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Practical Guide On How To Start A Profitable Transport Business In Nigeria

Ossi Samuel

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start a profitable transport business

Practical Guide On How To Start A Profitable Transport Business In Nigeria

The transport industry is one of those ever enduring industries. There is really no bad period for transport businessmen except the one necessitated by bad management. People must travel from place to place as it is essential for their survival irrespective of the status of the economy. This is why you should start a profitable transport business.

The transport business is the business that involves the movement of people, animals, and goods of all kinds from one place to another. It can come in various forms and they include cars, planes, helicopters, ships, buses, trucks, boats, and trains.

Well, the choice actually is yours. If you have the guts and you think you can dare to dry, then this piece can be very useful for you. It may not give you everything but it will tell you how to handle everything related to starting the business.

You can look at our population and you will understand why you start a profitable transport business in Nigeria. You can look at the men in the transport company who have etched their names in the industry and you will understand the profitability of the industry.

Related: A practical guide on how to start a profitable honey production business in Nigeria

Basically, the transport industry provides you with the opportunity to be involved in vehicle hiring services, hire purchase venture, personal driving services, and owning your transport line. This does not mean that there are no other opportunities in this sector because there are.

In this piece, we shall provide you with various opportunities you can find in the transport business so as to whet your appetite and then we will proceed with the guide on how you can start a profitable transport business in Nigeria. If at this stage you have no desire to start the business, you can just stop except you are reading for the sake of knowledge. Other than that, you can continue and you will be richly rewarded.

Business Opportunities In The Transport Business

  1. Bus Transport Business

In Nigeria, the bus transport business is a very huge profitable venture. It is about having skilled drivers who take people from one place to another. It could be inter-city or intra-city transportation. It could also transport goods. You can be the driver for the starting point until you can get people and more buses running for you.

  1. Car Rental Services

If you are not driving people yourself, you can offer cars that will be rented. Car rental services offer you a veritable and viable opportunity to make money. It is best suited for people in the urban areas. People in major cities in Nigeria use rented cars for purpose or the other. There is no doubt that you will have to start with a huge capital outlay but you can rest easy knowing the returns will be massive.

  1. Moving van transport venture

The fact that the day to day activities of people in Nigeria require them to move goods from one location to another provides us with another opportunity in the transport business. It is one of the reasons you can actually start a profitable transport business in the country.

What is required is get vans that can transport items and then get people that will load and unload the goods to and fro. It could be capital intensive and it could be started on a low key basis and built to a greater standard. There is no question about customers as this is in demand.

  1. Taxi/Taxicab Business

One of the opportunities in the transport business is the Taxicab business. This venture involves getting licenses that enable a single driver or taxi company to handle the transportation of people from one place to another. In a typical taxi situation, it is usually non-shared. It is just for one rider at a time. This is no longer the case as cab sharing is becoming very popular.

It has even become technologically based and people can just go online and order cabs and will get them waiting for them at the time they want or specified. In Nigeria, Uber and Taxify work very well. You can start something like that or you keep it low key until you can expand.

  1. Air Transportation

If you want to start a profitable transport business, you can actually invest in the air transport business. Air transportation can be used for both humans and cargoes. It is quite profitable. You could join airplane refueling, airport shuttling, airplane maintenance services and airplane cleaning. Having a company in charge of any of these can make your pocket smile always.

  1. Livestock Transport

You can become an expert in livestock transport and make a lot of money. It is about providing livestock owners with the needed vehicles (safe and spacious) to move their animals from one location to another.

Other business opportunities available to you if you decide to start a profitable transportation business are truck/courier transport business, marine shipping, specialty transport business, medical transportation and others.

Without wasting much of your time, we will go to the main thing. I know you are already becoming impatient but it was necessary to walk you through the opportunities so as to mentally prepare for you the tasks ahead. Do not despair, we are here already.

How To Start A Profitable Transport Business In Nigeria

start a profitable transport business

  1. Research the business

As with other businesses, the first you will do when you want to start a profitable transport business is to go into serious research or feasibility study. It will open up your eyes to what is possible and what is not. You will find out the locations that best for the exact sector of the transport business that you want to embark on and you will be able to make informed decisions on the capital you will need and potential profit.

