment. Once the would-be entrepreneur identifies what sort of beer parlour, he or she wants to run, issues like capital, location, and number of expected customers can follow.
This article will use a small scale beer parlour as a case study.
Capital
Running a business needs money and to start a small scale beer parlour can between N600,000 and N3 million, depending on the location the owner wants to situate the business. This will cover rent up to a year and constructing the structure to fit the taste of the entrepreneur, with the different gadgets and instruments needed to run it smoothly like sound system, television set and others.
Location
A good location is something to consider. For a small scale bar, which can house about 50 customers, it is very necessary to situate it where is accessible, where cars can park and probably in a serene environment because of entertainment.
Designs
A calm environment is the best place to situate a beer parlour. With this actualized, the beer parlour must be designed for comfort – this means that it must be conducive. If it is an open space, there will be need for fans, while in a enclosed space, it is necessary that the entrepreneur invests in more fans and air conditioning systems.
Structure
A beer parlour is a place of relaxation; therefore, there must be a good structure such as rest rooms, kitchens, lounges, roofing, flooring, and a working water system in place because people are likely to use the restroom often due to the constant consumption of beer.
The kitchens will serve as where other side dishes that augment the beer will be prepared. This is an additional means of revenue and also used to keep more people coming. Here, you have eatables ranging from meat, pepper soup, and other local delicacies.
Also, a well-lit store may be needed for drinks that have not been refrigerated yet based on demand. This will help keep the business in stock.
Equipment and Furniture
In a beer parlour, the chairs must outnumber the customers. For a small scale with 50 customers, the entrepreneur has to make room for at least 55 chairs because of guests and tag-alongs. This may be complemented with 30 tables. With chairs costing N15,000 per dozen, the total amount to procure chairs for a small sized beer parlour should be N70,000 and with a market value of N4,000 per table, this amount to N120,000, giving a total of N190,000 for the chairs and tables.
Refrigerators are also needed (at least 2) in anticipation of high demand for beers, which most consumers prefer. Refrigerators are needed to cool the drinks. An average fridge costs N120,000 and two will amount to at least N240,000. Alternatively, an entrepreneur can go for chillers, in the same price range, which prevent bottles from breaking and losses for the business.
Another item needed is the television set and sound system; they serve entertainment purposes. A TV set can be purchased for as low as N45,000 (32 inch) and a sound system of like N15,000 are good to keep the customers entertained while ‘chilling’ at your bar.
You can also keep N100,000 for openers, glass cups, straws, and other miscellaneous items, including subscription for payTV services to show European Club football matches, which attract huge following.
Estimated Total:N580,000.
Registering the business
A registered business gives it an authentic outlook, hence, the business should be registered with the Corporate Affairs Commission (CAC) under a name. In addition, all other entities that deal with consumption must be alerted in order to carry out routine checkup for health and service compliance.
Get A Wholesaler
The beer parlour business is a retail business and to get drinks at cheaper prices, it is advisable to get a wholesaler who will provide the drinks in large quantity.
A beer parlour business is a very demanding task, therefore, the principal must constantly think of ways to keep his or her customers satisfied, because the customers will determine the outcome to a large extent.
Setting up a profitable beer parlour business can be tasking but it can be done right by following the steps outlined above. You also have to make your customers feel at home to keep them coming back to drink at your place. You should constantly ask them things you need to improve on.
By Adedapo Adesanya
Nigeria added 150,000 barrels per day to its crude production in November 2024 as it continues to pursue an ambitious 2 million barrels per day target.
According to the Organisation of the Petroleum Exporting Countries (OPEC), Nigeria’s oil production rose to 1.48 million barrels per day in November, up from 1.33 million barrels per day the previous month.
In its Monthly Oil Market Report (MOMR), OPEC revealed that at 1.48 million barrels per day, it is the continent’s leading oil producer, surpassing Algeria’s 908,000 barrels per day and Congo’s 268,000 barrels per day.
Business Post reports that OPEC doesn’t account for condensates, which Nigeria’s accounts for in its broader 2 million barrels per day target.
Despite the surge in production levels, Nigeria is still under producing its 1.5 million barrels per day output quota under a deal involving OPEC and 10 other producers known as OPEC+.
OPEC said it relied on primary data gotten through direct communication, noting that secondary sources reported 1.417 million barrels per day as Nigeria’s crude production in November — up from 1.4 million barrels per day in October.
The data also shows that OPEC’s total oil production among its 12 members rose by 104,000 barrels per day in the month under review.
According to secondary sources, the total of the 12 OPEC countries’ crude oil production averaged 26.66 million barrels per day in November 2024.
“Crude oil output increased mainly in Libya, Iran, and Nigeria, while production in Iraq, Venezuela, and Kuwait decreased”, OPEC said.
