How to Start a Logistics Business in Nigeria

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Start a logistics Business in Nigeria

With so many people into e-commerce the need to constantly get goods from the seller to the consumer is on the increase. Hence, there’s the gap created which needs to be filled. The solution to filling this gap is through starting a logistics business.

The importance of logistics in all its shade cannot be overemphasized. While the Logistics business is not very common, it is also very easy to start. With the right information, mentoring and guide starting the logistics business in Nigeria is seamless.

If you’ve ever considered starting a logistics business in Nigeria, you’re in the right place. If you’ve never considered, you will have a change of plans after reading this article. This article gives detailed explanation on all it takes to start a Logistics Business in Nigeria. Be sure to read through till the end.

What is a Logistics Business

Giving a brief description of the Logistics business would help understand what you’re getting into. Logistics simply has to do with transportation. The movement of goods from one place to the other. The movement of goods from the seller to the buyer. You order a product online and you have it delivered to you – that’s logistics.

Logistics business thrives on the various means of transportation. That is either by road, sea or air. Choosing the means of transportation is dependent on nature of goods and services you want to focus.

The logistics business is a business that cuts across various sector of the economy. For the purpose of streamlining the article, this article will discuss logistics business in relation to the movement of daily goods and services as well as people.

Equipment You Need to Start a Logistics Business

The type of equipment you need to start a logistics business will determine the types of equipment you will get. However, there are equipment that are general.

  1. Office space

You will need to set up your office space with every basic things that an office needs. Chairs, tables, pens, A4 papers, note pads, receipts and the likes.

  1. A means of transportation

This could be bikes with customized boxes which will be used as storage for the goods you’re transporting. The number of bikes you’ll need depends on the locations you’re covering. For starters, a bike or two is advisable. For Logistics Business that involves people. A comfortable bus or car is needed. Could be one or more depending on the frequency of travels.

  1. Online Presence

Once you have every other thing in place, it’s important that you create an online visibility for your business. This can come in form of a website. Customers can find and place orders for your delivery service. It could also be social media presence for your logistics business, across the various social media platforms.

Read also: How to Manage your Online Business Effectively

Steps to take to start a Logistics Business in Nigeria

  • Branding

Create a brand for your logistics business. Like every business you need to get a business name and create a brand for your business. Have a business name and design a unique logo for your logistics business. Let your brand image be everywhere; on your vehicles, in your offices as display pictures and advertisement posters.

  • Business Registration

Register your business with the Corporate Affairs Commission (CAC). This gives the business a form of credibility. It ensures that there is no other company with the same business name as yours. Registering your business also gives the business the opportunity to secure a loan when necessary.

  • Proper Payment System

Develop a payment system such that customer’s make direct payment to you or the business account. This will ensure that you can also offer payment before delivery as well as payment on delivery. Whichever one works best for you. Some of the payment systems you can use in your logistics business are Flutterwave and Paystack.

Read also: Ways to virtually transfer and receive money in Nigeria.

  • Carve a niche for yourself

Determining the aspect of logistics you want to focus on able you manage the business properly. For starters you can focus on basic goods delivery and people transportation. Then, you can also do within the state as well as interstate logistics. Or just focus on international logistics.

 Advantages of Starting a Logistics Business in Nigeria

  1. Extra source of income

A logistics business can run alongside other things you are involved in. Considering the fact that it’s also a lucrative business, it brings in extra money for you. Providing good services to clients ensures that they always come back. Logistics business has a high level of returnee customers. That way, you get to expand your customer base and make more money.

  1. Small capital involved

Although, the logistics business seem capital intensive. But, starting small could save you a lot of money. Whatever you do, there’s the fixed capital investment and reoccurring capital investment. Fixed capital investment include your office structure, bikes and vehicles.

  1. Room for expansion

The logistics business is a versatile business. With growth and mastery of your niche you can expand to other areas in logistics. Starting local gives room for international expansion. The logistics business cuts across regions and borders.

Read also: Importance of Branding for a Successful Start-up in Nigeria

Disadvantages of Starting a Logistics Business in Nigeria

  1. Tax

Starting a logistics business in Nigeria means that you have to pay tax. Whether you start small or big, you have to pay certain percentage of tax. Every registered business is usually taxed. It could be discouraging to pay tax on a business that has not made so much profit.

  1. Inconsistent order

Whilst you start a logistics business in Nigeria, it has to go through the growth stage. Most times, you don’t get to deliver on a job every day. Your consistency in the business is dependent on how much exposure your business has.

  1. Incompetent drivers

Sourcing for drivers can be tasking in the logistics business. Especially, getting one who knows the routes well. Other times, getting  drivers who are truthful and trustworthy also pose a major challenge to the logistics business. Situations where the business is growing, there will be need for more product to register


Logistics business is a very lucrative business when you understand the nitty gritty involved in it. Customer feedback is very important in running a logistics business in Nigeria. Once you render good service to clients, they recommend you to people within their circle. By word of mouth, customers recommendation and reviews, your business is bound to expand. Start a logistics business today. Imbibe all that has been mentioned and watch your business grow from stage to stage.

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About the Author

Omolara Ogundipe is a teacher, writer and ultimately a student of the world. She’s on a mission of educating and improving people through her writings.

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Op-Ed are articles published by guest authors. We no longer accept guest posts. However, we are still open to adding long-term content contributors to our team of insightful writers. To write for us, please check out

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