Make Money from Nigeria’s Road Transportation Industry by TUNJI AFUWAPE ~ Part 2

Are you interested in doing business in the transport sector? Do you want to tap into the numerous opportunities in the road transportation industry? Then this article is for you.

2. Motorized three wheelers (tricycles)

Keke NAPEP is an experimental model of poverty eradication that seeks to empower the poor unemployed or underemployed Nigerian to a position where he / she can create a measurable and verifiable value in society in order to earn daily bread. KEKE NAPEP vehicles project, is a pet of former President Olusegun Obasanjo, in which the National Poverty Eradication Programme (NAPEP) operates the scheme.

NAPEP purchase the vehicles from Manufacturers (Autobahn) and sell at subsidized rates, on part payments basis to Nigerians to alleviate poverty, by providing them small business opportunities and transportation for most part of the country. However different brand of tricycle are now available in Nigeria .Tricycle make an average of N5,000 a day and a brand new tricycle is sold for about N400,000 to N500,000. They currently have an association called the Three Wheeler Beneficiaries/Operators Association of Nigeria.



This business is one I tried my hands on and the success story I will tell again and again. It is a story of helping others to help yourself.



Many operator prefer the Hire Purchase option.

Hire Purchase is a system by which a buyer pays for a thing in regular installments while enjoying the use of it. During the repayment period, ownership (title) of the item does not pass to the buyer. Upon the full payment of the loan, the title passes to the buyer.


To enjoy this option however, the price of the three wheelers increase to between 600,000 and 700,000 with a repayment period of 9-12 months.

Caution however should be taken on who the driver is, insurance policy and routes. In term of repayment, don't allow the money to accumulate before he/she submits it. Weekly repayment is okay but it the owner finds the time, daily is more better.

Unlike Okada (commercial motorcycle) that is ban by some state governments, three wheelers is widely acceptable and more preferred.

You need to remember that you must first be ready to invest your time and effort to make it work. Proper supervision is also very important, many of the so-called drivers you entrust your business with end up killing your business.

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Additional information by Don Odedeyi Abiodun

Tunji Afuwape is a small business finance consultant and expert. He is the CEO of 21st Strategies. He provides “how-to” advice on small business and home-based work issues. His organization helps small businesses reach their fullest potential.
Contact him via tunjiafuwape@yahoo.com, info@21stplacelive.com +237 08033224392