How To Start A Logistics Business In Nigeria
How To Start A Logistics Business In Nigeria

How To Start A Logistics Business In Nigeria 2021

How To Start a Logistics Business In Nigeria

How To Start A Logistics Business In Nigeria
How To Start A Logistics Business In Nigeria

Logistics business has different names “transportation” , “delivery”, “courier services”, etc. A logistics company is involved in planning, implementing, and controlling the movement and storage of goods, services, or information within a supply chain and between the points of origin and consumption. The origin of logistics could be traced to the military. During WW1 and WW2, logistics were used to move food, medicine, and weapons easily.

 With the advent of the internet, many entrepreneurs are investing heavily as technology keeps advancing. Logistics is one of the fastest-growing industries in Nigeria. Over the years logistics companies have proven trustworthy to work with.

 Is Logistics A Profitable Business?

 A major concern of any investor is whether a business is profitable or not. The profitability of a business depends on the business. The number of customers acquired per time, pricing, marketing strategy, and delivery efficiency make the business profitable depending on how best you can penetrate the market.

Considering e-commerce is relevant and advancing, the service of a logistics company will be needed. For instance, a logistics company can provide service formore than 30 businesses in a month generating a good profit every month.

List of industries that use logistics companies.

  • Construction
  • Hotel
  • Retail
  • Restaurant
  • Pharmaceutical and Health care
  • Military etc

Equipment needed for logistics business

  • Bus/truck/lorry
  • Mobile phone
  • Website
  • Dispatch box
  • Computer system

Steps To Start a Logistics Business

Mode of operation

Choosing a mode of operation is the first step in starting a logistics company. Are you interested in operating bikes, lorries, or trucks? Is it  Interstate or interstate operation? What is your targeted market? Are you interested in being an agent, contractor, or transporter?

 These are questions that are needed to answered before you begin.

 The fund required to buy a truck, lorry, or bike is huge, hence you can choose to be an agent or contractor.

 As an agent or contractor, you can serve as an Intermediary between a logistics company and the business in need of logistics services. You are paid a commission when the transaction is successfully executed.

  Draft a business plan

 A business plan is a formal document containing the objectives of a business and how the business plans to achieve its goals.

 Drafting a business plan helps you get access to funding opportunities. The following should be considered when drafting a business plan:

  • Company name
  • Company’s goals
  • Mode of operation
  • Financial plan
  • Legal plan etc.

 Register your business with CAC

Corporate Affairs Commission (CAC) is the approved body to register businesses in Nigeria. CAC is required to set up a successful business in Nigeria. When you register your business, customers trust and are ready to do business with your company and it provides access to government loans.


  After a good business plan, funding is the next important step.  You can get access to funding from savings, banks, and government loans. The capital required for this business is as low as 400000 without the purchase of equipment for operation.

  • Equipment purchasing

 There is certain equipment used by logistics companies. There are

  •  Vehicles

It depends on the mode of operation. The capital

  • Mobile gadgets

They are important for communication, taking orders, and proper documentation.

  • Office space

 A physical office is needed because customers might want to visit your workplace. The office should be sufficient for staff and company equipment. You also consider the space for parking the company’s vehicles.

  • A website

A website enables you to take orders, make publicity, track the delivery of items. The website must be colorful and attractive to users for easy access and to navigate.

  • Employ workers

 The day-to-day activities are run by employees in the company.

  Preferably, you can start with three or four employees who are familiar with the routes you operate and the system of the business. They must have experience with business operations.

How To Advertise Your Logistics Company

 A business idea without advertising is like winking to a girl in the dark. Advertise your business both online and offline. Interestingly, it is easy to advertise business online especially using social media – Twitter, Facebook, Instagram and Google.

 These are some of the advertising channels you can explore:

  • Referral
  • Social media advertising
  • Newspaper publications
  • Google advert
  • Collaborations/Partnerships


How To Start A Logistics Business In Nigeria
How To Start A Logistics Business In Nigeria

This is the simplest and direct way of advertising your new logistics company. What do I mean by referral? Well it’s simply prospecting/calling or informing others about your Logistics business. Tell them how it works, and the pros of using your company.

Social Media Advertising

How To Start A Logistics Business In Nigeria
How To Start A Logistics Business In Nigeria

This is another way of boosting the awareness of your company and again, get more customers. Social Media Advertising/Marketing deals with the effective and Ideal use of the Social Media platforms, most especially (Facebook, Instagram, Twitter, LinkedIn) to run paid advertisement for your Logistics Business. With correct targeting and audience research, you’ll get customers in no time.

Newspaper Publications

How To Start A Logistics Business In Nigeria
How To Start A Logistics Business In Nigeria

Thousands of people still read newspapers on a daily basis. This can also be an effective way to promote your Logistics Business, sponsoring it on newspapers!

Google Advert

How To Start A Logistics Business In Nigeria
How To Start A Logistics Business In Nigeria

Google Ad is a special platform created for business owners to advertise and showcase their business or brand to millions of internet users worldwide. While it’s more expensive than running social media ads, It is also very effective and converts pretty well.


How To Start A Logistics Business In Nigeria
How To Start A Logistics Business In Nigeria

There’s this popular saying that “Two heads are better than one”. Yes, if you collaborate with more people, work together towards achieving the same goal of promoting your logistics business, it will grow faster than you expected. If you also partner with brands with a similar work, you’re more likely to push your Logistics Business easily!


I hope this post on How To Start A Logistics Business In Nigeria helps you with knowing what you need and what you don’t. Logistics business in Nigeria isn’t really saturated compared to other businesses. So, I’d advise you to go for it if you feel like.

Meanwhile, I can help you complete your logistics business plan by building you a professional website that’d serve it’s purpose.

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