Start Transportation Business in Nigeria (Updated Guide)

If you intend to know how to start transportation business in Nigeria , the guidelines in this article will definitely help you achieve your aim of not just opening the business… but also running a successful one on a long term.

As you may already know…

starting any long term successful business is not an easy task…    And It’s advisable to always seek experts advice as a newbie in any industry.   That way,  you    will avoid lot of mistakes starting on your own with little or no experience.

It’s on that ground I then took it upon myself to help you seek experts advice on how to start transport business in Nigeria.

All you have to do now is pick up a pen or open your notepad to note down a few things you might need to review do and work your self.


During my research, at least 6 transportation business owners was able to share with us their expert ideas…

…and that of  Mr. Yomi was really mind blowing.

Mr Yomi happened to be a dismissed police officer with 4 kids. After his dismissal from the force, he had nothing and no means to provide for his family.

His wife advised he seek a job at a bank as a security officer. Based on your experience you’re most likely to get the job she said.

on the contrary, Mr. Yomi’s past mistake won’t give him a chance at any corporate institution/organisation.

After a couple of months of being down and controlled by alcohol, Mr Yomi had an accident that changed his life.

He almost lost his leg because of a reckless driver. The same driver that helped him start a transportation business of his own.

That evening, while I was in pains, happiness returned back to my life he said with a smile.

He now owns 3 cars, one tricycle (keke napep) and 2 workers.

It didn’t stopped there…

He closed his story with the statement: God bless the Nigerian police force. And I bless the day I had that accident.

That really touched me. And it also made me realize there’s a reason for everything in life.

so without any further delay…

lets dive into those guidelines Mr Yomi and others shared with me for you to start transport business in Nigeria

7 Key Guidelines To Start A Successful Transportation Business You Need To Know In Nigeria start transportation business in Nigeria

1. Market research

The first and most important step you need to take before you start transportation business in Nigeria is this:

Collect information on all types of transport business in Nigeria to know their rate or level of profitability.

We have different means of transportation in Nigeria. They include land, water, air, and rail.

With the most popular being land due to capital…
In relation to this article, land transportation is further subdivided into different types such as

So which exactly do you want to start with?

Before you come to a conclusion on that, read on to see other guidelines that will help you make the best decision.


The major reason you should carry out research before you start any transportation business in Nigeria is to understand their individual advantages and disadvantages… their awesome benefits and the possible challenges you’ll have to put up with to attain success.

For example, during the course of our research, a man popular referred to as “Alpha” gave some insight on the land various transportation businesses.

According to him, the most profitable of them all is the Bike transportation business.

When asked why?

He had this to say…

I have noticed Nigerians are impatient or are always in a hurry. And due to the fact that motorcycles can easily get past traffic jam, people love it.

Plus, You can make 5 times of your ₦200 fuel. Because prices for bike services are never static unlike others where what is #100 is #100 like forever.

And so far, bike transportation business is what i benefited from the most.

When asked on some of the benefits that comes with bike transport…

…he made me realize this glaring fact people often overlook.


It’s very easy to create personal relationship with bike service personnel or bike commercial riders.

Come to think of It, it’s little wonder majority of people have bike man.

But rarely a cab man or and never a tricycle man… The latter didn’t even sound well.

About the disadvantages…

…he further stressed that recklessness is the major problem. And that accident often leads to life time damages in most cases if not death.

I wanted to get him talking on why he left that (bike business) for tricycle business. But it was his turn to convey passengers from eleyele to ologun-eru, bodpa junction in Oyo state, Ibadan.

That was the end for Alpha’s tips on how to start a transportation business in Nigeria ended.

But just in case you can’t specifically pin point anything…

here is the main point:

Every transport business type has their pros and cons. And it’s best you know them so as have a deeper understanding of what you’re getting into.

Alpha was the only one who was willing to give us detailed info on specifically what will be beneficial to you but he had to go…

But at least you now know a few things on the bike type of the transportation business…

Bottom line?

The first thing you need to do to start transport business in Nigeria is seek answers by asking the right questions…

…and the BEST way to go about seeking VALID information on each transport business type is to

  • Meet with those currently operating in that particular field you intend to start yours. That way, you’ll be getting valid advice based on experience. Not just on mere assumptions.

2. Pick a transportation business type.

After due consideration of the tips you got while making or collecting information, make a decision and pick a particular transportation business to start.

