The Keke napep business in Nigeria is not only lucrative but quite easy to start. Over the years, the craze for kabu kabu (commercial cab) business and okada has died down - uplifting the Keke napep to a higher status. The trade run by both the old and young has become a major source of income and even wealth for many.
From Lagos and Abuja to Enugu and Kano, you will likely find thousands of these tricycles willing to convey you from one point to another. However, you might have wondered the possibility of making money from the Keke napep business in Nigeria. We have decided to bring you not just the cost of starting the business, but also how you can raise money to begin with.
Check the tips to set up a Keke napep business in Nigeria below, suggested by Naijauto.com!
The keke napep business in Nigeria is quite lucrative
1. Create a business plan
How much is a Keke napep?
This is really important when starting a business. The TVS, Paggio and Bajaj are some of the most popular Keke brands in Nigeria. You can purchase a brand new unit for about 500,000 naira - 800,000 naira. Keeping in mind that this price is for those paying cash. If you intend to buy as high purchase or pay installments, you will likely spend up to a million naira on the new Keke napep.
A second hand Keke can go for 250,000 and above - depending on how long it's been used for before being sold to you. You can get some for as low as 150,000 naira but be ready to spend some more thousands at the mechanic workshop fixing it. If you intend not to drive the Keke napep yourself, it's best to get a fairly used one as against the brand new or well used tricycle.
What else do I have to pay for a Keke napep business?
In the business plan, also include all the monies you'll have to pay. For instance, there's the registration that needs to be done before you can hit the road running. You also need to get a plate number for the tricycle and apply to be a part of a motor park union.
The number plate registration costs about 30,000 naira while the motor union one is less. The main reason for being a part of a park or unhook is so you can be recognized and have people come to your aid in case there's an emergency.
Also you need to be certain of what routes to ply. This informs you on what park or union to register with. Furthermore, the route also gives you an idea of how much profit you should expect daily, monthly and so on. For instance, someone plying the obalende to Victoria island route will make more money than one plying within lekki alone (in Lagos).
>>> You can find detailed fees of vehicle registration in Lagos here: Lagos state vehicle registration & plate number verification
2. Know how to manage your driver or drive it yourself
If you intend to hire a driver, come up with the best managerial skills to avoid being shortchanged. You need to take into account the probable problems that can be encountered daily. From Agbero extortion, park levies, possible collisions and amount of fuel consumption daily to cost of spare parts, cost of servicing the tricycle and daily returns, these will help you know how much you will get as profit monthly. Draft out a proper contract before employing anyone. If possible, have them being parents or someone of high status as guarantors. This goes a long way in ensuring that your driver(s) diligent and more accountable.
Make sure you find a careful driver!
Daily, a Keke driver can make as much as 7,000 - 10,000 naira daily (working for 10 - 15 hours a day). If the cost of fuel, maintenance and miscellaneous costs 4,000 a day, they are likely to keep 4,000 naira or more as profit. These monies go to you, if you drive the tricycle yourself. If you don't, you can discuss the daily pay between you and your driver.
>>> Keke napep drivers can refer to these tips: 5 ways you can make easy money with your vehicle
3. Get a loan to start your Keke napep business in Nigeria
3.1. Raise money from family and friends
One of the easiest ways to raise money is from family and friends. Sometimes they give you these funds as a loan, other times it's used as a settlement for you to "start life". You can collect these monies and purchase the Keke napep of outright. Depending on how much you're able to raise, you'll decide what brand and grade of tricycle to buy.
3.2. Get a loan from a microfinance bank or a cooperative union
There are lots of microfinance banks in Nigeria that make loans available for small scale business entrees. You can get a loan from these banks or even the cooperative society in your region to start your Keke napep business. They give you a time frame to pay back, with interest - could be a year or less.
If you aim to get loan at the bank, go early!
3.3. Get a Keke napep on high purchase
High purchase in Nigeria is when you take a product (on credit) with a standing agreement to remit a certain amount of proceeds daily till you pay up. This is done for those wishing to go into the Keke napep business. The only thing is that you'll likely pay higher than the actual cost of the tricycle. If the new one costs 700,000 naira, you'll pay up 1 million naira in instalments.
Finally, if you're worried about how long it will take you to make back all your money invested in the Keke napep business in Nigeria, look through the article again and calculate your daily proceeds. With 4,000 daily profit or 24,000 naira a week, you should have made exactly the money you spent in less than 9 months!
>>> Read more about buying and selling of cars and Keke right here on Naijauto.com