Just before I let the matter of the haulage business go to rest, I will like to run a few things by you, by far the most important as this involves the financials that comes to you as revenue compared to the expenses I had spent the earlier instalments to highlight. So far, to get to the point where the haulage van is ready for business via the route I have so succinctly expatiated, =N=712,100 or thereabouts should be enough to put the vehicle in shape and ready for use. What is left to do is to get a Licence plate number and requisite papers to engage in the haulage business without much stress in Nigeria.
Procuring the vehicle’s LICENCE PLATE NUMBER comes with the following, as listed below:
– Letter Of Transfer
– Commercial Vehicle License For The Year
– Hackney Permit/State Carriage License For Commercial Vehicle Goods Below 3 Ton (LAG I)
– Vehicle License Plate Number
– Vehicle Identification Tag
– Revenue Collector’s Receipt
– Treasury Receipt
– Affidavit For Change Of Ownership
– Police Extract Incident Report
– Change Of Ownership/Engine/Chasis No.
– Proof Of Ownership Certificate
– National Certificate Of Roadworthiness
– Roadworthiness Tag
– Certificate Of Insurance (Third Party insurance cover, especially for a fairly used vehicle makes more sense than a more expensive, though with better coverage, Comprehensive cover, which you may never have to activate)
– Allocation Of Registration Number.
This will cost about =N=45,000 to procure, pushing the total expenditure to =N= (712,100 + 45,000), which is =N=757, 100. An SMS is usually sent from the licensing office to inform the owner that the papers are ready and is a form of proof of the genuineness of the papers.
Besides this, there are stickers and a waste basket that must be purchased, if the operator is to escape harassment by men of the various traffic and road agencies, including the police and customs and excise officials (usually found on federal roads vetting goods for contraband), especially when the haulage business involves interstate journeys, or even across the border to neighbouring countries. The list of STICKERS and CERTIFICATES applicable for one year includes:
All valid for one year
– Keep The Environment Clean Association of Nigeria, KECAN membership sticker
– KECAN Certificate
– Niger State Internal Revenue Service Condolidated Vehicle Emblem
– Niger State Consolidated Clearance, Vehicle Clearance Certifficate Permit
– Niger State Environment Protection Agencies Sticker
– Niger State Vehicle (Gaseous) Emission Clearance Certificate Permit
– Motorist Waste Bag Permit
– Vehicle Sanitation/Waste Basket Clearance Certificate Permit
– Road Tax: Hackney Permit
– Outdoor Mobile Permit
– Mushin Local Government Environmental Sanitation Sewage Disposal Certificate
– Mushin Local Government Radio/TV Certificate
– Mushin Local Government Loading & Off-loading Certificate
– Mushin Local Government Vehicle Outdoor Certificate
– Unified National Clearance Certificate of the National Union of Stickers/Emblems Workers of Nigeria
– Commodity & Commerce Sticker
– Community Infrastructural Development Sticker
– Road Tax Sticker
– Bus & Pickup/Lorry & Tricycle Permit (All routes)
– Federal Ocean Terminal Permit
– Littering Fees
– Isoko South Local Government, United Council Emblem
– Vehicle Classification Sticker
– Heavy & Light Duty Sticker
– Gateway Permit
– Niger Delta Mobile Advertisement Permit
– Trade Permit
– National Association of Revenue Collectors, NASREC Permit
– Ministry of Works & Transport, MOT Vehicle Permit
– Oil & Gas Permit
– Keep Nigeria Clean Handbill
– Power & Energy Railway Permit
– Niger Delta Development Youth Empowerment Permit
– Unified Local Government Emblem, Movement Permit
– Federal Republic of Nigeria, Clearance Certificate
– Government of Delta State, Clearance Certificate
– Federal Republic Of Nigeria, Clearance Certificate on Heavy/Light Duty Permit
– Niger Delta Development Clearance Certificate
– Isoko South Local Government Yearly Operational Permit for Commercial & Company Vehicle
– Township/Road Maintenance & Route Permit
– Community Infrastructural Development, Oil, Land Permit
– Niger Delta Development Youth Empowerment, Association of Youth Development, Operational Permit
– and a BASKET!
Though some of these may not make sense, they are requirements amongst so many others numerous to list here, which must be procured and presented as required by relevant authorities, if the driver intends to make interstate hauling stress free, as much as possible, within Nigeria.
These will cost =N=10,000 or thereabouts to procure, and still not exhaustive as the operator may still have to buy some other stickers depending on the requirements of the state s/he is conveying goods to. Many operators/drivers of haulage buses, vans and trucks for this reason tend to convey goods interstate at night, in a bid to circumvent processes and not have to pay the dues and fees of different states, either in transit or as destination. This additional cost will bring the total expenditure to =N= (757,100 + 10,000), which is =N=767,100.
Once it is certain that there are no more expenses to be made, an agreement between the owner and the operator/driver becomes pertinent. This agreement must include the terms and conditions under which the Hire Purchase deal will run, without excluding the amount payable in remittances at the end of the day. This is done simply by agreeing with the operator a sum to top the expenditure, such that the owner will make profits without cutting off the operator’s head. For instance, the haulage van that cost =N=767,100 to procure and “put together” can attract an additional yield of between =N=500,000 and =N=1,000,000 (or more, depending on one’s bargaining abilities and situation surrounding the deal) in remittances over a period of one year, after which the vehicle is handed over to the operator according to the letter of the Hire Purchase agreement.
If for instance the owner and operator/driver agree that the sum of =N=600,000 will be the expected yield, it follows that the total remittances expected over a year is =N=1,367,100, one can expect that the sum of =N=25,000 be remitted weekly, which will take about 54.684 (roughly 55) weeks to complete the sum expected. This is about a 78.22% yield on investment, which is not possible even if you left the same capital in a fixed/time deposit account in a bank over the same period of time. I am aware that with haulage trucks, yield can go as high as between 200% to 300% over the same period.
This about takes care of my treatise on Hire Purchase for Haulage Business in Nigeria, and like I earlier said it is one other business you can invest in, while still going about your nine-to-five. In this day and age, it isn’t financially wise to have only one source of income, but because you can’t divide yourself in the many places from which you can make this income, hire purchase business involvement is such that you can invest your time in one job, and have the others be such where your money works for you. This is wishing you the best of luck as you career into the world or entrepreneurs.
NB. The Dollar currently exchanges to the Naira at =N=288 – $1, in the parallel market.