How to Start Transportation Business in Nigeria

Transportation is an essential aspect of human existence. Transportation business is a profit making business in Nigeria. It is so important to the extent that anyone who is being restricted to move, either by nature or conviction, is assumed to be among people having a disability in the world.

In this modern day, the existence of different kinds of vehicles has improved transportation and transportation business tremendously.

Places to Operate Transportation Business in Nigeria

Transportation business is another business venture that is very lucrative in Nigeria. It is a business that many people in the country are in need of. You can start this business anywhere in the country, either in the rural or the urban centres. All you need is people.

Read Also: The Role of Transportation in a Supply Chain

Basic Advise & Guidelines

If you want to run this business in the city, there are opportunities for you there. It is advisable to operate long-distance travels which will take people to far areas. This will fetch you more money than short-distance travels. For instance, transporting people from Lagos to Abuja is more productive than running the business within a town or city.

Necessary Feasibility Studies

Before you venture into this business fully, ensure that you, first of all, do a good feasibility study. This will make you know the government policy of each state of the federation. Additionally, you will get to know the cost of living. This will help you know how to plan your business to generate more profits.

Business Structure

There are different ways in which you can run this transportation business in Nigeria. You can run the business with a bus which takes people from one place to the other within and outside your region. Where you have enough money to buy more vehicles, you can diversify the business.

You can buy trucks, lorries and more buses and lease them out for those who need them for the transportation services in Nigeria.

Location and Vehicles

You need to get a good location to do this business efficiently. It should be near the road and close to high human and vehicular traffic. Get an open space where your clients will be able to easily locate you and patronize your business. You also need at least one functional car to commence and successfully run this business.

Read Also: 7 Places to Buy Cheap Cars in Nigeria for Car Selling Business or Personal Use

Profitability of Transportation Business in Nigeria

Transportation business is very profitable in Nigeria. Are still afraid of investing in the business? There is no need for any anxiety. Consider the following advantages to whet your appetite for the business:

(1) A Service Rendering Venture:

Transportation business is lucrative because it is service you render for the people. You charge any amount of money you desire from your clients and continue growing rich every day.

(2) Provides Economic Independence:

Due to the fact that this job is yours, you are free from any insults, queries, quarrels etc. You are your own boss. This profession gives economic independence.

(3) It is Often Demanded:

Transportation business is often demanded in Nigeria. Everyone a transport need. It is a business of popular demand because of the need to move from place to place.

Funding/Capital Needed to Start Transportation Business in Nigeria

To start a transportation business in Nigeria, you need to buy or rent a room that you can use as your office. The cost of this depends on the area where you live in the country.

The cost of getting this apartment varies, depending on where your office is set or positioned. You also need at least two cars, perhaps fairly used ones.

It is estimated that at least N2,000,000 should be budgeted for the business. This will take care of both the capital expenditures and the recurrent expenditures. It will also cover logistics and miscellaneous.

Perhaps you do not have the money to get two cars, One car is also good to kick off the business effectively. With time, you can add more cars and expand the business for more profitability. Carefully manage the business by scheduling your take-off time and landing time.

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You need to employ some people to help you run this business for you. It is essential to employ a driver who is competent and has been given driving license. You also need an accountant to keep account record of the daily activity in your company.

Requirements For Startup Transportation Business in Nigeria


For you to own your own transportation business running smoothly in Nigeria, you need to acquire some plots of land to use as your garage. While acquiring the land, make sure that you get all the necessary land certificates. For instance, Certificate of Occupancy is given by the government to secure your land.

Before you get this C of O, you must have done the land agreement with the person that sold it to you. You must have also have done a survey of the land and acquired all the necessary documents of land ownership.

Read More on: 10 Things to Consider Before Buying a Land In Nigeria

Housing & Building:

This house will serve as the office for you and your employees. This will be a place to take the record of your vehicles coming in and those going out. It is also a place to do the account of all the money generated from the business.

A Legal Practitioner:

A barrister is needed to give you legal advice on how to run your business so that you do not go against the law.

Partnership with Security Agencies:

You need to have a cordial relationship with officers and men of the security the security agencies. You must maintain good relations with Federal Road Safety Corps (FRSC) and well and Nigeria Police Force (NPF).

The FRSC will guide you on the traffic rules so that the smooth running of your business will not be hindered by anybody. The essence of the Police is to guard your garage to avoid theft.


This is the central to and a crucial part of the necessary things you need to make available before starting this business. Buy or rent your vehicles either or including cars, buses, trucks while constructing your garage.

Tools Neededto Start Transportation Business in Nigeria

There some vehicle tools you need to make available in your garage. You also the get the spare ones in your vehicles. Some of them are:

  1. Air tools and accessories
  2. Clamps and measuring tools
  3. Creepers and carts
  4. Engine and vehicle lift
  5. Fitting and hose/ Line connector
  6. Gloves
  7. Hammer
  8. Nuts, Bolts Washers
  9. Power tools
  10. Screwdrivers etc


It is necessary that you need to employ some people to help you to do your business. Although you do not need to employ many people, they are still a set of people who are necessary to the success of your business. Some of the ones you need are:

  1. Competent drivers
  2. Automobile Mechanic
  3. Account manager
  4. Secretary
  5. Conductors

Competition & Sustainability

There is competition in the transportation business in Nigeria. If you want to sustain your business, you need to get the following thing;

  1. Good customer relationship
  2. Get local food sellers available in your garage
  3. Hygiene
  4. Avoid delay
  5. Delver any ‘message’ given early
  6. Cheap price
  7. Avoid over speeding


Transportation business is very lucrative. To have the smooth running of your business, you must be diligent, trustworthy, and efficient. Get more business tips here

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