How to Start Petroleum Haulage Business in Nigeria

One of the most popular products in Nigeria that requires constant movement from one part of the country to the other is petroleum products. Transportation of various petroleum products in Nigeria constitute one of the biggest haulage opportunity in the country, making up over 30 percent of the total goods that are being transported throughout Nigeria on daily basis.

So, if you have enough money to go into haulage business, I encourage you to think seriously about specializing in transporting petroleum products.

Petrol-Tnaker-Haulage


You can read my previous post How to Start a Haulage Business in Nigeria. So, let's concentrate on what is required to enter into petroleum haulage instead of discussing the fundamentals of haulage business.

You Need to Register With NUPENG


One tanker is good enough for you to register with NUPENG and get started. You have two registration options, to register as individual or as company. However, you need minimum of five tankers to be able to register your haulage company and starts dealing with major oil marketers. 

All the major petroleum products marketing companies such as TOTAL, Mobil, TEXACO, OANDO, etc. All of them do enter into long term leasing agreement with registered haulage companies for the transportation of their products from their tank farms to the filling stations across the nation. After you have registered your company and as well as register with the major marketers, the next step is to join the NUPENG. Below is some of the brief information I got on how to join NUPENG. 

Its membership is open to all junior workers in the oil well and natural gas well operation industry including prospecting, drilling, crude oil and natural extraction of oil and natural gas pipelines, refining, distribution and marketing of natural gas and petroleum products – including petroleum tanker drivers (Haulage) regardless of sex, religions beliefs, political beliefs, or ethnic origin.

Formal Sector

To join we need your Company’s name, location – i.e., full detailed address, number of workers willing to join NUPENG in your company.  Please contact us for more information and a copy on the application process.  The payment of your check of dues starts when you are unionized and your Branch becomes NUPENG members and it must be a collective action not individual.

Informal Sector

Send us your activities, State and detailed contact, so that we can advise you on the Branch of NUPENG to belong to.  The Union is for those already working in Nigeria.

The capital requirement would depend on where you are buying your truck and who is helping you buy. You don't need brand new truck except you have much money. If not, second hand truck popularly known as tokumbo is just enough. The cost of a second hand ranges from N3.5 Million to N4.5 Million and I can help you buy it if you want. We'll handle everything including the shipment and documentation, contact me on admin at palness dot com


After the truck is brought in, we will do other things like the servicing to make sure we block the thermostat because having been used in the Europe, the engine has been set to be hot to some extent because of the cold weather of the European environment but our own weather is already hot. So, we will do the resetting to make sure it conform to the current environment which is already hot.
 

Sometimes we'd change the front tires too because many of them are already weak and ready to burst at anytime which may result to accident if not properly changed. All these and many more are what we do to make sure your truck is properly utilized for maximum yield. You will fabricate the tank and the trailer locally for about N1.5 million to N2.5 million or less.

To be continued...

+Darlinton Omeh  on Google+

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3 comments:

  1. Darlinton, you have done an amazing job. Its great starter guide new business and transport and haulage business is very lucrative at this place. Thanks for sharing this informative resource.

    ReplyDelete
  2. Thank you Darlinton for the Information you provide us in this Blog.
    Please do you or any of the readers here have the contact address of Tank and Trailer manufacturers in Nigeria ? I will appreciate.

    ReplyDelete
  3. Thank you darlington, But you did not input cost & revenue figures for the petroluem haulage business. For instance how much does it cost to register one tanker with nupeng..... and how much revenue per trip to deliver petroleum products to a petrol station

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