How To Start A Logistics Business In Nigeria (2021)



What’s Logistics Enterprise?

Credit: Ejianreh Emmanuel

Logistics Enterprise also called Supply, Courier, Freight, Transportation enterprise, is among the evolving enterprise in Nigeria at the moment.
The New Oxford American Dictionary defines Logistics because the detailed coordination of a fancy operation involving many individuals, amenities or provides. Nevertheless, the Oxford English Dictionary defines Logistics because the department of army science regarding procuring, sustaining and transporting materials, personnel and amenities.A Logistics Enterprise is due to this fact a enterprise which focuses on motion of products from one level to a different.

Why it’s good to begin up a logistics enterprise?

With the outbreak of COVID-19, there was a lot of restriction in actions. Additionally, extra folks have a tendency to buy their commodities on-line. As extra entrepreneurs are investing in e-commerce, there may be additionally want for logistics corporations that may assist ship their merchandise to their clients nationwide.

eight steps wanted to begin logistics enterprise in Nigeria

The steps I’ve listed on this article will information you in beginning your logistics enterprise in Nigeria as quickly as attainable.


  • Develop a marketing strategy – a marketing strategy is a doc setting out a enterprise future aims and techniques for reaching them. In creating the marketing strategy to your logistics enterprise, you’ll have to embrace the next
    Firm identify
    Mission/imaginative and prescient assertion
    Enterprise technique
    SWOT evaluation
    Enterprise location
    Monetary plan

additionally learn 7 Reasons Why Small Businesses Struggle in Nigeria

  • Select your methodology of operation- there are completely different ranges of operation within the logistics enterprise, and because of this there may be want for choices to be made on the next;
    technique of transportation i.e., bus or bike
    transport route i.e., inter-state or intra- state
    goal trade
    are you starting as an agent, or contractor?
    In case you have no expertise within the sector, it’s suggested you get connected with a logistics firm to allow you be taught and perceive the move of the enterprise. Alongside the road you’ll additionally set up networks with corporations that will symbolize future shoppers.
    Funding- identical to some other enterprise, funds is required to buy tools’s wanted in addition to type salaries of staffs. A capital of about #300,000 to #500,000 is required to kick begin relying in your stage of operations. Within the absence of available fund, you’ll be able to promote the enterprise thought to potential buyers along with your effectively written marketing strategy convincing them of the enterprise profitability.

Purchase the required amenities and tools’s – with funds accessible, you’ll be able to proceed to buy the next:
Autos/bikes- relying in your capital and site. For example, if the site visitors congestion is excessive in your goal space, bikes can be preferable in the beginning stage for straightforward navigation however in an space with much less site visitors congestion, autos are suggested. Be sure that your autos/bikes have the required paperwork to keep away from been delayed by site visitors officers which could possibly be an enormous waste of time.
Workplace space- a spacious workplace with parking area to accommodate your autos/bikes. Within the workplace there must be a retailer the place clients items might be correctly stored. The workplace must be positioned inside areas through which your enterprise relationships and connections are centered.

  • Register your Logistic Firm- folks are inclined to deal extra with companies which might be registered. As soon as registered, clients can belief you and see your enterprise as a legit one.
    The accepted physique that carries out registration of enterprise in Nigeria is the Company Affairs Fee (CAC). Select an excellent enterprise for the corporate and likewise discover out the required licenses and permits to be obtained to make sure the sleek working of the enterprise.

additionally learn 20 Entrepreneur Skills In Nigeria that you need to learn

  • Create a website- an internet site would make your organization recognized to folks inside Nigeria and everywhere in the world. The web site would allow clients ebook orders, monitor their items from the purpose of buy until it will get ultimately delivered to them. It must be consumer pleasant and straightforward to navigate. Additionally, there must be sections for purchasers evaluate and most significantly the corporate’s location, e-mail, cellphone contact.


