business plan on transportation in nigeria

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Transportation Business Plan In Nigeria (2024 DOC)

Transportation Business Plan In Nigeria 2024 Feasibility Study

Business plan for transport and logistics – Transportation is the process of moving from point A to point B, in essence the movement of people and goods from one location to another. Transportation has over a long period of time being a source of income as it thrives in places where there are large number of people resident.

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Recent studies has shown that transportation no longer has limit, before now, it use to be movement of small group on foot, then horses now we have automobiles. It now involves a whole lot of capital involvement and also planning, which is why you need our transportation business plan in Nigeria the 2019/2020 edition.

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Transport Business just like most businesses in Nigeria has always been Hot cake. When you look at countries like the United State Of America and Peoples Republic Of China, transportation has been viewed as a huge avenue of making profits, transportation has become big businesses in these countries, one thing these countries has in common is population. As earlier stated, population is one if not the major drive of transportation business.

Now, Nigeria with an estimated population of over 180 million, viewed as the most populous black nation in the world, Nigeria has the potentials of United State of America and People’s Republic of China in the transportation sector, going by the population and also the limited means of transportation in Nigeria.

How Lucrative Is Transportation Business In Nigeria?

The potentials in the transportation business in Nigeria is as huge as the haulage and trucking business as stated earlier, the population helps in this regard, to be able to set up an up to standard transport business outfit, you need to study our feasibility on transportation business in Nigeria pdf, the idea is to understand the various method of running this kind of business and then making profit at the end.

Millions of people are always on the move, moving from destination to another, going about their businesses or other various reasons. To ensure you benefit from this goldmine, providing a means of transporting these people since they need it on an every day basis could be a way of contributing.

One of the reason vehicle transportation will thrive in Nigeria is because there are limited option of transport. In as much as most of the roads are not motor-able, transportation via land has been made to be the major option, while travelling by air are mostly done by few.

The truth is that people want to get to their destination without hassle, as such, people move around on different reasons such as the following;

• Most people want to get to their work place on time
• There those who need transportation just to run errands
• Some wants to visit their friends
• Travel for a vacation
• Transport their goods to various destination etc

Types Of Transportation Business

There are a whole lot people could do via transportation, however, there are various means of transportation, they include the following;

• Transportation by land
• Transportation by air
• Transportation by water

Transport by air entails travelling or moving goods from one location to another through an aircraft, this means are used mainly in the transportation of people and luggage.

While transportation by water entails the movement of people via the high sea using speed boat, canoe, large ship, submarines, this type are common around riverine area in Nigeria, take for example, in places like Lagos, Port Harcourt, Warri in Delta state, Bayelsa, water transportation are somewhat common in these areas.

Then you have transportation by land, this is the most used means of transportation in Nigeria, in fact it has been argued that this means has been over used and that other method of transportation should as well be looked into,   every day people transport for different purposes and different reasons. This is the reason we consider transportation business as a goldmine, this can actually be an option in terms of investments, here we offer suggestive tips on how to get started with your transportation business and then learn how to be successful in the business.

Things You Must Know Before Starting

Get Knowledge – This is not just any business you just dive into, you need to get the required knowledge on how this business works, how do you do this, you can either read up on how transportation business can work in Nigeria or you can go on a field research on transportation business, there is also an option of getting our transportation business plan in Nigeria e-book.

The thing is, you do not want to spend on a venture you know nothing about, hence the need to acquire the necessary knowledge about the business. The business plan you helps you in this regard, at least you need to match your competitors experience and strategy, hence every knowledge is not a waste.

Decide On The Type Of Transportation Business To Go Into – Know this! Transportation business is wide, even within a town, there are different kind of transports, you have the transportation by bus, transportation by Taxi, you have Tricycle (Keke) and then Motorbike (aka Okada). This is way you should be sure of the type you want. The reason for this is to avoid a situation where you will have abandon your equipment because of not knowing some existing laws. Take for example, in many major cities in Nigeria, Okada transportation are not allowed, it becomes a waste investing in it without knowing but getting to know when it is already too late. Also you need to understand the dynamics as well as how capital intensive the business venture is.

Name Registration – Every known transportation company has a registered name, it is also important to choose a name that is easy to remember, for example PEACE, God Is Good (GIG) etc, these names are popular because they are easy to memorize. After choosing a name, go ahead with the registration, your first place to register is at transportation union known as the National Union of Road Transport Workers, here every required license will be issued, also ensure to follow all the rules and regulations, after that, you can then register your business name at the Corporate Affairs Commission (CAC), you can solicit for the assistance of a lawyer, ensure you get your certificate with an RC number, an evidence your business is fully recognized.

Employments And Remuneration

This is another important factor to consider, employing capable hands who will help with the progress of the business, employing capable hands ensures the possible longevity and the success or failure of business. It is important to get someone who will supervise while you oversee things. This absolutely depends on how large your transport company is, a company of say one vehicle doesn’t require all this. Also employ drivers who are good and experienced. Also  create a system that will enable you track your drivers, this is to avoid drivers taking advantage of the business. Remuneration, have a fixed salary which can either be weekly or monthly.

Finally bus transport business you need to exercise patience in other for the business to grow, most times, it takes more than just creating awareness in the media for the business to grow, your service quality can do all the tricks for you, when an individual is satisfied by your service, they will likely use your company again.

NOTE – This business plan also covers for feasibility study on road transportation business in Nigeria.

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This is the most complete Transportation Business Plan In Nigeria pdf Guide to read.

Did you know that the transportation industry is one of the fastest-growing industries in Nigeria?

This  Transportation business  plan in Nigeria pdf entails all you’ll need to successfully plan, start and run a profitable transportation business in Nigeria and also scale it to the next level when the time comes, but before this, you need ground knowledge about the transportation business in Nigeria so as to get a good base foundation of your business and this is the first step in starting this business.

Transportation Business In Nigeria Overview

Table of Contents

The movement has always been a part of basic human character which is also an undeniable fact all over the world. Nigeria’s population is currently more than 180 million people, this is a huge business advantage for anyone starting a transportation business in Nigeria. This is just the count of people not to mention the business activities which happens every day and also will involve the movement of goods from one location to another. Nigeria’s make use of transportation instruments like, Bus, Rail, Bikes, Airplane, Boat, to move around. And this is the reason why the transportation business is one of the best and profitable business to start in Nigeria, and here’s why:

• Profit margins are high
• Market Demands are incredibly high in Nigeria
• Low running cost
• Two way earning potential
• Motor cycling (Okada): This transport model make use of motor cycle to carry passengers within a town, city and villages. Motor bike, are popularly known as okada in Nigeria. It can carry one or two passengers at a time, though it is discouraged in some state in Nigeria as a means of transportation due to high rate of accidents that occurrs but still some state still use it to manipulate through lots of traffic.
• . Tri-cycling (keke napep): This is a breed of both Moto cycle and cars this type of transportation is officially meant to carry three passengers, some drivers carry four passengers, while some stubborn ones in some states can carry five passengers. Keke napep is the future of Moto cycle and it is likely to be used as a means of transportation in the foreseeable future.
•  Commercial luxury bus and mini-bus : This model of transportation is capable of moving people and goods both towns and inter-city services. Most people who commute to work or others travelling outside the state use this means.
• Car town service (taxi): This is also used to convey people and goods within and out of the state. It is a more secure means of transport than the unregistered and unpainted kabu-kabu cars because each owner registers the car with the state government agency and other transportation Unions which regulate transportation practices.
• Haulage transport service: This model of transportation invouls the use of different types of automobile to carry goods for a charge. The types of vehicles used in haulage transport service include, tanker, trailer, tipper, etc. They are mostly used to convey different kinds of bulky goods within a country.
• Offer hire purchase services: This a different type of transportation business in Nigeria. The strategy basically involves you purchaing a taxi, Bus or even a bike and then hiring it out to driver, who in turn drives the car for a specific period of time before he buys it off you at a higher amount of money that you initially purchased it. The payment for hirer purchase is done installmentally for an agreed price. For example, you buy  ten tri-cycle at ₦600,000 each and hire each one out at ₦800,000 each with ten months instalment of ₦80,000 each month, after which the hirer becomes the owner. So with the instalment payment of₦80,000 per month, the total amount payable at the end of the 10 month is ₦800,000. Assuming the entrepreneur received all the instalments, he makes ₦200,000 from each of the tri-cycle which then amounts to 2M naira in ten months.

Transportation Business Plan In Nigeria Pdf Outline

1. Executive Summary 2. Description of Problem and Solution    2.2 Vision    2.3 Mission    2.4 Value Proposition    2.5 Business Objectives    2.6 Critical Success Factor    2.7 Current Status of Business    2.8 Legal Requirement    2.9 Contribution to Local and National Economy    2.10 Contribution to SDG

3. SWOT Analysis

4. Market Analysis

5. Competitive Analysis & Risk Analysis

6.  Marketing Plan  6.1  Description of Product (S) or Service (S)  6.2 Potential challenges in the business industry  6.3The Opportunity  6.4Target Market  6.5Marketing and Sale Strategy

7 .Production Plan/Operational Plan  7.1 Description of the Location/Factory  7.2 Equipment/Capital Expenses  7.3 Equipment/Depreciation Table  7.4 Pricing strategy  7.5 Stock Control Process  7.6 Pre-operating Activities and Expenses

8. Organization Structure and Responsibilities  8.1 Salary Schedule

9. Financial Plan  9.1 Start-Up Capital Estimation (Expansion Capital Estimation)  9.2 Loan Details  9.3 Business Risk and Mitigating Factor  9.4 Financial Projections  9.5 Sales Forecast And Sales Assumption  9.6 Income Statement (P&L) Account 10. Conclusion

If you want to create a Transportation business plan in Nigeria then all these listed above should be well detailed in your transportation business plan in Nigeria document. As well. you don’t have to go through the stress of creating a  Transportation business plan in Nigeria , We have done the research for you,  just reach out to us to get a well comprehensive transportation business plan in Nigeria that is very accurate with a clear Finacial Forecast that will help you understand the profit margin of the transportation business in Nigeria

Transportation Business Plan In Nigeria Pdf Sample Breakdown

Executive summary.

In this section, you will give a summary of everything written in your transportation business plan in Nigeria because some investors or banks do not want to go through the whole document rather they want a summary of the business, Projected revenue and Profit/loss.

Description Of Problem And Solution

Here You basically Share the problem your transportation business in Nigeria is trying to solve and how you intend to solve it.

Transportation Business Plan In Nigeria Pdf SWOT Analysis

In this section of your transportation business plan in Nigeria doc, you share the strength, Weaknesses, Opportunities, Threat your business will likely face when you start. This section is very important in your transportation business plan In Nigeria, investors want to understand this before giving you a dime.

Market Analysis

This is where you talk about the size of your market and how many percentage share you intend to capture

Competitive Analysis & Risk Analysis

In this section, you basically do a breakdown of your competitors, their pricing strategy and how long they have been existing. This can come in a table format in your transportation business plan in Nigeria pdf document.

Marketing Plan

Any serious businessman/woman should have a marketing plan or strategy in place to start and grow their business. For your transportation business plan in Nigeria to be comprehensive enough then it must contain a marketing plan. Usually, investors and banks check for this in your business plan in Nigeria as well.

Production Plan/Operational Plan

Depending on which type of business you intend to start, A breakdown of the equipment that is necessary for the running and operating of business should be contained in this section of your transportation business plan document. Your transportation business plan is incomplete if you don’t cover this.

Organization Structure And Responsibilities

A breakdown of your employee hierarchy and structure with their various responsibility should be listed in this part of your business plan document.

Most investors want to understand the team of your business as they do believe that one of the critical factors for the running of a successful business more especially in a country like Nigeria is the team.

So do make sure you cover this in your transportation business plan in Nigeria.

Financial Plan

This is the most important section of your transportation business plan in Nigeria, 90% of investors purpose of investing in your business is to make a profit and the earlier you realize this the better for you. This section of the document can be very complicated and can be the hardest

This section is basically where you give your revenue projections for the business as well as the profit and loss you think the business will incur usually in the first 3 years of running the business.

We have done countless research and found out that the transportation business is one of the best and lucrative businesses to start in Nigeria. It is very profitable and also has a very long life span. It is no doubt that people and goods will have to move from one location to another, and this will require the service of a transport company for conveying. This is a very big industry which has lots of business models and good profit potential and In order to start your own transportation business in Nigeria, the first thing you’ll need is a business plan so as to evaluate your capital, Location and business structure.

Writing a business plan is very important and I encourage you not to listen to anyone who says a business plan is not important because with a business plan you will be able to understand your industry as well as know if the business is profitable or not.

You don’t need to stress yourself when it comes to working on your transportation business plan in Nigeria as we at NaijaCEO can handle this for you.

We are one of the leading business development and business plan writing agency in Nigeria, You can click on the button below to contact us for any of your transportation in Nigeria business plan documents.

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Micah Erumaka

About Micah Erumaka

Micah Erumaka is the Founder of LiaonCEM solutions which owns NaijaCEO. He is an Internet Entrepreneur and a content creator. After the failure of his first company at age 18 he started NaijaCEO to help entrepreneurs with the information they need in operating a successful business in Africa

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• Business Plan

Transportation Business Plan in Nigeria

Transportation Business and Financial Plan

Our Transportation Business Plan in Nigeria is well documented and can also be used for, but not limited to:

• Grant Applications,
• Bank Loans,
• Proposal writing,
• Business Concept Note,
• Competitions e.t.c

Purpose of the Transportation Business Plan in Nigeria

Benefits of the Transportation Business Plan in Nigeria

The Transportation Business Plan in Nigeria is beneficial because

• It helps in outlining the steps needed to achieve the business goals and ideas.
• It helps to articulate strategy to stakeholders who support the business.

Importance of the Transportation Business Plan in Nigeria

The Transportation Business Plan in Nigeria is important because

• It will assist you in making sound decision in the administration of the commercial enterprise which will make a contribution to the success of the business.
• It will additionally gives distinctive statistics on all components of the business, outlining the business desires and the steps required to achieve them.

Content of the Transportation Business Plan in Nigeria

• Executive Summary
• Introduction
• Business Description
• Keys to Success
• Products and Services
• Market Analysis
• Our Target Market
• Pricing Strategy
• Competitor Analysis
• Sales and Marketing Plan
• SWOT Analysis
• PEST Analysis
• Operational Plan
• Management plan
• Financial Plan and Projections
• Financial Diagnostics

Download The Complete Transportation Business Plan in Nigeria

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How to Start a Successful Transportation Business in Nigeria (Roadmap To Greatness)

Nigeria’s transportation sector is not just a means of moving people and goods from one place to another, but a major life force that drives the heartbeat of its economy.

The industry encompasses various modes of transportation, including road, rail, air, and water transport.

The opportunities within the Nigerian transportation sector are as vast as the nation itself. These opportunities include; Developing a ride-hailing service in the urban hubs, logistics, and cargo handling, interstate and intercity transport, water transportation, and many more. Entrepreneurs are seizing the moment.

In this article, we will uncover how you too can seize an opportunity in the transportation business in Nigeria

Table of Contents

How profitable is transportation business in nigeria.

The transportation business in Nigeria is profitable if approached wisely. Although there are challenges like roads and rules, the need for good transportation creates the opportunity to make money and earn a living.

By using new technology and being smart about how your transportation business operates, especially with the transportation business that involves traveling between states by land, air, or both, you can take advantage of the country’s busy transportation system.

This can help you build a good business that contributes to economic growth and community development.

To do well in the transportation business in general, you need to plan carefully, be able to change your plans, and really know how the market works.

It might be a bit of a tough journey, but the end result is more rewarding than the challenges.

What are the types of transportation in Nigeria?

Here are the modes/types of transportation business in Nigeria:

• Road Transportation: The backbone of Nigeria’s transportation system, road networks crisscross the country, connecting cities, towns, and villages. From congested urban roads to highways stretching across vast terrains, road transportation is the primary mode for both passengers and goods. Commuter buses, taxis, private cars, and trucks are ubiquitous on these routes.
• Rail Transportation: While rail systems have faced challenges, Nigeria is making strides to revitalize this mode of transportation. Trains offer an efficient and cost-effective means of moving people and cargo over long distances. Initiatives to upgrade existing rail lines and introduce modern services are underway by the Nigeria government, contributing to the diversification of transportation options in the country.
• Air Transportation: With a network of domestic and international airports, air travel has become an integral part of Nigeria’s transportation landscape. Airplane transportation link cities and facilitate global connectivity. Passenger flights, cargo services, and tourism contribute to the vitality of the aviation industry in Nigeria.
• Water Transportation: Nigeria’s extensive network of rivers, lakes, and coastline makes water transportation a vital mode for both trade and leisure. Ferries, boats (canoes inclusive), and barges navigate waterways, linking areas that might be inaccessible by road, especially in the south-south region and waterline areas of the country. In addition to serving as a transport option, water routes also promote tourism and cultural exchange.
• Motorcycles and Tricycles: In urban and rural areas alike, motorcycles (popularly known as “Okadas”) and tricycles (“keke Napeps”) provide flexible and efficient transportation options for short distances. While informal, these modes of transport play a significant role in local mobility.

Those are the 5 types of transportation businesses in Nigeria that contribute greatly towards the economic growth of the country.

Among the types of transportation businesses in Nigeria here are the transportation businesses that make the most money in Nigeria:

• Aviation Services
• Logistics and Cargo (Haulage) Services
• Interstate Bus Services
• Innovative Urban Mobility Solutions (i.e. Ride-sharing services)
• Water Transport and Trade

How to Start a Transportation Business in Nigeria

Here is how you can start and run a successful transportation business in Nigeria:

1. Niche Identification and Market Research

Niche identification is the first step in the right direction to be taken in the transportation business.

As you already know there are many opportunities that the transportation business in Nigeria offers to entrepreneurs, it is all left for you to decide which one aligns with your goal and capital.

The next thing to do is to conduct an extensive market research on your chosen transportation niche.

This research provides you with valuable insights into your target market behaviors, preferences, expectations, and pain points. In essence, this market research helps you understand the existing transportation landscape, competitors, and potential opportunities.

Never be discouraged if you have to change your niche or make an adjustment to your chosen transportation niche in a situation where you are faced with financial hurdles.

For instance, if your transportation niche is the interstate and intercity road transportation service; where you have to transport people from one state to another state within Nigeria and from one city to another city within a state respectively, all by roads.

