How To Start Petroleum Haulage Service Business In Nigeria

by Demi

Looking to learn all about Petroleum Haulage Service Business in Nigeria and getting a haulage business plan to kickstart your operations?

The petroleum haulage service business in Nigeria involves the transportation of petroleum products such as diesel, petrol, and kerosene from the refineries or depots to the final consumers or retailers. This business is very lucrative as petroleum products are always in high demand.

How To Start Petroleum Haulage Service Business In Nigeria

In this article, we will provide a step-by-step guide on how to start a petroleum haulage service business in Nigeria.

Step 1: Conduct a Feasibility Study The first step in starting a petroleum haulage service business in Nigeria is to conduct a feasibility study. This will help you determine the viability of the business in your chosen location, the market demand, the competition, and the required capital.

Step 2: Register Your Business After conducting a feasibility study, the next step is to register your business with the Corporate Affairs Commission (CAC) in Nigeria. This will give your business legal backing and enable you to operate without any legal hassles.

Step 3: Obtain the Required Licenses and Permits To operate a petroleum haulage service business in Nigeria, you need to obtain the necessary licenses and permits from the Department of Petroleum Resources (DPR) and the Federal Ministry of Transport. These licenses and permits include the Petroleum Tanker Driver’s License, the Road Worthiness Certificate, and the Dangerous Goods Permit.

Step 4: Acquire a Petroleum Tanker Truck You will need to acquire a petroleum tanker truck to transport the petroleum products. The type and size of the truck you need depend on the volume of petroleum products you intend to transport. It is important to ensure that the tanker truck is in good condition and meets the safety standards set by the DPR.

Step 5: Employ Qualified Drivers and Conduct Regular Training You will need to employ qualified and experienced drivers to operate the petroleum tanker truck. It is important to conduct regular training for the drivers on safety measures, defensive driving, and product handling to ensure that they comply with the safety regulations set by the DPR.

Step 6: Obtain Insurance Coverage It is important to obtain insurance coverage for your petroleum tanker truck to protect it from accidents, theft, and damage. The insurance should cover third-party liability, comprehensive coverage, and product liability.

Step 7: Build a Network of Customers To succeed in Nigeria’s petroleum haulage service business, you need to build a network of customers who will patronize your services. You can do this by networking with petrol stations, filling stations, and other petroleum product retailers.

Step 8: Establish a Maintenance and Repair Schedule To ensure that your petroleum tanker truck is always in good condition, it is important to establish a maintenance and repair schedule. This should include regular oil changes, tire rotations, and brake inspections.


The choice of trucks for haulage in Nigeria depends on several factors such as the type and volume of goods to be transported, the terrain and road conditions, and the distance to be covered. However, some of the best trucks for haulage in Nigeria include:

  1. Mack Granite: The Mack Granite is a heavy-duty truck that is ideal for long-distance haulage. It has a robust chassis, high horsepower engine, and spacious cab that provides maximum comfort for the driver.
  2. Mercedes-Benz Actros: The Mercedes-Benz Actros is a premium truck that is known for its reliability, fuel efficiency, and safety features. It is ideal for hauling heavy loads and operates well on both smooth and rough terrains.
  3. Volvo FH: The Volvo FH is a versatile truck that is suitable for both short and long-distance haulage. It is known for its advanced safety features, fuel efficiency, and comfortable driving experience.
  4. DAF XF: The DAF XF is a high-performance truck that is popular among haulage companies in Nigeria. It has a spacious cabin, powerful engine, and advanced safety features that make it suitable for long-distance haulage.
  5. Howo A7: The Howo A7 is a Chinese-made truck that has gained popularity in Nigeria due to its affordability and durability. It is ideal for hauling both light and heavy loads and has a fuel-efficient engine that helps to reduce operational costs.

In conclusion, the choice of truck for haulage in Nigeria depends on several factors, including the nature of the goods to be transported, the terrain, and the distance to be covered. The trucks mentioned above are some of the best options available in Nigeria and offer a combination of reliability, durability, and fuel efficiency.

