How To Get a License For Your Logistics Business In Nigeria

Logistics businesses are a part of the supply chain management responsible for ensuring goods and services from companies get to their final consumers. If you are a Lagosian, you would have noticed different men and women on motorcycles with a big box behind with the logo of their various logistics companies imprinted on it. This makes you wonder if the logistics business in Lagos is really a viable business.

The truth is, the logistics business is very profitable and viable. This internet age where anyone anywhere can buy and order goods and services online has only contributed to increasing the demand for logistics business. This is because products ordered by a customer from a different location must get delivered to that customer since payments have been made. 

Getting into the logistics business is not so difficult. How big you want it to be in Lagos depends on how much capital you have. One of the important steps you need to take when setting up a logistics business in Lagos is for you to get a license. This post on carmart.ng will guide you on how to obtain a license for your logistics business in Lagos.

Getting Your License In Lagos

Get Your Business Name Registered

Do you have a business name for your logistics business? If you don’t, then you need to make iterations of preferred names immediately. This is because the first step to getting a license for your logistics business in Lagos is to have your business name registered with the Corporate Affairs Commission (CAC). Once you have a list of preferred names, then you need to do a name availability search. This is necessary because it’s likely someone else has taken that name. Once you have secured an available name, then you need to reserve the name with the Corporate Affairs Commission. Note that name reservation is only valid for 60 days. Registration of your logistics business name comes at a price. After the reservation is done, you need to fill out some documents. Some of these documents are the Application for Registration of a Company Form (CAC 1.1) – and Memorandum & Articles of Association (MEMART).

Secure Local Government And Interstate Papers

As a logistics business in Lagos, you can be involved in both interstate and intrastate movements. Hence, you can do either interstate and/or intrastate logistics registrations depending on the scope of your business. This is particularly worth considering if you would be making deliveries to places in Ogun state commonly assumed to be Lagos too e.g. Akute, Mowe etc. You should also ensure to do both local and state government registrations at any Lagos State local government office.

Obtain Stage Carrier Permit

According to the Lagos State Road Traffic Law, every vehicle involved in the carriage of goods and services from one place to another is required to obtain a stage carrier permit. And this includes anyone involved in the logistics business. Hence, to obtain a license, apply for a stage carrier permit. 

Get Your License From Nipost

The Courier and Logistics Regulatory Department of NIPOST is the body saddled with the responsibility of administering courier and logistics licenses and regulations. The following steps should be taken to register for the issuance of a license to operate a logistics business in Lagos:

• Payment for Regulatory Guideline and Application & Requirement Forms
• Submission Application Forms with an Application letter on Company Letter Headed Paper
• Submission of Relevant documents/information as contained in the Requirement Form (Regulation 1 (5) )
• Payment of a non-refundable License fee of 20,000 NGN
• Team inspection of Head office of the Company
• Inspection of at least four (4) Branches of the company
• Induction Course for newly registered companies

Documents Required To Get License For Logistics Company In Lagos

The following are the required documents that must be submitted along with registration:

Certificate of Incorporation

Memorandum and Article of Association

Business Plan, Company Profile and Operations Manual

Goods in Transit Insurance Policy

Evidence of Tax Clearance

Evidence of Share Capital

Evidence of Facilities, and Office Location Detail

Where To Apply For Logistics License

Application for license to operate a logistics business in Lagos is done on the Courier and Logistics Regulatory Department of NIPOST online. Here is the link to begin the application: https://clrd.nipost.gov.ng/

License Categories

LICENSE	NEW LICENSE FEE	LICENSE RENEWAL FEE
International	₦20,000.000.00	₦1,875,000.00
National	₦3.000.000.00	₦625,000.00
Regional	₦2.000.000.00	₦437,500.00
State/Special SME’s	₦250,000.00	₦100,000.00

CONCLUSION

The logistics business is a profitable business, and more will arise in the times ahead. If you are interested in starting this business in Lagos, do not hesitate to begin your license application as soon as possible. You can always refer back to this article to stay on the right track.