Transportation Business in Nigeria & Cost of Starting (2024)

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Are you considering diving into the transportation business in Nigeria? It’s a promising venture given the country’s bustling population and constant need for movement. But how do you get started, and what are the costs involved? Let’s break it down step by step.

1. Understanding the Costs:

The transportation industry in Nigeria offers various opportunities, from motorcycle taxis to bus services. Here’s a glimpse of the starting costs for different vehicles:

  • Motorcycle transportation:

    • Nigerian Used (200 Capacity): From N300,000
    • Tricycle (Keke Napep): From N550,000
  • Car transportation:

    • Saloon (Nigerian Used): From N1.5 million
    • Hilux (Nigerian Used): From N3.675 million
    • SUV (Nigerian Used): From N3.5 million
  • Bus transportation:

    • Sienna (Foreign Used): From N3.3 million
    • Mini-bus (Nigerian Used): From N1.5 million
    • Coaster bus (Nigerian Used): From N7.8 million
    • 18-seater bus (Foreign Used): From N11.5 million
    • 15-seater bus (Foreign Used): From N10 million

Remember, prices fluctuate, and buying second-hand vehicles can be cheaper. However, ensure you purchase from trusted sources and get a mechanic’s opinion.

2. Why Dive into Transportation Business in Nigeria?

a. Population Growth: With an estimated population of over 200 million (and projected to hit 250 million by 2050), the demand for transportation services remains high. Only a fraction of the population owns cars, indicating a reliance on public transport.

b. Lucrative Opportunity: Transportation is among Nigeria’s most profitable sectors. Many still opt for public transport, especially for intercity travel. Whether operating within cities or across states, there’s ample opportunity for profit if you understand the industry’s dynamics.

c. Technological Advancements: Ride-hailing apps like Bolt, Uber, and Opay have revolutionized the industry, making it easier to connect drivers with passengers. Signing up with these platforms can yield substantial monthly earnings, depending on your dedication.

3. How to Start:

a. Choose Your Mode of Operation: Decide whether you’ll operate within cities or across states, and determine your preferred vehicle type. Also, consider if you’ll drive yourself or hire drivers.

b. Secure Funding: Based on your chosen mode of operation and vehicle type, calculate the funds required. Consider costs for vehicle purchase, licensing, and registration. Funding options include personal savings or loans.

c. Complete Registration: Once funded and equipped with a vehicle, ensure you complete all necessary registrations. This includes vehicle documentation and, if partnering with a ride-hailing service, their registration process.


Starting a transportation business in Nigeria holds immense potential for profitability, given the country’s population and demand for mobility. By understanding the costs, seizing lucrative opportunities, and navigating the industry’s dynamics, you can establish a successful venture in this thriving sector.



1. Is the transportation business profitable in Nigeria?

Yes, given Nigeria’s large population and reliance on public transport, the transportation business presents lucrative opportunities for profit.

2.What are the initial costs involved?

Initial costs vary depending on the vehicle type and mode of operation. Factors include vehicle purchase, licensing, registration, and potential maintenance expenses.

3.How do I secure funding for my transportation business?

Funding options include personal savings, loans from financial institutions, or partnerships. Evaluate your financial capacity and explore suitable funding avenues.

4.Are there specific regulations to adhere to?

Yes, transportation businesses must comply with government regulations regarding vehicle registration, licensing, and road safety standards. Ensure you understand and adhere to these regulations to operate legally and safely

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