Road transportation is a necessity in Nigeria. We all move on our roads to carry out our daily activities.
I have been in transport business for two years now and I'm here to discuss how Nigerians can tap into the huge opportunities in the road transport sector.

I am particularly interested in seeing EDUCATED and CREATIVE minds in transportation business. I'm want to encourage you to read with an open mind.

Go on.

Are you interested in doing business in the transport sector? Do you want to tap into the numerous opportunities in the road transportation industry? Then this article is for you.

The transport industry in Nigeria is booming currently and Nigerians can now create unlimited wealth from this sector. In fact, this is one of the fastest growing business opportunities in Nigeria.

With our rapidly expanding population we all make use of the roads.

In Lagos, transportation contributes a significant proportion to the Internally Generated Revenue.

If you have been looking forward to creating additional streams of income to make your dream come true, then you can stop the search right now. Why? Because you have just come to the place where you will discover the fastest and easiest way to start earning money on your own that will help you turn your dreams into reality.

Nigeria has the largest road network in West Africa and the second largest south of the Sahara, with roughly 108,000 km of surfaced roads. The population is there and the environment is good. The road transportation is a good business, and more people should come into it.

To succeed in transport business, you must first be ready to invest your time and effort to make it work. Proper supervision is also very important especially if you are going to employ a driver to manage it for you. But above all, you must give the best of your time and be serious with the business.

In this business, honesty and hustling spirit should be your tenets. There a lot of lenders willing to finance your business. With genuineness in your approach and proper planning, getting funding will not be difficult. If you have the opportunity to collect one or two Buses, or trucks from some of the financiers; you have to pay back the debt as at when due. This way, the confidence they have in you will increase and they can give you any number of vehicles you want. Below are the Different Sectors of the Road Transport Industry that You Can Target and Make Money

1. Okada Transportation business (Commercial Motorcycle)

The advent of okada in the national transportation system started in the early eighties, their operation has grown tremendously to a force that could be reckoned with. The names were usually a reflection of what the motorcycle transportation represents. In Cross River/Akwa-Ibom axis, it was nicknamed “akauke” meaning “are you going .” In Ibo land, it was nicknamed “Ina-aga,” meaning, “are you going.”

These names clearly illustrate the fact that once the traveler was ready, the motorcycles were also ready to convey the passengers to their destinations in no time. In Yoruba land it was called “tatakpukpu”, an onomatopoeia representing the sound of the motorcycle. To the Edo State indigenes, Okada Air, represented the fastest means of traveling from Benin to Lagos, just as the motorcycle was the fastest means of traveling between any two points. It was for this simple reason that the Edos nicknamed the motorcycle mode of transport okada.

Out of all the nick-names mentioned above, only okada seemed to have survived and has come to be accepted generally in Nigeria as the official nickname for commercial motorcycle operation. Okada riders are making between N1,500 to N2,000 a day. You can lease Okada out while you make as much as N50,000. For instance if you buy an Okada for N70,000, the driver should pay as much as N120,000 within four to six months depending on the contractual terms A new motorcycle goes for N90 to N120,000 or more depending on the brand.

2. Motorized three wheelers (tricycles)

Keke NAPEP is an experimental model of poverty eradication that seeks to empower the poor unemployed or underemployed Nigerian to a position where he / she can create a measurable and verifiable value in society in order to earn daily bread. KEKE NAPEP vehicles project, is a pet of former President Olusegun Obasanjo, in which the National Poverty Eradication Programme (NAPEP) operates the scheme.

NAPEP purchase the vehicles from Manufacturers (Autobahn) and sell at subsidized rates, on part payments basis to Nigerians to alleviate poverty, by providing them small business opportunities and transportation for most part of the country. However different brand of tricycle are now available in Nigeria .Tricycle make an average of N5,000 a day and a brand new tricycle is sold for about N400,000 to N500,000. They currently have an association called the Three Wheeler Beneficiaries/Operators Association of Nigeria.

3. Commercial Buses and Taxi



They are very relevant in Transport sector, as they help in moving individual to their various destinations. Commercial Taxi make between N3,000 to N5,000 daily, while the small buses make between N10,000 to N40,000 daily depending on the route and the number of passengers on board Some financial institutions have been so magnanimous by extending credit facilities to the association, the National Union of Road Transport Workers (NURTW) as the association provides guarantee for such loan, some private lenders has also extends credit facilities to new entrants in this sector.

