The rise of e-commerce in Nigeria has driven a significant demand for reliable courier and logistics services.
Setting up a courier and logistics company can be a highly profitable venture, provided one navigates the necessary legal and regulatory requirements.
This guide will walk you through the essential steps, costs, and documentation needed to establish a courier and logistics company in Nigeria.
Step 1: Registering the Business
To start a logistics business, the first step is to incorporate the company with the Corporate Affairs Commission (CAC) as a limited liability company.
The minimum share capital for private limited companies is ₦100,000, while public companies require a minimum of ₦2,000,000.
If a foreigner is a shareholder or director, the company must have a minimum share capital of ₦10,000,000. For companies engaging in freight forwarding, the minimum share capital is ₦5,000,000, and for those involved in shipping activities, it is ₦25,000,000.
Requirements for Incorporation:
- Two proposed names for the company.
- Registered address, email address, and phone number.
- Details of shareholders, directors, and company secretary, including names, contact addresses, email addresses, phone numbers, dates of birth, occupations, government-issued IDs (e.g., NIN, Voter’s card, Int’l passport), and electronic signatures.
- The company’s business objective must be primarily logistics services.
Step 2: Understanding the Regulatory Framework
The Courier and Logistics Services (Operations) Regulations 2020, under the Nigerian Postal Service Act (NIPOST Act), regulate all courier and logistics operations in Nigeria.
These regulations aim to ensure an efficient and effective licensing process for the industry.
Step 3: Obtaining Post-Incorporation Registrations and Approvals
Tax Registration:
Once the company is incorporated, it must register with the Federal Inland Revenue Service (FIRS) for tax purposes. Required documents include:
- Application letter on company letterhead.
- Incorporation documents.
- Details of company directors.
- Utility bill of the company’s registered address.
Nigerian Postal Service (NIPOST) Courier Licence:
Logistics companies must obtain a licence from the Courier and Logistics Regulatory Department (CLRD) of NIPOST.
The application process requires a one-time processing fee of ₦20,000.
Categories of Licenses:
- National Licence: Permits operations nationwide.
- Regional Licence: For operations within a specific geo-political zone.
- State/SME Licence: For intrastate operations with a limited number of motorcycles.
- Solo-Rider Permit: For single riders operating one motorcycle.
Licence Fees from the Courier and Logistics Regulatory Department (CLRD) of NIPOST:
| Category | Licence Fee (₦) | Renewal Fee (₦) | Scope of Licence |
| International Courier Licence | 20,000,000 | 1,875,000 | Operations across international borders |
| National Courier Licence | 3,000,000 | 625,000 | Operations nationwide |
| Regional Courier Licence | 2,000,000 | 437,500 | Operations within a specific geo-political zone |
| State/SME Courier Licence | 250,000 | 100,000 | Intrastate operations with a limited number of motorcycles |
| Solo-Rider Permit | Flexible payment plan | Flexible payment plan | Operations with one motorcycle |
Conclusion
Establishing a courier and logistics company in Nigeria involves multiple steps, from business registration or company Incorporation to securing the necessary licences.
Adhering to regulatory requirements ensures that your operations run smoothly and legally.
With the growing need for delivery services, this industry offers significant opportunities for aspiring entrepreneurs.
