There seems to be a thriving market opportunity for mobility fintech in Nigeria. Studies have shown that Nigeria is very underserved when it comes to access to affordable transportation. In fact, owning a car is still considered a luxury in this part of the world, whereas in the United States, Europe and Canada and even parts of Asia like China, Vietnam, Singapore, Japan and South Korea, vehicle ownership is seen as a necessity.
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In tackling the shortfall in vehicle ownership in Nigeria, mobility fintech startups like Autocheck and Moove are providing accessible and affordable vehicles to individuals and groups through various techniques. However, setting up one can be a lot of challenges. Nevertheless, with the right instructions and strategies, you can easily pull through. In this article, I discuss the steps and the cost of setting up a mobility fintech company in Nigeria.
The first step in setting up a mobility fintech company is to conduct thorough research and planning. This should include identifying the target market, assessing the competition, and developing a business plan. It is also important to consider the costs and resources that will be required to start and operate the business.
The next step is to choose a legal structure for the company. Options in Nigeria include sole proprietorship, partnership, and limited liability company (LLC). Each type of structure has its own advantages and disadvantages, so it is important to consider factors such as liability, tax implications, and ownership structure when making a decision.
After choosing a legal structure, the next step is to register the company with the Corporate Affairs Commission (CAC) in Nigeria. This process involves submitting the necessary documents and paying a fee.
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- Obtain Necessary Licenses And Permits
Depending on the type of mobility fintech business being started, it may be necessary to obtain additional licenses and permits. For example, a ride-hailing company may need to obtain a transportation license from the Federal Road Safety Corps, while a digital lending platform may need to register with the Central Bank of Nigeria.
- Build And Test The Product Or Service
Once the business is legally registered and has obtained the necessary licenses and permits, the next step is to build and test the product or service. This may involve developing the technology platform, hiring staff, and conducting market research to ensure that the product or service meets the needs of the target market.
After building and testing the product or service, the final step is to launch the business. This may involve marketing and promoting the product or service, as well as setting up systems for customer service, billing, and other operational tasks.
The Cost
The cost of setting up a mobility fintech company in Nigeria will vary depending on the specific business model and the resources required. Some potential costs to consider include:
The cost of registering the company with the CAC will depend on the legal structure chosen and the size of the company.
Depending on the type of business being started, there may be additional fees for obtaining licenses and permits.
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Building and testing the technology platform will likely be one of the largest costs associated with starting a mobility fintech company. This may involve hiring developers, designers, and other technical staff, as well as purchasing equipment and software.
Launching the business will require marketing and promotion efforts to raise awareness of the product or service and attract customers. This may involve advertising, public relations, and other marketing expenses.
Other costs to consider may include hiring staff, rent, utilities, and other overhead expenses.
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