Car Hire/ Cab Business
This is another money spinner in transport business. Some car hire operators make use of tokunbo cars mostly Toyota's then they use it for cab service.
Cab service will always remain relevant in our society for the following reasons

1. Inefficient public transportation
2. The need for privacy
3. The emergence of the middle class and their quest for convenience
4. Lifestyle
For car hire business about N650,000 to N2,000,000 is ideal depending on the type of car.
There is also a need for registration and supervision.
Customer service is key in this business.

This business thrives in metropolitan areas. However, there are opportunities everywhere if you know how to play your cards right.

Is there any Association that grants loan to people that want to go into transportation?

I AM THINKING OF INVESTING IN THIS SECTOR,BUT THE FEAR OR RISK INVOLVE LIVING THE BUS FOR SOMEONE ELSE TO OPERATE IT,THERE ARE FUN OF TELLING STORIES,POLICE TODAY,LASTMA 2MORRO.
CAN YOU TELL ME HOW MUCH ONE CAN BUY THIS BIG BUS(MOLUWE).AND HOW MUCH THE DELIVERED DAILY.

Onelovetayz:
Is there any Association that grants loan to people that want to go into transportation?

Transport business can access loans from the BOI (though I have to verify the recent terms and conditions) .

Banks in Nigeria finance transportation because of the strong cash flow. Transport can generate fast and regular income. Banks love that.

I know a company in Osun State that provides vehicles for new entrants. They do the hire purchase option.

A lot of transporters also got funds from the Fg SURE P Programme. I'm not sure if that is still available.

lumachris:
I AM THINKING OF INVESTING IN THIS SECTOR,BUT THE FEAR OR RISK INVOLVE LIVING THE BUS FOR SOMEONE ELSE TO OPERATE IT,THERE ARE FUN OF TELLING STORIES,POLICE TODAY,LASTMA 2MORRO.
CAN YOU TELL ME HOW MUCH ONE CAN BUY THIS BIG BUS(MOLUWE).AND HOW MUCH THE DELIVERED DAILY.

I understand where you are coming from.
Remember I mentioned education and creativity at the beginning.
Now we have car trackers, insurance and technology to help you monitor your vehicle.

Pls note, supervision is still very important. If you can do it yourself better.

Again I tell potential investors, if you can't monitor your drivers you are on your way out of business. For this reason you may need to change your business model.

I don't know anything about Molue. I will not even advise people to embrace that in this season of change.
We have other options like Coaster bus hire etc.

I have a couple of ideas but first I will like to hear from you. What are your concerns and comments about transport business?

Let's talk

PLEASE CAN ONE GET YOUR EMAIL CONTACT.

lumachris:
PLEASE CAN ONE GET YOUR EMAIL CONTACT.

I hope the mods will not slam me for this.
itunuomotayo@yahoo.com

Bus hire business

This is an aspect unknown to many.

mrsage:
I have a couple of ideas but first I will like to hear from you. What are your concerns and comments about transport business?

Let's talk

Currently in the Business but Police no dey let person rest they now collect 100 per point. and please don't say "in as much as your document is ok police will not disturb".

I will also like to know if you have any idea of very lucrative route for kabukabu in lagos. Hope you have raw practical experience in the business and not just theory. If yes then we can bounce ideas.

gist4real:


Currently in the Business but Police no dey let person rest they now collect 100 per point. and please don't say "in as much as your document is ok police will not disturb".

I will also like to know if you have any idea of very lucrative route for kabukabu in lagos. Hope you have raw practical experience in the business and not just theory. If yes then we can bounce ideas.

Police. Constant problem. Lucrative route for kabukabu business I will find out and get back to you.

I have practical experience in car hire and bus hire. Every aspect from driving, coping with passengers, mechanical problems etc.

For me I always choose to run my business in a different form. I have never joined a taxi park or bus park even though I know how they operate and I meet them.

I also interact regularly with Drivers, and all other guys in the business

I make use of my education in running my road transport business.

Thanks soo much for this info.... I've also created a tred as regards this transportation bizzz. I just got a Toyota Hiace BUS

www.nairaland.com/2582977/need-information-transportaion-business

Pls house... Coz of the time schedule our drivers who closes at night, pls who shuld be in possession of the bus?

Driver or owner.....

