The transportation industry in Nigeria is still expanding in tandem with the country’s population, which is predicted to be about 180,000 million as of 2018, so imagine what it would be like this year. Going to start a transport business in Nigeria is a realistic option because the market is there for you, and those who are already in the business are making attractive profits. In this article, we are going to be discussing all there is to know about the transport business in Nigeria and how you can start one with little or no money.
Overview of Transport Business in Nigeria
For obvious reasons, the transport business in Nigeria is profitable. The fact that the business is profitable is due to the fact that it meets a demand. Yes, transportation is a highly significant business in Nigeria since it allows people to move from one location to another. Imagine if the bus drivers in your region declare a strike and people are unable to get to work or attend parties, or if the interstate transport drivers in Nigeria declare a strike.
This will have an impact on the entire country of Nigeria. It will effectively bring Nigeria to a halt. Another reason why the transport business is profitable is that it has a huge customer base. Let’s face it, people start their own transportation businesses every day. Many of these people acquire automobiles or buses to enter the transportation business, but demand has not outstripped supply.
In reality, as Nigeria’s population grows by the day, so does the demand for transportation. So if you start your own transport business in Nigeria today, with little or no money, you can be guaranteed to always make profits because of the high demand for transport.
Types of Transportation Business
When it comes to Nigeria, there are numerous transportation systems you may easily invest in and make the business work for you, most of which include:
#1. Motorcycling (Okada)
A motorcycle is used to transport passengers inside a town, city, or village. A motorcycle, also known as an okada, is used to transport one or two persons at a time, while some states prohibit transporting two passengers. However, the days of riding a motorcycle for transportation are limited, as several states have banned the use of okadas for transportation, notably in cities, and other states are likely to follow suit in due time.
#2. Tri-cycling (keke napep)
This is an enhancement to the motorcycle and is officially designed to transport three passengers; nevertheless, some drivers carry four, and others in some states carry five. Keke napep is popular and will most certainly be used as a mode of transportation in the near future. Some state administrations have advocated that motorbikes be replaced with keke napep.
#3. Commercial luxury buses and mini-bus
These are used to transport passengers in both local and intercity services. This mode of transportation is used by commuters and those traveling outside of the state.
#4. Car town service (taxi)
This is also utilized to transport individuals both within and outside of the state. It is a more secure mode of transportation than an unregistered and unpainted “kabu-kabu” because each owner registers the vehicle with the state government office. Another type of automobile service called “kabu-kabu” is employed to transport customers across small distances.
#5. Haulage transport service
This is the employment of various sorts of autos to transport items for a fee. Tankers, trailers, tippers, and other sorts of vehicles are used to transport various types of cargo.
#6. Offer hire purchase services
This type of business is spreading throughout the federation’s states. It is a novel approach to the transportation business in which you earn a consistent, although not guaranteed, income. It works like this: you buy any form of would-be commercial vehicle you want at a certain price and then rent it out to various types of drivers at greater fees. The driver will pay the agreed-upon sum in installments.
#7. Other classes of the transportation business
This includes the use of aircraft, trains, ships, or canoes, as well as pipelines, which are not covered by this article. Because the post is written for the common Nigerian who aspires to be a transporter entrepreneur.
How to Start Transport Business in Nigeria
Here are the steps on how to start a profitable transport business in Nigeria, with little to no money:
#1. Write a Business Plan
The first step in learning how to start a transport business in Nigeria with little or no money is to create a transportation business plan as well as a feasibility study. Conducting a feasibility study allows you to better understand the transportation system in the area where you intend to start your transportation business.
It will inform you of the most profitable transportation business in that location as well as the transportation business in which you should invest. Aside from e-hailing companies like Uber, Taxify, and others in Lagos, the danfo transport business is immensely profitable.
If you are unfamiliar with the term “danfo transport business,” it simply refers to the use of a van or bus to transport people from one location to another, most notably from one bus stop to another. A transportation business plan will greatly assist you in avoiding avoidable losses, especially if you are putting large sums of money into the business.
You can develop your transport business plan using an internet business plan template or by hiring a professional business plan writer. If you don’t have any business plan writers nearby, you can contact us to help.
#2. Get the Required Startup Capital
The next step after creating your transport business plan is to obtain the funding required to start your transport business in Nigeria. During the course of researching this essay, I discovered that some Lagos drivers make hire purchases. While some people buy their own vehicles, use them for a few years, then sell them and buy another, and so on until they are no longer interested in the transportation business.