In conclusion, starting a petroleum haulage service business in Nigeria requires careful planning, adequate capital, and compliance with the safety regulations set by the DPR. By following the steps outlined in this article, you can successfully start and operate a profitable petroleum haulage service business in Nigeria.

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Best trucks for haulage in Nigeria


1.0. Industry Overview

The Freight Packaging and Logistics Services industry is an industry that tasks itself with the responsibility of providing packing and crating services for the movement of goods. The industry comprises of companies that provide a joint service of freight consignments, preparation of trade document, packing, crating and other processes involved in preparing goods for transportation and also in providing logistics consulting services.

Growth in this industry is directly proportional to growth in some sectors and some other factors, for example, growth in the manufacturing sector, consumption, international trade and also increase in technology reliance will mean growth for logistics consulting and advisory services. But technology might seem a threat as it can also cut of some jobs for the industry.

The Freight Packing & Logistics Services Industry is indeed a very thriving industry in most countries of the world. It is a major sector of the economy of Nigeria and a whooping sum of well over billion annually from more than 5,000 registered logistics services companies located in the Nigeria. The industry growth is obvious by the way it suffices as one of the industries that provide the majority of the jobs within the country as it is responsible for the employment of well over 31,785 people. Packing and crating involves putting freight into various containers that preserve the goods to be shipped, these could range from crates, pallets and plastic wraps. Many companies also offer specialized services, which includes packaging unique products such as industrial equipment, artworks and weapon systems as this also distinguishes them from each other and gives the customer the luxury of choice depending on what good needs to be shipped. Most of the companies in the industry may also offer freight consolidation, meaning they combine many frequent, small shipments that are bound for a similar geographical region into a single large shipment to reduce per-unit shipping costs and other miscellaneous.

No doubt starting and operating a freight packing and logistics services company is always capital intensive and seems a herculean task because it is challenging, but the truth is that its rewards in terms of profit numbers are astronomical at the same time. But despite it being capital intensive, the industry is open for both big-time investors who have the funds to start the business with a lot of employees from a big office facility and aspiring entrepreneurs who may want to start from a shared office space and few employees.

2.0. Executive Summary for haulage and logistics business plan

MoveAndHaul Freight Packaging & Logistics, Co is a registered and licensed Freight Packaging & Logistics Services Company that will be based in Apapa, Lagos. We are in business to provide services involved in freighting and cargo transporting ranging from packing goods for transportation, crating goods for transportation, and wrapping goods for transportation, freight consolidation, preparing trade document, storing goods prior to and after freight, physical distribution consulting and logistics consulting. MoveAndHaul Freight Packaging & Logistics. Co has been able to get its hands on all-important licenses and permits to operate throughout the country and other countries where goods are likely to be imported from which include China, United States, India, among others. We will ensure that we abide by the rules, regulations, and policies laid down by government guiding the freight packaging industry. Our customers and potential customers alike can be rest assured that they will get nothing but quality services at reasonable and affordable rates as our services are customer-centric. We will always prove this by going the extra mile to ensure the safety of goods under our care and our customers will always get value for their money. At MoveAndHaul Freight Packaging & Logistics, Co our goal is to provide excellent service to our customers and we pride ourselves on the integrity and competence of our company and our employees.

Our service offerings are listed below; packing goods, crating goods, wrapping goods, freight consolidation, trade document preparation, storing goods prior to and after freight, physical distribution consulting, logistics consulting, packing services for motor carrier and storage services

3.0. Our Mission and Vision Statement

Our Vision

To become one of the go-to choices of individuals and organizations when freight packaging and logistics services is needed as far as the majority of Nigeria is concerned.

Our Mission

To ensure that we build a successful freight packaging and logistics company that will operate in Nigeria; a company that will grow to be listed amongst the five stars rated freight packing and logistics services company in the country.

4.0. Our Business Structure

The structure of the business is modelled in such a manner that accommodate different forms of employment, from full-time to part-time workers. Few employees will be needed to get the business going at first, these full-time employers will be responsible for documentation, handlers of professional materials, IT and infrastructure personnel majorly the back-office staff, sales and marketing personnel will be taken up by freelancers.

