How to Start a Dispatch Business in Nigeria

by Fikayo Moronkola
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How to Start a Dispatch Business in Nigeria
In order to make the best decision for starting a dispatch business in Nigeria, several factors need to be considered. To begin, you need to go further in the article to discover steps to starting a dispatch business in Nigeria!

Dispatch riders in Nigeria have increased in large numbers due to high demand from individuals and organizations for quick and efficient delivery services. 

In addition, the rise of e-commerce globally has taken a great leap, and its explosion is seen significantly in Nigeria. Surely, the dispatch business is expanding across the world in no time!

What We Covered In This Article

Reasons to Start a Dispatch Business in Nigeria

Nigeria is highly populated, and a good number of the population are seen daily making market runs from foodstuffs to electronics. Technology advances, making home market delivery a great experience in Nigeria.

Starting a dispatch rider business in Nigeria may be challenging due to the need for a suitable bike, time commitment, and extensive travel. Very understandable! But the dispatch riding business is very beneficial, and you are sure to make a lot of money from the business.

Do you have transportation skills, efficient delivery service experience, and want to start a dispatch rider business in Nigeria? This article is for you to help you capitalize on making tour dispatch riding business work and be a lucrative business. 

Join the ride to discover all about starting a dispatch riding business in Nigeria…

 

Economic Overview and Size of Dispatch Riding Business in Nigeria

Dispatch riders belong to the logistic industry and the sector is estimated to be worth 250 billion naira as of 2018 and it is expected to triple in 2025 in Nigeria. The logistics’ worth is significant to Nigeria’s economy as e-commerce grows.

Also, the dispatch riders earn a monthly salary in the range of N94,300 in Nigeria. This further proves that the dispatch riding business is getting bigger and expanding. As there are a lot of dispatch riding businesses spreading across various states in Nigeria. 

Your innovative dispatch riding business could be among, the next phase!

 

Five Top States Where Dispatch Business Will Thrive

Lagos

A state that is largely populated, the economic hub of Nigeria, one of Africa’s major financial centers. Lagos has a great influence on the economy of Nigeria in terms of technology, commerce, education, entertainment, fashion, art, and politics. 

The state of Lagos is always in buzzing motion with vibrant city life. As you are looking to start a dispatch business, Lagos is a state where opportunity is large and businesses thrive if you utilize and maximize opportunities.

 

Here are a few top dispatch businesses in Lagos:

Gokada

An innovative start-up that focuses on logistics. With over 1200 riders employed this start-up had been able to deliver a million valuable parcels across various states in Nigeria. 

Location: 11 Tinubu Street, Onipanu 100252, Lagos

 

Tranex Logistics

Tranex is a leading logistic business that specializes in international and domestic express delivery, storage services, freight, and ancillary transportation among others. This logistic business also includes other vehicles such as delivery vans, delivery buses, and delivery trucks apart from delivery motorcycles. It is considered among the best for having a food tracking system for deliveries.

Location: 28, Oshodi Apapa Expressway, Oshodi, Lagos

 

Red star express

Red Star Express is a dispatch business that utilizes problem-solving techniques to provide solutions related to logistics. They offer services in freight forwarding, warehousing, food delivery, packaging, and domestic and international express delivery, among others.

Location: 70, International Airport Road, Lagos.

The Lagos state government agreed to reduce operations related to E-hailing by 20%.

 

Abuja

Ranking eight in being one of the most populous countries in Nigeria. Abuja is known for being a well-planned city and fast-growing city in Africa’s continent and it is known to have a good transportation system from the Airport to Highways.  So far, Abuja is a state where several parks and green spaces are common.

Here are a few top dispatch businesses in Abuja:

 

– Ellvon Logistic Services

Ellvon Logistics is a professional dispatch business that works with well-trained professional riders. This business is known for its excellent services for ensuring goods are delivered in good condition with good customer service.

Location: No 18A, 241 Road 24 Crescent 2nd Gwarinpa, Abuja, Nigeria

 

Yippeehub Logistics

Yippeehub Logistics strives to be among Abuja’s leading logistic businesses by offering exceptional services in terms of professionalism, efficiency, and dependability. This business works with delivery parcels quickly without compromising workers’ safety. 

Location: Suite A7 Bensima House, Red Sea, close to Aguyi Ironsi Street Maitama, Abuja

 

Gare’s logistics

Gare’s Logistics is a business that has a track record of delivering parcels in good conditions and on time. This business invests in hiring qualified and well-trained trained who understand that no matter the size of the delivery, its importance cannot be compromised.