But, along the course of your research, you discovered that with the level of your resources at your disposal it will be very difficult to compete with the big fishes in the industry such as; God is Good Motors (GIGM), Young Shall Grow Motors, Ifeanyi Ubah Transport Company, Peace Mass Transit, ABC Transport, Guo Motors, Rivers Link Express, and the likes.

The wise thing to do is to focus on a segment of your choosen niche, that your resources can compete favorably. –That will be the “Intercity transportation service”.

As time goes on and your business continues to grow and make name and get recommendations, you can then start to expand to other states gradually (interstate Transportation service).

2. Comprehensive Business Plan

At the heart of every successful venture lies a well-structured and meticulously crafted business plan.

This comprehensive document serves as the guiding compass, illuminating the path to achievement in the world of entrepreneurship.

It is more than just words on paper; it’s a dynamic roadmap that charts your course towards business success in the transportation business.

Your transportation business plan should include these areas;

• Business Goals
• Target Market Analysis and Competition Analysis (From your market research findings)
• Financial Projections
• Growth Strategies
• Mode of Business Operations
• Risk Management

This business plan is your business foundation for growth, strategies, innovation, and sustained success.

3. Quality Fleet and Equipment

The quality of your fleet is paramount if you want to run a transportation business Nigeria. It serves as the backbone of your operations, ensuring that your services are not only dependable but also capable of meeting the transportational needs of your customers. Investing in a well-maintained and suitable fleet is a cornerstone of success in this industry. Here is what you need to know when it comes acquiring a fleet for your transportation business in Nigeria:

1. Investing in Reliability: A quality fleet encompasses the vehicles that form the core of your transportation services. Whether you’re running an intercity bus service, a cargo transport company, or a luxury travel experience, the reliability of your fleet is essential. These vehicles are the tangible face of your business, and their performance directly impacts customer satisfaction and safety.

2. Suitability to Chosen Niche: Each transportation niche has unique requirements. Your vehicles must align with the specific demands of your chosen market segment. For instance, if you’re operating an intercity bus service, your fleet needs to offer comfort for longer journeys. On the other hand, if you’re focusing on cargo transport, your trucks need to be equipped to handle various types of goods securely.

3. Safety First: Safety is non-negotiable in the transportation industry. Your fleet must adhere to strict safety standards to ensure the well-being of passengers, drivers, and cargo. Regular inspections, maintenance, and adherence to regulatory guidelines are paramount to maintaining a safe operating environment.

4. Comfort and Convenience: For passenger-centric services, such as urban ride-sharing or tourism transport, the comfort and convenience of your fleet are critical. Clean and well-maintained vehicles, along with amenities that enhance the passenger experience, contribute to customer satisfaction and positive word-of-mouth.

5. Up-to-Date Fleets: Keeping your fleet up-to-date is vital for remaining competitive and efficient. Modern vehicles often come with advanced technologies that improve fuel efficiency, safety features, and overall performance. Additionally, newer vehicles may align better with evolving environmental regulations.

6. Regular Maintenance: Regular maintenance is the lifeblood of a reliable fleet. Implementing a strict maintenance schedule not only ensures the longevity of your vehicles but also minimizes the risk of unexpected breakdowns that result in fatal and nonfatal accidents. A well-maintained fleet translates into reduced downtime and increased operational efficiency.

And if you are asking; Can I start a transportation business in Nigeria with one vehicle instead of a fleet?

Yes, you can start a transportation business with one vehicle instead of a fleet except for the Aviation transportation service in Nigeria that requires three (3) airworthy aircrafts before commencing operation.

As you build and manage your fleet, remember that its quality goes hand-in-hand with the reputation and growth of your transportation business.

4. Regulatory Compliance

The first legal requirement for operating your transportation business in Nigeria is the Business Registration with the Corporate Affairs Commission (CAC).

This business registration requirement is mandatory for all kinds of transportation business that operates within Nigeria except the intracity transportation services providers such as the Okada riders, Keke Napeps, and Danfo drivers.

Apart from this business registration, there are other legal requirements that are required before you can fully operate a transportation business in Nigeria and it is dependent upon your transportation Niche.

Here is a breakdown of the legal requirements for starting each transportation business niche in Nigeria:

Road Transportation

1 Interstate and Intercity Transportation

• Vehicle License and Registration
• Driver’s License
• Vehicle Insurance
• Roadworthiness Certificate
• Insurance certificate
• Interstate Road Transport Operator’s License
• Medical Examination
• Ministry of Transport (MOT) certificate

2 Logistics and Cargo (Haulage) Transportation Services

• Goods Transport License

In a situation where you have just one vehicle and you are the driver of the vehicle, operating intercity and interstate transportation services you will need these two additional documents:

• Vehicle Lease or Ownership Documents
• Customs Clearance Documents (for imported vehicles)

3. Intracity Transportation Service

These are transportation services within the city such as Keke Napeps, Danfo Drivers, and Taxi Drivers. Here are the legal documents they must have to operate their transportation business within the city in a defined route:

• Vehicle Identification Number (mandatory in some motor parks)
• Route-Specific Permits (gotten from Transport Unions)

Apart from the aforementioned legal requirement for starting a road transportation business in Nigeria, there are unions that your road transportation business must be registered with. They are:

• Road Transport Employers Association of Nigeria (RTEAN)
• National Union of Road Transport Workers (NURTW)
• National Association of Government Approved Freight Forwarders (NAGAFF)
• Nigerian Association of Road Transport Owners (NARTO)

The main objectives of these unions are to fend for their members, set transportation fare limits, and regulate competition in the industry.

Water Transportation business

• Marine Transportation Permit from the Nigerian Maritime Administration and Safety Agency (NIMASA)
• Vessel Registration
• Vessel Safety Standards
• Vessel Inspection and Certification
• Insurance Coverage
• Crew Certification and Training

Air Transportation Business

• Air Operator’s Certificate, Air Operating Permits, Air Transport License (AOC) from the Nigerian Civil Aviation Authority (NCAA)
• Aircraft Registration
• Airworthiness Certificate
• Route Authorization Permits
• Aircraft Lease or Ownership Documents

By obtaining necessary permits, licenses, and certifications, you legitimize your business and build a strong foundation for growth. Operating within the bounds of the law not only safeguards your business from legal complications but also enhances your reputation as a responsible and trustworthy player in the transportation sector.

5. Operational Efficiency

It’s all about fine-tuning every aspect of your operations to minimize waste, enhance productivity, and ultimately boost your bottom line. Here are areas to focus on when optimizing your transportation business for efficiency:

• Efficient Route Planning
• Fuel Management
• Maintenance Schedules
• Embracing Technology (Online Booking and Payments, GPS Tracking for Real-Time Monitoring, and Efficient Routing with GPS)
• Resource Optimization
• Enhancing Customer Experience

If you can get all of the aforementioned items fully optimized you position your business for success in the Nigeria transportation business competitive landscape.

6. Financial Management

Financial management is the art of overseeing your business’s monetary aspects, tracking income, expenses, and profits, and making informed decisions to ensure that your financial resources are utilized optimally. Within the Nigerian transportation landscape, an adept financial management system is crucial for smooth operations and long-term growth.

Here is why you should implement a financial management system in your transportation business:

• For tracking revenues, expenses, and profits
• It helps your business budget wisely
• Efficient resource allocation:
• It anticipates unexpected costs by providing a contingency fund
• It helps in making informed decisions
• It enables your transportation business to easily meet its Legal and Tax obligations without complications

In addition, financial management not only safeguards your operations financially but also paves the way for strategic expansion and innovation.

7. Branding and Marketing

Your brand identity is more than just a logo or a name; it’s the essence of your business.

It encompasses the values, personality, and unique attributes that set your transportation services apart.

By crafting a brand identity that resonates with your target audience – whether it’s passengers, shippers, or travelers – you establish a connection that goes beyond transactions. A connection that puts you first in their choice of transport above others.

While, effective marketing involves a strategic blend of traditional and digital approaches to reach your target market.

Traditional methods such as; Print ads, billboards, and local partnerships can help you reach audiences who may not be digitally inclined.

On the other hand, digital marketing strategies tap into the online landscape, where a significant portion of today’s audience resides.

8. Customer Service Excellence

In the transportation business, customer service excellence is a potent ingredient that can transform ordinary experiences into memorable journeys.

This aspect of your business has the power to differentiate you from the competition and establish your brand as one that cares deeply for its customers.

Here is how your transportation business can provide excellent customer service to its customers.

• By training your staff (from high-level to least-level staff) to be able to build rapport, have a responsive attitude, and handle challenges gracefully.
• Make your transportation business be open to receive and listen to customers’ feedback
• Personalize the experience by including the names of your customers on their receipts (especially the returning customers) and addressing them by name when it is time for them to board their vehicles.

In Nigeria’s competitive market, exceptional customer service isn’t just a strategy; it’s a mindset that fuels positive word-of-mouth, repeat business, and brand loyalty.

9. Secure Finance

It’s a good idea to think about getting money from external sources because this transportation business has a bunch of challenges that could mess up your planned budget in ways you didn’t expect.

Here’s a list of ways you can get money from outside sources for your transportation business in Nigeria:

1. Bank Loans: Traditional bank loans are a common option for securing funds. You can approach banks or financial institutions to apply for a business loan, which you’ll need to repay with interest over a specified period.

• How to Get Loan From UBA Bank: Seize Your Opportunities
• Roadmap to Loan Approval: How to Get a Loan to Start a Business in 11 Steps

2. Investors and Venture Capital: Pitch your transportation business idea to angel investors or venture capital firms. In exchange for an ownership stake or equity in your business, they can provide the capital you need to grow and expand.

• How to Pitch my Business Idea
• How to sell a Business Idea to an Investor

3. Crowdfunding: Online crowdfunding platforms allow you to raise small amounts of money from a large number of people. You can present your transportation business concept and offer incentives to those who contribute funds.

4. Microfinance Institutions: Microfinance institutions provide smaller loans tailored to the needs of small businesses and entrepreneurs. They often have less stringent requirements compared to traditional banks.

5. Grants and Subsidies: Research government grants, subsidies, and incentives available for businesses in the transportation sector. These funds are designed to promote economic growth and innovation.

6. Business Incubators and Accelerators: Joining a business incubator or accelerator program can provide not only funding but also mentorship, networking, and resources to help your transportation business thrive.

7. Peer-to-Peer Lending: Peer-to-peer lending platforms connect borrowers directly with individual lenders. This method can offer competitive interest rates and flexible terms.

8. Trade Credit: Negotiate trade credit with suppliers or vendors in the transportation industry. This allows you to delay payments for goods or services, giving you more time to generate revenue.

9. Supplier Financing: Some suppliers might offer financing options for their products or services, allowing you to acquire necessary equipment or vehicles while spreading out the payment over time.

10. Family and Friends: Personal connections can be a source of financial support. Be sure to formalize any arrangements with clear terms to avoid straining relationships.

11. Partnerships and Joint Ventures: Consider forming partnerships or joint ventures with other businesses or individuals who bring funding to the table. This can also provide access to expertise and resources.

12. Government Programs: Explore government initiatives aimed at supporting small businesses and startups. In Nigeria, agencies like SMEDAN and BOI offer funding opportunities for entrepreneurs.

• Federal Government Loans for Small Business in Nigeria
• How to Get a Loan to Start a Business from the Government

13. Private Grants and Competitions : Research private organizations or foundations that offer grants, awards, or prizes for innovative business ideas in the transportation sector.

14. Online Lending Platforms: Online lending platforms offer quick and accessible financing options for businesses. However, be cautious of interest rates and terms before proceeding.

Remember to thoroughly research and evaluate each option, considering factors such as interest rates, repayment terms, and potential impact on your business’s equity and control before you finally settle on your option.

KEY RESOURCES:

• How to pay off Debt Fast: 5 things you should never do with a Loan money
• How to Start a Business in Nigeria in 9 Easy Steps
• How to Register a Business Name in Nigeria in 7 Easy Steps
• Liquid Gold: How to Start a Pure Water Business
• How to Start a Supermarket Business in Nigeria (Supermarket Startup Secrets)
• Starting a Profitable Cold Room Business
• How to Start Logistics Business in Nigeria: A Complete Guide

Final Thoughts on Starting a Transportation Business in Nigeria

In conclusion, starting a profitable transportation business in Nigeria requires a strategic blend of vision, diligence, and careful planning.

As you navigate the dynamic market and its unique challenges, remember that every step you take is a testament to your commitment to providing exceptional services and making a meaningful impact on the Nigeria economy and society as a whole

Remember to subscribe button via Email or by turning on the Bell 🔔 notification icon, so as to get updated directly on your device when new articles are published .

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I am Eghosa Kester Igbinigie, the owner of StartBizEasy.com and Richnuggets.com. As a business enthusiast, writer, and speaker, I hold a degree in Business Administration (BSc) and own several successful businesses

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How to start transport business in nigeria.

How profitable is transport business, the capital needed and the step by step way to start.

Do you have a car or bus or maybe even a sienna and you want to start a transport business in Nigeria? Perhaps you have some capital and you are looking for ways to partner with a transport company in Nigeria? Read this article to the end.

In this article, I am going to be teaching you everything you need to know about the transportation business in Nigeria. In this article, we are going to be discussing if the transport business is profitable in Nigeria.

The cost of starting a transportation business in Nigeria (capital needed to start), the business plan, the best car for transport business in Nigeria, how to partner with a transport company in Nigeria and more. If you are ready, let us start.

Is Transport Business Profitable?

Transport business in Nigeria is a profitable business for obvious reasons. The reason why the business is profitable is that the business fulfills a need. Yes, the transport business is a very important business in Nigeria because it helps people move from one place to another.

I mean imagine if the bus driver in your area says they are on strike people will not be able to go to work or go to parties or imagine the interstate transport drivers in Nigeria decides to go on strike. This is going to affect the whole of Nigeria as a whole. It will literally bring Nigeria to s standstill.

Another reason why the transport business is profitable is that its customers are very huge. I mean let’s look at it every day, people start their own transport business. Many of these people buy cars or buses to join the transport business yet due to this the demand has not over-flogged the supply.

In fact, because the population of Nigeria increasing day by day the demand for transport is increasing. So if you start your own transport business in Nigeria today you can be guaranteed to always make profits because of the high demand for transport.

Capital Needed to Start Transportation Business

The cost of starting a transportation business in Nigeria is relative because it depends on the kind of transport business you want to go into and how much capital you have. You can start a transport business in Nigeria as long as you have a vehicle. This could be a tricycle (Keke Marwa), Okada, Mini bus (korope), car, bus, or even van.

And if you want to start a haulage business in Nigeria you will need a tipper, truck, trailer, or van. To also partner with any transport company in Nigeria you will need capital in running to millions of Naira. To start a transport business in Nigeria with one vehicle you will need at least from N800,000 – N5,000,000 capital except if you want to go into okada transport business.

Here are the steps on how to start a profitable transportation business in Nigeria.

1. Write a Business Plan

The first step to start a transport business in Nigeria is to write a transportation business plan as well as a feasibility study on the transport business. Conducting a feasibility study helps you to understand the transport system according to the local area where you want to start your transport business.

It let you know the most lucrative transport business in that area and the transport business you should invest in. For example , asides from the e-hailing businesses like Uber, Taxify, and others in Lagos, danfo transport business is very lucrative.

If you do not know what danfo transport business means it simply means you using a van or bus to move people from one place to another majorly from one bus stop to another. A transportation business plan will help you in a big way to avoid unnecessary loss especially if you are investing huge capital in the business.

To write your transport business plan you can use some online business plan template or simply hire a professional business plan writer to write it for you. You can hire us via [email protected] in case you do not have any business plan writers close to you.

2. Get the Required Startup Capital

After writing your transport business plan the next step is to get the capital needed to start your transport business in Nigeria. During my course of writing this article, I discovered that some of the Lagos drivers do hire purchases. While some do buy their vehicles themselves, use them for some years, then sell them off then buy another vehicle, and this circle keeps going till he or she is no longer interested in the transport business.

For the drivers that bought their vehicles on hire purchase, they said it is not something that should be fearful of as you can pay off the money within 6 months – 1 year if you are passionate enough and you are hard-working. Especially in Lagos, the drivers here can make up to a minimum of N30,000 daily.

However, how much you make is based on so many factors like traffic, quality of the vehicle, fuel, and other factors. So you can either borrow to start your transport business, do a hire purchase, or simply buy the vehicle with your own money. Read our post on how to get funding for your business in Nigeria .

3. Buy your Vehicle(s)

When it comes to buying that car, bus, or minivan for your transport business in Nigeria there are a few things you need to consider. You need to consider the kind of type of transport business you want to do. Do you want to do interstate transport or any other type of transport business, how many passengers do you want to be carrying in your vehicle? 

Which kind of vehicle brand do you want to buy? I will strongly advise you to go for Toyota as it is the most loved car brand in Nigeria because of its reliability. After concluding on the kind of vehicle you want to go for you can now go and buy your vehicle. There are different places where Nigerians do but vehicles for transport business.

Some Nigerians prefer to buy their vehicles (car, bus, minivan, bike, Keke Marwa) at Cotonou while some prefer to buy and import the vehicle from abroad and others prefer to buy their vehicles from local importers or simply buy fair used.

4. Register Vehicle with Govt Agencies

Registering your car, bus, bike, or Keke Marwa or any other type of vehicle is very important especially if you are serious about the transport business in Nigeria. Doing this makes your transport business easy because no law enforcement agency will disturb you for one document or the other.

The registration you need to do for your transport business varies from one state to another in Nigeria. However, there are some documents that you need to get that are federal documents. There are documents you need to obtain from the Ministry of Transport, Vehicle Inspection Officers (VIO), Federal Road Safety Corps (FRSC), National Union of Road Transport Workers (FRSC), and more.

5. Employ Drivers or Drive Yourself

Another thing you need to consider in your road transport business is if you are driving your vehicle yourself or if you will employ a driver and conductor. If you are driving the vehicle yourself you will need to learn how to drive and get your driver’s license. If you are driving your vehicle yourself you will increase your income because you will not need to pay a driver.

And if you are employing a driver the driver needs to be able to drive and should have a driver’s license too. However, you will need to pay the driver daily for this work he is offering.

If you are getting a driver to drive for you make sure the person you are employing is not a stranger. This is to make sure the driver does not run away with your vehicle, or your money, or even cheat you on how much he or she is to deliver to you daily.

6. Making Profits in Transport Business

To increase profits in your transport business in Nigeria there are a few things you must do. First of all, you need to ask other transporters how to make money fast from the transport business. Yes, there are some secrets they will expose to you that you never knew about before so just listen and apply their tricks and tips.