“At the same time, total non-OPEC DoC crude oil production averaged 14.01 mb/d in November 2024, which is 219 tb/d higher, m-o-m. Crude oil output increased mainly in Kazakhstan and Malaysia,” the organisation added.
In a related development, OPEC trimmed its 2024 and 2025 oil demand growth forecasts for the fifth time this year.
Now, the cartel expects the world’s oil demand growth at 1.61 million barrels per day from the previously 1.82 million barrels per day.
For 2025, OPEC says the world oil demand growth forecast is now at 1.45 million barrels per day, a 900,000 barrels per day cut from the previously expected 1.54 million barrels per day.
On the changes, OPEC says that the downgrade for this year owes to more bearish data received in the third quarter of 2024 while the projections for next year relate to the potential impact that will arise from US tariffs.
By Adedapo Adesanya
The duo of Afriland Properties Plc and Geo-Fluids Plc crashed the NASD Over-the-Counter (OTC) Securities Exchange by a marginal 0.06 per cent on Wednesday, December 11 due to profit-taking activities.
The OTC securities exchange experienced a downfall at midweek despite UBN Property Plc posting a price appreciation of 17 Kobo to close at N1.96 per share, in contrast to Tuesday’s closing price of N1.79.
Business Post reports that Afriland Properties Plc slid by N1.14 to finish at N15.80 per unit versus the preceding day’s N16.94 per unit, and Geo-Fluids Plc declined by 1 Kobo to trade at N3.92 per share compared with the N3.93 it ended a day earlier.
At the close of transactions, the market capitalisation of the bourse, which measures the total value of securities on the platform, shrank by N650 million to finish at N1.055 trillion compared with the previous day’s N1.056 trillion and the NASD Unlisted Security Index (NSI) went down by 1.86 points to wrap the session at 3,012.50 points compared with 3,014.36 points recorded in the previous session.
The alternative stock market was busy yesterday as the volume of securities traded by investors soared by 146.9 per cent to 5.9 million units from 2.4 million units, as the value of shares transacted by the market participants jumped by 360.9 per cent to N22.5 million from N4.9 million, and the number of deals increased by 50 per cent to 21 deals from 14 deals.
When the bourse closed for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units valued at N3.9 billion, followed by Okitipupa Plc with 752.2 million units worth N7.8 billion, and Afriland Properties Plc 297.5 million units sold for N5.3 million.
Also, Aradel Holdings Plc, which is now listed on the Nigerian Exchange (NGX) Limited after its exit from NASD, remained the most active stock by value (year-to-date) with 108.7 million units sold for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 billion.
By Adedapo Adesanya
The euphoria around the recent appreciation of the Naira eased on Wednesday, December 11 after its value shrank against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N5.23 or 0.3 per cent to N1,547.50/$1 from the N1,542.27/$1 it was valued on Tuesday.
It was observed that spectators’ activities may have triggered the weakening of the local currency in the official market at midweek as they tried to fight back and ensure the value of funds in foreign currencies strengthened.
The domestic currency was regaining its footing after the Central Bank of Nigeria (CBN) launched an Electronic Foreign Exchange Matching System (EFEMS) platform to tackle speculation and improve transparency in Nigeria’s FX market.
At midweek, the Nigerian currency depreciated against the Pound Sterling by N3.56 to close at N1,958.68/£1 compared with the preceding day’s N1,955.12/£1 and against the Euro, it slumped by 34 Kobo to trade at N1,612.66/€1, in contrast to the previous session’s N1,613.00/€1.
As for the black market segment, the Naira lost N45 against the American currency during the session to quote at N1,670/$1 compared with the N1,625/$1 it was traded a day earlier.
A look at the cryptocurrency market showed a recovery following profit-taking as the US Consumer Price Index report matched economist forecasts.
The news was enough to convince traders that the Federal Reserve is certain to trim its benchmark fed funds rate another 25 basis points at its meeting next week.
The move also saw Bitcoin (BTC), the most valued coin, return to the $100,000 mark as it added a 2.9 per cent gain and sold for $100,566.12.
The biggest gainer was Cardano (ADA), which jumped by 15.00 per cent to trade at $1.16, as Litecoin (LTC) appreciated by 10.4 per cent to sell for $121.76, and Ethereum (ETH) surged by 7.0 per cent to $3,929.30, while Dogecoin (DOGE) recorded a 6.7 per cent growth to finish at $0.4181.
Further, Binance Coin (BNB) went up by 5.2 per cent to $716.72, Solana (SOL) expanded by 4.6 per cent to $229.77, and Ripple (XRP) increased by 4.2 per cent to $2.43, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 apiece.
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