How to start Transportation Business in Nigeria 2022 – Cost of Starting Transportation Business in Nigeria 2022
Transportation business in Nigeria is one of the most profitable industries. Once you realize that people must move 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 and make a living out of it .
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.
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
Please take Note : 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.
Meanwhile, when starting a transportation company, there are a number of extra costs to consider. E.g 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.
Why should you start a transportation business in Nigeria 2022?
Many people ask this question because of the rave to go into the transportation business especially in Nigeria with the bad roads and other challenges . 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 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 business is one of Nigeria’s most profitable industries nowadays. 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
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.