Another thing you need to do to increase profits in your transport business is to work although the day and every day. Yes, you cannot compare a driver who works from morning till night will a driver who just works from morning till afternoon. Obviously, the driver that worked for the whole day will definitely make money more than the one that worked for the half day.

Lastly, try to make sure you buy a good vehicle for your business. This will save you from unnecessary expenses and more. If your vehicle is good it will save you from unnecessary repairs that will take money from your pocket.

Starting an Interstate Transportation Business

Interstate transport business is very different in Nigeria though I do not know how it is operated in other countries in Africa. In Nigeria, it is only the Igbos that have been able to make the interstate transport business a lucrative business. They made sure their business is a standard business by starting transport companies in different parts of the country and carrying people and goods from one place to another.

That is why these interstate transport businesses get help from their bank in terms of getting loans when they need them. If you are thinking of starting your own interstate transport business in Nigeria I will strongly advise you to make the transport business a standard business. Register it under the CAC as a sole proprietorship or partnership business.

Partnering with Transport Company in Nigeria

If you cannot afford to start a proper transport business in Nigeria especially when it comes to interstate transport business, it is advisable to partner with any transport business you love. Remember I said earlier that some of these interstate transport businesses need loans from banks to grow their transport business.

The interest from these loans are very high which is why these transport businesses are now looking for private investors that can invest in their transport business. This is where you can come in. When you partner with these companies you can make money from the transport business.

So how do you partner with transport companies in Nigeria? Just invest your money into a transport business that has existed and needs financial support to grow or simply partner with someone that is just starting a transport business and grow the business together.

Best Car for Transport Business in Nigeria

So if you are thinking of starting a transport business in Nigeria I am sure you have been asking yourself which car is the best for the transport business in Nigeria. Well, it depends on so many factors and it depends on the kind of transport business you want to go into.

If you are considering going into Uber I will advise you to buy a Toyota car preferably a Toyota Corolla brand new, or fairly used, or tokunbo. It depends on what you can afford. But if you are considering going into a local transport business like just moving people from one bus stop to another in a state.

If you want this to be like a side hustle asides from your regular 8 am – 5 pm or regular business you can buy a Toyota Sienna.

Sienna Car Transport Business in Nigeria

The Sienna car can be used for transport in Nigeria. It can be used for logistics business and it can also be used for interstate transport business in Nigeria. In the interstate transport business, we have buses that are commonly used and we have cars. However, transport companies in Nigeria prefer Sienna cars to saloon cars for the transportation of people.

A sienna is best used for transport business especially if you do not want to buy a bus or you cannot afford to buy a bus.

Overall, the transport business is a lucrative business because the business is fulfilling the needs of Nigerians. I hope you have been able to cover everything in the article but if I have not you can drop your questions below.

Recommended:

• 35 Best Handwork to Learn in Nigeria to Make Money
• How to Start Bike Logistics Business in Nigeria
• Top 10 Loans for Non-Salary Earners in Nigeria
• How to Make Money with Your Car in Nigeria
• How to Secure a Car Dealership License in Nigeria

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How to Start a Transport Business in Nigeria: A Step-by-Step Guide

by Counseal Team

Updated May 24, 2024

Considering a venture into the Nigerian transport sector? Good call!

With a burgeoning population, rapid urbanisation, and an ever-growing economy, there’s never been a more opportune time to enter this industry. Despite the demand, the entry barriers remain relatively low, and the capital requirements are quite modest compared to other businesses. Now the question is, where to begin? Let’s embark on this journey together with this comprehensive guide.

Starting a transport business in Nigeria is a promising opportunity. With careful planning, research, and strategic decisions, you can navigate your way towards a successful business in this thriving industry.

Let’s get moving!

Finding Your Niche: The Key to Differentiation

Learning from the best: successful niche transport businesses in nigeria, step 2: craft a business plan and secure your finances, the roadmap to registering your business, types of licenses and permits, success stories, navigating vehicle and equipment acquisition.

• The Winning Ways of Successful Transport Businesses 

Taking the Leap

Step 5: the strategic advantage of hiring and training, step 6: the power of marketing and promotion, what exactly is a transport business, what makes the transport business such a profitable venture in nigeria, what are the various transport businesses in nigeria, what are the steps to start a transport business in nigeria, what challenges can up you potentially face while running a transport business in nigeria, how to overcome these challenges, what benefits does running a transport business in nigeria offer, quick takes, the costs involved.

The start-up costs of a transport business in Nigeria will hinge on several factors, such as the transport service, the mode of transportation, and the quality of the vehicles. We estimate that the initial investment can range from ₦1.5 million to ₦11.5 million or more. Before plunging into this venture, it’s advisable to conduct thorough market research, prepare a detailed business plan, and get your business registered. These steps can give you a clearer perspective on the best type of transport service suitable for your target market, locality, and budget.

Potential Monthly Earnings

The monthly income from a transport business can vary considerably, influenced by factors such as the type of transport service, mode of transportation, number of vehicles in operation, number of customers served, pricing, operational costs, and market competition. Hence, it’s challenging to provide a definitive answer as profit margins and revenue streams can differ.

However, for a rough estimate, use the following formula to calculate the potential monthly income:

Monthly income = (Number of vehicles x Average daily trips x Average fare x 30) – (Operational costs x 30)

For instance, suppose you operate a taxi service with a fleet of 10 cars, each making 20 trips per day at an average fare of ₦500. If your average daily costs (fuel, maintenance, driver’s salary, etc.) amount to ₦2000, your monthly income calculation would be:

Monthly income = (10 x 20 x 500 x 30) – (10 x 2000 x 30) = ₦3,000,000 – ₦600,000 = ₦2,400,000

Hence, before taxes and other deductions, your monthly earnings could be around ₦2.4 million.

Minimum Investment Required

Depending on the scale and nature of the business, the minimum capital required to kick-start a transport venture in Nigeria can range from ₦100,000 to ₦10,000,000 or higher.

Ideal Locations

The best states to establish a transport business in Nigeria are:

• Kaduna : According to a 2018 World Bank analysis, Kaduna tops the list for business-friendly states in Nigeria. With a diverse economy and well-developed transport infrastructure, it’s an ideal location for launching your transport venture.
• Lagos : As Nigeria’s most populous city, Lagos presents immense potential for transport businesses because of its extensive road network, seaport, international airport, and railway system.
• Anambra : Anambra’s robust manufacturing, trade, and commerce sectors create a high demand for transportation services. Its good road network and transport connectivity make it an attractive location for your business.
• Kano : As the most populous state in Northern Nigeria, Kano’s vibrant and diverse economy offers a large market for transportation services.

Prominent Transport Businesses in Nigeria

Some successful transport businesses in Nigeria include:

• God is Good Motors (GIGM.com): Known for its technologically advanced services, GIGM.com is fast becoming Nigeria’s leading road transportation company.
• Cross Country Transport Ltd: Providing passenger and goods transportation across Nigeria and West Africa. Cross Country Transport Ltd is one of the most reliable transport companies in Nigeria.
• ABC Transport Plc: As the first transport company to be listed on the Nigerian Stock Exchange, ABC Transport Plc has won awards for its service excellence.
• GIG Logistics: A subsidiary of God is Good Motors. GIG Logistics is one of the leading logistics companies in Nigeria.
• GATATransport: Aiming to provide safe, efficient, and affordable transport solutions, GATATransport is a rapidly growing company in the transport sector.

Step 1: Grasping Your Market: The Foundation of Your Transport Business

Let’s start with a pearl of wisdom: embarking on a transport venture in Nigeria without conducting thorough market research is akin to navigating through Lagos during rush hour without a GPS. It’s doable, but it’s likely you’ll lose your way, squander precious time, and burn more fuel than necessary. Market research acts as the GPS for your business, offering essential data on present and future trends, competition, and customer preferences. In the logistics industry, companies like world express shipping heavily rely on market intelligence to optimize their operations, identify growth opportunities, and tailor their services to meet evolving customer needs, ensuring efficient and cost-effective transportation solutions.

So, how do you carry out effective market research?

You should utilise both online and offline sources. Websites, blogs, social media platforms, newspapers, and magazines can offer a treasure trove of industry information. Consider conducting surveys to glean insights directly from potential customers.

Visit your proposed business locations and routes, observe traffic patterns, and note supply and demand dynamics. Engage with drivers, stakeholders, and potential customers for firsthand insights.

Last, perform a SWOT analysis to understand the strengths, weaknesses, opportunities, and threats of your proposed transport business. This will identify areas for leveraging, areas for improvement, and potential risks to mitigate.

In the corporate world, a niche refers to a specific market segment with unique needs. It’s akin to a small pond where you can emerge as the big fish. Choosing a niche allows you to differentiate from competitors.

So, what transport business niches exist in Nigeria?

You have passenger transport, including buses, taxis, tricycles, and motorcycles. There’s also freight transport with trucks and vans. Specialised transport services such as ambulance services, school buses, and airport shuttles form another profitable niche. Then there are online transport services like ride-hailing, delivery, and carpooling.

But how do you select your niche?

Consider factors like market size and growth potential, competition, customer demand, operational costs, and risks. Also, factor in your personal interests and passions.

Consider GATATransport, which has established a niche by offering luxury bus and car rental services for corporate and individual clients. Or Max.ng, an online transport company that has capitalised on the motorcycle taxi and delivery services trend in major Nigerian cities. ABC Transport is another success story, operating intercity and interstate bus services across Nigeria and West Africa.

These examples should inspire and provide direction as you navigate your way into the Nigerian transport business. Remember, every great journey begins with a single step. And that step, my friend, is robust market research and selecting the right niche.

Embarking on a transportation venture in Nigeria, as with any other enterprise, requires meticulous planning and groundwork. A key step in this process is constructing a thorough business plan.

Your business plan is the blueprint of your business. It captures your vision, mission, objectives, strategies, operational and financial plans, and marketing tactics. This document also gives an estimate of your prospective earnings, costs and profits, and pinpoints possible hurdles and risks and how to counter them. A well-crafted business plan can draw and persuade potential investors, partners, and lenders to back your venture.

So, how do you create an interesting business plan for your transportation business? Here’s a roadmap to guide you:

• Use a standard business plan template or format. Reputable free templates are readily available online, or you can construct a comprehensive business plan in a matter of minutes on counseal.com.
• Establish SMART objectives. This acronym stands for Specific, Measurable, Achievable, Realistic, and Timely.
• Carry out market research and competitive analysis. This can assist you in validating your niche and value proposition, as well as grasping market dynamics and trends.
• Develop a unique selling proposition (USP) and a brand identity. This can differentiate your transport business from the competition.
• Formulate a realistic and detailed budget and cash flow statement. This can assist you in efficiently managing your funds and expecting potential financial challenges.
• Seek expert advice. If you’re uncertain or require expert insights, consult with business mentors, specialists, or advisors.

Besides creating a business plan, securing funding for your transport business is vital. Funding refers to the capital or money required to launch and operate your business. It’s crucial to secure funding to cover your initial and ongoing costs, such as vehicle purchase or lease, fuel, maintenance, insurance, registration, licences, permits, wages, and marketing. It also enhances your business’s credibility and provides a competitive edge in the market.

Here are some potential funding sources:

• Personal savings or assets. This includes cash, property, or equipment that you can invest in your business.
• Family and friends. Occasionally, your relatives, colleagues, or acquaintances may lend or invest money in your business.
• Bank loans or overdrafts. Many commercial banks and microfinance banks offer loans or credit facilities to small and medium-sized enterprises.
• Grants or subsidies: Certain government agencies or non-governmental organisations provide financial help or incentives to transport businesses.
• Angel investors or venture capitalists: These are affluent individuals or firms that invest in promising and innovative businesses for equity or ownership.
• Crowdfunding. Several online platforms allow businesses to raise funds from a large group of people.

When choosing a funding source, consider the amount and duration of funding you need, the interest rate and repayment terms, the eligibility and application requirements, the risks and benefits, and the availability and accessibility of the funding option.

Launching a transport business in Nigeria may be challenging, but with a well-crafted business plan and secure funding, you can steer your business towards success. Remember, the journey of a thousand miles starts from mile number one. So, take that step today and start planning for your transport business.

Step 3: Business Registration: The Vitality of Legalising Your Transport Business

Setting up a transport business in Nigeria is far from simply buying vehicles and hitting the tarmac. It involves navigating legal procedures, including registering your business and getting the licences and permits. While it may appear to be a daunting bureaucratic labyrinth, there are interesting reasons these steps are indispensable.

Foremost, it ensures you meet the legal and regulatory requirements of the transport industry and government. Not only is it the law but breaching it could cause penalties or even cause the closure of your business. Second, it protects your business from legal liabilities. In the event of disputes or lawsuits, your business registration can act as a legal safeguard.

It also gives your business with legitimacy and credibility. Customers are more inclined to use a registered transport service than an unregistered one. Last, being a registered business opens the door to benefits and incentives, such as tax exemptions, grants, and loans.

Here’s a step-by-step guide to registering your transport business and getting the required licences and permits in Nigeria:

• Start by choosing an appropriate business name and structure. Whether you’re opting for a sole proprietorship, partnership, or limited liability company, this decision will have legal implications for your business.
• Next, register your business name and structure with the Corporate Affairs Commission (CAC), which will provide you with a certificate of incorporation.
• Don’t overlook taxes. Register your business with the Federal Inland Revenue Service (FIRS) to secure a tax identification number (TIN).
• State and local authorities also require registration for business permits or licences. Ensure you’re fully compliant.
• The Federal Road Safety Corps (FRSC) and the Vehicle Inspection Office (VIO) are other vital entities to register your vehicles and drivers with. They’ll provide a vehicle licence, driver’s licence, and roadworthiness certificate.
• Finally, consider registering with pertinent transport associations and unions for a membership card or sticker.

Whilst these steps may appear intimidating, remember that seeking professional advice from lawyers, accountants, or consultants is always an option.

The licenses and permits required for a transport business in Nigeria vary, but here are some key ones:

• State Transport Authorities (STA) License: This regulatory licence is for intra-state transport operators. An example is the Lagos Metropolitan Area Transport Authority (LAMATA).
• National Union of Road Transport Workers (NURTW) Permit: A union permit for road transport operators.
• Lagos State Drivers’ Institute (LASDRI) Card: A training and certification card for drivers in Lagos State.
• Hackney Permit: This permit is for commercial vehicles operating within a local government area.

Several transport businesses in Nigeria have successfully registered and got the licenses and permits. Peace Mass Transit, a nationwide passenger transport company, has registered with the CAC, FIRS, NURTW, and FRSC. Jumia Food, an online food delivery company operating in major cities in Nigeria, has registered and got the licences and permits with the CAC, FIRS, STA, and LASDRI. The CAC, FIRS, NTC, and FRSC have registered GIG Logistics, a goods transport company operating across Nigeria and West Africa.

In conclusion, registering your transport business and getting the licences and permits isn’t merely a legal requirement. It also confers many benefits. Though the process may appear complex, with the right guidance and resources, you can traverse it successfully. Remember, every great journey begins with a single step.

Step 4: Vehicle and Equipment Essentials: Your Transport Business Lifeline

Every entrepreneur knows it: each business has its essentials. In the transport sector, vehicles and equipment are not just essentials; they are the lifeline that pumps vitality into your operation.

Still wondering why? Let’s break it down:

• Delivering Value: Your core service is moving people or goods from one location to another. Without vehicles and equipment, there’s no transport business. It’s as clear-cut as that.
• Meeting Quality and Safety Standards: Your customers and regulators demand more than just transportation. They want reliable and comfortable transport. Your vehicles and equipment must meet and preferably exceed these expectations.
• Creating a Competitive Edge: The vehicles and equipment you choose can set you apart from your competitors. The right choices can sculpt a robust brand image and give you an advantage in your market.
• Optimising Operational Efficiency and Profitability: High-quality vehicles and equipment can boost your operational efficiency, trim maintenance costs, and ultimately increase your profitability.

Knowing you need vehicles and equipment is the first step; acquiring them is another ball game. Here are some tips to help you ace this crucial phase:

• Know What You Need: Identify the type and number of vehicles and equipment based on your niche and market demand. Your needs will vary whether you’re in passenger transport, goods transport, specialised transport, or online transport.
• To Buy or Lease?: Weigh the costs and benefits of purchasing versus leasing. There’s no one-size-fits-all answer here; it all hinges on your business needs and financial situation.
• Choose Your Dealers Wisely: Purchase or lease from reputable and reliable dealers or suppliers. Do your homework, read reviews, and seek opinions.
• Negotiate Terms: Don’t shy away from negotiating the price and terms for your purchase or lease. Remember, everything is negotiable in business!
• Test Before You Invest: Always inspect and test the vehicles and equipment before sealing the deal. You wouldn’t buy a house without inspecting it, right? The same rule applies here.
• Stay on Top of Maintenance: Regular maintenance and servicing will ensure peak performance and longevity of your vehicles and equipment.

The Winning Ways of Successful Transport Businesses 

There’s no better guide than those who’ve already walked the path. Take a leaf from these successful transport businesses:

* Uber : The globally recognised ride-hailing company operates in major cities across Nigeria. They’ve successfully leveraged local partners for vehicle leasing and equipped their drivers with necessary tools like smartphones and GPS.

God is Good Motors (GIGM) : This nationwide passenger transport company has invested in modern buses and equipment like ticketing machines and GPS, driving their success story.

Kobo360 : This online goods transport company operates across Nigeria and Africa. They’ve invested in trucks and trailers, along with equipment like scales and scanners.

As you set sail on your entrepreneurial journey in the transport industry, remember that your vehicles and equipment are more than just tools; they form the foundation of your business. With these insights and tips, you’re well-prepared to make informed decisions that will steer your business to success. Happy journeying!

Every entrepreneur venturing into the transport business in Nigeria understands one fundamental truth – your drivers and staff are the heartbeat of your operation. If you neglect to hire and train them, it is like building a house on quicksand. But why exactly are they so critical? And how can we ensure we’re hiring and training effectively?

The transport business is a complex machine, and the staff and drivers are its crucial cogs. The smooth running of your business, every journey taken, each delighted customer, and every on-time delivery all hinge on the proficiency of your team. They are your brand ambassadors, the human face of your business, providing the customer service that keeps patrons coming back.

But the significance of a proficient team extends beyond customer interactions. To operate a transport business in Nigeria or elsewhere, compliance with industry and governmental legal and ethical standards is essential. A well-trained team is your passport to this compliance.

