Physical business

How to Start a Haulage Business in Nigeria

The haulage industry is one of the most profitable in Nigeria, despite the fact that most people do not consider it a business since they believe it is unimportant and requires a lot of capital, which is a good thing for those who want to get into it because there will be less competition.

Do I appear to be rushing?

What exactly is haulage?
Haulage is the transportation of products (solid, liquid, or gas) from one location to another, typically by road. It a profitable enterprise that has lifted many entrepreneurs out of poverty. It is not difficult to develop a business around it if you follow the procedures listed below.

The issue of haulage business maintenance and solutions to its issues will also be addressed below.

Before we begin, I’d like you to take note of the following.

Nigerian haulage business niches
Many blogs will list haulage business niches like this.

  • Delivery of liquid commodities
  • Delivery of tangible commodities
  • Gas delivery

While the above are true haulage business niches, we went a step further and classified them as follows.

Contract market
In this niche, your job is to buy a truck, hire drivers, and seek companies that need your services. Whatever companies you find will pay for the maintenance of your truck and sometimes a driver allowance, but I warn you that it is difficult to break into because a newbie will not know how to seek or contact companies.

This is one of the most common niches in Nigeria; you buy trucks and lease them to individuals or businesses who will use them to move things.

It is simple to enter and earn money in this area because there are many people that require trucks, particularly stone and sand transporters, but you will bear the maintenance costs.

Independent haulage
Here, you own your truck and are in charge of the transportation of commodities. In this sector, you have complete control over your firm and will largely be working for the final consumer, which equals high pay.

Examples of vehicles required for a haulage company are

  • Truck
  • Tipper
  • Trailer Van Bus

How to Start a Haulage Company in Nigeria


Most people would encourage you to just get into the haulage company; however, this is a bad idea because you will waste your money. To manage a successful haulage business, you must be knowledgeable about the sort of vehicle to purchase, the load to transport, the best route to take, and how to bill customers.

Knowledge acquisition is not difficult; you should be able to study it in three to four weeks.

Study of feasibility
If you’ve been reading our articles, you’ll note that we always include this because it’s the beginning and conclusion of business. Go out and see if your haulage business will be profitable in your chosen location; don’t assume that since your friend is successful in one location, you will be successful in another; interview potential customers and competitors. In your feasibility study, respond to the following question.

Are there dependable clients in your area?
Is their parking space available?

What about the local lads?
What about drivers, how easy is it to discover them?
Can you outperform the competition?

Business strategy
Once your feasibility study has given you the green light, the next stage is to draught a business plan, which will include your vision, mission, and how to get there. Most entrepreneurs forget why they started a firm and eventually lose their motivation. Do not allow this to happen to you; write your passion alongside your company plan; the change you wish to affect or any reason you started the business.

Also, if you intend to obtain a loan or seek investors in the future, you will undoubtedly need to produce a brief and basic business plan that investors and bakers can quickly comprehend.

CAC registration
Please do not avoid the CAC (Corporate Affairs Commission); you must register your firm and obtain a licence from the government if you do not want to become a food source for the cops.

Purchase a car
What kind of goods do you want to transport? Are they agricultural? Property? What are industrial goods? Take note of it and purchase a vehicle capable of transporting such stuff. A lorry or truck, for example, is appropriate for agricultural items, whilst a Tipper is appropriate for stone and sand.

If you are not insured, the haulage business can be disastrous. Imagine losing a $3 million truck in an accident; it will cripple your business. Before you begin, ensure that you have insured all of your vehicles to avoid stories that touch.

Hire a good driver.
Finding a good driver is one of the problems in the haulage industry; do not be hasty when looking for a driver; test and interview them to ensure they tick all of your boxes before hiring them. You don’t want a drunk or someone who will deceive you, believe me.

The only difficulty is that as a rookie, you won’t know what good drivers are, therefore look for subject experts to assist you interview and test them.

Look for clients.
This should not be a problem if you do your feasibility study properly, because you should have identified your potential consumers (person or corporation) who require your services by now. Contact them and inform them that you have begun your business. 90% will not even kook your side, so build a promotion and freebies that will entice them to come to you.

If you are in the independent niche, you can provide free delivery.

If you are in the leasing niche, you can lower your price.

If it is a contract niche, provide free delivery.

Begin your own business.
If you follow the steps outlined above, the next step is to launch your firm; nevertheless, having a sale is not enough; you must also provide excellent service.

It might be rapid delivery or intact delivery; remember that differentiating yourself from the competitors in the haulage industry is difficult, so employ top-notch service as your unique selling proposition.

What you must do to be successful in the trucking business

Carry only what your truck is capable of carrying.

Employ a qualified driver.

Always perform routine maintenance on your trucks and drivers.

Always keep a competent mechanic on hand.

Purchasing a substandard but low-cost automobile will give you headaches.

How to Make More Money in the Haulage Business

Set up a website where people can book your haulage services to earn more money, but make sure you have enough trucks to move products since people will book your service, but after two or three disappointments, they may not return. You can contact us to set up a booking website.

Set up social media pages where you can keep users up to speed on what your company is about and how it operates. It may take some time until you receive a customer, but people will remember you when they need your services.

Starting a trucking business costs money.
It depends on your niche and the type of items you want to transport, but you should have at least #10 million before you start a haulage business.

How profitable is the Nigerian haulage business?

Profitability in the haulage sector is difficult to predict because depreciation and maintenance fees, among other considerations, must be considered. You have my word on it, the haulage business is incredibly successful, with people earning up to #400,000 per day.

Nigerian haulage business challenges and solutions

Poor road conditions
This is the most difficult challenge in the haulage sector in Nigeria. Every state in Nigeria has bad roads, and this will destroy your vehicle, and if it doesn’t, the maintenance fee will reduce your income. Imagine repairing your fleet every day.

Hire qualified and experienced drivers. Experienced drivers will have driven on at least 60% of Nigeria’s roads; they will know which roads are bad and which are good. This will allow them to negotiate their way out of sticky situations.

Driver can be both a solution and a headache if you use the wrong driver. As previously indicated, Take your time hiring a driver in one of the processes; if you rush, a lousy driver will chase you out of the haulage business.

Repairers include mechanics, panel fitters, and other automotive technicians. A poor repairer will aggravate your vehicle’s problem rather than solving it.
The solution is straightforward. Employ at least two persons to take care of your automobile; do not take your vehicle outdoors unless it breaks down a significant distance from home; in fact, you can toe it to where your firm is located.

If you start your haulage business without the necessary paperwork, you will become a fish to shark (police). Believe me, if you keep settling every police officer you encounter on the road, your profit will be negative. They will still collect something if you register your company, but it will be minimal.


What is next for you is to begin; do not become a wantrepreneur who only dreams of starting a business; it will be difficult at first, but it will be well worth it.

Even though this article was written after extensive research, you should still look for a mentor who will guide you to success.


Recent Posts

Nigerian business failure: What cause it

According to research, more than 80% of businesses fail in their first year of operation…

4 months ago

Best App for Sending Money to Nigeria, From Anywhere

It is now simple to send money from one country to another, thanks to entrepreneurs…

4 months ago

CPA Marketing in Nigeria for Beginners

Gone are the days when you needed to refer a product and make a sale…

4 months ago

Starting Cement Business in Nigeria (Retail and Distribution)

Cement business is one of the lucrative businesses in Nigeria that few people know about,…

4 months ago

How to create a business in Nigeria that produces and distribute nylon

Because of the high startup costs for nylon businesses, which are nothing to worry about…

4 months ago

Top performing business in Nigeria you can do

Doing well in business is rewarding, but it is much more satisfying when there is…

5 months ago