 

Akwa Ibom

Akwa Ibom State is known for its beautiful scenery and natural landscape and is ranked fifteen among the most populous areas in Nigeria. The state is famous for its wildlife reserves, and resorts. Also, it is a city which utilizes its culture and natural environment making it an attraction for tourists.

Here are a few top dispatch businesses in Akwa Ibom State:

 

ADE Express Service Limited

ADE Express Service Limited is considered to be an indigenous courier company that specializes in delivering parcels to its clients in Uyo and also Lagos. This company is currently four years in business with a total number of fifteen employees.

Location: No 20 Tonyllen Crescent, Off Chief Sylvania Okon Avenue, Uyo, Akwa Ibom

 

Manchester Limited Dispatch Service

Manchester Limited Dispatch Service has been running for five years now with eight employees in total. This business aims to work with technology in terms of using AI to ensure items are delivered seamlessly to clients.

Location: 3 Etim Okon Avenue Shelter Afrique, Uyo, Akwa Ibom

 

JEAX Logistics Nigeria

For eleven years, JEAX Logistics Nigeria has been a company that has worked towards delivering packages to clients within and outside Uyo province in a swift manner as much as possible. The company works with ten employees in total at the moment.

Location: 53 Udoette Street, Uyo, Akwa Ibom

 

Oyo

Oyo state is the third most populous city in Nigeria. The state is popularly known for its agriculture and education as the city’s economy is largely dependent on its agriculture. Tourist attractions such as botanical gardens, zoological gardens, and national parks with various historical sites in the city are not excluded.

Here are a few top dispatch businesses in Oyo State:

 

Haulready Logistics

Haulready Logistics is a company that works with on-demand logistics and delivery of food, groceries, and pharmacy supplies. Their operations are based on pick up and drop off. Overall, the company currently has fifteen employees over 2 years since it was founded.

Location: K3 Plaza, After Bravo Filling Station, Kuola, Akala Express, Ibadan, Oyo

 

Nurolax Logistics

Nurolax Logistics is a company that targets utilizing good customer service for their business by engaging in corporate delivery by ensuring quick delivery and fast pickup and delivery process. Prior to this the business is three years in with four employees since its founding.

Location: No 18, Barika street, Opposite U.I 2nd gate, Ibadan, Oyo

 

Caresgate Africa Ltd

Caresgate Africa Ltd is a logistics business with ten employees in total and two years in business. This logistic business strategy on return logistics, pick up and drop off, on-demand logistics, and next-day delivery. Likewise, they aim at covering the entire Ibadan Metropolis through their delivery system.

Location: K3 Plaza, Akinigan Area, (Near Bravo Filling Station), Akala Express, Apata, Ibadan, Oyo

Rivers

A city recognized as a commercial center for the Nigerian oil industry and ranked as the seventh most populous state in Nigeria. River’s state has a geography where rivers are largely dominated, and it has fast growth in terms of urbanization and infrastructure development. In fact, the city has a gross domestic product of $51.529 billion as of 2021.  

 

Here are a few top dispatch businesses in Rivers State:

Doesitexpress

Doesitexpress engages in services such as – delivery service, rare services, and grocery shopping. As a result, this logistic business works towards delivering items across the city of Port Harcourt. They also work with the aid of a GPS navigation tracking system for their dispatch of bikes, vans, and trucks.

Location: No 2, Old Aha Road, Rumuakwuruchi, Port Harcourt, Rivers State

 

Bluehost Dispatch

Bluehost Dispatch business is a logistic business that offers door-to-door delivery, errands, office delivery, grocery shopping, waybill pick up, and document dispatch. In fact, their business goal is to offer delivery systems that are reliable, fast, and affordable. Their price range is between N1,000 to N3,500, 500.

Location: 11, Bori Street, Rumuibekwe, Port Harcourt, Rivers State 

 

Rickgreen Integrated Services

Rickgreen Integrated Services has been in five years in business, and it is considered to be among the fast-growing delivery service provider in Port Harcourt. In addition, they have vibrant and experienced staff with over 50 trucks registered in their business for efficient delivery to clients.

Location: Phase 2, 21 King Perekule St, GRA, Port Harcourt, Rivers State

Qualities needed to start a dispatch business in Nigeria

As an entrepreneur that you are looking to start your own dispatch business, it is important to take note of certain qualities required I’m the dispatch business. Having an understanding of these qualities gives you an edge in the World of Dispatch business. 

