Call Us Free: +234-803-378-2777

Paints (Resident and Industrial) Production in Nigeria; The Feasibility report

Paints (Resident and Industrial) Production in Nigeria; The Feasibility report

1,850,000.00

Paints are vital in the creation, protection, and maintenance of residential, commercial, and industrial structures. In Nigeria, the paint industry has witnessed impressive growth, fueled by the increasing demand for paints in both the residential and industrial sectors.

Category:

Description

The global and Nigerian paint industries have experienced significant transformations over the years, with both residential and industrial paints playing crucial roles in modernizing infrastructure, enhancing aesthetic value, and providing protective coatings for a variety of surfaces.

Paints are vital in the creation, protection, and maintenance of residential, commercial, and industrial structures. In Nigeria, the paint industry has witnessed impressive growth, fueled by the increasing demand for paints in both the residential and industrial sectors.

The history of paints dates back thousands of years, with evidence suggesting that early humans used natural pigments to decorate and protect surfaces. The earliest known paints were made from earth pigments, such as ochre, charcoal, and minerals, combined with animal fats or plant resins. These rudimentary paints were often used for cave paintings, body adornment, and to coat the surfaces of structures for protective purposes.

With the advancement of technology, the production of paints evolved over time. By the 18th century, the development of oil-based paints revolutionized the industry. Oil-based paints, such as those made from linseed oil, provided durability, smooth finishes, and weather resistance.

The invention of synthetic resins in the 20th century, including alkyds and acrylics, further enhanced the properties of paints, making them more versatile and efficient for a range of applications.
The introduction of water-based paints (also called latex paints) in the mid-20th century allowed for easier application, quicker drying times, and a more environmentally friendly option compared to oil-based paints.

The modern paint industry is based on the scientific understanding of pigments, resins, solvents, and additives, which are carefully blended to create formulations suitable for specific applications. These advancements paved the way for the global paint and coatings market, which has become a significant industry with applications in residential, commercial, automotive, and industrial sectors.

The global paints and coatings market has experienced substantial growth over the past few decades. As of 2023, the global market size for paints and coatings was valued at USD 200.3 billion, and it is expected to grow at a compound annual growth rate (CAGR) of four point eight percent (4.8%) from 2024 to 2030.

The market’s expansion can be attributed to the rising demand for paints and coatings in key sectors, including construction, automotive, and general industries. Paints and coatings play a crucial role in enhancing the durability, aesthetics, and safety of buildings, vehicles, and machinery.

In Nigeria, the commercial production of paints began in 1962 with Berger Paints Nigeria Plc. Originally incorporated as British Paints (West Africa) Limited on January 9, 1959, the company laid the foundation for the growth of the Nigerian paint industry. Prior to this, paint products were imported into Nigeria from Europe and other regions, as the demand for local production was yet to be recognized.

However, with Nigeria’s growing economy and the expanding construction sector, Berger Paints recognized the potential of the Nigerian market and took the bold step to establish local production facilities.
Following the success of Berger Paints, other notable companies such as DN Meyer, International Paints West Africa, and CAP Plc entered the market.

These companies helped build confidence in locally manufactured paints and contributed to the expansion of the industry. As these companies grew, they introduced new product lines, improved manufacturing processes, and created a more competitive environment in the Nigerian market.

The Nigerian paint industry depends on both locally sourced and imported raw materials. Key raw materials for paint production include pigments, resins, solvents, additives, and extenders. Pigments, such as titanium dioxide, iron oxide, and carbon black, are used to provide color and opacity to the paint.

Resins, which serve as binders, are crucial in determining the durability, adhesion, and gloss of the final product. Solvents are used to adjust the viscosity of the paint, while additives improve properties such as drying time, stability, and resistance to mildew or corrosion.

Nigeria has abundant natural resources that can be utilized for paint production, such as limestone and clay, which are used in the production of titanium dioxide and calcium carbonate. However, certain specialized raw materials, particularly high-quality pigments and resins, still need to be imported, adding to the cost of production.

Despite these challenges, Nigeria has made strides in localizing the production of raw materials for
paint manufacturing. The Nigerian government has been supportive of the growth of the local paint industry, providing incentives for investment and development. However, issues such as the high cost of energy, inadequate infrastructure, and inconsistent raw material supply still pose challenges for paint manufacturers in Nigeria.

