Interstate Road Commercial Bus Transport Services in Nigeria

Opportunity Snapshot

14-seater Toyota Hiace bus Two new 14-seater Toyota Hiace buses will be purchase for this investment opportunity.

Investment Opportunity

The business will be mainly focused on transporting people, goods and services from Lagos to all other metropolitan cities in Nigeria on daily basis.

I'm an upcoming Entrepreneur with strong desire to maximize profit from clear open opportunities. I'm planning to start a commercial bus transport services which shall be focused on conveying people, goods and services on daily basis from Lagos to all other metropolitan cities in Nigeria as there are insufficient supply of such services and the road transportation sector is never saturated.

Nigeria has the largest road network in West Africa and the second largest in south of Sahara with roughly 108,000 km of surfaced roads. It is having a population of 162 million people in Africa, which is still rising. However, Nigeria been a country with old infrastructural facilities, poor management, poor service rendering in the rail transport sector and exorbitant prices local airline operators charge for interstate flight of which many Nigerians could not find affordable has made the road transport sector witness great influx of passengers on daily basis across all motor parks in Nigeria.

The population is there and the environment is good, which makes the commercial road transport business a highly profitable business one can venture into and make huge profit in a short time since the service is demanded on daily basis.

Competitive Advantage

My direct and indirect competitors are other road transport operators such as commercial bus drivers, cab/taxi drivers and government owned public transport schemes whose vehicles are either badly maintained or in poor conditions which often disappoint passengers on their way and also been overloaded and congested with passengers will make people switch over to my services as I'll stick to quality service rendering with always in good, healthy, constantly maintained and fully air conditioned buses without exceeding the passenger carrying capacity of the bus and charge a fairer fare. More so, on-line booking will be made available as the business grows and expands its tentacles to other parts of the country in future.

Rationale for the deal

I'm entering into the road transport business sector not only for profit making but also to ease the movement of people, goods and services from one place to another.

My services are needed on daily basis by almost three quarters of the entire population.

At the start-up stage, two new 14-seater Toyota Hiace Buses will be purchased. Upon making progress and profit is made more buses will be purchased. To additionally secure the business, the two buses will be insured with an insurance company.

More so, I'll actively take part in been one of the driver of the buses for proper monitoring and management of the business till it grows.

Use of financing

UTILIZATION OF BORROWED FUNDS

2 buses will be purchased. Each will cost $25,000
2 buses will cost $50,000 and $10,000 will cover insurance, vehicle papers/particulars, number plate registration and working capital.

TOTAL FUND TO BE BORROWED
$60000 (Sixty thousand Dollars)

REPAYMENT PERIOD
Two years with an interest rate (or mutual agreement of ROI sharing)

RETURNS CALCULATION
Daily returns 1 bus = $125
Daily returns 2 buses = $250 ($125 times 2)
Monthly returns for 2 buses = $6500 (250 times 26 days)

NB: Buses will be working for 26 days in a month and will be resting for 4 days in a month or one day in a week. This arrangement is to make the buses last long and not over work the drivers. More so, the returns on each bus weekly is excluding the weekly maintenance of the buses.

The yearly returns of two buses will be $78000 ($6500 times 12 months)
2 years earning for 2 buses will be $156000 ($78000 times 2 yrs)

The borrowed money (loan) coupled with an interest will be payed back from the returns in two years or a mutual agreement of the investor/lender ROI sharing or even Joint Venture partnership shall be welcomed.

Opportunity for the investor

The yearly returns of two buses will be $78000 ($6500 times 12 months)
2 years earning for 2 buses will be $156000 ($78000 times 2 yrs)

The borrowed money (loan) coupled with an interest will be payed back from the returns in two years or a mutual agreement of the investor/lender ROI sharing or even Joint Venture partnership shall be welcomed.

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