  • Make use of staff- a logistics enterprise cannot be run efficiently by one individual; due to this fact, you have to the companies of different folks.
    A few of the individuals you have to to rent on the early levels embrace the next;
    Driver – as a newbie, you can begin as your personal driver/rider to get acquainted with the system of the enterprise. Then because the enterprise progresses, you have to to make use of extra drivers.
    The drivers/riders have to be correctly educated on how you can relate with clients as a result of no matter they do will both develop or kill the enterprise
    Buyer care consultant – he/she takes orders and retains in contact with the purchasers. Such an individual have to be well mannered, non-vulgar, good listener, and so forth.
    Retailer supervisor – he/she is to make sure that clients items are correctly organized and stored earlier than supply within the retailer.

additionally learn How to Register Your Business/Company Name with CAC

  • Promote your enterprise – there may be want for each on-line and offline promoting.
    Adverts might be finished through the next methods;
    Newspaper publication
    Printing of handbills
    Enterprise card
    Google adverts
    Social media (fb, twitter, Instagram and so forth.)

Frequent Challenges in Logistics Enterprise

The most common issues confronted in logistics enterprise consists of the next

  1. Site visitors – persistent site visitors can decelerate the supply price of fine to clients
  2. Vulnerability of products – some items would possibly get broken on transit as a result of nature of the street or in ugly instances of accidents

Communication breach – in some instances, clients don’t give actual vacation spot of their deliveries or may not be available to select their items.

How a lot do i want to begin a Worthwhile Logistics Enterprise In Nigeria?

With as little as one million naira you might be on the peek of grounding your personal Logistics enterprise in Nigeria, The fact is, it’ll be virtually unimaginable to scale quick with only a experience and a logistics service providing. Progress will likely be slower as you wouldn’t be capable of take sufficient buyer requests to satisfy the revenue you’ll have cherished to.

I’d advise that with one bike, you’re employed inside your functionality. Take solely requests you’ll be able to efficiently handle in order to not disappoint prospects. You need to keep away from heavy-duty duties in order not to wear down that machine quick.

Nevertheless, for those who realistically need to run this enterprise effectively and to see good returns, you need to put money into extra bikes. Including two extra to your present one is an efficient place to begin. This fashion, you’ve gotten riders who might be in a number of completely different locations at a time, take a number of orders and make a number of deliveries at a time thus protecting a wider area and bringing in extra cash. You possibly can usually ‘lease’ these bikes or go in for a mortgage. Nonetheless, for those who’d like to begin at some extent thought of ‘quite a bit safer’, get actually artistic with utilizing your one bike to run errands, take one buyer request at a time, take extra ‘customized’ orders (eg contracting with only one enterprise or firm to run errands for them) this might put extra cash within the enterprise. Then, save a variety of what you make to increase by including another bike. Proceed like this progressively, and you’ll have scaled. And keep in mind, the bike-riding logistics sector is progressively turning into aggressive particularly in main cities like Lagos and Abuja; you need to decide what distinctive angle you can be coming from with yours to have the ability to stand out.

With one bike, it’ll take actual endurance, dedication and an actual understanding of your market to lastly run a worthwhile enterprise, however, it may be finished. In any other case, increase extra enterprise capital so as to add extra wheels to your fleet so that you kick off with a bang.

Notable Logistics Firms in Nigeria

Listed under are among the already established logistics corporations in

  1. Redoxcorp Delivery and Logistics Restricted.
    Medical street, Swimsuit 3B Three-9, Olu Koleosho road, Awolowo street, Ikeja Lagos.
  2. Olive Logistics and Haulage Providers Restricted
    Ikeja. Lagos
  3. AB Logistics Ikeja. Lagos
  4. Courier Plus Providers Restricted Ikeja. Lagos
  5. Aaroco World Logistics Apapa. Lagos
  6. IGIT Delivery and Logistics Firm Restricted Lekki. Lagos
  7. Quick – Trac Logistics Worldwide Restricted Ikeja. Lagos


The Logistics enterprise is a VERY Profitable Enterprise, and it requires a lot of exhausting work, endurance and dedication, identical to the adage that claims “nothing good comes straightforward”.
These eight steps I’ve put collectively will set you on the way in which to beginning your logistics enterprise. Be happy to drop your feedback after studying.

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