Ohhhh so its you mr sage. This is your previous tread..
www.nairaland.com/2694789/how-make-money-road-transport
We really need to talk pls

dandy00:
Thanks soo much for this info.... I've also created a tred as regards this transportation bizzz. I just got a Toyota Hiace BUS

www.nairaland.com/2582977/need-information-transportaion-business

Pls house... Coz of the time schedule our drivers who closes at night, pls who shuld be in possession of the bus?

Driver or owner.....

Let's connect

Need more comments. Let's share ideas too

Bro pls any idea with regards a lucrative kabukabu route?

mrsage:
Need more comments. Let's share ideas too

Alot of people have discouraged me from doing this. However, I think it's a question of the appropriate risk management strategy.

That said, I think the major risks are:
-Credit Risk I.E the risk that the driver will default on the payments.
-Risk of total loss either through accident or theft.

My first question is this-To mitigate the first risk, do you think it would be wise to enlist the help of the NURTW enforcers found at the bus stops? My idea is that I could factor the tips to them into the hire purchase price.

My second question is about Uber Taxis. Apart from insurance and car maintenance costs, are there any other costs that should be considered?

Do you know of the big transporters E.g ABC Transport can take charge of the bus while we split the revenue in an agreed formula?

olujaidi:


Alot of people have discouraged me from doing this. However, I think it's a question of the appropriate risk management strategy.

That said, I think the major risks are:
-Credit Risk I.E the risk that the driver will default on the payments.
-Risk of total loss either through accident or theft.

My first question is this-To mitigate the first risk, do you think it would be wise to enlist the help of the NURTW enforcers found at the bus stops? My idea is that I could factor the tips to them into the hire purchase price.

My second question is about Uber Taxis. Apart from insurance and car maintenance costs, are there any other costs that should be considered?

Do you know of the big transporters E.g ABC Transport can take charge of the bus while we split the revenue in an agreed formula?

You are absolutely correct about the two risk factors.
Insurance can handle risk number 2. Accident or theft.

But for risk factor number 1. You need a strategy. The idea of handing the bus over with an Agbero Chairman or Union boss is good and it works too.
Another strategy is a situation where you directly handle negotiation with clients then you send your driver to do the job. Which is just to drive. Now you in charge of the financials. This can only work in Cab service and bus hire business.

For uber you handle insurance, maintenance and you pay your driver too. However, the car must be below 100,000 milage. It must be 2008 till date. Basically you can't use an old car for Uber.
But it's worth it. They provide customers. We also have Easy taxi, Afro cabs, say taxi, tranzit and many others. I know a lot of these guys.

Then concerning ABC transport and the rest. They have such programmes but I have not tried it so I really can't make an informed comment. I can find out if you want me to.

What is uber pls

lumachris:
What is uber pls

Uber is a platform where people book for cabs online. Check it out on Google for more info.

mrsage:


But for risk factor number 1. You need a strategy. The idea of handing the bus over with an Agbero Chairman or Union boss is good and it works too.

The next questions are

-who controls the enforcers?
-won't this approach make the hire purchase option less attractive since it would mean factoring in "protection costs" into the hire purchase price to compensate for"protection"?

mrsage:


Then concerning ABC transport and the rest. They have such programmes but I have not tried it so I really can't make an informed comment. I can find out if you want me to.

Please do.

Many thanks

mrsage:


Then concerning ABC transport and the rest. They have such programmes but I have not tried it so I really can't make an informed comment. I can find out if you want me to.

Please do.

Many thanks

olujaidi:


The next questions are

-who controls the enforcers?
-won't this approach make the hire purchase option less attractive since it would mean factoring in "protection costs" into the hire purchase price to compensate for"protection"?

Nobody controls the enforcers. That's the plain truth. The best you can have is a written agreement signed in a Police Station

For attraction. It's a sacrifice you have to make. That's the cost. However you will still make your profit at the end of the day.

following

mrsage:


Nobody controls the enforcers. That's the plain truth. The best you can have is a written agreement signed in a Police Station

For attraction. It's a sacrifice you have to make. That's the cost. However you will still make your profit at the end of the day.

Many thanks

Op, let's leave the maintenance, insurance and other costs aside, which makes more money or rather is more profitable judging from your experience in the sector, interstate or intrastate passenger transportation using a car as an example, not d typical buses

funso77:
Op, let's leave the maintenance, insurance and other costs aside, which makes more money or rather is more profitable judging from your experience in the sector, interstate or intrastate passenger transportation using a car as an example, not d typical buses

Tough question. In my opinion it's difficult to tell.