Your team is a significant contributor to your business’s productivity and performance. The better they are at their jobs, the more efficiently your transport business sails.

So, how can you ensure you are hiring and training your drivers and staff effectively? Consider these tips:

• Clearly define the roles and responsibilities: Before you hire, understand the roles, responsibilities, qualifications, and skills required for each position.
• Use multiple channels for recruitment: You can source talent through various avenues, like referrals, advertisements, or recruitment agencies.
• Conduct thorough interviews and checks: perform background checks, verify credentials and references, and conduct comprehensive interviews.
• Offer competitive packages: To attract and keep talent, offer competitive salaries and benefits. Sign contracts with your hires to protect both parties.
• Provide training and orientation: Provide training programmes on pertinent topics, such as driving skills, safety rules, and customer service. Conduct orientation to familiarise new hires with your company’s culture and values.
• Evaluate and reward regularly: Regularly evaluate your team’s performance and provide rewards based on their output and feedback.

Unsurprisingly, running a transport business isn’t just about drivers. You need a full team for smooth operations. Key roles include drivers, mechanics, dispatchers, accountants, marketers, and managers.

Transport businesses in Nigeria that have excelled in the hiring and training process include Bolt and GUO Transport. Bolt, an online ride-hailing company, has successfully hired and trained drivers from various backgrounds and kept their workforce motivated by offering attractive incentives. GUO Transport, a passenger transport company, operates nationwide, hiring drivers from various regions and providing them with uniforms and identity cards. On an international level, DHL’s operations in Nigeria stand out.

In conclusion, effective hiring and training of drivers and staff is a significant step towards the success of your transport business in Nigeria. It demands time, effort, and resources, but the payoff is well worth it.

Visibility and awareness are everything in the transport business. Even if you have the best fleet in town, but people don’t know about it, your buses might as well be invisible. In the cutthroat world of transport, a strong marketing and promotional strategy can give you an advantage.

First, you need to develop a marketing strategy and plan that aligns with your transport business’ goals and objectives. Your goals could be anything from increasing your customer base by 20% in the next quarter to launching an alternative route.

In conclusion, marketing and promoting your business is not a fancy add-on; it’s an integral part of your transport business. A well-promoted business is a respected business. So, gear up, create a robust marketing strategy, and let the world know about your fantastic transport services. After all, a well-promoted business is a successful business.

Frequently Asked Questions

A transport business is a venture that offers transportation services to both people and goods. This type of business is quite versatile and can operate in various sectors, such as road, rail, air, water, or pipeline, providing a variety of services based on specific needs.

The transport business is a lucrative enterprise in Nigeria, largely thanks to the high demand for transportation services. With a population of over 200 million people, Nigeria presents a vast market for goods and services. This high demand, coupled with the necessity for regular movement—be it for work, education, health, or leisure—creates ample opportunities for transport businesses to thrive. By offering reliable, affordable, and convenient transportation solutions, these businesses generate income.

• Taxi service : This business offers passenger transportation within a specific city or town.
• Bus service : This venture provides intercity or interstate passenger transportation.
• Trucking service : This business specialises in the transportation of goods, both within and outside the country.
• Courier service : This enterprise ensures the delivery of documents, parcels, or packages, both domestically and internationally.
• Car rental service : This business offers rental services for cars, vans, or buses for personal or corporate use.
• Logistics service : they center this business on managing the flow of goods or services from the point of origin to the point of consumption. It involves transportation, warehousing, packaging, distribution, or supply chain management.

Starting a transport business in Nigeria involves 6 key steps:

• Conducting market research
• Registering the business
• Securing funding
• Hiring and training staff
• Promoting the business
• Constant monitoring and evaluation of the business

Running a transport business in Nigeria comes with challenges:

• High cost of operation : Transport business requires substantial capital for vehicles, fuel, insurance, taxes, licences, and other expenses. Currency, currency devaluation, or scarcity of resources further escalate the cost of operation.
• Poor infrastructure : The success of a transport business largely depends on the quality and availability of infrastructure. However, these facilities are inadequate, poorly maintained, or congested, affecting the speed, safety, and efficiency of transportation.
• Security risks : Transport businesses face security risks from criminals who attack or hijack vehicles, passengers, or goods. There are also risks from accidents, breakdowns, or natural disasters.
• Stiff competition : Transport businesses face competition from other enterprises offering similar or better services at competitive prices. They also face competition from alternative modes of transportation, such as online platforms, ride-hailing apps, or informal operators.

Overcoming these challenges requires:

• Planning : Preparing for the challenges and opportunities in the transport sector help you stay ahead. This involves conducting market research, writing a business plan, registering your business, acquiring equipment, hiring and training staff, promoting your business, and monitoring and evaluating the business.
• Seeking funding : you get function from banks, microfinance institutions, cooperatives, investors, partners, or government agencies to raise the capital.
• Improving service quality: Providing reliable, affordable, and convenient transportation solutions and equipping vehicles with GPS, tracking devices, security systems, and other features that improve service quality, attracting and keeping customers.
• Networking and collaborating : Collaborating with other transport businesses, associations, companies, or agencies and networking with customers, suppliers, or other stakeholders to leverage resources, expand the market, and overcome challenges.
• Profitability : Transport businesses have high income potential because of the demand for transportation services. They generate income by charging fees, commissions, or fares for transporting people or goods. They also increase profitability by reducing operation costs, diversifying services, or scaling operations.
• Employment : Transport businesses create employment for yourself and others. These include drivers, mechanics, dispatchers, managers, etc. and indirectly create employment opportunities for other dependent sectors.

Social impact : Transport businesses have a positive impact on society. They improve the mobility, accessibility, and connectivity of people and goods, and contribute to the economic growth, development, and integration of the country.

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How to start a successful transportation business in Nigeria

• Updated March 25, 2024
• Read Time 8 mins

Transportation business in Nigeria is still growing with the increase in population which is estimated at about 180,000 million as at 2018.  Going into transport business in Nigeria is a viable proposition since the market is there for you and beside, those in the business already are racking handsome  profit.

What makes the business economically viable is that the demand by commercial bus users surpass the supply.  Even car owners use commercial transport so it is safe to say that up to 70% if the Nigerian population use public transport.

Before I go into how to start a transportation business, I will first of all show you the types of transportation business in Nigeria today.  They are many and varied and different entrepreneurs choose different types of transportation business because of their interest and experience.

Table of Contents

Types of transportation business

Before you start…, 1. decide on the type of transportation business you want to carry out.

• 2. Choose your location and the routes that are lucrative
• 3. Obtain your vehicle either through lease, hire purchase or an outright buy

4. Driving it yourself

5. engaging a professional driver.

• 6. Grow your transportation business

1. Motor cycling (Okada):   This is the use of motor cycle  to carry passengers within a town, city and villages.  Motor bike, popularly known as okada is used to carry one or two passengers at a time, though some states discourage carrying two passengers.  But the days of using motor cycle  as a means of transportation is numbered since some states have banned the use of “okada” as a means of transport, particularly in the cities, other states are likely to follow suit in due course.

2. Tri-cycling (keke napep):  This is an improvement to motor cycle and officially meant to carry three passengers, some drivers carry four passengers, even others in some states carry five passengers. Keke napep is in vogue and it is  likely to be used as a means of transportation in the foreseeable future.  Some state government have proposed replacing motor cycle with keke napep.

3. Commercial luxury bus  and mini-bus  : These are used for both town  and inter-city services to carry passengers.  Workers that commute to work or others travelling outside the state use this means.

4. Car town service (taxi):  This is also used to convey passengers within and out of the state.  It is a more secure  means of transport than the unregistered and unpainted  “kabu-kabu” because each owner registers the car with the state government agency .  There is also another form of car service known as “kabu-kabu”, also used to carry passenger but for a short distance journey.

5. Haulage transport service: This is the use of different types of automobile to carry goods for a charge.  Different types of vehicles include, tanker, trailer, tipper, etc. are used to convey different kinds of  goods.

6. Offer hire purchase services:   This type of business is spreading to all the states of the federation. It is a new way to transportation business in which you get regular income, more or less, it is a guaranteed income.  It works in this way:  you buy whatever type of would be commercial vehicle at a particular price and hire them out to different type of drivers at higher prices.  The driver will pay for the price agreed installmentally.   For example, an entrepreneur buys ten tri-cycle at ₦500,000 each and hire each one out at ₦700,000 each with ten months instalment of ₦70,000 each month, after which the hirer becomes the owner.  So with the instalment payment of ₦70,000 per month, the total amount payable at the end of the 10 th month is ₦700,000.  Assuming the entrepreneur received all the instalments, he makes ₦200,000 from each of the tri-cycle.  It is a cool business, is it not?

7. Other classes of transportation business such as the use of aircraft, train, ship or canoe and pipeline are outside the purview of this article. Since the article is designed for an average Nigerian  who want to be an entrepreneur as a transporter.

To make a headway and be highly successful  in transportation business in Nigeria,  you must be aware of the following:

• You must as an entrepreneur and have a reasonable knowledge as a driver and/ or mechanic. The reason for this is simple, the average commercial driver is dishonest.  He will tell you lies about police arrest today, the next day it is about the vehicle breaking down, all in an attempt to make extra money .  Sometimes he would absent himself from duty with the excuse he is feeling unwell,  would you allow your vehicle to be  idle for how many days before he reports back to duty?
• You must pay close attention to the activities of the drivers, monitor their trips over time before you can have some level of confidence in them.  You must investigate what is the average daily costs of running transportation business and the average revenue that is feasible and possible before you agree with the driver how much he would deliver on daily or weekly basis.
• Have a reasonable idea what action of the driver constitute an offence for which he can be arrested as well as know the route of your drivers. In fact study the traffic laws of the state in which you are operating.

Steps to start a transportation business

Here is a  breakdown of how to start a successful transport business, concentrating more on commercial buses.

• Decide on the type of transportation business you want to carry out
• Choose your location and the routes that are lucrative
• Obtain your vehicle either through lease, hire purchase or an outright buy
• Driving it yourself
• Engaging a professional driver
• Grow your transportation business

Below are the steps in details:

If it is tri-cycling business or Okada business, they are slightly different from commercial bus business. The capital investment and the regular vehicle maintenance and running costs is much higher than tri-cycling business, however the daily return is also different.

2. Choose your location and the routes that are lucrative

Do your research properly to make sure your location is best suited for the transportation business you want to operate in terms of the financial demands of the Area Boys and the State Government.. I would recommend that you start small and acquire good experience before you grow big.

3. Obtain your vehicle either through lease, hire purchase or an outright buy

You must register the vehicle with the licensing authority, obtain vehicle insurance and other necessary documentation that will enable you to operate in your location without hindrance.  You must also belong to the National Association of Road   Transport Workers.

• Nigerian Association of Road Transport Owners (NARTO)
• Road Transport Employers Association of Nigeria (RTEAN)
• National Union of Road Transport Workers (NURTW)
• National Association of Government Approved Freight Forwarders (NAGAFF)

My advice at this stage is that you should be the professional driver to drive your first commercial bus or tri-cycle since at this stage you have one vehicle, you will manage it more prudently than the best driver.

So you make  sure you have a driving licence and be a member of the transport union.  If you drive a commercial vehicle for a year, you are no longer a stranger in the transportation business and you stand to gain so much when eventually you buy your second vehicle and then engage a professional driver.

If you have other businesses you are running, engage a professional driver and negotiate favourable memorandum of understanding between you and your driver. These may include: the return the driver must deliver every day/week and what happens if the driver does not meet the agreed return obligations.

The amount agreed with the driver is sometimes dependent upon the location, type of vehicle as well as size of vehicle. For example, an entrepreneur in Ibadan operating commercial transport service and using a professional driver would demand far less return from his driver than his counterpart operating in Lagos state.

Don’t forget that the professional driver must be familiar with the vehicle engine he is going to drive and other vehicle peripherals, this is necessary so that the driver will always be able to drive the vehicle to the mechanic workshop whenever the unexpected happens, i.e. vehicle break down.

6. Grow your transportation business

Plough back your profit to your business and buy more vehicles.  It is only by prudent management of your resources and hard work of your transport business that you become successful.  You should also consider option of inter state transport business in Nigeria.

Nothing in this world is easy to handle, not even transportation business, especially when you want to be successful and expand quickly.  Be prudent and careful: avoid the problems with the police by obtaining the right vehicle license, renew it together with the insurance certificate and other dues and levies when they are due.  Also avoid the problems of LASMA and other transport unions and possibly the Area Boys.

This a a basic business plan for transportation business in Nigeria. You should do your feasibility study on transportation business in Nigeria depending on the area you want to operate, then had with this knowledge here. Good luck.

If you are looking for other ideas, check out our page: Business ideas

Don't miss a thing.  Follow us on Telegram and Follow us on WhatsApp . If you love videos then also  Subscribe to our YouTube Channel .  We are on Twitter as  MakeMoneyDotNG .

Chris Okafor

Chief Chris Okafor is a marketing consultant and CEO of C. J. Marketing Academy, providing training services to the industry and educational services to the profession. He produces study materials for the students studying for the National Institute of Marketing of Nigeria (NIMN) examinations. He also provides tutorial services for students writing the NIMN examinations

20 Comments

Good post. Keep sharing with us.

Thank you for sharing your ideas with me. I want to start with okada in a small estate. 1> I can’t drive okada 2>i don’t who to trust with the okada so how do I proceed?

i love this ideas are real because their are no longer jobs in this country any more you emply ur self and pay your self

Comm Road transport in Naija s still so untapped.

Thank you so much God bless you, we really appreciate your article, it is really nice. Thanks

Thank you so much for this article, all that you explained is very clear. I have been looking for who to buy me mini bus, Toyota Sienna or Hiace bus for hire purchase. Anyone who has an interest should contact me on: [removed]

Which part of NGN are you? [removed]

Hi David, I don’t know where we can connect, but.. search my name on Facebook. Or send me a mail.

Big thanks to you, for giving me clear direction

I love this. I intend to start a transportation business. I am still doing my feasibility studies on it. This write up has helped me alot.

We are glad you found it resourceful

Thank you very much for this article here I also want to engage in the transportation business with mini buses, about 2 or 3 clean mini buses which cost about 1.6 million – 1.8 million If I can have someone to loan me such amount or even the buses, I will pay back in full in 2-3years time My location: Calabar Nigeria

Nice one bro, thank you.

This was very helpful. Thank you very much

It is a good business. This is what I have been doing for a year, buying tricycles and okada and give it out on installment. It depends on your area. Someone like me, I am doing this business on a Lagos border to Ogun state which accommodates my style because most thing can’t be used in Lagos city, like okada. So I decided to do it here. Presently we are buying Piagio Keke 770 with plate number for 790k. I will give it out 1.3m and most are paying my money. Okada that I buy yesterday is 300k, I give it out 460k. Why God help me is I find all means to join the union and some association so it helps me a lot and you need to know the police in case they issue with your transport. You only need to call them on phone and as a Naija guy, you do the normal for them later. Manage this and don’t mind my grammatical error. Thanks, you can contact me for the idea.

your contact sir

Great contribution sir Adeoye.

I am motivated to start again. The person I gave my bike disappointed me.

I will try again.

Thank you very much for the article, I have a business idea of mini bus transportation which I envision it will be lucrative. But the capital is my headache. I cannot afford even single one. Can you please link me up with somebody or company that can agree to listen to my idea. Thank you and God bless.

Thanks for your great lectures here

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A FEASIBILITY STUDY BUSINESS PLAN ON ROAD TRANSPORTATION BUSINESS IN NIGERIA DEVELOPED BY BRITECH PLUS+ ENTERPRISES

2019, Britech Plus+ Enterprises

Transportation is the movement of people from one place to another. This is indeed the simplest definition of transportation but transportation goes beyond the movement of people, it also includes the movement of goods, animals, crops, machines, equipment etc. from one place to another. Transportation is as old as man itself. We cannot talk of people without mentioning transportation. As individuals, there are limits to our capacity to move things from one place to another. Also there are limits to distance we can cover.

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Nigerian Price

Transportation business in nigeria & cost of starting (2024).

The transportation business is one of the most lucrative anywhere in the world. When you consider the fact that people need to move from one location to another, then the whole idea becomes clearer. The transportation business simply involves making it easier for individuals to move around for a fee.

There are different aspects of the transportation business in Nigeria. Have you been considering the idea of starting a transportation business in Nigeria? In this post, we will show you how to start as well as the cost of starting up in Nigeria. Let’s dive straight in.

Cost of Starting a Transportation Business in Nigeria

The Nigerian transportation industry is one of the most profitable sectors of the economy. This is probably because of the high population of the country and the need to move people and goods around. As we mentioned above, there are different aspects of the transportation business in Nigeria. To discover the cost of starting this business, we must consider each of these different aspects. We will focus solely on road transportation in this article.

Motorcycle transportation

• 200 Capacity motorcycle (Nigerian Used): From N300,000
• Tricycle (Nigerian Used): From N550,000

Car transportation

• Saloon (Nigerian Used): From N1.5 million
• Hilux (Nigerian Used): From N3.675 million
• SUV (Nigerian Used): From N3.5 million

Bus transportation

• Sienna (Foreign Used): From N3.3 million
• Mini-bus (Nigerian Used): From N1.5 million
• Coaster bus (Nigerian Used): From N7.8 million
• 18-seater bus (Foreign Used): From N11.5 million
• 15-seater bus (Foreign Used): From N10 million

PRICES LAST UPDATED: AUGUST 5, 2023.

Note that the prices of these vehicles are quite volatile on the market. You can also get cheaper prices if you purchase second-hand vehicles. However, we suggest that you only purchase second-hand vehicles from trusted sources. Also, when going to purchase such vehicles, go with a trusted mechanic to help you check the quality of the vehicle.

There are other significant costs that you must consider when going into the transportation business. These costs have to do with licenses, permits, registrations, and maintenance. As you will expect, it is impossible to give a specific price here since the different prices depend on several factors. Some of the factors include the type of vehicle, government policies, and location.

Why should you start a transportation business in Nigeria?

Many people ask this question because of the rave to go into the transportation business. Of course, no business is perfect and completely profitable. Every business comes with its risks and challenges. It is the responsibility of the entrepreneur to figure out the possible challenges and risks beforehand. This way, they can find the best ways to navigate their business around these challenges and risks.

That being said, there are several reasons why you should consider entering the Nigerian transportation sector. We will discuss a few of these reasons in this section:

The growing Nigerian population

Do you know that the Nigerian population currently sits at an estimated 200 million? However, we all know that the population is higher than this. Experts predict that it should hit 250 million by 2050.