  1. Write A Business Plan

Having taken out time to carry out a feasibility study, you can proceed to get your business plan prepared. The business plan will take into consideration many aspects of the business so you need to do that well. The cash flow will be considered, the sources of startup capital, the investors (if needed), the exit strategy, the opportunities and threats and a lot of other things.

Get your business together and your business is a step away from becoming a reality.

  1. Capital

It is no news that even the business that is very low capital intensive will still require capital. Most of the opportunities discussed above are high capital intensive ventures but that should not discourage you. It is not all of them that are like that.

You will need to look at the capital you can raise and the one that the capital can handle. Besides, you can always start small and scale up with time.

  1. Register your business

Your business will lack legality if it is not registered with the appropriate authorities. Therefore, when you start a profitable transport business in Nigeria, you need to visit the appropriate authorities to get it registered. It is mandatory that you register with the Corporate Affairs Commission (CAC).

More so, you can register with other licensing bodies and you will be covered to do business in Nigeria.

  1. Join a union

Everything in the country now thrives on unionism. There is no sector that this is more pronounced than the transport company. Trust me, it is a beneficial option.

  1. Purchase and equip vehicles

Depending on the aspect of the business you want to operate in, you will need to get vehicles that will be the business. If there are other equipment and facilities that you will need, now is the time to put them together. You will need to buy vehicles that will suit the services that you will provide.

  1. Hire qualified employees

The transport business is not what everybody can just come in without experience and expertise. Remember, you don’t want to be constantly held responsible for accident victims caused by your drivers. Therefore, when hiring your outfield employees, you need to be super careful and the same goes for people working in the offices. Professionalism is of the essence.

  1. Insure

This is compulsory. You need to do that if you want to start a profitable transport business. Cars are always at the risk of having accidents, getting damaged or getting burnt by fire. Therefore, you must have vehicle insurance for your cars to avoid the risk of losing everything when you lose your cars in such terrible, unfortunate but inevitable occurrences.

  1. Advertise and market your business

The end point of your business and a very important aspect of the business is to have your business known to the potential customers. There has to be a budget for advertisement. You can check it out here. The marketing team will have more success when there is an advertisement plan being executed.

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10 Best Loans Platforms In Nigeria Without Collateral

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Best Loans Platforms In Nigeria Without Collateral

A loan is money given to someone or businesses to cater to its financial needs. Most lenders need some form of collateral as security, before giving out loans.

Not every Nigerian can provide substantial collateral in order to receive loans, this is where loans without collateral comes in. Thankfully, there are now online platforms where individuals and businesses can apply for loans without the need to provide collaterals.

One major problem businesses face in Nigeria is the unavailability of capital. With these innovative online platforms, lenders can assess applicants and their ability to pay back the loans within the given time frame, and then go on to approve certain amounts of money for loan, based on their assessments.

Best Loans Platforms In Nigeria Without Collateral

One of the Best Loans Platforms In Nigeria Without Collateral, FASTCREDIT

Now, let me review ten most popular collateral-free loan platforms in Nigeria for individuals and small businesses.

  1. PAYLATER

Paylater is an online platform that provides loans to small businesses and individuals to cover urgent needs or unexpected expenses.

Clients can access up to N500, 000 worth of loan without collateral. Funds are delivered within 1 – 3 working days once approved. Endeavour to repay your loan on time to help increase your credit limits and grant you access to higher loan sums in subsequent loan applications.

  1. LYDIA.CO

This online platform gives businesses access to funding. LYDIA.CO Offers unsecured loans ranging from $500 to $15,000 to SMEs.

According to the founders, Lidya uses technology and algorithm for risk assessment that allows them offer financial services to their clients at low cost.

  1. QUICKCHECK

QuickCheck is an online lending outlet for small businesses and individuals. It helps individuals and small businesses to access financial credit by using mobile technology

According to the platform, customers can quickly and easily receive loans of up to N30, 000 without any collateral to repay within 15 – 30 days.