It is up to us to hire hardworking, creative, qualified personnel that are ready to manage resources given to them to contribute to the building and maintenance of our business into a prosperous one that will benefit all stakeholders (the owners, workers and the customers).

For now, we will the maintenance of our trucks will be handled by the providers of that service, we don’t intend to maintain a very large overhead from the jump. But as soon as the business grows and stabilizes, we will assemble our own in – house maintenance team. Below are the business structure and the roles that will be available at the company;

  • Chief Operating Officer (Owner)
  • Admin and HR Manager
  • Freight Packing and Logistics Manager
  • Marketing and Sales Executive (Business Developer)
  • Accountant Material Handlers/Yard Spotters/Forklifts
  • Operators
  • Customer Services Executive/Front Desk Officer

5.0. SWOT Analysis

Going by our vision, our mission and the kind of business we want to setup, we don’t have any other option than to follow laid out process and these processes involves hiring business consultant to help us conduct SWOT analysis for our business. We employed a competent business consultant to help us conduct a SWOT analysis and to help us in formulating other business tactics to create strategies that will help us build our business and be fledged to compete in the freight packaging and logistics services industry. As a company, we are enthusiastic about maximizing our strength and opportunities and also to overcome our weaknesses and abrogate all threats;

Strength: Our strengths are strong management, the robust network serves some of the largest population centers in the country including size advantages, cost advantages, customer loyalty and strong reputation amongst domestic and industry players. Basically our business is centrally located in a densely populated industrial and residential estate in Apapa; our location is, in fact, one of our major strength. Another strength that counts for us is the power of our team; our workforce and management. We have a team that is considered experts in the freight packaging and logistics services industry, a team of hardworking and dedicated individuals.

Weakness: Our weakness could be lack of finance, cost structure, lack of scale compared to our peers who have already gained ground in the industry. As a new business which is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business. As a new business, we are also quite aware that it will take time for us to build trust with our clients.

Opportunities: The opportunities that are available to us as a freight packaging and logistics services company in the United States are online market, new services, new technology, and of course the opening of new markets.

Threat: Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn) as it will affect consumers spending, stiff competition, and volatile operational costs. Other threats that are likely going to confront us are unfavourable government policies, seasonal fluctuations and of course the advent of new competitors within the same location where ours is located.

READ -10 Good Business Plan Ideas with 100k in Nigeria

6.0. Our Target Market

Our target markets are basically everyone (organizations and individual as well who have cause to move documents, goods and materials from one location to another. In other words, our target market is the whole of Nigeria and below is a list of the people and organizations that are future prospects;

  • Merchants and Warehouse Operators
  • Retailers who would want to move their goods from one location to another
  • Manufacturers (Chemical manufacturers and Textiles manufactures)
  • Households who would want to move from one apartment to another
  • Corporate organization who would want to move from one office to another
  • Government agencies who have cause to move goods and materials from one location to other locations
  • Churches and religious organizations that would want to move instruments and equipment from one location to another
  • Non – Profits and Charity organizations that have cause to move goods and materials from one location to another.

7.0. Our Competitive Advantage

The freight packaging and logistics company is characterized by a competition that is rather stiff because of the industry doesn’t require skill or prowess, anybody in the possession of funds and a certain level of business expertise can easily start the business.

Although, the freight packaging and logistics services industry requires some form of training and some level of expertise, but that does not in any way stop any determined entrepreneur from going ahead to start the business and still make astronomical figures as profit out of this business. The business model we will be operating on, ease of payment, wide range of services and our excellent customer service culture will definitely count as a competitive advantage for MoveAndHaul Freight Packaging & Logistics, Co. So also we have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and deliver parcels and consignments safely, and on time both locally, nationally and international level. Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups freight packaging and logistics services companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

Now that you know How To Start Petroleum Haulage Service Business In Nigeria, are you ready to get a business plan to go alongside with?

How To Download The Haulage Business Plan Template PDF (with financial analysis)

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