Starting a logistics business in Nigeria isn’t any difficult in as much as you’ve acquired sufficient capital (as may be required) and mastered the nitty-gritty of the business.

Notably, logistics involves managing the delivery of items, consignments, etc. from producers to retailers, wholesalers or end users (as the case may be). While logistics may be carried out on a small or large scale, it is considered one of the profitable businesses you can start easily in Nigeria.

What Are the 7 Easy Steps for Starting Logistics in Nigeria?

Deciding on Your Mode of Operation

Just like many other businesses, the logistics business has a number of aspects and it behoves you to determine the aspect that fits you best. Depending on your capital and business motive, you can choose to operate as a transporter, contractor, agent, etc.

Also, it’s essential that you think out the scale of operation you can afford. Depending on your capital again, you may decide to operate within a single Nigerian state or across multiple states. Lastly, you’ll have to factor in the kinds of vehicles (such as vans, buses, motorcycles, etc.) that are best suited for your type of logistics business.

Acquiring Necessary Capital

Your type of logistics business largely determines the amount of capital that you’ll need. For instance, the decision to operate as a transporter requires you to have sufficient capital for a number of expenses including purchasing your own vehicles. But in the case of a logistics agent, you’ll need relatively less capital since an agent only serves as a middleman between a vehicle owner (transporter) and customers.

You may want to consider the third mode of operation, which is acting as a contractor. In this case, a logistics company may award contracts to you, requiring that you help the company locate reliable transporters or vehicle owners for the delivery of goods to customers.

Working as an agent is the least expensive of the three modes of operation. This is because it isn’t necessary for the agent to have vehicles of their own. The agent rather links the transporter with customers and receives a certain fee charged from the freight cost.

Securing an Office Space

An office space is certainly one of the features that should prove how professional your logistics business is. Whether you’ll be acting as an agent, contractor or transporter, you should endeavour to set up an office space in a location your potential clients can easily access.

Purchasing Required Equipment

Essentially, your mode of operation determines what equipment you should purchase for your logistics business. If you’re willing to operate as an agent, you may not have to purchase any equipment but as an intending transporter, you’ll have to purchase vehicle(s).

Provided you’re capable of serving as a transporter, ensure you acquire sufficient capital for the kind or condition of vehicle that you need for operation. Depending on your capital and your desired scale of operation, you’ll have to acquire one or more used/new vehicles.

Getting Your Business Registered

Whether you’ll be operating as a contractor, agent or transporter, it’s beyond doubt that you need appropriate business registration for your logistics business to be considered a legal concern. Endeavour to create a suitable business name and register it with both the Corporate Affairs Commission (CAC) and the appropriate association(s) in your area of logistics.

Hiring Drivers

You may not consider it important to hire driver(s) at the preliminary stage of your logistics business even if you’re operating as a transporter. Given that you’re starting on a small scale and can’t afford paying a driver, you may choose to carry out deliveries by yourself. But when it becomes affordable to expand the business by purchasing one or more vehicles, you’ll definitely need to hire drivers who are good with deliveries.

Creating Business Awareness

This, of course, is the point at which you combine a number of marketing/advertising tools (such as business cards, an online website, billboard ads, TV ads, etc.) for creating impactful awareness about your logistics business.



Hopefully, reading this article has helped you find out how you can start a logistics business in Nigeria. Advisably, you should thoroughly consider your financial and/or managerial capabilities before venturing into any of the aforementioned aspects of logistics business.

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