Pro tip: ensure you come to a reasonable conclusion after answering the following questions

  • Do you want to start the transportation business yourself or you intend to hire someone?
  • Can you afford the capital needed to launch that particular transportation business?
  • Can you handle the challenges that are likely to come with it?
  • Is it profitable?

3. Source for capital

I believe by now you must have arrived at a reasonable decision.

Having said that, the next step needed to start transportation business in Nigeria is to raise the amount of money needed to open the business.

If you don’t already have the required amount you need to start it, the following tips below could help raise something.

  • Firstly, you can get a decent job and save up some of your weekly wage or monthly salary
  • Secondly, meet your preferred financial institution for a bank loan
  • Thirdly, corporate societies can also come in handy for a bank loan
  • Lastly, reach out to your family and friends for financial assistance.

4. Buy or hire your transport business equipment (tricycle, motorcycle, or vehicle)

Without this, there is no show. It is literally impossible to start transportation business without either a car, a tricycle, motorcycle etc.

Therefore, here is where you hit the market for the best equipment that suit your transport business type.

However, it advisable you get a fairly used equipment; particular if you want to start a tricycle business which is not on hired purchase.

This is because the driver you hire for daily payment is like to use it carelessly.

And since he knows he will never own it or the tricycle can never become his, there’s little or no motivation to take very good care if it.

5. Get the necessary document

After buying the equipment, you should get the papers needed to your 100% ownership. And also get the document needed to run the business smoothly signed up and ready immediately.

This is very key to avoiding unnecessary arrest, fine and harassment.

You should also know that, if you want to get into the transportation business, you need a drivers license.

So start working towards that and other document as soon as possible.

6. Register with a union.

Every transportation business has a union.

This happens to be like a body that ensures the welfare of transport business owners within a particular zone.

When you encounter any problem while being an active member, they come to your aid immediately. With around ₦5000, you should be able to register.

Even if the registration fee is more, they often accept payments in installments.

Therefore, I will advise you register immediately. Because the benefit of having a union or the backing of a union is very very important when you want to start transportation business in Nigeria.

7. Design a business plan

According to Mr. Yomi, If there’s anything that has helped me expanded this big, it’s God’s grace to follow a business plan. Can you guessed who suggested it? The reckless life changing driver.

People often shy away from the need of a business plan which is very unprofessional as an entrepreneur.

During the course of our interview, one transport business owner claimed he would rather buy catfish pepper soup and dry gin than spend money on a paper called design plan.

All those one no matter jare, he said.

Now, that’s his decision. And I respect it 100%…

However, further questions revealed he has been using one tricycle for years. He didn’t change it – no to talk of adding another.

What worse?

He’s still renting.

For the past 6 years, no form of improvement of some sought in the business.

And that’s why many still struggle despite their realistic plans or goals in life.

A business plan is nothing more than a guide that helps you with a path to achieving your aim.

When you want to start a transportation business, you are more than likely to have expansion dreams. Everybody do; after all we all desire a better life.

So if you truly want to grow, it’s advisable you get something that will remind you of your why…

…and basically gives you a direction which you need to follow to ensure your growth. A business plan can make that happen.

8. Get to work

After working on all of the above, your next step to starting this business is to hit the road.

However, you want to make sure you know your area of operation very well.

For example, if you chose to start your transport business in Ibadan, around dugbe to be precise.

You want to know all the junctions and corners around such a place (dugbe).

If you want to operate at Isiala Ngwa North in Abia state or Kurmi Market in Kano state… The point is that you make sure you are very familiar with the place to large extent.

And if you intend to hire someone to actually manage the business, ensure the person knows that too.

The knowledge will help you avoid false kidnap accusation and harassment. Most importantly, you won’t lose money on grounds that you took clients to the wrong destination.


Needless to say, one of the recommendation to start a transportation business is having the ability drive. Good driving skill and experience is vital

Read Also : 14 awesome tips you need to start an online business.

Lastly, the safety of your passengers automatically becomes your responsibility. And at any giving time and day, it’s better to get to the destination late than not make it there at all.

That’s basically it on transportation business from my end.

I don’t know it all.

Plus, some of your expert ideas might come in handy for a reader of this website looking to leverage transportation business opportunities…

So if there’s anything I missed, you’ve got questions or suggestions that can help start transportation business in Nigeria, please let us know via the comment section.

Thanks for stopping by AND stay safe.

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