Interestingly, only 31 individuals in every 1,000 own cars. What this implies is that many people depend on public transportation to move around. There is a huge demand for public means of transportation in Nigeria. If you have the means, you can take advantage of this demand to make lots of profits.

Transportation is highly lucrative

Transportation is one of the most lucrative businesses in Nigeria today. Asides from the figures we discussed in the point above, many car owners still use public transportation. Most people prefer to use public transportation to make intercity travels. This is asides from the people that use the different transportation means within the city.

If you understand the rules of this business and you can play by them, you’d make a lot of money. However, you must decide on whether you want to operate within the city or move from one city to another. The mode of operation that you choose will determine how much profit you will make.

Technology is making it easier

One of the most common modes of operation in the transportation industry today is ride-hailing. Ride-hailing refers to when clients order a means of transportation via a mobile application. There are several ride-hailing apps in Nigeria including Bolt, Uber, Opay, etc.

If you sign up to any of these apps, you could make as much as N150,000 to N250,000 per month. It all depends on how many hours of work you can put in per week

How to start the transportation business in Nigeria

Now that we agree that this business is highly profitable and lucrative, it leads us to a very important question. How do you start the transportation business in Nigeria? Just like every other business, there are certain steps that you should take before you start. Here are a few of them:

Decide on your mode of operation

By mode of operation, we mean how you want to run the business. Some individuals prefer to run the business within the town while others are okay with traveling inter-state. If you want to run within the State, then you should figure out which means of transport you prefer. Also, you need to decide whether you want to drive or ride by yourself or you’d be employing a rider or driver.

Raise capital

Once you have figured out your mode of operation, you can then sort out funding. By now, you should know which kind of vehicle that you will be using. We have given you some prices above. You can work with our list to figure out how much you need. Don’t forget to factor in licensing and registration costs as well. There are several ways to raise funds for this business including personal savings and loans.

Complete your registration

After raising funds and purchasing your vehicle, the next step is to register your vehicle. Ensure that you get all the necessary papers to avoid unnecessary embarrassment from law enforcement agents. If you will like to work with a ride-hailing service, then you should also complete their registration process. Once you are done with these processes, you are good to go.

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Business Anthem

Transport Business in Nigeria: 12 Successful Steps And Ideas

Welcome to Businessanthem . If you wish to understand or want to venture into Transport Business in Nigeria then you have landed on the right page.

We present information about the Transport Business in Nigeria showcasing how to start, steps, and ideas to make it successful.

Get ready to have the best information about the Transport Business in Nigeria.

Transport Business in Nigeria

Transport business is one of the best business ideas in Nigeria. It is a possible investment since the market is there for you and besides, those in the business already are racking handsome profits. The transportation business in Nigeria is still growing with the increase in population which is estimated above 180,000 million. 

The high demand for the movement of passengers and goods from one destination to another makes business economically viable in Nigeria. The majority of the Nigerian population uses public transport.

Before we present how to start and operate a transport business in Nigeria, permit us to showcase the types of transport businesses in Nigeria today. So you can access and choose from many and varied and different entrepreneurs types of transport businesses based on your interests, location, capital intensive, and experience.

Types of transport business in Nigeria

The transport business in Nigeria includes road/land transport, rail transport, water transport, air transport etc. Each serves a unique purpose and meets different needs in the transportation ecosystem in Nigeria.

The transport business in Nigeria is prevalent by Road transport with a vast network of highways and urban roads, connecting cities, towns, and rural areas. Rail transport has significantly faced challenges in modernization and expansion. Water transport is important for Nigeria because of its extensive river systems and access to the Atlantic Ocean. Air transport is increasing with several airports and airlines serving domestic and international routes.

HERE ARE THE FOUR MAJOR TRANSPORT BUSINESS IN NIGERIA

• Land Transport business in Nigeria
• Water Transport business in Nigeria
• Air Transport Business In Nigeria
• Railway Transport Business In Nigeria

1. Land/Road Transport business in Nigeria

Motorcycling (okada) .

This is the use of a motorcycle to carry passengers within a town, city, or village.  Motorbike, one or two passengers at a time depending on the area you are operating. Some states discourage the use of motorcycles as a means of transportation some states have a ban, particularly in the cities, and other states are likely to follow.

Tri-cycling (keke napep)  

This is an improvement to motor motorcycles that carry three passengers to four passengers. The Keke Napep has become a popular mode of transportation and is expected to continue being a prominent choice for commuting in the foreseeable future. Some state governments in Nigeria are currently replacing motorcycles with keke napep.

Commercial luxury buses and mini-buses

These vehicles serve urban routes, facilitating the transportation of passengers. Commuters heading to their workplaces and travelers venturing beyond state boundaries rely on this mode of transport.

These vehicles operate on city routes, facilitating passenger transportation within the state and travelers exploring regions beyond state borders.

Car town service (taxi)

This is also used to convey passengers within the state.  It is a more secure means of transport than the unregistered and unpainted because each owner registers the car with the state government agency.  There is also another form of car service used to carry passengers for a short distance journey.

Haulage transport service

Haulage transport service is the use of different types of automobiles to carry goods from one place to another. There are different types of vehicles used for Haulage transport services such as tankers, trailers, tippers, etc. are used to convey different kinds of goods.

Pipe Transport Business In Nigeria

This is a means used to convey liquid products from one place to another. Especially, water, and petroleum products such as petrol kerosene, and diesel are transported from oil walls to refineries and different depots through pipelines.

Animal-Drawn Cart Transport Business in Nigeria

The animal-drawn cart transport business in Nigeria a traditional means of transportation, still plays a significant role in certain regions of the country. Particularly in some parts of the Northern region of Nigeria, rural and semi-urban areas.

This form of transportation depends on the power of animals like oxen or horses to pull carts. Those depend on them for agricultural activities, trade, and local transportation. animal-drawn carts remain an affordable transport business in Nigeria.

2. Water Transport Business in Nigeria

The water Transport business in Nigeria is an untapped business opportunity. Nigeria is a country with places having water bodies that should drive transportation. Just a few ferry, boat, or ship and canoe systems operate mostly in Bayelsa, Rivers, Lagos, and a few other states.

Nigeria’s rivers consist of over 10,000km, River Niger and River Benue form the major rivers. They are jointly conference in Kogi state, with the route between the hinterland and Urben areas through the lagoon and Niger Creck. Interlock water bodies with burkina faso, Chad Niger, and Mali and an extensive Coastland of over 852km. The Water Transport business in Nigeria has great potential to move goods from one point to another.

Ferries form a part of the public transport system in many countries where substantial water bodies are available to operate boats commercially. While Nigeria is a country with places having water bodies that should drive transportation, only a few formal ferry systems exist, and prominent here is Lagos.

Water transport is the movement of people and goods by boat, ship, barge, or sailboat across ocean, sea, lake, canal, or river.

3. Air Transport Business In Nigeria

The Air Transport Business In Nigeria has proven to be the fastest means of movement of passengers and goods from one destination to another. It is important for the movement of air cargo, and passengers connecting the Nation and out world.

A recent review of the studies in Nigerian air transport reveals that the Air Transport Business In Nigeria has not been paying much attention to the flow of air cargo, and the country does not have dedicated air cargo airlines operating within the domestic airports. Which is a great opportunity for investors.

4 . Railway Transport Business In Nigeria

The Nigeria Railway Transport Business In Nigeri a which proved to be the cheapest means of transporting goods and passengers is currently not functioning to the expectation. Nigeria is a vibrant business environment Considering the large population and a lot of Agricultural produce. The Railway Transport Business In Nigeria is a viable business that has the potential for revenue generation or profitability and employment.

The Railway Transport Business In Nigeria can be carried out by government and non-governmental organizations. However, It will need sound knowledge, technical know-how, strategies, and huge capital investment to start and operate successfully.

Steps And Ideas to Start a Successful Transport Business In Nigeria

Here are the steps to make headway success in the transport business in Nigeria,  you must be aware of the following:

• Choose the specific transportation enterprise you intend to undertake.
• Develop a Business Plan
• Have Entrepreneurial knowledge and Skills in the Type of Transport business you want to Operate
• Choose your location and the lucrative routes
• Register Your Transport Business
• Get The Necessary Licenses And Permits
• Having Knowledge of Laws in the Type of Transportation Business You Want to Operate
• Driving it yourself
• Pay Close Attention to the Management Activities
• Engaging a Professional
• Market Your Business
• Provide Excellent Customer Service

Steps And Ideas to Start a Successful Transport Business In Nigeria in detail:

1. Choose the specific transportation enterprise you intend to undertake.

Choose whether it is a Ferry, tri-cycling, or business, they are slightly different from a commercial bus business. The capital investment and the regular vehicle maintenance and running costs are much higher than the tri-cycling business, however, the daily return is also different.

2. Have Entrepreneurial knowledge and Skills in the Type of Transport business you want to Operate

You must as an entrepreneur and have reasonable knowledge as a driver and/ or mechanic. The reason for this is simple, the average commercial driver is dishonest. 

He will tell you lies about a police arrest today, and the next day it is about the vehicle breaking down, all in an attempt to make extra money .  Sometimes he is absent from duty with the excuse he is feeling unwell,  would you allow your vehicle to be idle for how many days before he reports back to duty?

3. Develop a Business Plan

Your business plan should outline your vision for your transport business, your target market, your pricing strategy, your marketing plan, and your financial projections.

Your business plan will serve as a roadmap for your business and help you stay focused on your goals.

4. Choose your location and the lucrative routes

Ensure thorough research to confirm that your chosen location is ideal for your transportation business, considering both the financial implications and the requirements set forth by the State Government. It is advisable to begin on a smaller scale to gain valuable experience before expanding your operations significantly.

5. Register Your Business

Once you have a solid business plan and have acquired your licenses, the next step is to register your business with the appropriate government agencies. 

You need to obtain a business name registration, a tax identification number, and any necessary licenses or permits required by the transportation industry.

6. Get The Necessary Licenses And Permits

You will need to obtain the necessary licenses and permits. Transport operators in Nigeria must secure licenses and permits from the government before commencing their operations.

The specific prerequisites are different based on the chosen mode of transportation. You must register with the licensing authority, and obtain insurance and other necessary documentation that will enable you to operate without hindrance. 

Failure to obtain the necessary licenses and permits can lead to hefty fines and even the impounding of your vehicle.

This can be frustrating and time-consuming. If you need clarification on any of the requirements, consider consulting an expert or an experienced transport business owner for advice.

Here are some of the licensing authorities In Transport Business in Nigeria

• Nigerian Association of Road Transport Owners (NARTO)
• Road Transport Employers Association of Nigeria (RTEAN)
• National Union of Road Transport Workers (NURTW)
• National Association of Government Approved Freight Forwarders (NAGAFF)

Here are some of the licensing needed

• Commercial Driver’s License (CDL)
• Road roadworthiness certificate, and a Vehicle Insurance Certificate. 
• Motorcycle Rider’s Card and a Motorcycle License. 

7. Have Knowledge About the Rules and regulations of the Transport Business You Want to Operate

Have a reasonable idea of what action of the driver constitutes an offense for which he can be arrested as well as know the route of your drivers. Study the traffic laws of the state in which you are operating.

8. Manage it yourself

Acquire the necessary skills needed to manage your commercial transport business at the beginning stage and you will manage it more prudently.

If you are managing it yourself make sure you have the required skills and licenses and be a member of the transport union. Within one year in the transport business in Nigeria, you will no longer be a stranger in the business and you stand to gain so much when engaging another professional.

9. Pay Close Attention to the Management Activities

You must pay close attention to the maintenance activities of the vehicle. Investigate what are the average daily costs of running a transportation business and the average revenue that is feasible on a daily or weekly basis.

10. Engaging a Professional

If you have other businesses you are running, engage a professional driver and negotiate a favorable memorandum of understanding between you and your driver.

The amount agreed with the driver is sometimes dependent upon the location, type of vehicle as well and size of the vehicle.

Use professional drivers who are familiar with the vehicle engine, this is necessary so that the driver will always be able to drive the vehicle to the mechanic workshop whenever the unexpected happens, i.e. vehicle breakdown.

11. Market Your Business

This is the stage of marketing your transport business. This includes creating a website, social media accounts, and business cards to promote your services.

You can also extend exclusive discounts or promotions to entice new clients and cultivate a devoted customer community.

It’s essential to take this feedback seriously and use it to improve your services. Respond to negative reviews with empathy and a willingness to address the issue. Use positive reviews as testimonials to promote your business.

It is only by prudent management of your resources and the hard work of your transport business that you become successful.

12: Provide Excellent Customer Service

Customer service is one of the major aspects of any successful business, and the transport business is no exception.

Customers should have the full expectation of reaching their destination both punctually and securely.

A transport business must ensure its vehicles are regularly maintained, clean, comfortable, and safe for their journey. Also provides information about schedules and routes and friendly staff willing to assist your customers.

The transport business in Nigeria plays a key role in the economic development and functioning of Nigerian society. The transport sector in Nigeria faces significant challenges and promising opportunities. This comprehensive overview sheds light on the key components, of The transport business in Nigeria and prospects for the future.

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How to Start Transport Business in Nigeria (2024)

• by EMMA ONWUKA
• February 8, 2024 February 8, 2024

Welcome to a comprehensive guide that unveils how to start transport business in Nigeria.

Starting a transport business in Nigeria can be a lucrative venture for aspiring entrepreneurs. With a growing population and increasing demand for efficient transportation services, the opportunities in transport industry abounds.

However, without the right knowledge and information; navigating the complexities of starting transport business can be overwhelming. So In this article I’ll show you how to start a transport business in Nigeria, covering everything you need to know about starting transportation business. Things I’ll cover include market research, legal requirements for transport business in Nigeria, fleet management, marketing strategies to so many other things

Whether you’re looking to launch a taxi transport service, Logistics Company, or intercity bus operation, this article will show you what you need to start and run a successful transport business in Nigeria.

Table of Contents

Is Transport Business in Nigeria Profitable?

  Yes. Transport business in Nigeria is a profitable business. One of the things that makes transport business a profitable venture is the rapidly growing population and the ever-increasing demand for transport of goods and passenger. An intra- city bus operator in Nigeria for example makes N30, 000 – N50, 000 daily.

But just like any other business in Nigeria, transport business is not without its own challenges. Fluctuating fuel prices, maintenance costs , and fierce competition are some of the challenges you’ll have to contend with. As this will seriously impact your profit margins.

In other to make good profit in transport industry, you have to understand transport market dynamics, identify profitable niches, and implement cost-effective measures to optimize revenue generation.

Before I continue, it might interest you to know that we render expert business proposal services including transport business plan. Feel free to contact us if you need a business plan on transportation business. Our award winning business plan expert writers will surely deliver to you the best business plan on transport business.

Now, let’s look at how to start transport business in Nigeria.

How to Start Transport Business in Nigeria

Here are steps you can follow to start a transport business in Nigeria:

Carryout Market Research

The first step in starting a transport business in Nigeria is to carry out a market research. Market research is a critical foundation upon which a successful transport business in Nigeria is built. Thoroughly understanding the market landscape, customer preferences, and industry trends will provide valuable insights for making informed decisions. Identify the demand for specific transport services, whether it’s goods distribution, passenger commuting, or specialized logistics.

Analyze your target audience, including their demographics, transportation needs, and pain points. Moreover, study the competition to identify gaps and opportunities where your business can excel. Utilize surveys, focus groups, and online research to gather data that will shape your business strategy and set you apart in this bustling marketplace.

Craft Business Plan

Next thing you’ll do is to craft a business plan for your transport business. Crafting a comprehensive and well-structured business plan is the roadmap to transforming your transport business dreams into reality. Your business plan should encompass all aspects of your venture, from the mission and vision to the financial projections and operational strategies.

A well-crafted business plan for your transport business should have:

• A clear executive summary that highlights the essence of your business and your unique value proposition.
• Business’s legal structure
• Budget and funding sources
• Pricing strategies
• Contingency plans for potential challenges
• Target market, followed by a detailed analysis of the competition and a marketing plan to attract and retain customers.

A strong and convincing business plan not only guides your own actions but also becomes a valuable tool when seeking financing or partnerships. Regularly review and update your plan as your business evolves to stay on course and seize emerging opportunities.

Obtain all Legal Requirements and Registration

Venturing into the transport business in Nigeria will require that you comply with all the necessary legal requirements, and that you register your transport enterprise.

Start by choosing a suitable business name and conducting a name availability search on Corporate Affairs Commission (CAC) website. Next, determine the appropriate legal structure for your business, whether it’s a sole proprietorship, partnership, limited liability company (LLC), or others, and complete the registration process accordingly.

Obtain all the permits and licenses required for operating commercial vehicles, such as route permits, driver’s licenses, and road-worthiness certificates. Additionally, familiarize yourself with taxation obligations and ensure you fulfill all tax registration and reporting responsibilities.

Adhering to the legal framework not only ensures the legitimacy of your business but also safeguards against potential penalties or disruptions down the road.

Choose a type of Transport service to offer

The diverse Nigerian transport market offers various opportunities to cater to different needs and demands. To kick-start your transport business, you must carefully consider the type of transport services you want to provide. You may opt for goods transportation, focusing on delivering cargo efficiently between cities or within specific regions.

Alternatively, you can venture into the passenger transport sector, which includes commuter buses, intercity coaches, or even specialized services like airport shuttles.

Another growing transport niche is to provide logistics solutions for e-commerce companies, given the surge in online shopping.

Carefully evaluate the pros and cons of each transport type, considering factors like initial investment, competition, and potential profitability. The market research you’ve conducted will help you identify gaps and unmet needs, enabling you to choose the right type of transport that aligns with your target audience, resources and long-term objectives.

Acquire fleet

Acquiring a reliable and efficient fleet of vehicles is the lifeblood of a successful transport business in Nigeria. You need to first, determine the size and composition of your fleet based on the type of transport services want to offer and the projected demand. Whether you choose to buy new or used vehicles, conduct inspections to ensure they are in excellent working condition and comply with all safety standards.

Consider factors such as fuel efficiency , maintenance costs, and durability to make cost-effective decisions.

If purchasing multiple vehicles upfront will pose a financial challenge, you may consider other financing options or leasing arrangements.

You have to regularly maintain your fleet to maximize their lifespan and minimize downtime. Remember, your fleet is the face of your business; so investing in quality vehicles will help to build customers’ trust and set you on the path to long-term success.