The Nigerian paint market is one of the largest in Africa, with a diverse range of products for both residential and industrial applications. The total estimated market for emulsion paints in Nigeria is approximately one billion (1,000,000,000) gallons per annum, while the total market for all paint products is estimated to be about one billion, four hundred million (1,400,000,000) gallons per annum.

Nigerian paint import is projected to reach almost two million (2,000,000) kilograms by 2026. This is an increase of zero point four percent (0.4%) from the one million, nine hundred thousand (1,900,000) kilograms imported in 2021. Over the past twenty (20) years, demand has grown by a staggering sixty-six point nine percent (66.9%) each year.

The demand for paint products has been driven by the increasing urbanization of Nigeria, rapid infrastructural development, and the growth of the construction sector.

The Nigeria Paints & Coatings market can be broken down into the following segments:

1. Decorative Paints
2. Industrial paints and coatings

Decorative coatings comprise a majority of the Nigerian paints & coatings market representing an estimated seventy-one percent (71%) of total volume and about sixty percent (60%) of market value. A vibrant real estate market and change in attitude of homeowners to painting their homes have supported the growth of the market.

By volume, Industrial protective coatings, Heavy duty coatings, Wood finishes, marine coatings account for nineteen percent (19%), auto refinishes accounts for six percent (6%) while can, coil and powder coatings accounts for four percent (4%).

The industrial coatings accounts for about forty percent (40%) of the market share and this segment can be broadly categorized into industrial protective coatings, marine coatings, wood finishes, coil coatings, powder coatings, and auto refinishes.

This segment is mainly focused on the oil & gas sector in Nigeria. The oil & gas sector industry is one of the most established industries in Nigeria and majority of capital expenditures undertaken every year are in this industry. This drives the demand for coatings in Nigeria.

The industrial protective, marine and wood coatings accounted for about sixty-five percent (65%) of the industrial coating segments.

Table of Contents

EXECUTIVE SUMMARY

1.0 Business Overview

1.1 Description of the Business
1.2 Vision and Mission Statement
1.3 Value Proposition
1.4 Critical Success Factor of the Business
1.5 Current Status of Business
1.6 Description of the Business Industry
1.7 Contribution to Local and National Economy

2. Marketing Plan

2.1 Description of the Product
2.2 Product Packaging and Delivery
2.3 The Opportunity
2.4 Pricing Strategy
2.5 Target Market
2.6 Distribution and Delivery Strategy
2.7 Promotional Strategy
2.8 Competition

3. Production Plan

3.1 Description of the Location
3.2 Raw Materials
3.3 Production Equipment
3.4 Production Process
3.5 Production Cost
3.6 Stock Control Process
3.7 Pre-Operating Activities and Expenses
3.7.1 Operating Activities and Expenses
3.8 Project Implementation Schedule

4.0 Organizational and Management Plan

4.1 Ownership of the Business
4.2 Profile of the Promoters
4.3 Key Management Staff
4.3.2 Management Support Units
4.4 Details of Salary Schedule

5. Financial Plan

5.1 Financial Assumption
5.2 Start-Up Capital Estimation
5.3 Source of Capital
5.4 Security of Loan
5.5 Loan Repayment Plan
5.6 Profit and Loss Statement
5.7 Cash flow Statement
5.8 Viability Analysis

6.0 Business Risks, Mitigation Strategies and SWOT Analysis

6.1 Business Risks and Mitigation Strategies
6.2 SWOT Analysis

Report Details

Report Type: Feasibility Report
Formats of Delivery: EXCEL / MS WORD
No. of Pages: Text – 75 Pages /Excel – 6 Pages
Product Code: FORA/02/2025/PAINTPRODUCTIONINNIGERIA/223389938
Publisher: Foraminifera Market Research
Release Date: 20/02/2025; Update Every 3- Months
Language: English
Delivery time: 24– 48hours

Get This Report

Are you interested in purchasing this report?

Please do pay N 1,850,000 into

United Bank for Africa (UBA)
Account Name: Foraminifera Market Research Limited
Account Number: 101 76 603 95

Eco Bank Plc
Account Name: Foraminifera Market Research Limited
Account Number: 274 20 569 37

After payment call us on 01 -29 52 413 / 08033782777 or email us at foraminiferamarketresearch@yahoo.com with the payment details.

After payment confirmation, the soft copy of the report would be sent to you within 24 hours.

Reviews

There are no reviews yet.

Be the first to review “Paints (Resident and Industrial) Production in Nigeria; The Feasibility report”

Your email address will not be published. Required fields are marked *