How to Start a Logistics Business in Nigeria

Investing in Nigeria's logistics industry is lucrative. With an expanding population, more vehicles on the roads, and projections of becoming one of the world's top 20 economies in 2050, it's an opportunity not to be overlooked. Here's all you need to know.

Logistics businesses are big in Nigeria. They facilitate the carriage of essential goods and supplies across the country, often in difficult terrain and conditions. The business is often overlooked as a viable investment opportunity, but those in the know understand just how lucrative it can be.

As one of the largest economies in Africa, Nigeria has a vast natural resource base and its agricultural sector is growing making way for an expanding middle-class society. With the population quickly increasing there are now more opportunities than ever to take advantage of in the logistics industry. Over three million vehicles travel on Nigerian roads each day – representing a four-fold increase from a decade ago – which means that businesses specialized in moving goods have seen great success as well. With these positive signs, Nigeria is projected to be one of the world’s top 20 economies by 2050.

So, if you’re thinking of starting a logistics business in Nigeria, there are a few things you need to know. In this article, we will take you through the steps you need to take to get your business up and running.

Table of Content

Understand the logistics 

Before you start a logistics business, it’s important that you have a good understanding of the industry and what it involves. There are many different aspects to logistics, from transportation and warehousing to customs clearance and supply chain management. Make sure you do your research and understand all the different facets of the business before you get started.

Carve a niche 

There are many different niches within the logistics industry. You could focus on transportation, warehousing, customs clearance, or supply chain management. Once you’ve decided what area you want to focus on, you can start to build your business around that niche. Let’s see details on some of the aspects you can choose:


This could be business to business (b2b) or business to Customer (b2c). Whichever you choose, it entails providing transportation solutions for your clients. This means you rent out cars, buses, or even bicycles to your clients. 

You will be offering services to different categories of customers. Mainly, luxury, middle-class, or low-budget.


This aspect of the logistics business entails storing goods for your customers. It could also be b2b or b2c. 

You could also add transporting your customer’s goods from a pickup point to the warehouse to your services. This means you will need trailers.

Package delivery: 

Package delivery is the most common aspect of the logistics business in Nigeria. Almost all logistics companies engage in this service.

It simply involves picking up goods for your customers and delivering them to their designated locations.

Customs Clearance:  

This service is meant to make it easy for your customers to import or export goods. So, you need to be well prepared for this aspect of the logistics business before you start.

One of the things you need to do is to familiarize yourself with the customs service systems and rules. 

This aspect involves shipment documentation and clearing.

Supply Chain Management (SCM): 

SCM is the aspect of logistics business where you help your client oversee the movement, storage, and distribution of goods or services across the supply chain.

For instance, a large juice production company will need a logistics business to transport fruits from farm to factory; transport the end product (the juice) from factory to warehouse where the goods will also be transported to distributors. The chain goes on until it gets to the end consumer. An SCM logistics company handles this.

  • Get your plan on paper 

After you’ve done your research and decided on your niche, it’s time to start putting together a business plan. Your business plan should include your goals and objectives, your marketing strategy, your financial projections, and your organizational structure. This document will be your road map for starting and running your business.

We can hold your hand through this planning process by designing a professional business plan. Click here for a one-time free consultation

  • Financial planning is key 

Like any business, starting a logistics business in Nigeria requires financial planning and preparation. You’ll need to have the start-up capital to cover the costs of renting or buying warehouse space, hiring staff, and investing in the necessary transportation and technology infrastructure.

You need to make sure that you have enough capital to get your business off the ground and to cover any unexpected costs. There are a few ways to raise capital, such as taking out loans, seeking investors, or using your savings. Once you have a solid financial plan in place, you can move on to the next steps of starting your business.

Creating a financial plan will also help you to track the progress of your business and make necessary adjustments along the way. For example, if you find that you’re not generating as much revenue as you had anticipated, you may need to scale back your operations or rethink your pricing strategy.

  • Get registered and licensed 

Register your business with the Corporate Affairs Commission (CAC). You’ll need to provide basic information about your business, as well as pay a registration fee.

Obtain a business license from the Nigeria Investment Promotion Commission (NIPC). This will allow you to legally operate your business in Nigeria.

You might also need to get some form of a license from the Nigeria Customs service if you will be working in that line.

  • Tech is the way 

Set up a website for your business. This is essential for logistics businesses, as potential customers will want to be able to track their shipments, packages, etc, online.

Make use of technology in your business. There are many software programs available that can help you manage your shipments and track your inventory

You also need to have a heavy social media presence for marketing. We’ll talk more about this next.

  • Advertise, market, and serve 

Advertise your business. Let people know that you’re there and that you’re ready to help them with their logistics needs.

You can make use of social media platforms to establish your presence in your potential customer’s minds. Facebook, Instagram, and Social media are some of the strong weapons you can use.

Traditional adverts on Tv, radio, and billboards will also help to widen your visibility.

Most important is providing excellent customer service. This is essential for any business, but it’s especially important in the logistics industry. No one will patronize your logistics business if you are known to care less about their packages or shipments. So, you want to be in the positive part of your customer’s minds.

The Logistics business is a very promising business in Nigeria because as the economy keeps expanding more businesses will emerge, and these businesses will continue to require logistics services. You however need to understand the logistics market well before you start the business. Our professionals are ready to help you through researching and starting your logistics business in Nigeria. Click this link now for a business consultation.

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