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Businesses in Nigeria

How To Set Up a Transportation Business in Nigeria


Setting up a Transportation Business in Nigeria

Human beings are not known with stagnancy, they move around from one place to another, street to street, state to state and all around the world. This they do by several means of transportation, starting from bicycles, motorcycles, vehicles, etc.

Owing to this fact, setting up a transportation business seem to be a very good idea where you can make your steady income. This business guarantees you continuous inflow of cash as it is one of the most lucrative businesses in town now.

However successfully starting a Transportation Business in Nigeria will require you to consider some basic factors. Failure to consider these factors may bring your business goals to a standstill.

Here is an outline of how to successfully set up a Transportation Business in Nigeria and make a huge profit from it.

Factors to Consider When Setting Up a Transportation Business in Nigeria

Image result for transportation business nigeria

Here are some things you should consider to grow your transportation business faster in Nigeria

1. Place to Operate

You can always operate your transportation business anywhere in Nigeria, be it rural or urban, the most important this is the population density of the area. First, you must choose a strategic area or road where plenty of people are known to ply daily. That way, your business will grow faster.

However, if you choose to specialize in one area, for example, a city, it is good for you to operate long-distance travels which will transport people to far areas. This is because long distance travels will fetch you more money than the short ones. For example, taking people from one state to another is much more profitable than just running the business within just one state.

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2. Know the Feasibility status of the business in the area you chose

Ensure you make a careful investigation and study of the feasibility of the business, especially in the area you chose to operate. This will give a knowledge of the government policy of each state of the federation. In addition, it will make you know the cost of living and to know how to plan your business in a way to generate more profits.

3. Set a Business Structure

The kind of structure you choose will determine the amount of profit you will make in the business. You can run a transportation business in Nigeria in several ways. You can run it with a bus which will operate within a region or to take people from one state to another.

Also, depending on your pocket, you can decide to buy big cars, trucks, luxury buses and hire, lease or rent out to those who need them for transportation services in Nigeria.

4. Secure a workable location

For the sake of efficiency, you need to get a good location for the business. It should be an area not far from the road and close to a place where there is high human and vehicular traffic. Get a place that can be easily accessed by passengers who will patronize you. You should also get yourself a functional car which will ensure your smooth administration of the business.

How profitable is Transportation Business in Nigeria?

Transportation business is one of the most profitable businesses in Nigeria. Here, I will outline some of the advantages of the business for you to understand better.

  • Sure profit: It is a business you will always make your profit from if you take note of its dos and don’ts. The business is so lucrative that you will always have the opportunity to render to people, that way your money flows in on a regular.
  • Economic independence: The business is yours. No one can harass, insult or quarrel with you as to your actions or inactions. This is because you are your own boss.
  • Regular patronage: you can rest assured that you cannot run out of business as the demand for the services is very high in Nigeria.
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Funding or getting the capital required to start Transportation Business in Nigeria

You will need some amount of money to start the business, that is, your capital. You will need to buy or rent an apartment that you can use as your office. The cost implication will depend on the area you live in Nigeria. You will also need to secure at least two cars for a start, you could get used ones.

Studies have shown that a person who wishes to start a transportation business in Nigeria should estimate at least #2,000,000 as capital and recurrent expenditures. It will also serve the logistics and miscellaneous expenses.

Employing Staff For Transportation Business

There is two very important staff you must employ, one is the driver who is competent and duly licensed to drive. Also, you must employ an accountant or secretary that will help you record the daily activities of your company.

Essential Requirements for the establishment of a Transportation Business in Nigeria

Land Space: you will need to buy or load a piece of land to use as your garage. In case you are buying the land, ensure you get all the required documents to prove your occupancy over that land. Such document will include the Certificate of Ownership duly issued by the Governor of the state in respect of the land.

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Building Structures: These will serve as an office or a resting place for you and your staff. It will also serve as a checking unit or recording place for your vehicles coming in and going out. It will be a place where you can comfortably do the account of the inflow of money into the business.

Lawyer: You will require the services of a competent legal practitioner who will give legal advice on your rights and obligations in the business.

Rapport with Security Agencies: You need to have a good rapport with the law enforcement agencies, especially with the Federal Road Safety Corps and the Nigerian Police Force.

Vehicles: You can either buy your own personal cars for the business or rent depending on your capacity.

Equipping your garage

Professionals: It is essential that you should have some sets of professionals in or close to your garage to make things run better and faster. These set of professionals may include a mechanic, a vulcanizer, a rewire, a panel better and so on.

Tools: You should have tools like clamps and measuring tools, creepers, and carts, jacks, gloves, hammer, screwdrivers, pliers, nuts and bolts washer, power tools, etc.


Opening a garage or a transportation business, although very profitable is not a very easy business to establish. However, you can succeed if you are determined, focused and ready to follow all the requirements essential to establishing such business in Nigeria.



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