Sludge is a dark viscous heavy fluid with appearance like engine/lubricating oils having some combustible properties as observed in the fuel oils especially the low pour fuel oils. There is no standard specification for sludge as approved by DPR or any other petroleum regulatory authority or body. The product however, has a very sharp pungent smell as observed in esters (organic compounds produced from chemical reactions of organic acids and bases).
The dark fluid has a homogenous appearance when properly mixed and a heterogeneous when not properly mixed. There is no specific type of specification as some are much better than others in quality depending on their respective sources but the finer and smoother the appearance, the higher the price it will be sold for.
The quality of the sludge is what determines the price and a way of handling sludge transactions is to first require a sample from your seller which you will divide into three portions, the first will be taken to your buyer to agree on price with which you will draft your sales contract, the 2nd portion you will use do to an analysis or testing so that you can have the specs of what you are delivering and the third portion will be tagged and kept for yourself.
It will be also be imperative to keep a copy of the analytical report for your records like fuel oils sludge properties is very close and similar to them but most times the density is higher than that of fuel oil.
The quantity of sludge is also measured in liters as most liquids are.
The product can be sourced from only the Nigerian Ports Authority and its branch offices where all the ports exist. There are however, some fraudulent individuals who execute some blending processes to produce something quite near it but the quality is very poor.
It is advisable that if you want to trade in sludge the only approved organization is the NPA and its subsidiaries.
How to trade sludge in Nigeria
This is the easiest way to trade sludge in Nigeria is by buying loading it in and making the supply. The procedure is as follows
(1) Get registered with the Nigerian Ports Authority or with any accredited dealer with them that way it ensures that you are dealing with the right person. Once this is done make sure you get a sample from the seller
(2) Ensure you give the sample to the intending buyer and make sure you do the specification as analyzed above
(3) After determination of the quality you get your truck to get loaded ensure that you pay all the loading expenses and get programmed for loading. An idea of freight rates will also be an added advantage as many truck drivers would like to use this opportunity to reap of many new entrants into the business
(4) Once your truck is loaded you deliver to the buyer. The off takers and buyers for sludge are numerous even the Lagos market will be difficult to satisfy
(5) You have to ensure that your buyer signs the waybill for receipt of the product and invoice them always make sure that the days of payment is not too long eg 3 days after delivery, a post dated cheque or 75% of the payment of the product when the truck arrives and the balance 25% after 3days.
The return on investment on the trading of sludge ranges from 50% – 80% per transaction. This can be done with good understanding of the market, cheap source of sludge.
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Report Title: SLUDGE TRADING IN NIGERIA; THE FEASIBILITY REPORT
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