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How to Start Haulage Business in Nigeria

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Haulage Business in Nigeria

One of the businesses in Nigeria that is related to the transport business is the haulage business. In today’s article, I will be going into detail about everything you need to know haulage business in Nigeria. I will be explaining what haulage business means, whether it is a profitable business, the capital needed, the step-by-step guide on how to start a haulage business in Nigeria, and more.

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

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?

The 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 the 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.

Capital Needed to Start Haulage Business

The cost of starting a haulage business is high and this is due to the vehicles needed in the business. To start a 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 30 million – 50 million 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.

How to Start Haulage Business in Nigeria

Here are steps to start a 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 what 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 the Capital Needed

As I explained earlier, the 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 deeply before starting a haulage business in Nigeria.

If you 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. You can also read my article on how to fund your business to know how you can easily fund your haulage business.

3. Buying your Tippers and Trucks

Different types of trucks or tippers are used for the 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 your Business Name

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 a petroleum haulage business, sand haulage business, granite haulage business, and more.

All these haulage businesses have the registration you need to do under them. Then you need to employ your truck drivers. It is better to hire experienced truck drivers than new drivers. Here are steps on how to register your business name in Nigeria.

5. Start Transporting your 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 your agreement with the dredging companies or any other customers.

6. Profits in Haulage Business

The profits in the haulage business are massive especially in Nigeria due to the fact that only a 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 of 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.

Conclusion

The 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 the 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.

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Ralph Bamigboye is an Accountant. He is the owner of TheInfoWorth.com, NetWorthVerse.com and Finance Naija YouTube Channel. He has helped many individuals to start their businesses and make money online. How can he help you?

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