This comprehensive study analyzes the market potential and feasibility of establishing a large-scale powder detergent manufacturing plant in Nigeria to serve the growing domestic and regional markets.

Industry Overview
Detergent powders are high-volume consumer products used for fabric washing across households and industries
The Nigerian detergent market is dominated by multinational brands but also has several local players
Market estimated at over 1 million metric tons annually and growing at 5-7% driven by population rise and increasing urbanization

Market Analysis
Total powder detergent demand projected to reach 1.3 million metric tons by 2027
Key demand segments are urban households, public lodgings, hospitality sector, and commercial laundries
Intense competition and brand loyalty necessitates attractive pricing and effective marketing for new entrants
Opportunity to produce high-quality yet affordable detergent powders customized for local washing conditions

Proposed Project
New manufacturing facility with initial capacity of 50,000 metric tons per annum
Located in Shagamu, Ogun State with optimal access to raw material sources and major demand centers
Produce range of detergent powder variants (premium, standard, compact, bucket packs)
Modern automated plant with low unit production costs and quality control processes
Establish robust distribution network spanning retail chains, wholesalers, and direct channels

Financial Viability
The total capital investment for plant, machinery, and working capital is projected to be substantial.
Revenue projections anticipate significant growth, exceeding a substantial amount by year 5, assuming full 70% capacity utilization.
The payback period is expected to be relatively short, under 5 years, with a robust Internal Rate of Return (IRR) exceeding 25% based on financial modeling.

Key Success Factors
Ensuring reliable and competitive raw material procurement for surfactants, builders, etc.
Producing consistent high-quality powders that deliver superior washing performance
Competitive pricing through cost optimization and economies of scale
Investing in impactful marketing for robust brand-building and demand creation.

This study concludes that the Nigerian detergent powder market presents a viable business opportunity for a new large manufacturing facility. However, key challenges surrounding raw material costs, quality management, pricing strategy, brand development and market access will need to be effectively addressed.