The qualities include:

  • – Your business must be one where employees know the crooks and crannies of location. If the road is unfamiliar, the employees must be well-trained to use Google Maps and other navigation systems.
  • – Dispatch business should have good customer service and employees must be well trained to have good customer relationship skills.
  • – A brand must include trustworthiness where customers have good feedback concerning the business delivery system.
  • – The company must teach fundamental courses on the basics of riding motorcycles, vans, bus as well as road regulations and signs.

Cost Factors needed to Start a Dispatch business

For every business, knowing the cost expenditure to start a business is among one of the smartest moves an entrepreneur can make. This smart decision is also applied to starting a dispatch business in Nigeria. There are certain cost factors listed below, that you could consider while drafting out your business plan for your dispatch business. 

1. Cost of starting a dispatch business in Nigeria

Consider the average cost required to start a dispatch business in Nigeria. From research, the average amount required to start a dispatch business is estimated to range from N500,000- N600,000 in Nigeria.

2. Cost of registering the business

The cost of registering a business is as important as starting a business because a registered business is likely to be seen as an authentic business to which clients are willing to pay their money and investors are willing to make investments. 

In Nigeria, the cost of registering a dispatch business is estimated to cost a minimum of N100,000 share capital.

3. Cost of purchasing equipment

It costs a range of N200,000- N350,000 to get a brand new 200cc bike which is among the equipment needed to start a dispatch business in Nigeria.

 Other equipment to consider purchasing include:

  • – Cost of bus, truck, and cargo bikes
  • – Price of the dispatch box
  • – Amount of stationery
  • – Price of office computer and telephone
  • – Fee of dispatch business software
  • – Cost of Accounting

4. Cost of renting an office to start a dispatch business in Nigeria

According to the Nigeria Property Centre, the minimum cost of renting an office space in Nigeria is N75,000 per annum while the average price is estimated to be N5,000,000 per annum. 

As a matter of fact, it is important to note that the cost of renting an office to start a dispatch business in Nigeria would vary based on location such as the States in which you chose to have your office based.

Top bikes for dispatch business in Nigeria

Choosing the right motorcycles to a great extent determines the quality of your delivery system when starting a dispatch business in Nigeria.

 Whether your dispatch business would be focused solely on motorcycles or a combination of motorcycles with other vehicles such as buses or trucks, it is vital to invest right. 

In light of this, here are a few motorcycles considered to be top motorcycles you should consider investing in for your dispatch business in Nigeria. 

They are:

Qlink legend 250

– Front and rear disc brakes for safety
– 200cc single-cylinder
– Four stoke engine
– Ease of maneuverability
– Legacy 250 with audio system for FM radio and USB port

YamahaAG200

– Strong and resilient
– 4-stroke engine
– Single cylinder
– Additional front drum brake
– Designed for roads with rough conditions

Sinoki Supra

– Swift deliveries
– Excellent fuel efficiency
– 200cc V4 engine

Steps required to start a dispatch business in Nigeria

1. Business Plan

Detail out your business goals, and objectives. Also, your business plan should include a vision and mission statement, legal plan, business growth strategies, SWOT analysis, competitive advantage, business location, cost of labor, and revenue projection about your dispatch business in Nigeria.

2. Raise capital for your business

To start your dispatch business in Nigeria, there are certain funds you need to raise based on the financial goals of the company. Moreover, you can raise capital through investment in the business, and investment in other assets and you can utilize partnerships. 

Other ways include- crowdfunding, angel investment, and private equity and if your dispatch business is on a small-scale basis, you can decide to fund it yourself. 

3. Get the necessary logistics business permit

To do so, your vehicles used for your dispatch business need to be inspected by Vehicle Inspection Officers (VIO), State Ministry of Transportation to get the necessary approval and permits needed to run your dispatch business in Nigeria. 

4. Register your vehicle with a Vehicle registration center

To register your dispatch business vehicles in Nigeria, you need to get a complete form MVAO1, pay the fee prescribed, submit a tour payment certificate, obtain the necessary insurance, certificate, and get a roadworthiness certificate according to the Nigeria highway code.