  1. SMEDAN

SMEDAN is more or less a federal government of Nigeria loan service or a government-backed enterprise for Small and Medium Enterprises (SMEs), hence the name (SMEDAN Small and Medium Enterprises Development Agency).

They offer quick and easy business loans to SMEs in need of funding. Their main aim is to promote entrepreneurship and provide startup capitals for businesses in Nigeria

SMEDAN also provides hands-on training and support to business owners. If you’re looking to apply for SMEDAN loan, then visit SMEDAN website and apply on the application portal – https://smedan.gov.ng/.

  1. AELLA-CREDIT

AELLA-CREDIT has been creating mediums to make funds easily accessible to individuals in Nigeria. The company is associated with 3 leading Credit Bureau Agencies in Nigeria to provide timely and affordable loans to clients. Employee empowerment and lending for business startup is the main focus of AELLA-CREDIT.

AELLA-CREDIT employs credit scoring algorithm, built after five years of market data and analysis had been gathered by the team, to assess the creditworthiness of applicants. The algorithm processes applicants’ eligibility by taking social and demographic factors as well as debit to income ratio of the applicants, into consideration.

  1. SPECTA

Specta is an online lending outlet that offers loans of up to N5 million in one deal, within the space of five minutes, without paperwork, collateral, or visit to any office. They enable users to cater for any urgent business or personal need, whenever and wherever.

Specta offers two loan services, which are (1) MySpecta which provides loan services for individuals and (2) Specta4Business which provides loan services for corporate and business owners.

  1. KIAKIA.CO

KIAKIA, taken from the Nigerian pidgin means “fast-fast” is an online lending platform for businesses in Nigeria. They employ the use of machine learning, psychometric, digital forensics, big-data, for credit risk assessments and proprietary credit scoring algorithm to help them provide immediate and compatible loans to numerous individuals without credit information.

Their services are highly efficient and effective in addition to being very simple and fast, hence their name which was derived from a Nigerian language, meaning ‘fast-fast ‘.

  1. ZEDVANCE

Zedvance is a client finance company geared toward providing individuals with consumer credit. They offer loans up to N3 million under 24 hours.

Their services are particularly for salary earners, but you could apply if you’re a salary earner with a side business.

  1. FAST CREDIT

Loan application on FastCredit is backed by guarantors although the loan itself is collateral-free. The validity period for the loan is 6 months maximum. If you are a micro, small and medium enterprises (SMES), then you are eligible to apply for this loan and use the funds to enhance the growth of your business

  1. GROFIN

If you are a small and medium enterprises (SME) in Africa and the Middle East, you may want to consider GROFIN as your choice loan platform.

Looking to grow your business rapidly and you are confident that your business meets the necessary requirements? Then, try GROFIN. This may be the perfect fit for you.

Business can access loans ranging from US$100,000 to US$1.5 million through GROFIN. You need to contact GROFIN and get the requirements. Upon reviewing the requirements and your business meets those requirements, go ahead and apply for the loan online on GROFIN website – https://grofin.com/business-loans/.

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How To Start Keke NAPEP (Tri-Cycle) Business In Nigeria

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keke napep business

Mass Transportation by Tricycles popularly known as “Keke NAPEP” was introduced on November 6, 2002, by the former president of Nigeria, Olusegun Obasanjo, as part of the government’s poverty alleviation programme called, “National Poverty Eradication Programme (NAPEP)” in a 2001. Also, the introduction of “Keke NAPEP” was a strategy by the Government to meet the ever-increasing demands for public transportation in Nigeria.

Since its introduction, the Keke NAPEP has come become a source of income for many Nigerians. It also became a safer alternative to commercial motorbikes (Okada), which were banned in many places, and is used to convey people over short distances all over the country.

Most people in Nigeria prefer the commercial tricycles to Buses and Mini-buses because the commercial tricycles have the capacity to move into the nooks and crannies of a town faster and easier compared to Buses and Mini-buses.  For example, in 2008, the Lagos State government kicked off the Lagos Bus Rapid Transit System (BRT), thinking that the transport needs of Lagosians will finally be met. The reality on ground is that that is far from it. The BRTs only reduced the problem of poor transportation by a small amount. This is so because the BRT only catered for major parts Lagos State, especially Mainland and Island routes.

