How to Start Haulage Business in Nigeria (2022)

One of the businesses in Nigeria that is related to transport business is haulage business. In today’s article, I will be going into details about everything you need to know haulage business in Nigeria.

I will be explaining what haulage business means, whether it is profitable business, the capital needed, the step-by-step guide on how to start a haulage business in Nigeria and more.

Many people believe haulage business is the same with logistics business but this is not true. Haulage is a part of the logistics business. It is under logistics business. However, there are different types of haulage business in Nigeria.

The most common type of haulage business is the transporting of heavy equipment or building materials from one place to another using tippers or trucks.

Read also: How to Start a Profitable Transport Business in Nigeria

Table of Contents

What is a Haulage Business?

Haulage business is the business of transporting goods or products in large quantities by road or rail between suppliers, factories, warehouses or depots. Haulage is the act of moving anything that customers could need in bulk. This may include consumables to non-consumables. 

Simply put if the business is not using trucks or tippers to move products it is not a haulage business.

Is Haulage Business Profitable?

Haulage business is a profitable business in Nigeria. However, it is a capital intensive business that runs into millions of naira. With one truck you can start the business as soon as possible.

The reason why haulage business is a lucrative business is that you can use your trucks or tipper to transport any large items, machinery, building materials or petroleum products to make money.

In Nigeria, most haulage companies register with dredging companies to make money transporting sand from the seasides to construction sites.

Read also: How to Start Car Accessories Business in Nigeria

Capital Needed to Start Haulage Business in Nigeria

The cost of starting a haulage business is high and this is due to the vehicles needed in the business. To start haulage business, you will need at least one truck or tipper.

The cost of these trucks in Nigeria depends on so many factors. It depends on the brand, the year of production of the truck, whether new or old and more.

To buy a tokunbo haulage truck in Nigeria you will need at least 30million – 50million naira. As for the best truck for haulage business, there is no truck that is the best for haulage in Nigeria. It just depends on what many individuals like.

Read also: How to Become a Car Dealer in Nigeria

How to Start Haulage Business in Nigeria

1. Write a Business Plan

The first step on how to start your own haulage business in Nigeria is to write a well detailed haulage business plan. In a haulage business, you need a business plan to make sure you do not make unnecessary mistakes.

The business plan will guide you on everything you need to know about the haulage business in Nigeria even down to how to increase profits easily in the business.

Business plans are not hard to write even if you are not familiar with them. All you need is a step-by-step guide on the format and you write.

But if you want to avoid all the stress and you need a professional touch you can contact us via the blog to help with it at a discounted price.

2. Get Capital Needed

Like I said earlier, haulage business or tipper business is a capital intensive business. In fact, due to this some people even call this business the business of the rich.

For this reason, you might need to think deep before starting a haulage business in Nigeria. You cannot borrow money to start a haulage business because it can cripple the business from the beginning and even put you in eternal debt.

If you want to start a haulage business you must be able to handle all financial requirements without hesitation. You must be able to buy your trucks and pay every other money needed for the registration of the business.

You also need to set aside money you will pay as salary to your truck drivers especially if you will not be driving your haulage vehicles yourself. Averagely in Nigeria, they pay truck drivers salaries ranging from #100,000 – #200,000.

Read also: How to Promote Your Business on Instagram in Nigeria

3. Buy your Tippers/Trucks

There are different types of trucks or tippers used for haulage business in Nigeria. Some of these trucks are new while some are tokunbo or fairly-used.

Depending on what you can afford you can buy new or tokubo trucks for your haulage business in Nigeria. Tokunbo tippers are reliable but they do not last as much as the new ones.

You can import your trucks from Japan or the USA or simply buy the trucks in Nigeria if you are avoiding import duties and other stress in the importation.

After buying your trucks, you need to get every document as regards the ownership and register all trucks under TOAN (Truck Owners Association of Nigeria).

4. Register Haulage Business

You can not start a haulage business in Nigeria without proper registration. First of all, you need to register the haulage business as a company.

To register the business as a company in Nigeria you need to register your haulage business under the (CAC) – the corporate affairs commission.

After you are done with this, the next step will be to collect all other needed documents according to the kind of haulage business you want to run in Nigeria.

There is petroleum haulage business, sand haulage business, granite haulage business and more. All these haulage businesses have registration you need to do under them.

Then you need to employ your truck drivers. It is better to employ experienced truck drivers than new drivers.

Read also: How to Start Driving School Business in Nigeria

5. Start Transporting Products

After all registration and documents, you can start your haulage business immediately. As for how you can get your first set of customers, you connect with dredging companies in your local area to help them transport sand from one location to another.

How much you are paid per transport of goods as a haulage company depends on the agreement you have with the dredging companies or any other customer.

Read also: 35 Most Lucrative Handwork to Learn in Nigeria

6. Profits in Haulage Business

The profits in haulage business is massive especially in Nigeria due to the fact that only few can afford to start the business. So if you start a haulage business today, you will be one of the luckiest people to make money of millions.

The more your truck delivers products in a day the more the profits you will make. For example, if you deliver sand 20 times to a particular customer in a day, you will make more money than when you transport sand just 10 times.

It is also important we discuss the expenses in an average haulage business in Nigeria so that you get prepared. For example, you will spend money on diesel, the salary of truck drivers, repair and maintenance of trucks and other hidden expenses.

Read also: 37 Most Lucrative Business Ideas in Nigeria

Conclusion

Haulage business in Nigeria is a lucrative business it just demands more of your money and time. You also need to connect with many customers so as to keep your business running and your profits haulage coming in.

In future, if you have any reason to stop the business you can simply sell your trucks or sell your haulage company to a good buyer.

That’s all in this article. As usual, let me know if I missed any part of this article. Also, let me know if there are topics you want me to write about on the blog or talk about on our YouTube Channel or maybe our podcast.

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About theinfoworth

Ralph Bamigboye is the brain behind TheInfoWorth.com blog and Finance Naija YouTube Channel. He has helped many individuals to start their businesses and make money online.
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