5. Register your business with the Corporate Affairs Commission (CAC)

The Corporate Affairs Commission is a vital registration process for any business that wants to operate in Nigeria. For your dispatch business, you need to –

  • – File for a name reservation which is reserved for 60 days due to when the registration process is completed.
  • – Fill in the business, email address of the company, phone number, registered office address, information about the first director, share capital amount, information on shareholders, information about the company secretary, memorandum and articles of association, information of witnesses, signatures of directors, shareholders, and witness.
  • – Pay the CAC fee
  • – Get a stamp duty to the Federal Inland Revenue Service Fees
  • – Await response after completion from CAC

6. Get an office space

The purpose of the office space for your dispatch business in Nigeria is to be able to handle customers’ orders and inquiries and receive and organize delivery orders efficiently and effectively.

Furthermore, if you want to take your dispatch business to a bigger size, other steps to take are below.

7. Get an office phone to communicate with clients

Presently, most business utilize technology to effectively handle work transactions. Having an office space is one step, the other step deals with having an office phone. With this in mind, check out this website on office phone recommended to kickstart your business.

In addition, you could invest in a mobile phone for your dispatch business transactions. Reason being, to avoid overload of information between personal and business deals.

 

8. Purchase the necessary equipment needed to start a dispatch business in Nigeria

In view of equipment for your dispatch business, setting out a budget is a good start before purchasing items. Also, having a list of essential equipment or basic items would help you in terms of choosing equipment among various brands. 

9. Invest in branding, marketing, and advertising your dispatch business

Generally, successful business can testify that a good brand helps to attract investors and customers. In light of this fact, invest in coming up with a brand that would speak for your business. Also, work on advertising strategies that would help put your dispatch business out there. Look out for partnership with companies and business that need the services of a dispatch business in Nigeria and international.
 

FAQs

How lucrative is dispatch business in Nigeria?

The dispatch business is solving a major problem in Nigeria- Traffic Jams. With dispatch bikes being able to maneuver their way around traffic jams and their popularity in being able to speed up delivery, this business is not going anywhere soon. 

It is lucrative as the minimum salary dispatch riders earn in Nigeria is N49,000. With the large number of e-commerce businesses taking shape in Nigeria, starting a dispatch business would be a profitable one for you to meet your financial needs. 

Are there regulations in Nigeria for dispatch business?

Yes, regulations are guiding the courier and logistic sector generally in Nigeria to which dispatch business belongs. The essence of the regulations is to ensure an efficient and effective delivery system, business licensing process, licensing procedure, and safety related to the courier and logistic sector in Nigeria.

What registration and approvals does a dispatch business require to operate in Nigeria?

There are certain regulations and approvals needed by dispatch business in Nigeria. A few are mentioned below to help you get started on the right foot in your business. 

They include:

  • – Tax registration where you register with the Federal Inland Revenue Service (FIRS) for business tax purposes
  • – Get the Nigeria Postal Service (NIPOST) courier license and it is estimated to cost a fee of N20,000 to start the application process to obtain the license

In addition to the registration required, each states have certain license vehicles are required to obtain before they can be seen in operation. Take note of this fact while choosing your dispatch business location in Nigeria.

How to succeed as a dispatch rider in Nigeria?

Truly, there is a high demand for dispatch business in Nigeria and the World globally and it means the competition would be tough to an extent. Your dispatch business can be a top contender by continuously growing and expanding with the help of facts and figures.

In this section of the article, take a look at a few tips to keep your business up and going in the busy yet thriving nation of Nigeria:

  • – Participate in training programs for your business and if you have employee, conduct monthly training sessions to build up their skills too.
  • – Set decent expectations by working with your goals and visions of your dispatch business and consistently revise them to see if they fit the current striking factor in the dispatch business sector at the moment.
  • – Accept feedback and engage in trend research, learn from your competitors, and work with constructive criticism for your dispatch business.
  • – Work with dispatch management software as technology helps to leverage various businesses, it might cost but make sure to invest wisely in your dispatch business to see it succeed.
  • – Plan your business schedule to fit the interests of your employees because a successful business work has happy and productive employees.

Conclusion

Indeed, this has been a lovely ride here in this article where it is all about starting a dispatch business in Nigeria. Overall, Nigeria is truly a country of opportunities, with the number of information loaded in this article. Also, you could grasp it with passion as well as dedication to invest wisely in achieving one of your major goals starting a dispatch business in Nigeria.

 From learning about dispatch business in five states to learning about the steps required to start a dispatch business in Nigeria with vital information on licenses, and regulations governing the logistic industry. Surely, you are on a ride to meeting other dispatch businesses at the top as well as making good profits for yourself this lucrative business.

 Do you still want to start a dispatch business in Nigeria? If yes, use your innovative mind, utilize technology, and work towards achieving your goal.

 

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