If the BRTs only served those parts of Lagos, we might then ask, how will people living outside these areas fair? Knowing that low income and horrible traffic will prevent many people from getting their own vehicles, many are left with no choice but to use privately-owned commercial vehicles for movements within the city? Yes. Here is where Keke NAPEP comes to the rescue.

Some Nigerian graduates without jobs have wholeheartedly accepted riding Keke as a business. They use it to raise money for self and family and see riding keke as a better alternative to staying at home doing nothing. Also, Keke NAPEP business creates opportunities for lucrative investments and helps to lessen the burden of the poor transport network in the country presently. So, would you like to start Keke NAPEP business and make money like others? Below is a breakdown of the how-to of Keke NAPEP business.

Now, there are two parts to the Keke NAPEP riding business: either you ride it yourself or you lease it to a rider.

keke napep business

Tricycle (keke NAPEP) conveying passengers to their destinations

Option 1: Leasing Your Tricycle to a Rider (Hire Purchase)

First, you have to get the Keke, register it and lease it out to a rider. See the breakdown of how this is done below.

Price of a new tricycle: ₦400,000

Registration with the Keke riders’ union: ₦5,000

The tricycle is leased at ₦720,000

Here, you will receive a weekly payment of ₦15,000 from the rider (or hire purchaser) for a period of 12 months, that is 48 weeks making it ₦15,000 x 48 = ₦720,000

Note that this is not a hard and fast rule: some terms and conditions may be applied in your situation and things may look a bit different with the hire purchaser you’re working with.

Registration with the NAPEP riders’ union allows you to enjoy some form of freedom, support and security.

Make sure that your hire purchaser is trustworthy, has a good track record and preferably has some referees under his belt.

Doubts have held some people back and stopped them from trying out this venture. If you want to test the waters, start with one tricycle. This will help you to know whether this business is something you can comfortably go into or not. However, the most lucrative thing to do is to buy as many as you can afford at the time because that will increase your remuneration in the long run. For example, if you lease five tricycles, you can expect up to ₦1,600,000 as returns in a year.

This price analysis and breakdown is based on the realities of Lagos State at this time.

Doing it Yourself

If you choose to ride the tricycle yourself, you will be very much impressed at the outcome. In a day, you can be making anything from ₦4,000-₦7,000, depending on the number of passengers you commute.

Apart from the ₦5,000 union registration fee, you’re also expected to pay between ₦500-₦1,000 daily (known as owo itaa). Part of this daily fee goes to the government’s coffers.

Tricycle maintenance is cheap, spare parts are readily available and fuel consumption is low. One thousand naira worth of fuel can take you a whole day if you have a good carburetor.

Always remember that maintenance is the key to a long-standing tricycle. So, maintain the vehicle regularly to lengthen is lifespan.

With ₦5,000 daily earnings while operating it yourself, you can easily earn ₦1.5 in a year (grossly calculated at ₦150,000 monthly) after expenses have been made.

After a year or more of doing this business, you can decide to continue, expand, or change your line of business.

Things to Note When Putting Your Tricycle for Hire Purchase

How soon you will receive your complete returns on the tricycle depends on the following factors:

  1. The status of the tricycle when you bought it. Was it new or second hand?
  2. Does your tricycle operate during the weekends? What is the money earned during those days for (maintenance money, etc.)?

How payments are made

  1. Hire purchase. In this method, the driver takes care of routine service, minor repairs, maintenance and fueling.
  2. Daily balance.

I will not advise you to lease your Keke NAPEP on daily balance.

There is no brother in business. Be wise and open your eyes.

Hire purchase is the preferred method of payment in the North and in most parts of the country. It is the best method of receiving returns for your tricycle(s).

In Niger and Katsina states for example, daily returns are between ₦2,000 and ₦3,000 for a new tricycle. For second hand tricycles, daily returns are negotiated, but in Niger State, ₦1,500-₦1,700/1,800 is the amount paid.

Note that these are just estimates based on the present realities.

In Lagos, riders pay between ₦2,000-₦3,500.

