Transportation Business in Nigeria: Cost of Starting (2024)
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.