Get your vehicles Insured

Getting your vehicles insured in this fast-paced and unpredictable world of transport business is non-negotiable. Insuring your vehicles, passengers, and cargo is not only a legal requirement but also a crucial safeguard against unforeseen accidents or incidents.

Secure appropriate insurance policies, including comprehensive vehicle insurance to cover damages from accidents, and third-party liability insurance to protect against claims from injured parties. If you’re involved in goods transportation, consider cargo insurance to safeguard against losses or damages during transit.

Additionally, invest in insurance coverage that protects your business assets and property. Remember to review your insurance policies regularly and update them as your fleet or services expand.

While insurance premiums may add to your operational costs, the peace of mind and financial security they provide are invaluable assets to sustain and grow your transport business.

Hire skilled and experienced staffs

If you must succeed in your transport business in Nigeria, you have to hire skilled and experienced staffs. Hiring the skilled and experienced employees is essential to ensure a smooth and efficient operation.

For drivers, prioritize candidates with a valid driver’s license, a clean driving record, and a good understanding of road safety regulations. Conduct thorough background checks to ensure their reliability and trustworthiness. Besides drivers, consider hiring support staff for administrative tasks, customer service, and vehicle maintenance.

Once your team is assembled, invest in comprehensive training programs. Provide driver training that focuses on safe driving practices, customer service, and handling emergencies. For support staff, offer training on the use of technology for fleet management and customer communication. Continuous training and skill development not only enhance the efficiency of your operations but also contribute to the overall professionalism and reputation of your transport business.

Establish Routes and Operations

Establishing well-defined routes and streamlined operations is another step to starting transport business in Nigeria. A thorough research will x-ray high-demand routes and areas with potential customers.

In designing your transport routes, factors such as population density, industrial zones, and transportation hubs should be consider.

Optimize your schedules to cater to peak demand times and seasonal fluctuations. Ensure that your routes are efficient, cost-effective, and minimize unnecessary detours.

Implement a reliable fleet management system that allows you to track your vehicles in real-time, monitor fuel consumption, and assess driver performance. Efficient operations will not only result in your customers’ satisfaction but will also reduce operational costs and enhance profitability. Regularly review and update your routes and operations based on customer feedback and changing market dynamics to stay ahead in this competitive industry.

Brand and Market your transport business

In other to survive in Nigeria’s transport industry, you need to establish a strong brand presence and also effective marketing strategy to attracting customers.

Start by crafting a compelling brand identity that reflects the essence of your transport business, that which resonates with your target audience. Design a distinctive logo, choose a color scheme, and create a catchy tagline that communicates your value proposition. Build an engaging website that showcases your services, fleet, and customer testimonials.

Leverage the power of social media marketing strategies to connect with potential customers and share updates, promotions, and relevant content.

Consider offering special deals or loyalty programs to entice new customers and retain existing ones. Collaborate with local businesses and organizations to increase visibility and establish partnerships. Word-of-mouth remains a potent marketing tool, so prioritize exceptional customer service to create a positive reputation that will drive referrals. You can also opt in for corporate sponsorship to increase your brand visibility .

Ensure Safety and Compliance measures

In the transport industry, safety is paramount, and compliance with regulations is non-negotiable.

Prioritize the safety of your passengers, cargo, and drivers by implementing stringent safety protocols. Regularly inspect and maintain your vehicles to ensure they are in optimal working condition. Equip your fleet with essential safety features and provide drivers with proper training on road safety, defensive driving, and emergency procedures. Implement fatigue management strategies to prevent accidents caused by tired drivers.

Stay up-to-date with all the relevant transport regulations and ensure that your business is fully compliant with licensing, permits, and insurance requirements. Conduct regular audits and inspections to identify and rectify any potential safety or compliance issues.

A strong commitment to safety not only protects your business from liabilities and penalties but also fosters trust and confidence among your customers. By prioritizing safety and compliance, you demonstrate your dedication to providing a reliable and responsible transport service in Nigeria.

See: Where to Buy Car & Pay Installmentally in Nigeria

Tips for your Successful Transport Business

To become successful in transport industry is a hard nut to crack. The following are tips to help you become successful in your transport business venture:

• Comprehensive market research – this will help you to identify unmet needs and untapped opportunities in the industry.
• A well-thought-out business plan with clear objectives and financial projections – this will serve as a roadmap to navigate challenges effectively.
• Embracing technological advancements – this can be a game-changer; integrating digital solutions for fleet management, route optimization, and customer service can enhance efficiency and reduce operational costs.
• Building skilled and motivated workforce
• prioritizing safety protocols
• And maintaining a strong network of suppliers and partners to contribute and help establish a robust presence in the competitive Nigerian transport market

Remember, success often lies in the ability to adapt to changing circumstances and continuous innovation to stay ahead in this dynamic industry.

Read also: Top 10 sites to buy used cars & their prices in Nigeria

In conclusion, starting a transport business in Nigeria can be a rewarding and promising endeavor for those who dare to seize the opportunity. As we’ve explored the essential steps to starting transport business in Nigeria, with a customer-centric approach and a commitment to excellence, you’ll definitely build a thriving and impactful transport business in Nigeria.

The road ahead may have twists and turns, but armed with knowledge and determination, your transport business can transcend limits and reach new horizons of success.

Wish you success as you kick-start your dream transport business in Nigeria. Free feel to use the comment box below to ask your questions relating to transport business.

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Transportation Business in Nigeria: Cost of Starting (2024)

by Oluchi Chukwu · December 29, 2021

Transportation is among the most profitable industries in the world. Once you realize that humans must travel from one spot to another, the entire concept becomes evident. It is for this reason that the transportation industry is very essential, making it easier for people to go about.

In Nigeria, there are various facets to the transportation industry. Have you ever thought about launching a transportation company in Nigeria? We’ll educate you how to get started as well as the costs of doing so in Nigeria in this post. Let’s get right to it.

COST OF STARTING A TRANSPORTATION BUSINESS IN NIGERIA (2024)

Among the most productive industries of Nigeria’s economy is transportation. This is most likely due to the country’s large population and the necessity to move people and products around.

As previously said, there are various components of the transportation industry in Nigeria. To figure out how much it will take to launch this firm, we must evaluate every one of these factors. In this post, we shall just discuss road transportation.

• MOTORCYCLE TRANSPORTATION

The cost of a 200 capacity motorcycle is from ₦200,000

The price of a tricycle starts from ₦500,000

• CAR TRANSPORTATION

A saloon car in Nigeria costs from ₦1.2 million

The price of an hilux car is from ₦2.5 million

The cost of an SUV is from ₦2 million

• BUS TRANSPORTATION

The price of sienna car is from ₦1.8 million

A mini-bus cost from ₦1.5 millon

The price of a coaster bus is from ₦5 million

An 18-seater bus costs from ₦2.2 million

A 15-seater bus costs from ₦1.6 million

It’s worth noting that the costs of these automobiles fluctuate a lot in the market. Second-hand vehicles can also be purchased at a lower cost. However, we recommend that you only buy used cars from reputable dealers. Also, while purchasing such automobiles, bring along a trusted mechanic to assist you in inspecting the vehicle’s quality.

Whenever starting a transportation company, there are a number of extra costs to consider. Licenses, permits, registrations, and upkeep are all included in these prices. As you may think, it’s impractical to quote a fixed figure because costs vary depending on a variety of circumstances. The type of vehicle, government policies, and geography are all considerations to consider.

WHAT ARE THE BENEFITS OF STARTING A TRANSPORTATION BUSINESS IN NIGERIA?

Most people keep asking this question since there is such a strong desire to work in the transportation industry. Of course, no business is flawless or profitable in every way. Every business has its own set of dangers and difficulties. It is the role of the entrepreneur to anticipate and identify potential challenges and hazards. They will be able to determine the most effective solutions to maneuver their business around these obstacles and dangers in this manner.

However, there are a number of reasons why you might consider working in Nigeria’s transportation industry.

In this part, we’ll go through a couple of these reasons:

THE GROWING NIGERIAN POPULATION SUPPORTS TRANSPORTATION BUSINESS

Nigeria’s burgeoning population benefits the transportation industry.

Are you aware that Nigeria’s population is believed to be around 200 million people? However, just 31 people out of 1,000 own an automobile. This means that a large number of individuals rely on public transportation to go about. In Nigeria, there is a limited supply for public transportation. If you have the financial wherewithal, you can benefit handsomely from this desire.

TRANSPORTATION IS A VERY PROFITABLE BUSINESS

Transportation is one of Nigeria’s most profitable industries nowadays. Apart from the statistics mentioned in the preceding paragraph, many automobile owners still use public transportation. The majority of individuals prefer to commute between cities by public transportation. This is in addition to the people who use the city’s various modes of transportation.

You can make loads of money if you grasp the rules of the game and follow them. You must, however, either choose to work within the city or to migrate from one city to another. The profit you make will be determined by the manner of operation you choose.

TRANSPORTATION BUSINESS IS GETTING EASIER THANKS TO TECHNOLOGY

Ride-hailing is one of the most frequent ways of operation in the transportation business today. Clients order a mode of transportation via a mobile application, which is known as ride-hailing. Bolt, Uber, Opay, and other ride-hailing apps are available in Nigeria.

You might earn as much as ₦150,000 to ₦250,000 each month if you join up for any of these apps. Everything depends on the number of hours you can work every week.

HOW TO START THE TRANSPORTATION BUSINESS IN NIGERIA (2024)

Now that we’ve established that this business is extremely successful and wealthy, we must address a critical issue. What is the best way to get into the transportation business in Nigeria? Before you begin, you should take certain measures, just like you would with any other business. Here are several examples:

STEP 1: DECIDE ON YOUR MODE OF OPERATION

We mean how you wish to manage the business when we say modus operandi. Some people prefer to run their businesses locally, while others are fine with venturing across state lines. If you wish to run within the state, you must first determine the mode of transportation you prefer. You must also determine if you wish to drive or ride by yourself or hire a rider or driver.

STEP 2: RAISE FUNDING

You can then sort out financing once you’ve found out your manner of operation. You should have figured out what kind of automobile you’ll be driving by now. We’ve included some costs above. You can use this list to estimate how much you’ll need. Don’t forget to add in the price of licensing and registration. Personal savings and loans are two options for raising capital for this firm.

STEP 3: COMPLETE THE REGISTRATION PROCESS

The next stage is to register your vehicle after you’ve raised funds and purchased it. To prevent unnecessary embarrassment from law enforcement authorities, make sure you have all of the proper paperwork. If you want to work for a ride-hailing service, you must finish their enrollment process as well. You’re ready to go once you’ve completed these steps.

Oluchi Chukwu

Oluchi is a seasoned Information blogger, content developer and the editor of Nigerian Queries. She is a tech enthusiast who loves reading, writing and research

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Logistics and Transportation Business Financial Plan and Projections

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The Nigeria Logistics and transportation industry is fast becoming investors heaven. With a growth slow but steady growth rate of 4 per cent, the industry is expected to be an economic power house in the coming years. With the encroach of small and emerging businesses into the industry, the burden of logistics and transportation of goods has been shifted from the government and now in the hands of private entities, creating more jobs and generating huge revenue to the government via taxes.

The current growth in Nigeria logistics Market has been due to the Infrastructural developments in Railways and Airways, improvement in foreign ties with other countries, developing manufacturing and export sector and the rising e-commerce sector.

Transportation sector or industry in a wide range of sector with high skill required. However, my focus is on a major part or the sector which is town transport service with modern techniques & service.

Most of the challenges this business face are bad road network, double levies& taxes. Address the challenges focusing on areas with good road network, more with relevant government agencies on tax and levies.

Overview of The Template

The main aim of this financial plan and projection is to enable business owners get real financial details on establishing a standard and effective transportation/ logistic services with high ethical and quality delivery which will enhanced good and efficiency transportation service.

The template provides business insights into the logistics and transportation business in the simplest manner. Cost and pricing breakdowns are based on real feasibility studies carried out by our team of experts.

These details will guide you through setting-up and efficiently running a logistics and transportation business in Nigeria that will be profitable and sustainable.

• Comprehensive Profit and Loss Projection.
• Sensitivity Analysis.
• Pre-Operating Equipment Requirements.
• Operating Expense List.
• Loan Repayment Plan.
• Service Delivery Cost.
• Proposed Pricing.
• Cost Forecast.
• Sales Forecast.
• Cash Flow Statement.
• Viability Analysis.

Use Scenarios

This excel template is most suitable for the following:

• Promoters of existing and New Start-up Businesses that need funding in form of grants,loans,partnerships etc. from government agencies and venture capitalists.
• Business and Financial Analysts working on viability and feasibility of a logistics and Transportation business in Nigeria.
• Business Administration and Entrepreneurship students who need a comprehensive financial plan for a Business Plan.
• Investors and Venture Capitalist who need financial analysis of the logistics and Transportation business for informed decision making.
• Entrepreneurs who need expansion ideas for their businesses.

MS Excel Template

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Transportation Business Plan

Transportation business plan in Nigeria is available and its updated from time to time with current market values, it can be used for Bank loans, Grants, proposals etc.

Transportation is the movement of people from one place to another. This is indeed the simplest definition of transportation but transportation goes beyond the movement of people, it also includes the movement of goods, animals, crops, machines, equipment etc from one place to another. Transportation is as old as man himself.

We cannot talk of people without mentioning transportation. As individuals, there are limits to our capacity to move things from one place to another. Also there are limits to distance we can cover.

In the olden days, our ancestors transport themselves and their commodities from one village to another by carrying things on their head or by using animals. As civilization came to existence such means became useless and insufficient. We are going to look into the different aspects of transportation, including the ones used by our ancestors and a brief insight into the advantages and disadvantages.

We have different types of transportation including;

• Land/Road transportation
• Water transportation
• Air transportation

We will focus on road transportation, land transportation is our main reason for this article/business plan.

In Nigeria there are four different categories in land transportation system.

1. Commercial Vehicles (Buses and Cars) 2. Commercial Tricycle (Commonly known as Keke Napep) 3. Haulage Service (Tippers, Trucks and Tankers) 4. Commercial Okada (motorcycle).

Types of Land Transportation

Town service (taxi).

This is vehicles used on major roads, it can accommodate as much as 6 passengers. In some cities it is used as ‘drop’. Drop is when one passenger pays for the whole seat and he/she is taken home directly.

This can convey as much as 16 or more people depending on the size. It is also used for transporting goods from one place to another. There are different sizes and capacity. Some bus can carry 18 people or even 32 people depending on the seat.

Tricycle (Keke)

This has taken over motorcycles. It is now used in major roads and also in streets in the country. It can convey as much as 5 passengers.

Okada (Motorcycle)

This is very popular and affordable to get but it’s demand has reduced because Government has bound it’s use in major cities. It can only be used in limited and certain areas in the country making it almost unprofitable.

Heavy duty vehicles

These are vehicles designed for heavy work for example pick up truck, truck tractor with GVWR of about 26,000 pounds, heavy duty trailers and tankers. These are used for the transportation of diesel, fuel etc. The goods transported are harmful to human health. And also when involved in accident can lead to disastrous loss of lives.

Transportation business is a very lucrative business, because people transport daily. Humans are bound to move from one place to another. And they do so mostly with public transport.

Transportation business is mostly in demand during festive/celebration period like Christmas, Easter and so on. This is because people move from one place to another to be with their love ones. Let us look at the various means of road transportation and vehicles you can get to start your transportation business. These vehicles comes in their various sizes and prices.

This are heavy duty machinery.

This includes bicycle. This can also be used to transport people and goods from one place to another. It saves time and it is one of the most cheapest means of transportation.

This is still in existence, people still walk long distance and even transport goods by carrying them on their head.

This is the movement of people, goods, crops etc by using animals including donkey, camel etc from one place to another. It is mostly used by farmers to transport their crops from one place to another and also by travelers to move from long distance to another. The advantage is that it is cheaper, the animals only need water and food when compared to other means of transportation that requires fuel. The disadvantage is that there is a limit to what it can carry, besides the animal can fall sick or die by the way.

Ways you can start Transportation Business in Nigeria

Tricycle (keke) / hiring service.

You can purchase a keke for about 1.3million naira or buy a taxi for 4.5million or less depending on if it is new or tokunbo. You can hire this vehicle out to people and get daily returns from it.

Hire Purchase service

This involves buying keke or taxi and giving it out to someone to work and pay you more than the amount you bought it . For example, you buy Keke 600,000 and the person is given six months to work and pay 800,000 to you, after which he can take the keke as his own personal one.

Transportation Feasibility Study

This is important, you must be aware of what you are going into, this business requires thousands and even millions of naira, you can’t afford to throw your money away over ignorance. You check what the market has in store for you. The dos and donts. You will also check your competitors, ways to be unique and also unions to join. You can get these information by asking those that are there before you and also checking the internet.

Get vehicles

There are various vehicles and their prize tags depending on your choice. We have tokunbo which is cheaper and new ones. You will need 600,000 to 1million or more to get a vehicle. It is better you go for new ones because they are better and last longer.

Registration of vehicles

Before you start your commercial transportation company ensure your vehicles are registered. There are two important registration that you must do, first is with the Federal Road Safety, and other important agencies to ensure your papers are complete. The second registration is with the National Union Road Transport Workers, NURTW. Very important.

Below are authorities where you should register your commercial vehicles

• National Union of Road Transport Workers
• National Association of Government Approved Freight Forwarders
• Chartered Institute of Logistics and Transport
• Nigerian Association of Road Transport Owners
• Road Transport Employers Association of Nigeria

Location is another important part of this business it can also be referred to as park. The location of your park makes it easy for customers to locate. If your park is not in a good location this will make it very difficult for customers to locate you. Passengers go to parks that is not difficult to locate because they last thing they want is stress. It is important that you start your business in a good location.

Employ Qualified Drivers

This is very important. Getting experienced and qualified driver is mostly preferable. This is to ensure safety.

Insure the Vehicles

This is also a very important part of this business if you can afford it. This will protect your vehicles from unfortunate lose.

Few Reasons why you should start transportation business

There are lots of reasons why you should start transportation business but I just want to highlights some few important reason why starting a transportation business is one of the best business you can venture into.

With the growing population of Nigeria spinning over 200,000,000 people. Urbanization has become the order of the day. Millions of people are on the road on a daily basis. people go to work, school, and place of interest. Due to the how things are in the Nigeria, there are just about 30 percent car owners so millions of people move about or travel with commercial transportation and that’s where you come in.

