XYZ Transport Company
Investment in the transportation business
MD - 36 years

Nigeria depends predominantly on road transport, as a result there is great potential in the road transport industry. The distance between Abuja (the administrative capital) and Lagos (the commercial hub) is approximately 710 km. There is a great movement of people from around the whole country and between the two hubs.

XYZtransport company will provide commuter transportation between the two major cities as well as connect other state capitals to them. Most transportation business are built around a central boarding park but we intend to decentralize our boarding in the major cities.

Nigeria has a population of over 140 million people and most of these people live in Lagos with a population of 15 million people. The structure of the administration and business in the country is such that encourages huge movement between the two cities thus creating a great opportunity for the transportation business.

The transportation industry is already segmented into the executive, and low income travel buses. XYZ transport will enter the market by producing a service close to the executive, but at an affordable price.

Investments terminate after four years corresponding to the service life of buses due to the road conditions in the country. Within this period, investors will receive a 40% annual Return on residual investment in the venture.

Two options for capital repayment are available, either 25% at the end of every financial year, or 100% at the expiration of the deal. Investors who choose the first option will be paid 25% Return On Investment (ROI) based on residual invested capital, while the latter will have full payment on the total invested sum.

Investors will have a roll over option available at the end of the tenure irrespective of option of capital repayment selected. Investors also have opportunity to invest in more slots as announced by the business.

We are desirous of most types of investor participation in our business. Partnerships, or silent investors are all welcome. Minimum investment lot coincides with the cost of placing a bus unit on the road. We will undertake a comprehensive insurance of all our business units.


Management Team:
Owner: Manager with over 9 years experience as an engineer and managed construction contracts over N3billion. He has great creative, logistics, interpersonal and brand management skills and ready to go full time into business.

Director: Has more than 20 years experience working as a quantity surveyor and managing construction contracts well over N20billion. He has a good understanding of the Nigerian business environment, cash management/budget allocation, and mature business insights.

The Deal:
The deal has a tenure of 4 years. I am offering a 40% ROI payout on invested capital at close of every financial year throughout the tenure of the deal.

The invested capital repayment will be in two options:
1. Annual repayments of 25% for four years *
2. A 100% repayment at the close of the deal in four years

* Option 1 also means 40% ROI will be on calculated based on residual capital funding.

Minimum investment unit: N8million
40% Investor annual payout: N3.2million (annually for 4 years at the close of the financial year)

Capital Repayment:
Option 1: After 4 years
Option 2: 25% per year(also implies 40% annual payout will be calculated based on remaining capital)

Contact: info.trancoy@gmail.com