Drivers who purchased their automobiles on hire buy stated it is nothing to be afraid of because you can pay off the money in 6 months to a year if you are dedicated and hardworking. Drivers in Lagos, in particular, can earn as much as N30,000 per day.
However, how much you make is determined by a variety of factors such as traffic, car condition, gasoline, and other factors. So you can either borrow money to start your transport business, conduct a hire purchase, or simply purchase the vehicle with your own money.
#3. Buy your Vehicle(s)
There are a few things to consider while purchasing a car, bus, or minivan for your Nigerian transportation business. You must consider the type of transportation business you wish to start. undertake you want to undertake interstate transportation or any other type of transportation business? How many passengers do you want to transport in your vehicle?
Which vehicle brand do you wish to purchase? I strongly encourage you to go for Toyota because it is the most popular car manufacturer in Nigeria due to its dependability. After you’ve decided on the type of vehicle you desire, you may go out and buy it.
Nigerians purchase vehicles for business purposes in a variety of locations. Some Nigerians prefer to buy their cars (car, bus, minivan, bike, Keke Marwa) in Cotonou, while others prefer to buy and import from outside, and yet others prefer to buy from local importers or simply buy fair used.
#4. Register Vehicles with Govt Agencies
Registering your car, bus, bike, Keke Marwa, or any other form of vehicle is critical, especially if you intend to operate a transportation business in Nigeria. This simplifies your transportation business because no law enforcement agency will bother you for one document or the other. In Nigeria, the registration requirements for your transportation business vary by state.
However, there are some documents that you must obtain that are federal in nature. You’ll need paperwork from the Ministry of Transport, Vehicle Inspection Officers (VIO), the Federal Road Safety Corps (FRSC), the National Union of Road Transport Workers (FRSC), and others.
#5. Employ Drivers or Drive Yourself
Another factor to consider in your road transport business is whether you will drive your vehicle yourself or hire a driver and conductor. If you intend to drive the vehicle yourself, you must first learn to drive and obtain a driver’s license.
You will earn more money if you drive your own vehicle because you will not have to pay a driver. In addition, if you hire a driver, the driver must be able to drive and have a driver’s license. However, you must pay the driver on a daily basis for the services he provides.
If you hire a driver, make certain that the person you are hiring is not a stranger. This is to ensure that the driver does not steal your vehicle or money, or even cheat you on how much he or she is supposed to deliver to you on a daily basis.
#6. Making Profits in Transport Business
There are a few things you should do to boost revenues in your Nigerian transportation business. First and foremost, you should inquire as to how other transporters make money quickly from the transportation business. Yes, they will reveal some secrets to you that you were unaware of previously, so just listen and apply their methods and advice.
Working throughout the day and every day is another thing you should do to boost revenues in your transportation business. Yes, a driver who works from dawn to night cannot be compared to a driver who just works from morning to afternoon. Obviously, the driver who worked the entire day will make significantly more money than the driver who worked only half the day.
Finally, strive to purchase a suitable vehicle for your business. This will save you money and other expenses. If your vehicle is in good condition, it will save you money on unneeded repairs.
What Are The Most Popular Transport Modes In Nigeria?
Road transit (buses, taxis, and motorcycles) and air transportation (commercial airlines) are the most prominent types of transportation in Nigeria.
How Do I Ensure The Safety Of My Passengers And Vehicles?
You must undertake regular maintenance and safety checks on your cars, recruit experienced and licensed drivers, provide safety equipment such as seat belts and airbags, and follow all safety requirements and standards to ensure the safety of your passengers and vehicles.
How Do I Price My Transport Services In Nigeria?
To price your transport services in Nigeria, you must consider elements such as fuel prices, maintenance costs, labor costs, and market rivalry. To guarantee that your pricing is competitive, undertake market research and compare them to those of your competitors.
How Do I Attract Customers To My Transport Business In Nigeria?
To attract customers to your Nigerian transportation business, you must create a strong brand identity, provide quality services, offer competitive prices, advertise your business through various channels (such as social media, billboards, and flyers), and offer discounts and promotions to attract new customers.
How Much Money Do I Need to Start a Transport Business?
To cooperate with any transport firm in Nigeria, you will require funds in the millions of Naira range. Except if you want to go into the okada transport business, you would require at least N800,000 – N5,000,000 to start a transport business in Nigeria with one vehicle.
Conclusion
Nothing in this world is simple, not even the transportation business in Nigeria, especially when you want to start, succeed, and develop quickly. Avoid issues with the police by obtaining the correct vehicle license, renewing it together with the insurance certificate, and paying all dues and levies on time. Best wishes.
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