Whether you have a full time job or no, you can own a commercial transport company. All you have to do is get capable hands to run it from you. It is easy when you know the steps to take but if you do not, you can ask questions. This business is capable of making you a millionaire in a very short time. Although there are some key factors involved but generally with the right application the sky is your limit.

This is one business that has no season and during the festive period the numbers of commuters are even tripled, this causes increase in transportation fare thereby increasing your profitability.

Ways To Sustain Transportation Business

Transportation business is a very competitive business and to stay on top you must be very strategic about how you run the business because it important that people not only keep coming to your transport company but also recommend it for other people as well.

1. Customer service – Have a good customer relationship

2. No delays – Avoid delays as much as you can. Nothing kills transportation business like delays because no one going on a trip likes to waste his precious time.

3. Affordable price – Transportation price should be very affordable. If there are different buses for different category of passengers. The price should be very reasonable and affordable.

4. Responsible drivers – This is a very important aspect of this business. Responsible drivers avoid over speeding. Passengers do not like when unnecessary speed.

5. Park should be clean.

6. Well behaved staffs. This is very vital. The way the staff behaves will make a passenger use the transport company again when traveling. When passengers are treated with respect they could become a loyal customer.

This Commercial Transportation Business Plan can be used to access bank loans, grant applications, proposal writing and so on. The business plan was complied after a thorough feasibility study on Transportation Business in Nigeria was done.

Hurry now, don’t miss this opportunity. To place an order for Transportation Business Plan & Feasibility Study, pay N10,000 to

GTBANK (Guaranty Trust Bank) Account Name – UWADIA EYEMEKA Account No – 0127561472

After you have made payment for your Transportation Business Plan & Feasibility Study, send your email and payment details to 07036785443. Once your payment has been verified the Transportation Business Plan in Nigeria and feasibility study will be sent to your email.

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Start Transportation Business in Nigeria (Updated Guide)

If you intend to know how to start transportation business in Nigeria , the guidelines in this article will definitely help you achieve your aim of not just opening the business… but also running a successful one on a long term.

As you may already know…

starting any long term successful business is not an easy task…    And It’s advisable to always seek experts advice as a newbie in any industry.   That way,  you    will avoid lot of mistakes starting on your own with little or no experience.

It’s on that ground I then took it upon myself to help you seek experts advice on how to start transport business in Nigeria.

All you have to do now is pick up a pen or open your notepad to note down a few things you might need to review do and work your self.

During my research, at least 6 transportation business owners was able to share with us their expert ideas…

…and that of  Mr. Yomi was really mind blowing.

Mr Yomi happened to be a dismissed police officer with 4 kids. After his dismissal from the force, he had nothing and no means to provide for his family.

His wife advised he seek a job at a bank as a security officer. Based on your experience you’re most likely to get the job she said.

on the contrary, Mr. Yomi’s past mistake won’t give him a chance at any corporate institution/organisation.

After a couple of months of being down and controlled by alcohol, Mr Yomi had an accident that changed his life.

He almost lost his leg because of a reckless driver. The same driver that helped him start a transportation business of his own.

That evening, while I was in pains, happiness returned back to my life he said with a smile.

He now owns 3 cars, one tricycle (keke napep) and 2 workers.

It didn’t stopped there…

He closed his story with the statement: God bless the Nigerian police force. And I bless the day I had that accident.

That really touched me. And it also made me realize there’s a reason for everything in life.

so without any further delay…

lets dive into those guidelines Mr Yomi and others shared with me for you to start transport business in Nigeria

Table Of Contents

7 Key Guidelines To Start A Successful Transportation Business You Need To Know In Nigeria

1. market research.

The first and most important step you need to take before you start transportation business in Nigeria is this:

Collect information on all types of transport business in Nigeria to know their rate or level of profitability.

We have different means of transportation in Nigeria. They include land, water, air, and rail.

With the most popular being land due to capital… In relation to this article, land transportation is further subdivided into different types such as

• Tricycle or keke napep transportation business
• Motorcycle or bike transportation business and
• Car or vehicle transportation business.

So which exactly do you want to start with?

Before you come to a conclusion on that, read on to see other guidelines that will help you make the best decision.

The major reason you should carry out research before you start any transportation business in Nigeria is to understand their individual advantages and disadvantages… their awesome benefits and the possible challenges you’ll have to put up with to attain success.

For example, during the course of our research, a man popular referred to as “Alpha” gave some insight on the land various transportation businesses.

According to him, the most profitable of them all is the Bike transportation business.

When asked why?

He had this to say…

I have noticed Nigerians are impatient or are always in a hurry. And due to the fact that motorcycles can easily get past traffic jam, people love it.

Plus, You can make 5 times of your ₦200 fuel. Because prices for bike services are never static unlike others where what is #100 is #100 like forever.

And so far, bike transportation business is what i benefited from the most.

When asked on some of the benefits that comes with bike transport…

…he made me realize this glaring fact people often overlook.

PERSONAL RELATIONSHIP AND TRUST

It’s very easy to create personal relationship with bike service personnel or bike commercial riders.

Come to think of It, it’s little wonder majority of people have bike man.

But rarely a cab man or and never a tricycle man… The latter didn’t even sound well.

About the disadvantages…

…he further stressed that recklessness is the major problem. And that accident often leads to life time damages in most cases if not death.

I wanted to get him talking on why he left that (bike business) for tricycle business. But it was his turn to convey passengers from eleyele to ologun-eru, bodpa junction in Oyo state, Ibadan.

That was the end for Alpha’s tips on how to start a transportation business in Nigeria ended.

But just in case you can’t specifically pin point anything…

here is the main point:

Every transport business type has their pros and cons. And it’s best you know them so as have a deeper understanding of what you’re getting into.

Alpha was the only one who was willing to give us detailed info on specifically what will be beneficial to you but he had to go…

But at least you now know a few things on the bike type of the transportation business…

Bottom line?

The first thing you need to do to start transport business in Nigeria is seek answers by asking the right questions…

…and the BEST way to go about seeking VALID information on each transport business type is to

• Meet with those currently operating in that particular field you intend to start yours. That way, you’ll be getting valid advice based on experience. Not just on mere assumptions.

2. Pick a transportation business type.

After due consideration of the tips you got while making or collecting information, make a decision and pick a particular transportation business to start.

Pro tip: ensure you come to a reasonable conclusion after answering the following questions

• Do you want to start the transportation business yourself or you intend to hire someone?
• Can you afford the capital needed to launch that particular transportation business?
• Can you handle the challenges that are likely to come with it?
• Is it profitable?

3. Source for capital

I believe by now you must have arrived at a reasonable decision.

Having said that, the next step needed to start transportation business in Nigeria is to raise the amount of money needed to open the business.

If you don’t already have the required amount you need to start it, the following tips below could help raise something.

• Firstly, you can get a decent job and save up some of your weekly wage or monthly salary
• Secondly, meet your preferred financial institution for a bank loan
• Thirdly, corporate societies can also come in handy for a bank loan
• Lastly, reach out to your family and friends for financial assistance.

4. Buy or hire your transport business equipment (tricycle, motorcycle, or vehicle)

Without this, there is no show. It is literally impossible to start transportation business without either a car, a tricycle, motorcycle etc.

Therefore, here is where you hit the market for the best equipment that suit your transport business type.

However, it advisable you get a fairly used equipment; particular if you want to start a tricycle business which is not on hired purchase.

This is because the driver you hire for daily payment is like to use it carelessly.

And since he knows he will never own it or the tricycle can never become his, there’s little or no motivation to take very good care if it.

5. Get the necessary document

After buying the equipment, you should get the papers needed to your 100% ownership. And also get the document needed to run the business smoothly signed up and ready immediately.

This is very key to avoiding unnecessary arrest, fine and harassment.

You should also know that, if you want to get into the transportation business, you need a drivers license.

So start working towards that and other document as soon as possible.

6. Register with a union.

Every transportation business has a union.

This happens to be like a body that ensures the welfare of transport business owners within a particular zone.

When you encounter any problem while being an active member, they come to your aid immediately. With around ₦5000, you should be able to register.

Even if the registration fee is more, they often accept payments in installments.

Therefore, I will advise you register immediately. Because the benefit of having a union or the backing of a union is very very important when you want to start transportation business in Nigeria.

7. Design a business plan

According to Mr. Yomi, If there’s anything that has helped me expanded this big, it’s God’s grace to follow a business plan. Can you guessed who suggested it? The reckless life changing driver.

People often shy away from the need of a business plan which is very unprofessional as an entrepreneur.

During the course of our interview, one transport business owner claimed he would rather buy catfish pepper soup and dry gin than spend money on a paper called design plan.

All those one no matter jare, he said.

Now, that’s his decision. And I respect it 100%…

However, further questions revealed he has been using one tricycle for years. He didn’t change it – no to talk of adding another.

What worse?

He’s still renting.

For the past 6 years, no form of improvement of some sought in the business.

And that’s why many still struggle despite their realistic plans or goals in life.

A business plan is nothing more than a guide that helps you with a path to achieving your aim.

When you want to start a transportation business, you are more than likely to have expansion dreams. Everybody do; after all we all desire a better life.

So if you truly want to grow, it’s advisable you get something that will remind you of your why…

…and basically gives you a direction which you need to follow to ensure your growth. A business plan can make that happen.

8. Get to work

After working on all of the above, your next step to starting this business is to hit the road.

However, you want to make sure you know your area of operation very well.

For example, if you chose to start your transport business in Ibadan, around dugbe to be precise.

You want to know all the junctions and corners around such a place (dugbe).

If you want to operate at Isiala Ngwa North in Abia state or Kurmi Market in Kano state… The point is that you make sure you are very familiar with the place to large extent.

And if you intend to hire someone to actually manage the business, ensure the person knows that too.

The knowledge will help you avoid false kidnap accusation and harassment. Most importantly, you won’t lose money on grounds that you took clients to the wrong destination.

Needless to say, one of the recommendation to start a transportation business is having the ability drive. Good driving skill and experience is vital

Read Also : 14 awesome tips you need to start an online business.

Lastly, the safety of your passengers automatically becomes your responsibility. And at any giving time and day, it’s better to get to the destination late than not make it there at all.

That’s basically it on transportation business from my end.

I don’t know it all.

Plus, some of your expert ideas might come in handy for a reader of this website looking to leverage transportation business opportunities…

So if there’s anything I missed, you’ve got questions or suggestions that can help start transportation business in Nigeria, please let us know via the comment section.

Thanks for stopping by AND stay safe.

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Business Plan

Commercial Transportation Business Plan in Nigeria

by BusinessPlan 1 Comment

Our sample commercial transportation business plan in Nigeria can be used to access bank loans, proposal writing and grant applications. This business plan was complied after a proper feasibility study on inter state transport business in Nigeria was carried out. Furthermore,this business plan will be answer questions on how to register a transport company in Nigeria.

Read: Taxi Business Plan in Nigeria

To get your sample commercial transportation business plan in Nigeria, pay N10,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, text your full name, email address and title (transportation business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Now Read On…..

The need for human to move themselves, goods and services from one place to another, dates back as far back as the creation of man. It is and has always been a major concern for us to move from one place to another, whether via land, air or sea.

Many forms of transportation means have been made available over the centuries past, which within the last century has become more effective as the need is on the rise too but of these three above listed means of transportation the most popular and highly used means of transportation is the land transport system which is the easiest means of transportation of humans, goods and commodities.

The commitment to ensuring that land transportation is smooth and successful relates to more money for the one going into business because the owner wants to get his goods safely to its destination and people also need a smooth, hitch-free and accident-free transportation. So if you can guarantee the above you are assured of becoming rich very quickly.

Commercial transportation can be classified into three (3) sub-class and each of these class have different start-up capital and risk involved. They are as follows:

• Commercial motorcycle (Bike)
• Commercial tricycle (also known as keke-napep in most parts of Nigeria)
• Commercial vehicle
• Haulage services

Depending on the state in Nigeria you are located. Some state governments have banned the use of motorcycle and some state are not just interested in the use of keke-napep .

But for the benefit of this business plan we are going to be taking an in-depth look at commercial vehicles

  CONSIDERATIONS BEFORE STARTING THIS BUSINESS

The first question to ask yourself is, DO I WANT TO START BIG OR SMALL? And if the answer that question is the former then the second question is DO I HAVE THE FUNDS OR A MEANS TO GET THIS FUND? If yes then you are good to go.

Here are other things to consider or step to carry out to ensure a great start-up.

• DO adequate feasibility studies: Any business that must thrive the business owner must of a necessity do proper feasibility studies about the business, risk involves, high times and low times. This can help you in your decision before you put your money into it if you are willing to walk the mile. Contact drivers, car owners, union worker, transport companies (both private and government). This brings to light all dark or grey areas before going into the business.
• Buy a bus (first grade tokunbo) – getting a clean first grade tokunbo bus is fairly easy. With the right amount you can secure one or more for your business depending on the cash at hand and the size of the business. A tokunbo bus with Air Conditioner cost about 1.9 million naira – N2.5 million depending on where you are buying from. Having this in mind that intra-city transport doesn’t give as much as inter-state transport, you may need to ensure that the vehicle(s) you are purchasing will be able to take the rigors of this business.

Things to consider when purchasing a car for this business:

• Ensure that the car is new or almost new (a clean tokunbo will be nice for a start)
• Ensure the make and model of car you are buying have readily available parts here in Nigeria.
• Ensure you go through the right channel when purchasing your car. You don’t want to get into any legal matters just yet.
• Register the vehicle – there are two key registrations that need to be done after purchasing the vehicle. First registration should be vehicle registration with the federal road safety and all relevant bodies to ensure that the papers of the car are intact. Secondly is to register the vehicle with the union so as to operate without hindrances eg NURTW
• Get a Qualified Driver – If you have one vehicle I will recommend that you drive the vehicle yourself to ensure maximum return on investment but if you have more than one it becomes impossible for you to take that advice so you will need to employ the services of a professional driver (with added vehicle repair skills will be of benefit but shouldn’t be a criteria for the hire).
• Get a location for your cars (car park) – what this does is it makes it easy for your customers to locate you. When they want to travel they know exactly where to find you. What I love about the transport business is people don’t have favorites. They patronize who can get them to their destination and plus with only a little above 30% of Nigerians mobile the need for transport vehicle is on a daily increase. This location also needs a few things which I will list below:
• Office space.
• Mechanic(s)
• Conductor (where needed)
• Local food vendors
• Ensure to keep tabs on your driver – you don’t running of running your business aground. Make a clear estimate of the weekly, monthly and yearly income. This helps you to know if you’re been cheated.
• Have a percentage of your income that goes into compulsory savings. This will be for either a rainy day or to expand the business except if you want to remain at that level but soon you will go out of the business especially because of it competitive nature.
• Insure your vehicle. This I very important even though very few vehicles in Nigeria are insured; this protects you and your business from unwanted and unfortunate lose.
• Get all relevant papers work in place and registration from proper authorities.
• National Union of Road Transport Workers (NURTW)
• Road Transport Employers Association of Nigeria (RTEAN)
• Chartered Institute of Logistics and Transport (CILT)
• Nigerian Association of Road Transport Owners (NARTO)
• National Association of Government Approved Freight Forwarders (NAGAFF)
• Have a legal practitioner: You really may not know when you may need the help of a legal practitioner to get you out of a tight corner either with a disgruntled staff, law enforcement agents /agencies, customer or from someone that wants to take your business for himself.
• Install speed limiter: this is a device that restricts the driver to a particular speed and if this speed is exceeded the engine is shut down for a few minutes. This helps to keep the driver in check and to avoid over-speeding which may be disastrous in the event of an accident on the highway.
• INSTALL A TRACKING SYSTEM: As insecurity is on the rise and corruption is through the roof it is important to have measures in place to secure you from the unfortunate. Installation of a tracking system can help you in the following areas:
• It can help keep track of drivers route, stops etc.
• It can help recover vehicle in the advent of theft

iii. cars and passengers can be recovered on time in the event of kidnappings.

• Website and publicity: you could build a website which will help ease the stress of booking and paying for transportation fare. This system helps to ensure that less cash is carried around since the customer books for the journey at his convenience and pays through a payment processor which sends the money straight to the bank. In the beginning you will need to do a lot of publicity because of the competitions around; you may need to go on radio, TV, social media etc. To advertise your business until you have the hearts and minds of the customers. Give discounts and offer to give them free meal as they travel with your busses. All these helps to attract people your way.

REASONS WHY TRANSPORTATION BUSINESS IS LUCRATIVE

• Due to the land mass in Nigeria with few water bodies scattered all over the country except for cities like Lagos and other riverine areas, most Nigerians are stuck with road transportation as the only available means of moving themselves, their goods and services. With the population of the country rising slightly above 160,000,000 people with the need to go to school, places of work and place of interest and with only 30% as car owners, it is obvious that transport business will be a legal and lucrative way of making money.
• You can make this business a passive one. You do not need to quit your daily job or stay with this full time. It can function like a goldmine you don’t have to get dirty only smile to the bank.
• It is a lucrative business which can make close to N300,000 in a month. (This depends on your location, where you transport people to, how often you travel and how many vehicles you have. It may even be more).
• The demand is high and always on the increase especially during festive seasons where transport fare can increase by 300% due to the rush that is experience at that moment.

Tools Needed to Start Transportation Business

You will surely need the following tools to start up this business.

• Engine and vehicle lift
• Air tools and accessories
• Clamps and measuring tools
• Creepers and carts
• Fitting and hose/ Line connector
• Nuts, Bolts Washers
• Screwdrivers
• Power tools

FOR A SUSTAINABLE BUSINESS HERE ARE A FEW TIPS

Because of the nature of this business and the competitive nature there are a few things that your organization cannot compromise to ensure that you remain in business and expand within a short time.

• Avoid delays: no one appreciates time wastage when about to go for a trip
• Have good customer relationship
• Never leave a customer stranded always ensure that they get to their destination in good time as much as it depends on you.
• You cannot mortgage the health of your customers and staff so always endeavor to keep your environment clean as it is said “cleanliness is next to Godliness”
• Be time conscious ensure that you always keep to your daily schedules; it has a way of increasing patronage.
• Make sure your prices are affordable. Give them the best service for the best price
• Avoid over speeding “speed kills” if people feel unsafe in your vehicles then they will not patronize your business. Encourage you drivers to stay with safe speed limit.
• Get local food sellers available in your garage to keep customers satisfied.
• Do regular maintenance on your vehicle and if they are becoming very old I advise that you change them.
• Employ well behaved and possible educated staff. When your customers are treated with respect and dignity that could also help market your business. (it is called word of mouth kind of marketing).

