How To Start A Profitable Logistics Business In Nigeria
Published On:December 2, 2021
Profitable-Logistics-Business-idea-in-Nigeria

How to start a Profitable logistics business in Nigeria:

Starting a new business in Nigeria is one of the daunting things you’ll ever do as an entrepreneur in Nigeria. Mobility has always been a part of human existence and where ever you find people there is 100% assurance that they will move from one place to another because that’s one of the fundamental characteristics of a living thing which we are of cause.

So with this understanding, you now know that the transportation and logistics businesses in Nigeria are a critical part of human existence. But what then is transportation; transportation is the movement of goods, people, and services from the point of production to the final or semifinal consumer through a channel that keeps the goods, people and services in good shape and gets to the customer as quickly as possible, while logistics, on the other hand, consist on the movement of goods only from a point of sale which could be either the manufacturer or the wholesale to the prospective customer on time.

Also Profitable Logistics business in Nigeria involves procurement, distribution, inventory, maintenance, movement of personnel materials and information to achieve organizational goals. It involves getting products and services from a supplier or manufacturer and delivering them to the customer as quickly as possible.

So in order to start a profitable logistics business in Nigeria, there are some steps you have to follow and some things you have to know so you’ll fully understand the business you are about to start.

Types Of Logistics Business In Nigeria

  • Ship logistics
  • Airplane logistics
  • Drone logistics
  • Car/bus logistics
  • Bike logistics

Ship Logistics

Shipping_logistics_business_in_Nigeria

This type of Profitable logistics business  Opportunity in Nigeria, it involves the movement of large containers of goods that are transported from one country and another, it is usually used for bulky goods with a lot of weight. It also involves large capital and equipment amounting to Multi Millions of naira.

This business model is mostly carried out by multimillion companies but there is a little loophole where few entrepreneurs can partner and leverage on these large companies and also run the same business model.

Although you may have to register your company in multiple countries in order to run this type of logistics business. But you can also start other little logistics business that doesn’t require you going out of your primary country.

Airplane Logistics

This is an expensive and quickest way to move goods and services from the point of production to their point of delivery, this is used mostly for non-bulky and light goods which can sometimes be luxurious goods.

The major players in this field are airlines with lots of connections with other international airports. Goods that travel by water can stay up to a month or two but with aeroplane logistics, it can just take three days or one week to reach its designated customer.

To start this type of business then you have to leverage airports that do logistics, you be surprised that Nigerians are still involved in exportation despite being an importation dependent country. So you can reach out to companies and little entrepreneurs who export and showcases your business to them.

Drone Logistics

This is a domestic and inexpensive type of profitable logistics business in Nigeria which is a short distance based which is upcoming in most foreign countries except Nigeria. While other types of domestic logistics are held by traffic, drones dominate by delivering fast to customer but there is just one short coming it only conveys light weight goods and may not be stable for most type of goods. 
In Nigeria this type of business has never been tried but might work well in residential areas like estate because it’s ecofriendly. You may decide to start this type of logistics business but you have a lot to put into consideration.
This is one of the very great logitics business ideas in Nigeria.

Car, Bus And Truck Logistics

Plentywaka
This is the most common and convenient way of transporting goods from producers to customers. This is also one of the old types of the logistics business. It’s a more standard way to a movement which is mostly done by cars, buses, lorry, and trucks.

In Nigeria, this is one of the common and domestic ways to move goods either inter-state or within a state or a geographic region. There are two ways to start this model you can either leverage on transportation companies or you employ drivers with either a car, bus or a truck.

Most companies developed a mobile app that connects the supplier and the riders together which is an awesome combination that has been working for years, all they need is drivers with a car, truck or bus or a transportation company then they advertise to supplies.

Bike Logistics Business In Nigeria

Bike Logistics business in Nigeria is a competitive, domestic restricted mode of transportation and logistics business in Nigeria which is faster than car/bus logistics. It is the most practised type of logistics business in Nigeria and all over the world because of its ability to cut through traffic jams. Most Nigerian states and regions are already populated with bike riders so it is very easy to start a bike logistics business in Nigeria at any state, all you have to do is employ credible riders who will work diligently and profitably for you in terms of on-time delivery and goods safety which is Paramount to logistics business in Nigeria.

Over the years there has been a rise in Nigerians online activities with Nigeria being one of the top countries with a high rate of internet data usage, this is because most Nigerians now conduct their business online and as result, they would also need a medium by which they move the product to their prospective customers, and that’s where you come in, you may not necessarily employ bike riders but you can also leverage on other big logistics business in Nigeria.

Most suppliers care less about the means by which goods are delivered all they want is for their goods to be delivered to their customers so you can leverage on other bike logistics businesses in Nigeria to start first and test the market.

