How to Start Oil Haulage Business in Nigeria

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Overview of The Oil Business and Haulage Services

Oil haulage business in Nigeria  is undoubtably one of the most lucrative business. Practically, haulage is one of the most highly recognized and admired business you can venture into in Nigeria despite the current economic and political state of the country. Although its expensive  considering the startup capital/fund s required. Haulage simply refers to the transportation of goods and services from one part of the country to the other. Haulage services is rendered using vehicles that are capable of lifting much quantity of goods at a time.

One of the most profitable businesses to venture as a businessman in Nigeria is the oil and gas business. Petroleum products such as natural gas, fuel, kerosene, petrol, engine oil, diesel etc are highly demanded products which almost everybody requires to do anything (to cook, to illuminate the house, to fill the car tank etc).

In Nigeria, they have been a conundrum of electrical challenges as the light isn’t stable and static. This has made people get generator sets to provide a secondary source of electricity for themselves. In order for people to get petroleum products, there has to be a haulage service on the ground to ensure that these petroleum products get to the areas where they are demanded and needed.

READ MORE: Top 10 Oil Rich Countries in Africa

Reasons Why You Should Start Oil Haulage Business

  1. There is a constant demand for petroleum products in Nigeria. People require a secondary source of energy and power for their vehicles and technological devices. You can start up a haulage business to supply and move engine oil and other petroleum products to the regions and places where they are heavily demanded and used.
  2. Oil is a dangerous element which can get inflammable at any point in time. It would be dangerous and risky for people to hold on keep possession of oil products, but with the help of an oil haulage outlet, there would be a facility which will ensure that these petroleum products are kept safe and secured.
  3. The oil haulage business is really lucrative. Although it requires a high capital for a startup, nevertheless, the owner can get to reap his investments quickly.

Steps To Start Your Own Oil Haulage Business In Nigeria

  1. Before you start up your own oil haulage business in Nigeria, you should have a business plan which will be a guide to help you get started. Firstly, you should consider your options and opportunities; if you are going to be doing the business in a particular location like Uyo or, you would have to do it in different cities like supplying from Uyo to Onitsha, Port Harcourt, Asaba, Owerri etc.
  2. Register your business with the Corporate Affairs Commission as an individual or company. After that, you should register and secure your membership with NUPENG. As a NUPENG member, you are recognized as an oil dealer.
  3. Enter into a formal agreement with major marketing companies in Nigeria like the Total, Oando, TEXACO, mobil etc.
  4. Set out to buy your own truck and haulage vehicles to transfer and transport petroleum products.

Conclusion

There are many opportunities for entrepreneurs, businessmen and investors in the oil haulage business in Nigeria. It is important for you to start with a niche like oil, if you are new in the business. As time goes on, you can expand your coast and trade in other petroleum products. With this post, you are sure of building and starting an oil haulage business in Nigeria. Go ahead and invest in this lucrative business opportunity.

Also, you could share your ideas and opinions and ask questions by leaving a comment at the end of this article.

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