Transportation business in Nigeria is at a very speedy rate becoming the most profitable venture for anyone who’s interested in making the coolest cash ever without need of running into hiding from the hands of the law.
With the daily increase in the Nigerian population, transportation business in Nigeria has shown itself to be almost far more viable and reliable than every other business, if not for the involvement of thugs, national security agencies and other cadres that eat largely from the driver’s basket of daily harvest.
What makes the business economically viable is that the demand by commercial bus users surpass the supply. Even car owners sometimes use commercial means of transportation so it is safe to say that up to 85% of the Nigerian population use public transport.
The use of aircraft, train, ship or canoe and pipeline are not in the consideration of this content since it is designed for an average Nigerian who want to be an entrepreneur as a transporter.
There are various kinds of commercial vehicles which any interested Nigerian can choose from:
1. Taxi:This is found everywhere within any state as a mean of transportation. Sometimes it can be taken outside the borders of a state, depending on the driver’s choice and the urgency of the business to be transported. It can also be called Kabu-Kabu.
2. Motorcycle/Okada: Motorcycle, popularly known as OKADA is used to carry one, or two passengers at the most, depending on the law of some states who either restrict the carriage of more than one passenger or allow it. It can also be used to travel as many commercial riders do this, thereby making greater profits on a daily.
Motorcyclists, on the average, make almost N150, 000 per month.
3. Keke NAPEP: This is an improvement to motor cycle and officially meant to carry three passengers, some drivers carry four passengers, even others in some states carry five passengers. It is most preferred by older folks to motorcycle for its convenience and safety.
Some state government have proposed to ban motorcycle for Keke NAPEP mainly because the former is often used to perpetrate evil doings.
4. Hire purchase services: This is a popular transportation business everywhere. It gives regular income, a guaranteed one at that. You first buy whatever type of commercial vehicle at a particular price and hire them out to different type of drivers at higher prices. The payments are made installmentally by agreement.
5. Commercial Bus/Mini-bus for Intra-/Inter-States: These are used for both Intra-/Inter-State services to transport passengers.
6. Haulage Transport Service: The use of different types of automobile to carry goods for a charge is what we call the haulage service. These vehicle include tanker, trailer, tipper, etc. as far as it can convey goods.
How to Start a Lucrative Transportation business in Nigeria
A. Make a Choice on the Commercial Vehicle You Prefer
With the number of different means of transportation that is here in Nigeria, any interested persons who dream to go into the transportation business must first choose whether it is Okada, Keke NAPEP, Taxi, or vehicles for haulage. The decision to choose any of this will first determine the cost of execution and what you should expect at the end of the day.
B. Choosing the right location or routes is not a bad idea
Having chosen what transportation business to dive into, the next is choosing the best location where you think there is more population but insufficient means to carry them about. This, no doubt, will bring you more profit as there will be less competition that might slow down what profit you may make per day.
C. Make a Plan on How to Get Your Chosen vehicle
Starting up a business is oftentimes seen as a hard step to take especially in a typical Nigerian economy and that is why a lot of people simply go about everywhere with ideas but nothing to show for it in reality.
In order to avoid the shame of condoning different ideas that refuses to come to fruition because of lack of money, you are advised to get your vehicle then, either through lease, hire purchase or a straight purchase if you have the money.
Some may still go as far as securing loans from Cooperative societies, etc.
D. Be Your Own Driver
This will be the best and wisest move to make in the start of it all because if you really want to make real profit and truly know about transportation business without preparing yourself up for cheating, you may be your own deception. The reason for this is simple, the average commercial driver that will be employed is dishonest. He will tell you lies about police arrest today, and the following day it may about the vehicle breaking down, all in an attempt to make extra money. He may even absent himself from duty with the excuse he is feeling unwell, leaving your vehicle idle for many days before he reports back to duty?
Secondly, you may also want to have a reasonable idea about what action of the driver may constitute an offence for which he can be arrested. You will also know the route. In fact study the traffic laws of the state in which you are operating.
Becoming your own driver helps you grow in terms of the needed knowledge to maintain the plan you had for the business.
E. Employ the Service of Professional Drivers
After you have garnered enough experience on the transportation business in Nigeria and therefore made a lot of profit even as you are careful not to be a spendthrift, you may then go ahead to buy one or two more vehicles and employ different services.
F. Create Room for Growth for your Transportation Business
The fastest and safest way to give enough room for your business to grow is by cultivating self-control. Any driver with long appetite for women and alcohol will find it very hard to expand in terms of business property and profit, that is if he does not incur unwanted debts on himself through accidents.
These are associations from which one can get vehicle insurance and other necessary documentation that will protect one against troubles from thugs and government road officials:
- National Union of Road Transport Workers
- National Association of Government Approved Freight Forwarders
- Nigerian Association of Road Transport Owners
- Road Transport Employers Association of Nigeria
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