After receiving lots of email requests from my blog readers to write about the kinds of profitable businesses to delve into in 2014, I have decided to make this post on how to make money from transportation business in Nigeria. So yesterday I hung out with the guy managing my Dad’s LT bus over a couple of drinks and we had an in-depth discussion about the profit potential of running an intra state transportation business in Nigeria; I was amazed at the amount of money you could make from the business.

I found out that the transportation business is one of the easiest ways to make money since you render daily demand services to people which they cannot resist; it comes with its own risks and challenges as with every other business though. Imagine the number of people you see commuting to their places of work and businesses early in the morning, afternoon and evening; because the majority do not own a vehicle, they definitely have to pay a fare to be transported to their destination. What if you have a transport system that can convey them to their destination and get paid?

Do you perceive the profit potential in this business? Like I have always said, when you render services that people need, they will throw their money at you. Today, I would show you the business of public transportation in Nigeria using the LT buses as a case study. Just in case you do not know what it looks likes, see picture below:
THIS IS WHAT THE LT BUS LOOKS LIKE

LT bus
INCOME POTENTIAL……

money naira, money goals,

These kind of buses can take up to 25 passengers and make you anything between N6,000 to N8,000 per day if properly managed. Depending on the grade, you can purchase the Tokunbo version of this kind of bus for anything between N1,000,000 to N1, 200,000 this not including the cost of registration and putting the bus in order like fixing the chairs, glasses and any other item that needs to be fixed. I strongly advice you purchase a bus in a good working condition; you can have your mechanic check up on the vehicle before purchase. The aim of doing this is to ensure you spend less on maintenance and servicing the vehicle so you can easily get easily recoup the cost of the bus in about 6 months. Let’s do a little arithmetic here; let’s say you agree with the bus driver or manager to get paid N6,000 a day for 6 days ( Monday-Saturday), that’s N36,000 a week multiply by 4 weeks in a month; that’s N144,000 in a month. If you purchased the bus at the rate of N1,200,000 you would have recouped your money in about 8 months or lesser because you could collect more for daily delivery; depends on how much you bargain with your bus manager or driver. In order to make even more money, you could invest in another bus as soon as you recoup up to N1,200,000, this would increase your earning power. Please note the cost of maintenance is not included here; this depends on the managing company, they could offer to do the maintenance and servicing for you when the need arises.
RISK INVOLVED

risk-icon

You already know that there is risk involved in every business. If you are new to this business, I recommend you entrust your vehicle to a reputable managing company. There are lots of them around but you have to proceed with extreme caution so you don’t have your vehicle in the wrong hands. A good management would in turn give the vehicle to a driver after series of tests and assessment. In my own view, I think this reduces the risk. The managing company goes into an agreement with the driver to deliver a stipulated fee on a daily basis; the managing company takes their cut and then pays you an agreed fee on a daily basis. The money is usually paid to your account on Friday. In some cases, the managing company may take up the responsibility of maintaining to vehicle.

Another risk involved is bad roads and recklessness of drivers. I have seen most of these drivers handle these buses and believe me; they could be so rough; why should they care anyway, the vehicles does not belong to them. Also, operating within a certain route is more preferable.

This business is a lucrative business if the vehicles are handled properly by appropriate persons. It helps you make money on a daily business, all you need do is invest your money in the buses and hand it over to the right persons to manage.

I hope this information helps.

Source: - http://biznvent.com/how-to-make-lots-of-money-from-transportation-business/

What if i want to register with a transport company, as i wont have time to be monitoring it.

OP this really sounds interesting.

Please where can i but this kind of LT bus you are talking about nd how can i also find the managing companies?

God bless you OP.. i will like you to help me with this questions..

Am in dire need of your advice and info from your different brains of helpful info.
A client of mine seek for my advice and opinions in setting up a transport line, the likes of aguofure park,God is good motors,iyare motors etc.

Based on my research, i have come into conclusion that the biz is lucrative and profitable and seems not have any challenges aside from ensuring the best brand of buses are used for the operations and also ensuring honest and skilled drivers are employed. But, something within me is still telling me that there're many other challenges in the business aside from the two listed above.

Dear nairalanders, i will like you to help me with other challenges aside from this two listed above because i believe there're still other challenges maybe my research wasnt good enough. Hence, i couldnt get all the challenges of the business.

i will as well like to know the best brand of buses to use putting into consideration that the bus brand must be type thats low cost effective.

i will as well like to know the procedures or steps to be taken in ensuring the skillful and honest type of drivers are employed.

i will as well appreciate more helpful and befitting info,insights or advice that will be of great help to the success of the business.

Thanks as you contribute.. God bless

Hw many times can a driver run from benin(Edo) to onistha or from Benin to Ibadan or from Benin to ekiti state pls reply ... Thinking of entering d bizness