Profitable Logistics Business Plan In Nigeria

Now we know the type of logistics business in Nigeria we want to start the next thing is to map out our plan which will cover every aspect of our business. A business plan has to be achievable, expandable, and flexible and also meet organizational goals in time. Lucky for you we’ve already prepared a business plan that covers how to start a logistics business in Nigeria and scale it to the next level. Some of the things included in our business plan for the Bike logistics business in Nigeria are:

Executive Summary

Description Of Problem And Solution

  • Vision
  • Mission
  • Value Proposition
  • Business Objectives
  • Critical Success Factor
  • Current Status of Business
  • Legal Requirement
  • Contribution to Local and National Economy
  •  Contribution to SDG

SWOT Analysis

Market Analysis

Competitive Analysis & Risk Analysis

Marketing Plan

  • Description of Product (S) or Service (S)
  • Potential challenges in the business industry
  • The Opportunity
  • Target Market
  • Marketing and Sale Strategy

Production Plan/Operational Plan

  • Description of the Location/Factory
  • Raw Materials/consumables
  • Production Equipment/Capital Expenses
  • Equipment/Depreciation Table
  • Pricing strategy
  • Record/Stock Control Process
  • Pre-operating Activities and Expenses

Organization Structure and Responsibilities

  • Salary Schedule

Financial Plan

  • Start Up Capital Estimation (Expansion Capital Estimation)
  • Loan Details
  • Business Risk and Mitigating Factor
  • Financial Projections
  •  Sales Forecast And Sales Assumption
  • Income Statement (P&L) Account

Logistic Business Registration In Nigeria

Depending on the scale of the logistics business in Nigeria you want to start, you may need to register your business with CAC so as to make your business legal and stand right before the Nigerian government, failure to do so may lead to business interruption or closure. With as little as 30,000 – 70,000 naira you can register your business yourself but you don’t want to go through the stress we can do all the paperwork for you while you focus on more important things.


After you’ve conducted extensive market research on how to start a logistics business in Nigeria the next step is to register your logistics business in Nigeria as a legal entity because you will be needing those legal documents to present to the authorities when they come knocking, also you still have to do little state registration depending on the state you’re conducting your business because every state in Nigeria has its own regulations and tax.

Logistics Business In Nigeria Advertising And Marketing

No business can survive without marketing, marketing on the other hand is the core part of any logistics business in Nigeria, meaning the stronger your marketing the better your profit margin, visibility and market share.

Since you are going into a crowded space the best option is online marking which is cheaper than the conventional radio and TV advertisement, you can even start your logistics business in Nigeria visibility for free by creating a page for your logistics business in Nigeria and reaching out to suppliers online to persuade them to give your logistics business in Nigeria a trial which can sometimes be free or paid, this way you’re letting them validate your deliverability rate and how swift you can deliver to their customers.

How To Set Up A Logistics Business In Nigeria Pricing System

Most logistics businesses in Nigeria do the payment on delivery but the best practice is payment before service because it will save you lots of stress and money. You need to have a structured pricing system for your logistics business in Nigeria that is beneficial to you and your prospective customers otherwise you might be running at a loss in a long term.

You can charge a very little amount at the start of a relationship between you and your customers so as to win them over then you can upsell them for the initial price on their next order but don’t be greedy or else they won’t patronize you anymore. Your pricing system should have both short term and long term plans that are channelled towards making your customers recurring once if you want to build a successful logistics business in Nigeria.

Logistics Business In Nigeria Drivers Onboarding/Management:

The success and failure of every profitable logistics business in Nigeria solely depend on the drivers so it’s very Paramount to employ credible riders who will take your business seriously because any slip up may result in loss and a nose drive in profit margin.

To avoid any obstruction of business activities it’s important to provide your drivers with all necessary equipment they will need while in Fields such as license, stickers and head melt. You also have to make sure your drivers are disciplined and at their best behaviour when they talk to your customers, you can also educate them on how important customers are “customers are king”.

Profitable Logistics Business In Nigeria Conclusion

In conclusion logistics business in Nigeria is one of the fast-growing businesses in Nigeria as a result of the growing need for e-commerce which involves the need to move goods and services from one location to another, this includes the movement of little lightweight goods which are faster than when moving heavy products with cars and ships, because of the growing traffic jams in most cities in Nigeria, Bike logistics business is one of the best type of logistics business in Nigeria.

Basics Steps On How To Start A Bike Logistics Business In Nigeria

Starting a Bike logistics business in Nigeria is one of the smartest decision you’ll ever make as an entrepreneur because there are lots of potential in the logistics business in Nigeria and also can help you archive your dream to become a millionaire.  We have also prepared an intensive plan which includes all you’ll need when starting a bike logistics business in Nigeria, order yours now and kick start your dream business. Here are some tips that will help you in your journey of starting a bike logistics business in Nigeria.

1. You need a very good and sound bike, car or a tricycle and also a trustworthy driver

2. Get all necessary licenses, registration documents and stickers (this will vary with the state you want to do business in).

3. Partner more with companies and fewer individuals. If you intended to partner with individuals, let your charges be moderate.

4. Never accept payment on delivery. It is a time killer and you will lose your money.

5. If you are employing a rider, monitor them properly and be strict when you need to be. Some can destroy your business and reputation (be careful).

6. Always remember that time is money (very important).

7. always under-promise and over-deliver.

8. Build a pricing system that will work for both companies and individuals seamlessly.

9. Segment your market and priories your first-class customers.

10. No familiarity or you’ll end up working for free (business is business)

I know that We at NaijCEO.com have been able you answer all your questions on how to start a bike logistics business in Nigeria and you now know all it takes and requires to start this business in Nigeria. Good luck and godspeed on your new business.

Don’t forget to reach out to us by clicking the Button Below to get your Logistics business plan   in Nigeria

MICAH ERUMAKA aka NAIJACEO
Micah Erumaka

Micah Erumaka

About Micah Erumaka

Micah Erumaka is the Founder of LiaonCEM solutions which owns NaijaCEO. He is an Internet Entrepreneur and a content creator. After the failure of his first company at age 18 he started NaijaCEO to help entrepreneurs with the information they need in operating a successful business in Africa

Related Post

Articles

Articles

Articles

Articles

error: Content is protected !!
Open chat
Chat us!
Hello!
Do You Need Our Service?
Text Us Here for Quick Response