  1. Negotiated.
  2. Standard: paying double the price. This is most popular in the North for second hand tricycles.

That is all on Keke NAPEP and how to start and operate it successfully in Nigeria. I hope you learned from this? Leave a comment below and let me know what you think about this.

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10 Popular E-commerce Websites You Can Shop on in Nigeria

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ecommerce websites

The development of technology on a global scale brings everything closer to us, making things easier and faster, just like shopping. E-commerce is a fast-growing industry. Many businesses are tapping into and are now creating ecommerce websites to boost thier businesses.

E-commerce is a lucrative sector which every business should be taking advantage of today. However, if you are just starting out, your focus should be on how to attract customers to your online store. So, instead of launching your ecommerce website, it is better to “test the waters” on a known e-commerce platform first before creating and launching your ecommerce store.

ecommerce websites

Someone trying to make a purchase from an ecommerce website in Nigeria

Nigeria has a lot of e-commerce websites and it might be confusing while trying to pick one to start with. This list of the 10 most popular e-commerce websites in Nigeria will help you narrow your search and pick the one that is best suited to your needs.

  1. Jumia Nigeria

Nicknamed the ‘Amazon of Nigeria’, this online store is the most popular on this list. It is so popular that it garnered an Alexa report as being the most visited e-commerce website in Nigeria.

Established in 2012, Jumia is patronized by thousands of Nigerians and offers a marketplace where sellers can showcase all kinds of goods to the public. You may want to visit the site to see things for yourself.

  1. Konga

Konga is an e-commerce store that allows small and big businesses alike to sell their products on its site. It has enormous warehouses in major cities in Nigeria like Lagos, Abuja, and Port Harcourt to serve its customers easily. This is done in line with its vision to deliver goods “with speed and precision” to its customers.

  1. PayPorte

‘Nigeria’s preferred online retail store’ as it calls itself, Payporte was launched in 2014 as an online store to reach a wide audience that is not restricted by age or preferences. The retail giant also collaborates with small businesses and puts them in front of a wide audience. The company provides the needed logistics to reach their customers and assist them to succeed.

  1. VConnect

Known as Nigeria’s premier business listing website, Vconnect has also grown to an e-commerce store where it avails business owners the opportunity to sell their products. The website also facilitates payments and provides logistics for goods to get to their respective customers.

  1. Kara

This e-commerce store is one of the best in Nigeria, recording thousands of visitors daily. Kara offers a wide range of products from electronics, phones, to fashion items. Additionally, it hosts a marketplace where business owners can post products and sell to the public.

  1. Printivo Store

Printivo is an online shop that is specially designed to meet the needs of those that need printing materials. Bring the most popular in this niche, Printivo also gives users the chance to access free templates crafted by graphic designers.

It allows those in the print industry to make money off their designs by giving them a platform to display and sell their items.

  1. OLX Nigeria

OLX Nigeria is a classified advertisement website. Although an online e-commerce website, OLX Nigeria does not function as a regular e-commerce website. Instead, it gives users the opportunity to design and publish ads to their taste.

This way, buyers and sellers can interact with each other directly and easily. With the categorization of ads, each buyer or seller can go specifically to their area of interest and transact.

8. Jiji Nigeria

In 2014, Jiji came into being providing buyers and sellers with an easy way to connect and carry out transactions, under highly secure conditions.

Jiji Nigeria, in addition to being a classified advertisement website, goes a step further by giving users the opportunity to post ads on any product of their choice on the store.

  1. CartNG.

You can find virtually anything on CartNG. It is an amazing e-commerce website that can meet any of your need s. You can shop category by category on the site, and enjoy a speedy delivery in your order.

  1. Obiwezy

Obiwezy is an online e-commerce store that sells fairly used gadgets like phones, tablets, and laptops. Obiwezy was established in 2010. The intention behind its establishment was to provide users with goods and services at highly affordable prices. Doubtless, they have met this purpose.

Besides sales, Obiwezy also offers its customers technical support like the repair of damaged products, product advice, and recommendations.

So, there you have it on the 10 popular e-commerce websites in Nigeria. Go ahead and start shopping now.

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