Starting a Logistics Business in Lagos: A Step-by-Step Guide
- Ajibade Omolade Chistianah
- Jun 11
- 3 min read
The logistics industry in Lagos is booming, thanks to the rise of e-commerce, increased urbanization, and the city’s status as Nigeria’s commercial nerve centre. From food delivery and parcel transport to haulage and last-mile distribution, the opportunities are vast but so are the challenges. Starting a logistics business in Lagos requires more than just a delivery bike or truck. It demands strategic planning, regulatory compliance, and a deep understanding of the city’s unique terrain.
This article walks you through the key steps and realities of launching a logistics business in Lagos.
1. Identify Your Niche and Business Model
The logistics sector is broad. Before launching, define exactly what type of logistics services you want to offer. Common niches include:
Last-mile delivery for e-commerce retailers
Food and grocery delivery
Courier and express services
Heavy haulage and cargo movement
Freight forwarding and warehousing
Also decide whether you’ll operate a fleet, partner with independent riders/drivers, or act as a tech-enabled aggregator (like Gokada or Kwik).
2. Register Your Business
To operate legally in Lagos, you must register your business with the Corporate Affairs Commission (CAC). Choose between:
Business Name (Enterprise) – simple, low-cost option
Limited Liability Company – more professional and scalable
You’ll also need:
Tax Identification Number (TIN)
SCUML certificate (especially if you handle cash)
LASAA permit (if you intend to brand your vehicles)
Driver’s permits and vehicle papers
3. Secure the Right Equipment and Manpower
Depending on your model, you’ll need to acquire:
Delivery bikes or vans (ensure they are roadworthy and insured)
Mobile phones with GPS
Trained riders or drivers with valid licenses and knowledge of Lagos routes
Dispatch boxes, uniforms, and helmets for professionalism and safety
Invest in driver training not just on road rules, but also customer service and digital tools.
4. Leverage Technology for Operations
In Lagos, the success of a logistics business often hinges on how well you deploy tech. Key features to build or integrate:
Order tracking and updates for customers
Route optimization
Digital payments (POS or mobile wallet)
Rider management dashboards
Mobile apps or WhatsApp for Business integration
You can either develop proprietary software or use existing logistics SaaS platforms like DelivAgent, Kobo360, or Sendbox.
5. Understand Local Terrain and Plan for Lagos-Specific Challenges
Lagos has a high population density, unpredictable traffic, and a complex road network. Plan for:
Peak hour traffic: optimize delivery times and zones
Bad roads and weather: affecting delivery schedules
Area restrictions: some routes are closed to certain vehicles during certain hours
Police and regulatory checkpoints: ensure your riders carry updated documents
Also, expect frequent maintenance costs and occasional losses. A contingency plan is not optional; it’s survival
6. Market Aggressively and Build Trust
In a saturated space, brand trust is everything. To stand out:
Use social media ads targeting businesses and online sellers
Offer introductory discounts or same-day delivery guarantees
Partner with SMEs, Instagram vendors, and e-commerce platforms
Collect and display customer reviews/testimonials
Register on delivery marketplaces (e.g. Jumia Logistics, Paystack Storefronts)
Word-of-mouth still wins in Lagos, so excellent service matters.
7. Stay Compliant and Scale Gradually
Ensure you remain compliant with:
NIPOST regulations for courier operators
Health and safety protocols
Lagos State transport laws
Insurance coverage for riders, vehicles, and goods
Once your operations are stable, consider expanding to adjacent areas like Ogun State or Abuja, or diversify into warehousing and inventory management.
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