How To Start A Logistics Business In Nigeria

No matter what is happening around the world, the commerce segment displays steady growth. When a manufacturer or a seller cannot deliver the goods to the buyer himself, this is where a logistics company comes in handy. Find out how to start your own logistics business in Nigeria right now!

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1. Choose your niche

The first and one of the most important choices you need to make when starting a logistics business is the niche where you plan to operate. The easiest way to join the logistics industry is to act as an agent between a seller and a transporter. In that case, you won’t need any vehicles of your own and will be able to run your business even from home.


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However, if you plan to buy at least one vehicle, there is a string of other choices you will need to make. Are you going to use a motorcycle, a pickup truck, or a full-size truck for transporting the goods? Are you willing to travel between states or do you only want to deliver within your own state? Are you going to work with end buyers or deliver business to business services only? These are the questions you need to answer before your business can launch.

2. Secure funding

Launching a business with no startup capital at all is nearly impossible, but a logistics business is more capital-intensive than many other businesses. At the very least, you will need 300,000 to start your logistics business, and that is not including the cost of the vehicle in case you decide to have your own transportation fleet. If you don’t have the money to start the business, you can try securing a small business loan from a bank. To increase your chances of getting the loan, develop a sound business plan beforehand.

3. Get an office and equipment

The most important piece of equipment for a logistics business is a vehicle. Additionally, you will need an office. It is possible to operate a logistics business from home, but your enterprise will look more credible if you have an office. It doesn’t need to be big, but it needs to comfortably fit your workspace plus a couple of seats for the visitors. You will also need a computer, a printer, and a mobile phone.

4. Register your business

It is going to be very important to your potential customers that you operate your business legally and officially. To achieve this, you will need to register your business at the corresponding government bodies and obtain all necessary licenses and permissions for running a logistics business in Nigeria. At this stage, you will also need to choose the name for your business, which should be both easy to remember and be connected to the transportation industry.


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5. Hire the personnel

A logistics business is nearly impossible to do completely on your own. If you are going to sit in the office and work with the customers, you will need someone to perform the transportation services, and if you are planning to do the driving yourself, you will need someone to attend to the office part of the enterprise. At the very least, you will need a driver, a logistics manager, and an accountant. The good news is that you can outsourse your accounting needs instead of hiring a full-time accountant.

6. Advertise your business

Once you have a name, location, and official documentation for your business, it’s time to let the prospective customers know about your services. You can start by putting up ads on Jiji to inform thousands of people about your logistics business. You can also advertise your services on social media, asking your friends and family members to spread the word, or launch your own website with a description of the services and a list of all available contact methods.

7. Accept your first order

When you get your first order, you need to dedicate all the time, effort, and industry knowledge you have to do the best job with the assignment. The more satisfied your first customer is, the more likely he will be to recommend your company to others. Don’t forget to include a receipt with each order to give your business more credibility and help it grow.


Read more: 10 Businesses You Can Start With N20,000 or Less! 2020 Update


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My name is Inna. I am a content writer with an English and literature background. As a mother of a 3-year old son, I love learning about children’s health and development, as well as finding new interesting toys and activities for my little one. I am also in love with all things tech and always keep my finger on the pulse of new smartphone and gadget releases. Another big passion of mine is beauty and makeup – every day I read about new trends in skin care and makeup and always look forward to trying them. Plus, I love pop culture, travelling, crafts, and anything that can make our daily life more thrilling!