Courier Business In Nigeria. Complete Guide

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Courier business is very lucrative in Nigeria and all over the globe. All you need is just the take off capital after which you only need little amount to keep the business running. There is so much opportunity in this business looking at the nations population. We have only but few investors, you can easily count the number of courier companies in Nigeria with the tip of your fingers.

There are different ways of running courier business, your area of concentration can be only on the logistics. That is you acquire a delivery van or bike delivery service and attain to companies or individuals who are into supply or haulage business. It is very easy for those into transportation business to add courier service. And almost every transport company is doing that.

Things Needed for Courier Business

  • Van or bike
  • Envelops with logo
  • Bags of different sizes
  • Waybill
  • Office
  • Staff
  • Weighing machine
  • Gum
  • Pen
  • Cellotapes
  • staplier
  • Inventary books
  • Trolley
  • Shelves constructed in the office
  • Chairs and tables or counter

Requirement for Courier Business

Write a Business Plan

Every business needs a business plan so write a courier business plan that will help you kick start the business effectively. Make feasibility study to know what is lacking and how you can fit in. Identifying a problem and proffering solution is what brings money.

So find out the number of courier service in your area and how they are operating? Is there lapses, what can you do improve on that? When you are able to answer these questions you go ahead to do the planning.

Register with CAC

It is very important to register with Cooperate Affairs Commission in other to get a company name. Choose a name that is unique and easy to pronounce. When registering with NIPOST you have to present your business name.

This is the name your company will be known with. It is not difficult to register a business name with CAC. Just walk down to any of their office closer to you and do the registration.

Courier business
Image from naira land

Get Office

The office can be your own or rented property. It should be spacious enough to contain all the consignments you will be collecting. You should have offices in areas the consignments will be going to. You may not cover everywhere or all states. Just concentrate in areas you can dispatch the consignments successfully.

Register with Insurance Company

You have to insure your courier business with a reliable insurance company so that whenever anything loss or in case of disaster or accident the insurance company will pay for it.

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It will also serve as a covering to your business.

Purchase all relevant Materials

Set up your office, purchase all the items required for the business. If you are into transportation business you can start with the vehicle carrying passengers. Envelops and other items that are not bulky can be choke into the vehicle.

For bulky items you condemn sits and place the items on them. But you have to charge the consignee the amount for the sits and the amount for the service. This is how we started it in the company I was working for.

If you have money to buy van or truck it will pay you well because bulky items generate more money.

Employ and Train your Staff

You have to employ few staff when the business is just kick starting then keep adding as you expand. It can be two staff for the headquarters and one at the branch offices.

Train your staff on how to do the business effectively. You can spend money to send them to other courier companies to get experience or pay people to train them. And this training should be done from time to time especially as the business grows.

They should be well trained on how to package items so there won’t be any mix up or loss.

Employ a dispatch rider, it is very important.

Register with NIPOST

Before you can operate courier business in Nigeria you have to register with NIPOST to get a license. And before you can get a license you must meet their requirements which are listed below.

Courier license in Nigeria

Procedure for registration of courier company.

These are the requirements for your courier company to be registered or renewed by Nipost through The Regulatory Department

This information is to be accompanied with a letter of grant of license or renwal for those renwing it

  1. Your CAC registration
  2. Memorandum of Association
  3. Your original company’s tax clearance for the past 3 years
  4. Tenancy agreement or lease papers of the office you are going to use for your courier operation.
  5. A prove or information to show your ability to operate a courier service.
  6. Evidence of payment of application fee which is non refundable
  7. Qualification, addresses, names, telephone numbers, fax (optional) of Company’s Directors
  8. Evidence of agreement if you are partnering or merging with any other courier company.
  9. Any other necessary information. Including capital base of #2 million or bond, #500,000 for insurance policy.
  10. Samples of waybill, envelops, tags, bags, registered trademark, receipt etc.
  11. For renewal, provide evidence of any change in the previous information provided before.
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Application should be forwarded to the Senior Assistant Postmaster General (CRD) with the license fee of #2m to presented in bank draft for local courier service and #20m for International courier operations with a non refundable fee of #20,000.

Finally, the Inspection team from CRD would visit the head office of your courier business and not less than 5 branches you will be using for operation. If the inspectors are satisfied you will be given a new courier license. For renewal local courier is #500,000 while international is 2 million.

The fee for registering courier will be renewed after 12 years according to Dr. Simeon Emeje.

The problem courier operators encounter is multiple taxation from Local Governments through stickers.

Challenges of Courier Business

There are very serious challenges to watch out for which can crash courier business fast.

Misrouting of consignment.

Sometimes due to human error for instance a parcel that was suppose to enroute Lagos from Abuja will be sent to Anambra. And sometimes the consignment is needed urgently, the owner will be waiting for it. Checking it couldn’t be found amongst they ones that came. The owners always get so mad at the point of suing the company. Sometimes before the consignment will get to the person the may not be need for it again.

Delay in Delivering Consignee’s Parcel

Unfortunate incidence do happened, such as car breakdown, accident, roit, so that the parcels spend some days on the road. Instead of one day or 2days the parcel may spend 3days on the road.

The Mistake Of Handing someone’s Parcel to another

Another challenge is giving another person parcel that doesn’t belong to them. There was a scenario at my former office. A parcel that was sent from Uyo to Lagos international passport, the owner was going to travel the next morning was mistaking given to another person. You wonder how it happened?

The envelop having the international passport was stapled to another envelop. And many people were waiting for their parcel.

As the things came with the rush the two attached envelops were given to the person whose name was in front. The person collected the parcel and dump it somewhere. Before he saw the attached envelop and sluggishly brought it back to the office bubble has already bursted.

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The owner of the international passport sue the company and demanded for a damage of #5M, with much begging #2.5M. The company had to shut down for 6 months. This happened not once, twice or thrice. Eventually international passport became prohibited in the company.

Unclaimed parcels

Some people don’t come for their parcels and you will keep on having heeps. You don’t know whether to destroy them or not, it can be very uncomfortabke.

Marketing

It is a plus to do advert especially if you are just starting. So many courier companies don’t advertise so take advantage of this. Reduce the price so that people can patronize you.

Handle people’s parcel carefully, they will be the ones to advertise for you.

Things you shouldn’t Collect in Courier Business

  • Chemical
  • Money
  • Intentional passport
  • Drugs that can’t survive more than 6 hours
  • Liquid
  • Fuel etc.

Courier Companies in Nigeria

  • DHL
  • UPS
  • FEDEX
  • ABEX
  • NSIK EXPRESS
  • PEACE EXPRESS

How Much to Charge in Courier Business

It depends on the weight but for little things like Envelop, it should be #1,000
Then 1kg of consignment #1,500 and so on

Items that will be delivered to consignees address is higher in charges. Sometimes times two of what it should be if the person is coming to the office to claim them.

Cargo Service

You can upgrade by going international. If you people on ground in the country of your interest it will make the establishment easier.

Conclusion

Courier delivery business is lucrative. You need license to start the business publicly. And NIPOST are in position to give you the license after meeting their requirements. Watch out for challenges in this business. Bike is very important for dispatching mails becauae it is faster.

You can ask questions it is free but if you need a guide or consultation, it attracts a fee.

How to register courier service
Logistics business in Nigeria
How to start a bike delivery service
Courier business plan
Courier business ideas.

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