Transportation Business In Nigeria: How Profitable?


There are some businesses that are massive money making ventures not only in Nigeria but all over the world example includes; Agriculture or food business, health and transportation business. Nobody jokes with his/her life, everybody wants to live long as such will spend to treat any disease. Any person that does not eat, will die after a while that is why food is one of the basic needs of man.

In the same vein almost everybody moves from one point to another and most times it involves transportation. Either through land transportation example; okada, keke napped, motto, train etc. Others are air transportation (aero plane, aircraft, helicopter etc). And finally water transportation; boat, ship, canoe etc.

The area of focus in this post is on land transportation. The number of people using commercial transits every day is massive. People use road to move from home to office, school, market, business place, meetings, village, church and other religious centers in fact the list is long. Others move goods from one place to another.

Transportation business

As someone who has worked in a transport company before I can categorically tell you that transport business is very lucrative.

Methods of Running Transportation Business

There are different ways of operating transportation business.

Hire Purchase Business

Hire purchase business is another way to go in transportation business. You will only sit down and be collecting your money every week without stress. It doesn’t disturb your job, you receive times two of what you purchase a car within a year. Imagine having about 10 cars and you keep repeating the process on every cycle, you are made.

Vehicle Hiring Services

In 2014 vehicle hiring service was a thriving business in Nigeria but when recession set in the following year the business shrink Thank God it didn’t go into extinction. There is still hope for this kind of business, in a few months from now everything will fall in place. We are hoping that economy is going to improve so that people can start living conveniently. Assuming you have 5 cars and every hiring is 10k a day per car depending on the number of hours sha.

Let’s say you are able to secure clients for three cars cars every day. That means you will be making not less than 20k everyday oh boy! In a month that will be half a million or more.

Personal Driving

Personal driving is to buy a vehicle and drive it by yourself. You will make more money because you are directly involved in the business. Correctly put you are the alpha and omega of your business but you can at least employ conductor for the business to be organise.

Some personal drivers use their children, brothers or any other family member as conductor. Okay o, provided you guys are good with the arrangement, it is not bad anyway.
Observe very well many personal drivers end up establishing a transport company.

Establishing of Transport Company

If you are hiring a professional driver, you have to be on ground to supervise the operation so that you will not lose your investment. You can decide to go into human or goods transportation, intercity, interstate, tricycle, motorcycle etc,

Transportation business

Requirement for Establishing a Transport Company

Decide on the Type of Transportation to go into

Before starting decide on the type of transport service you want to offer. Conduct transportation feasibility study to know if it is already crowded. Are many people in need of such service in your desired location?

How Many Number of Cars to Start With

Start with few vehicles maybe one or two before increasing the numbers after gathering enough experience. Such experience will reduce the risk. You can work in partnership with someone after some months or years you set up your own company.

Purchase tokumbo vehicles

Buy second hand vehicle (tokumbo), it will help you to recover your money fast. Belgium tokumbo, the ones that are still strong will serve your for some years before you replace them. Many of the transport company uses fairly used cars, especially buses.

Register with Road Transport Union

Register your vehicle and ensure the particulars are always up to date. If it is an interstate transport make sure the laws of the states the car passes through are not flaunted.

For instance, we were delayed in one of the south east states while traveling from south south because of environmental fees. Some will say road maintenance fee, just pay for it to ensure your business moves smoothly.

Transportation business

Hire Professional Drivers or Experience Drivers

It is always good to employ experienced drivers to save you from much troubles. There are online platforms you can get professional drivers from, like driversng. It should be a driver that is very skillful on vehicle so that they can handle minor issues.

Insure your Vehicle

Look for a reliable insurance company to insure your vehicle. It will help in the time of disaster such as accident, car snatching etc. Although nobody prays for such, it is still an ideal thing for you to get insurance.

Get a Standby Technician

Cars need maintenance once in a while or at one time or another. So get a standby auto technician on ground to handle all mechanical issues. This is because some drivers use the issue of everyday car problem to run the owners down.

Enter Agreement

Enter agreement with your employee (driver) in other to check their excesses. The driver should provide at least two guarantors, the guarantors should be civil servant that can pay you back in case of escape.

Business plan for transportation business in Nigeria

A business plan will help you prepare yourself for the business properly. Your business plan should factor in challenges and profits projection.

Sienna transport business

Many transport entrepreneurs are now using sienna for their transport business. A good number of commuters like plying with sienna transport, it is spacious comfortable, good for Nigeria Roads. Most people using sienna are personal drivers and they like plying intercity, interstate etc.

Transport Business in Abuja

Abuja is a very wonderful city for vehicle transportation business. Although the business is good anywhere but that of Abuja is exceptional. The same can be said about transport business in Lagos.

Water Transportation Business

This is another sweet business that only few are into. Sometimes passengers will have to wait a long time for canoe to come.

Transportation Business Profits

Let me calculate for interstate bus because that is what they are using in the company I worked. I worked at the courier department of the company. The buses carry 14-16 passengers depending on the size of the bus.

From Abuja to Lagos is about 7k. For 14×7,000=98,000, assuming the bus was able to return 20 times in a month. 98,000×20=1,960,000. In six months you will be able to add another bus to the business after expenses.

Apart from profit from transportation, many big transport companies have courier services which gives them additional income. Like Chisco, ABC, Peace Mass, AKTC, Ifesinachi, God is good etc.

How Much To Pay Driver

You can put them on a fixed salary or give them stipends everyday. It can be #5,000 every day or #100,000 every month. Some entrepreneurs give the drivers only fuel money and expect them to get something out of it after purchasing fuel.

Like where I worked, they were giving #14,000 to people that carry full bus and #13,000 to people that carry less than 14. But any bus that does not have up to 7 passengers is not allowed to travel that day.

Start Small

The person that own the company I worked with started as a conductor from there he bought a rickety bus and was driving it for his transport business before Government handed over Government buses for him to manage. Apart from transportation, he is now into; delivery business, selling of buses, truck renting for construction work etc.

A company like Peace Mass give their drivers opportunity for hire purchase.


Transportation Business is very profitable if everything is done right. Purchase cars, register and collect particulars for them. Employ drivers that are experience. Start small and grow it. If you are doing hire purchase for your car’ collect #2,500-#3,000 everyday.

To protect your business and investment you need a car tracker to monitor your vehicles. Call: 08035965405 for car tracker.

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  1. What about getting a sienna bus and registering with a company like RTC. I will employ a driver to drive it. How does that work and how much do you think I will be getting every month?


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