CONCLUSION: Every business that follows the proper channel and covers all the necessary details will most often than not succeed. If you plan to remain in this business for a long time and grow bigger then you must always put your customers need ahead. Seek to train your staff to satisfy the customer. One other thing that makes staff help crumble business is when they see that you are making lots of money and you are not paying them properly; try as much as possible as the business grows also be concerned about the growth and welfare of your staff members. This instills loyalty and commitment which cannot be bought but earned over time by good gestures.

Get your sample commercial transportation business plan in Nigeria, pay N10,000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

After payment, send your full name, email address and topic (i.e. transportation business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Commercial Transportation Business Plan in Nigeria © www.businessplan.com.ng

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How to Start Transport Business in Nigeria (Earn ₦50k Daily)

Do you want to read the PDF plan to start a Keke, Okada, Sienna, minibus interstate road transport business in Nigeria and earn money daily?

If YES, then this is the only post to read.

Like every other business that people do, the transport business in Nigeria seems to top the chart when we talk about daily money making.

The transportation business in Nigeria is a profitable venture; however, it involves many risks and challenges.

Starting the business will require a lot of funds unless you want to work with someone as a driver.

Do you know how to drive?

Do you enjoy driving?

If you do, then here is a lucrative venture to dive into and start smiling at the bank daily.

How Transport Business Works in Nigeria

Knowing how the transport industry in Nigeria works is essential to enable you to navigate the business world effortlessly.

One thing you need to know is that the transport business is of different types.

The first one is within the city’s passenger transportation.

This type of transport business in Nigeria enables you to convey passengers from one destination to another within a particular state.

It involves using taxis, minibuses, tricycles, which we call ( Keke ), and motorcycles ( Okada ), etc.

Another one is interstate passenger transportation.

The interstate transport type involves using high-quality buses of different styles to carry passengers from one state to another within the country.

Some people also use Sienna cars for this type of transportation.

The last one is freight transportation, which involves using trailers, trucks, vans, etc., to transport goods from one city to another and one state to another.

Once you understand the different transport businesses available, you’re on your way to making money through the business.

Is Transport Business Lucrative?

The transport business in Nigeria is very lucrative, based on certain factors like population, location, how much you know your way around the city or state you’re in, etc.

When we talk about population, if you are in the transportation business in a well-populated city in Nigeria, you intend to make more money than a person in a state with a smaller population.

Let’s take Lagos state, Anambra, Port Harcourt, and Kano, for example.

There is a higher demand for transportation in these states because of the population and economic activities.

Steps to Starting Transport Business in Nigeria

Here are the steps to start a profitable transport business in Nigeria:

1. Market Research

Conducting detailed market research is essential before starting a transport business in Nigeria.

Through the research, you will find out how the transport business in Nigeria works, pricing strategies, the different transportation available, etc.

The research will open you up to other means of making money in the transport industry.

2. Decide on the Transport Business Model

You already know the different transport business in Nigeria.

Choose the best one for the type of business you want.

When selecting the one to narrow down to, consider your budget.

Your budget is one of the major determinants of the type of transport business you should go for.

3. Get Your Funds Ready

The transport business is expensive to build except if you want to work as a driver for someone else or a company.

If not, source for funds that will be enough to set up the type of transport business you want.

You can borrow from family and friends or, better still, go to the bank for a loan or a partnership.

4. Permits and Licenses

It’s essential, if not compulsory, to get all the licenses and permits for the transport business before starting.

First, secure a driver’s license, and when you get the vehicle ready for business, go back for all the paperwork.

Don’t start working without all the legal backing to avoid harassment from law enforcement agencies.

5. Purchase Business Items

Buy all the equipment you need for a transport business in Nigeria.

If you are starting a big transportation business, you need more than one vehicle.

So, buy all you need for the business and start.

6. Hire Staffs

Someone who doesn’t know how to drive and doesn’t want to learn to drive can open a mini or large transport business in Nigeria.

Here is where hiring staff comes in.

Hire experienced drivers and other people who can help you manage the business.

You can hire customer care representatives, expert drivers, mechanics, and dispatch riders.

If you want to run a taxi company, you need someone knowledgeable with technology too.

7. Provide Good Customer Service and Market Your Business

Start marketing your business.

Run paid advertising print banners and mount them in some strategic places; flyers will also go a long way.

Make sure you employ good workers so you can offer your customers exemplary customer service.

Transport Business Risks

The high profitability of the transport business in Nigeria notwithstanding, the industry still experiences some major and minor challenges, which include:

• High cost of maintaining vehicles.
• The consistent rise in fuel prices in the country.
• Taxation and extortion by some police and road touts.
• Lack of security in the country.
• The competition in the industry is high as well.

Steps to Ensure Your Passengers and Vehicles are Safe

You can ensure your passengers and vehicles are safe by purchasing a good-condition car.

Always use a suitable mechanic’s workshop for maintenance.

If you’re not the one driving the vehicle yourself, be sure you hire excellent drivers.

Ensure your drivers keep to the rule of “don’t drink and drive.”

Find a good insurance company and insure your vehicle.

Buy motor insurance policy, fire insurance, accident insurance, and theft insurance.

Always pay and do not breach the contract, so you can be repaid for any unforeseen occurrences.

Mini-Bus Drivers Daily Earning in Nigeria

Minibus drivers make as much as ₦10,000 to ₦100,000 daily, depending on their location and the population of people living around the place.

Some minibus drivers make way higher than we started above, and it’s only possible if they take their time to learn about the industry very well before diving into it.

Transport Business Cost

Starting a thriving transport business in Nigeria will cost you a lot of money.

The cost of starting a transportation business in Nigeria varies depending on several factors, including the type of transportation business you want to start, the size and scale of the business, and the location of the business.

Sometimes, where you only want to become a driver under a company, it will only cost you money to get a driver’s license.

Starting an interstate transport business in Nigeria will cost you around ₦5 million and above if you are going for a high-quality bus.

Intrastate transport business in Nigeria costs less because you may decide to go for Tokunbo vehicles.

So, you can get a car for ₦1.5 million and above.

Some use hire purchase vehicles to start.

You can start riding Okada with as low as ₦10,000 for fairly used ones.

Just know that they don’t go a far distance.

The price of tricycles has been alarming recently..

You can get a fairly used one for ₦1 million plus or opt for a ride as you pay.

Understanding an industry or business before getting into it is essential to save you time, stress, and loss of funds.

The transport business in Nigeria is very lucrative, but requires you to learn how it works and be patient before diving into it.

If you are interested in the industry, look out for those who have been into it for years and learn from their experiences.

Aside from the profits in the transport business in Nigeria, there are so many risks involved.

Get your mind prepared for all that comes from the industry.

READ ⇒  71 Legit Ways to Earn Money in Nigeria (Online and Offline)

Saint Chinedu

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Transportation

Transport Business? Hot cake.  Nigeria has a population of over 250 million and all these people are always moving from place to place for various reasons.

First things first – You have to acquire enough knowledge about the business you are getting into. Drafting a business plan is one way to go about it. You cannot dive blindly into a business and expect to succeed in it when your competition has experience and strategy on their part.  There is no detail that is too minute for you to know, leave no stone unturned.  You have to get yourself acquainted with the cost of fuel,  how much you will spend on maintenance of the vehicle(s) amongst other factors. Like they always say Knowledge is power.

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Bear it in mind that transportation is quite vast so which one do you want to go into and do you the technical and practical know-how to go into it?  Are you financially capable to handle it? You should have this at the back of your mind from the onset.  Next,  carefully consider the area you want to practice your transportation business. This goes a long way in determining whether or not your business will thrive.  You can’t bring cars into an area where only bikes can ply and expect to make success so know the area you are going into in and out. Some people might be of the opinion that they do not have the capital to go into their choice of transportation business because they think the only way to start is to start big.

That is so not true,  you can start little and gradually grow and expand your business.  It is even advisable to start this way because it avails you the opportunity to learn from experience without having so much loss, because the mistakes will be easier to correct. Consider it as you being in training, this way you get to have practical knowledge of the business until you determine the method that best suits you and that works well for you.  However if you have the capital and technical know how to start big then by all means do. Just ensure that before that you are well grounded on  all you need to know about the transportation business and that all the systems you will need to put in place for your business to succeed has been handled.

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Free Transportation business plan in Nigeria

Free Transportation business plan in Nigeria – If you ar in need of a transportation business plan in Nigeria in pdf. Our business plan sample for transport company includes a transport and logistics company business plan. It also serves as a business proposal for transportation services inclusive of haulage company business plan.

• 1.1 Free Transportation business plan in Nigeria
• 1.2 Cessummit.com. high profile business Plan templates:
• 1.3 Cost of Transport business in Nigeria:
• 1.4 What is a transportation business in Nigeria?
• 1.5 Free Transportation business plan in Nigeria
• 1.6 Transportation business ideas:
• 1.7 How cessummit handles them?
• 1.8 Free Transportation business plan in Nigeria
• 1.9 Related topics:
• 1.10.1 Introduction:
• 1.10.2 Objectives
• 1.10.3 Managerial:
• 1.10.4 Mission:
• 1.11 Free Transportation business plan in Nigeria
• 1.12.1 Financial Plan Analysis & Statements:
• 1.13 Read Also:
• 1.14 Summing Up:
• 1.15 Share this:
• 1.16 Like this:

Transport Business:

As a matter of fact, this Free Transportation business plan in Nigeria is among our high profile business plans. We acknowledge the fact that there are small, medium and large scale transport businesses in existence. Some are just for human passenger transportation while others are for haulage and others for logistics. That is why we have different business plan templates for the different sizes of businesses. Again, that is why we have dedicated business plan templates for these types of business.

Cessummit.com. high profile business Plan templates:

As a matter of fact, our high profile business plan templates are well structured to cover all the start up essentials. So, we ensure that in all of our business plans is included an executive summary for the company operations, marketing plans and financial plans with detailed assumption worksheets. Many a times too, clients request their business plan pitch to be added for special presentations and internal control appraisals. Then, get this Free Transportation business plan in Nigeria from us today.

Cost of Transport business in Nigeria:

How much does it cost to start a transportation business in Nigeria? And, is a haulage transport and logistic business a lucrative business in Nigeria? For these questions, you don’t need to worry. This is because these parameters are generated by our auto-generatable business plan templates with the financial reports. So, it’s possible for you to see if a business is profitable or not and if cost of establishment is high or low. In these cases, our business template allows for necessary adjustments to suite your desired level of investment and operations.

What is a transportation business in Nigeria?

Commonly speaking, a transportation business is any business that has to do with transporting people or goods across a distance. It also include providing transportation services for other business owners who need help linking their product to their business locations. So, get this Free Transportation business plan in Nigeria today

As a matter of fact, technically speaking, transportation is said to be a sub-group of the industrials sector according to the Global Industry Classification Standard (GICS). Therefore, based on this classification transportation sector is made up of several industries including air freight and logistics, airlines, marine, road and rail, and transportation infrastructure.

Transportation business ideas:

On the other hand, transportation is Animal-powered, Air. Human powered. Land, Rail. Road. and Water powered. Therefore, you can become an Uber operator, Airport Shuttle Service provider, Car Rental Service, Medical Transportation Service, Child Pickup Service, Equipment Transportation Service etc.

In generating for a business plan for your transportation business, get to find out how much does it cost to start a transportation business in Nigeria. In addition, find out also how to partner with transport company for interstate or intrastate transportation business in Nigeria. These are lucrative transport business ideas for you. Currently, several transportation ideas exist. So, think of sienna transport business in Nigeria also. And get more business ideas here

How cessummit handles them?

On Free Transportation business plan in Nigeria, Cessummit has special business templates for High profile Business plans like transportation business. Such a vast industry offers a lot of business niche for the serious minded business person. However, other businesses in the class of high profile business include Airline operations, Oil & gas, Petroleum filling stations , Cooking gas, Agriculture and Food processing business . Then are Real Estate, Hotel, Transportation and Telecommunication business and many more. In doing these, we also assist fellow consultants generate a matching business plan financial plan analysis. So, if you are desirous of a good and comprehensive business plans, please visit our website today or Contact us via +234 905 313 0518 and [email protected]

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Anekivine Transportation Company Business Plan:

Introduction:.

Anekivine Transport Ltd is an Abuja based company, whose mission is to provide reliable, timely, and safe transport services by using complete transport system with computer-aided dispatch. The company will establish its presence in the industry by acquiring an existing transport company, TB Joshua Transport Ltd a family-owned business that was formed 15 years ago.

Anekivine Transport Ltd goal in the next year is to pursue an aggressive marketing campaign. That is to enable it penetrate at least 65% of the market share. On the other hand, the company’s goal in the next two to five years is to be rated top ground transportation company in Abuja. This it will achieve by continuously monitoring, evaluating, and following up on customer satisfaction.

As a matter of fact, the key components of Anekivine Transport Ltd’s initial strategy can be summarized as follows.

Establish Relationship with The Young Motors International. Therefore, the company is currently working to establish and develop a working relationship with The Young ransport Internationl. This will enable Anekivine Transport Ltd to lock into the many services that they offer including, but not limited to:

Managerial:

• Call center and customer service efficiency
• Management consulting
• Technology consulting on Free Transportation business plan in Nigeria
• Product management
• Continuous improvement

The mission of Anekivine Transport Ltd is to provide reliable, timely, and safe transport services by using complete transport computer aided dispatch system.

Highlights:

Highlights of Anekivine Transport Ltd

• Technology. Anekivine Transport Ltd has a unique Global Positioning System (GPS) that pinpoints the nearest driver, thus allowing the driver to give an accurate ETA.
• Trademarks. The company is in the process of registering its name as a trademark.
• Advertising. Anekivine Transport Ltd is already in advanced discussions with ABMC Media Services to provide advertising services and market research.
• Seasoned management. The company’s management is highly experienced and qualified and has extensive seasonal experience in the industry for Free Transportation business plan in Nigeria
• Strategic relationships. The company has, and will continue to establish, relationships with organizations that will enhance professional growth.

Financial Plan Analysis & Statements:

The financial analysis and the associated tables and graphs are obtainable at a fee.

• SME’s Business Support Services in Nigeria:
• Business Support Services Start-ups:
• When and how incorporation certificates expire
• Incorporation changes
• Scaling up your business with special growth strategies
• How Neglecting Regulations & Compliances Hinder Growth for Business Start-ups
• What non-accountant CEO need to know

Summing Up:

Considering Free Transportation business plan in Nigeria Business, Consulting Services in Nigeria gets better with Cessummit business consulting team. This is because as professionals we provide comprehensive services ranging from business plans and proving all business compliance certificates, internal control services to administrative support services. As a matter of fact, these are essential Professional Business Consulting Services for business development. Hire a business consultant here at cessummit.com. via +234 9053130518 or [email protected]

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Nigeria to develop National Road Transport Master plan to foster economic growth

By shiktra shalangwa.

Nigeria is developing a National Road Transport Master Plan, to develop a comprehensive long-term Blueprint for road transportation in the country.

The Minister of State Transportation Senator Gbemisola Saraki said this at the Federal ministry of Transportation and Nigeria’s Transportation commissioners forum annual retreat 2021, themed “ Developing and Fostering Synergy in the Management of Sustainable Transport Policies”.

She said the current administration of President Muhammadu Buhari is committed to improving transportation infrastructure and services, in order to meet the needs of Nigerians and the economy.

Senator Saraki added that improving Transportation Infrastructure and services is one of the priorities of this administration as part of the Economic Recovery and Growth Plan (ERGP).

The minister noted that “ Nigeria’s transportation sector has for long been under significant strain with adverse impact on the country’s economic development.

“It is our firm belief that the Road Transport sector can be a big contributor to national GDP, an enabler of economic growth and source of millions of jobs” she said “ if properly harnessed”.

Challenges in the transportation sector

The Chairperson of Nigeria Transportation Commissioners Forum, Rahamatu Yar’adua said the retreat will address some of the challenges in the Transportation sector and proffer solutions for the safety of lives and property.

She added ” The Nigeria Transportation Commissioners Forum has been striving to change the narrative of Transportation system since inception. The Forum gives way for an effective, productive, efficacious advocacy and replication of the global best practices in the transportation sector. This will create an enabling environment for sector operators and enhance security and safety”. 

Similarly the Chairman Senate Committee on Land Transportation, Senator Gyang Istafanus said “ the forum provides the nation a veritable platform to discuss, address, review and assess the workability, variability, functionality, efficiency of policies, plans and programs that have direct bearing on the Transportation Sector and it’s role in nation building and national development.

“I am glad to note from the keynote address of the chairman of this forum and Commissioner from Niger State that the concept of smart city Transportation management system is already being implemented in some States. I’ll urge the replication in all States of the federation for safety in our streets and high ways” he said.

Call for review of exclusive list

He said it is necessary for the forum to align her thoughts with the call for the review of the exclusive list in the constitution to allow for participation and involvement of States in railway Transportation.

Permanent secretary Ministry of Transportation, Dr Magdalene Ajani urged the forum to explore innovative and transformative initiatives that will help improve the road Transport Subsector for optimum performance and enhance productivity.

She enjoined key players in the Subsector to put in their best with a view to coming up with implementable policies and recommendations in line with global best practices.

Representing Anambra State Governor, Willie Obiano, Mr Afam Umbanefor advised the forum to conceptualize a drive control mechanism of unified control, to bring about a smart way of working to synergise and develop the Transportation Sector and make it more efficient.

Representing Niger State Governor, Abubakar Bello, Commissioner of commerce and industry, Mustapha Jibril said Niger State is key to Transportation in Nigeria, as it has the largest land, mass, height, length of federal roads and it gave birth to 60 percent of the Federal Capital Territory. He urged government to look into the Baro port as a lot more needs to done.

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Enhancing nigeria’s transportation system through blue economy.

• February 16, 2022

For some time now, the state has been operating an efficient and effective ferry service between Apapa and Marina, which has been helpful to commuters who no longer have to travel the distance from the Apapa-Amuwo Odofin axis by road to go to work on the island. The additional boats will increase passenger traffic on the Apapa-Marina route, as well as other routes, like Ikorordu-Lagos Island.

When fully developed, the Blue Economy will not only enhance Nigeria’s transportation system by reducing pressure on road and rail infrastructure, it would also increase participation in water transportation with the benefit of stimulating economic activities, creating jobs, increasing revenue generation and boosting the nation’s gross domestic product.

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