How Profitable is Haulage Business in Nigeria?

The haulage business in Nigeria is a cornerstone of logistics, crucial to nearly every sector of the economy—from agriculture to construction, oil and gas, FMCG, and retail. With the continuous rise in demand for transportation of goods across the country’s 36 states and the Federal Capital Territory, many entrepreneurs are beginning to eye the haulage industry as a viable and lucrative venture.

What is Haulage?

Haulage refers to the commercial transportation of goods by road, rail, or water. In Nigeria, road haulage dominates due to the country’s underdeveloped railway infrastructure and limited inland water transport networks. The business typically involves trucks, trailers, vans, tippers, tankers, and sometimes pickup vehicles used to convey raw materials, finished goods, or bulk commodities.

Why Haulage is Profitable in Nigeria

• High Demand: Businesses depend heavily on transportation to move products from production points to markets and consumers.
• Rapid Urbanization: As urban centers expand, the need for materials like cement, steel, and consumer goods rises, creating transport opportunities.
• Infrastructural Projects: Ongoing government and private construction projects continuously require logistics support.
• E-commerce Growth: Online shopping platforms depend on last-mile delivery, further fueling the logistics sector.
• Scarcity of Reliable Operators: There’s still a shortage of trustworthy, well-managed haulage businesses, giving room for serious investors to dominate.

Cost Considerations

While the business can be highly profitable, it’s also capital-intensive. Initial costs may include:

• Truck purchase (new or used)
• Vehicle registration and licensing
• Insurance and tracking devices
• Driver recruitment and training
• Maintenance and repairs

For instance, a brand-new truck may cost between ₦20 million and ₦40 million, while a used one could go for ₦5 million to ₦15 million depending on capacity and condition.

Expected Returns

Monthly earnings vary depending on the niche and distance covered. A 30-ton truck used to haul cement from factories in Kogi or Ogun to Lagos, for instance, can earn between ₦800,000 to ₦1.5 million per month. After deducting running costs (fuel, tolls, driver salary, repairs), an average monthly profit of ₦300,000 to ₦600,000 is realistic.

Challenges in the Haulage Business

• Bad Road Conditions: Many Nigerian roads are poorly maintained, leading to vehicle damage and delays.
• Driver Issues: Theft, negligence, and lack of accountability from drivers can reduce profit margins.
• Security: Risk of robbery or hijacking on long routes.
• Fuel Price Fluctuations: Operating costs rise when diesel becomes expensive.
• Vehicle Downtime: Breakdowns or accidents can halt operations for days or weeks.

Tips for Success

• Start small—consider leasing before buying multiple trucks.
• Install vehicle tracking devices to monitor movement and fuel consumption.
• Hire experienced drivers and have a backup team.
• Partner with reliable clients and maintain strong contractual agreements.
• Plan for insurance and periodic maintenance.

Conclusion

The haulage business in Nigeria is profitable—especially when approached with careful planning, strong management, and a long-term vision. While the initial investment is considerable, the recurring income and high demand make it a solid venture for anyone looking to tap into Nigeria’s transportation and logistics ecosystem.