Go back to the  EXPORT CENTER

How to regularly earn N400,000 to N800,000 in a month in Haulage business




Nigeria has the largest road network in West Africa and the second largest south of the Sahara, with roughly 108,000 km of surfaced roads

The population is there, the environment is good, it is a good business, and more people should come into it. It is a business anybody can do

Transport business in Nigeria is as old as the nation itself and there is no doubt that those in the business have been known to have contributed in no small way to the economic development of the country. Transport plays an important role in most business activities. Efficient transport is an essential component in the production and distribution process - commonly referred to as supply chain logistics

Haulage business: Haulaging is selling like wild fire, The returns you will make mainly depends on what your truck will be doing, Haulage is a broad area and all spheres of haulage have its specific intricacies, the good news is  that it is not so difficult to learn You can want to haulage for oil majors like TOTAL, OANDO, CONOIL or Telecoms companies like MTN, ZAIN, ETISALAT, GLO  etc, manufacturing Nestle, Glaxo etc, However, all these companies  have stringent entry procedure and requirements, so your option going in as an individual may mean merging with some other person who is in the business. all you need to do is sit back and wait for your monthly earning which can be up to 800,000k (depending on the type and age and tonnage of your truck). My research took me to some firms and I discovered how some Nigerians have been consistently collecting this money, I saw a long list of signatures with a correspondent amount

Even the Trucks in the Country now are not enough to satisfy the need of this sector.

Contractual  agreement: Depending on the agreement you have with the haulage company, some of them would manage your Truck for you, employ the Driver and a motor boy and help you do all the major and minor repairs, all you need to do is to go to their office and collect your money at the end of the month. The Trailers can conveniently make as much as N500,000 to N600,000 in a month, but all these expenses has reduced the monthly take home of the Truck owner to between N350,000 to N400,000 in a month

Truck driving a money-spinner: Drivers frequently travel at night, on holidays, and weekends to avoid traffic delays and to deliver cargo on time. Truck drivers must cope with a variety of working conditions including variable weather and traffic conditions, boredom, and fatigue. Many truck drivers, however, enjoy the independence and lack of supervision found in long-distance driving .They collect 10% of the money they make in every trip- which makes them earn as much as N100,000 in a month

 Buying a Trailer: Brand new Trailer cost between N15 to N20million at Leventis and UAC while you can get the second hand popularly known as Tokunbo for N6 to N7million, some of the Tokunbo are imported from Belgium, Germany and united Kingdom you can buy a Trailer head and refurbish the engine to standard, in total it can cost you between N3 to N3.5llion A Trailer Tanker cost between N3 to N3.6million.Road Haulage is clearly a huge industry with many and varied opportunities for anybody that is interested to invest in it. Almost 90% of the Trailers on our road are second hand and they are still OK,. If you don’t want to spend a lot of money you can decide to rent the back which goes for N30,000 in a month, you will need to pay for 4 month which is N120,000

Financing the business:  There are some financiers that are ready to finance this project if you can convince them. The major financing option that is available is leasing. Generally, equipment leasing is regarded as a usage agreement between an equipment owner “the lessor” and a user of the equipment “the lessee” whereby the lessee remits to the lessor a periodic rental fee as compensation for the usage of the equipment. How a lease is viewed and utilized varies considerably, although there are two major forms: finance lease and operating lease. Finance lease, which is the most common type of lease in Nigeria and the rest of the world substantially, transfers all risks and benefits of ownership to the lessee while the lessor still retains title to the equipment, which may eventually be transferred. In Operating lease, a substantial part of the risks and rewards incident to ownership are not transferred to the lessee. The term operating lease encompasses the short-term hire of equipment such as Trailers, motorcars, barges or boats. Leasing provides the lessees the opportunity of payment over a longer period than with most other forms of financing. This allows the lessees the opportunity of reducing financial commitments particularly in times of stress

Tipper: They carry granites from Quarry to different part of the Country. Any investor in this type of business is advised to register with the Quarry, they make 2 trips every day and they charges between N30 to N35, 000 per trip. A good tipper cost between N4Million to N5Million naira and you are entitled to about N400,000 in a month.

 If you can give your tipper to a manager to manage for you.

I wish to personally congratulate you on your ambition to join one of the fastest growing businesses in Nigeria and the entire Continent. This dream of yours will definitely ensure a very comfortable living for you and your loved ones...... Guaranteed!

Tunji Afuwape

Small business and SME Finance expert


Tel: 08033224392