Regional Market Outlook on Fleet

Preferred fleet sourcing model in Nigeria

  • Large organizations in Nigeria lease or rent their fleet vehicles
  • Rental cars are provided for short-term employees
  • Permanent employees are provided with leased vehicles
  • Operational lease is expected to gain prominence with expansion of global suppliers, like Avis

Managing fleet in Nigeria: In-house vs. Outsource

Outsourcing the fleet management services is the preferred practice in Nigeria.

  • Cost savings of 8–10 percent can be achieved
  • Requires lesser manpower (4–5 employees)
  • Risk can be transferred to the fleet management company

Fleet Sourcing Options: Nigeria Overview

Large organizations lease or rent fleet vehicles in Nigeria. Short-term employees are provided with rented cars, while permanent employees are provided with leased vehicles.

  • Large organizations predominantly lease or rent company cars. Fleet management functions are also outsourced
  • Short-term employees are provided with rented cars, while permanent employees are provided with leased vehicles
  • Currently, there are only few fleet leasing and management companies in Nigeria, and most of them are local players
  • Automobile production is expected to increase in Nigeria and more international leasing and fleet management companies are expected to open their branches
  • Operational leasing is expected to gain more prominence in Nigeria
  • Import duties: The hike in the import duties and new automotive industry development plan being launched led to the increase in prices of vehicles significantly, which slowed down the growth
  • Corporate buyers account for approximately 70 percent of the overall new vehicle purchase

Outsourcing Fleet Management vs. In-house Fleet Management

Organizations can typically achieve cost savings of 8–10 percent by outsourcing the fleet management services, and this is the preferred model in Nigeria.In-house management of fleet vehicles involves a higher manpower (15–20) compared to outsourcing services. Initial setup cost for in-house fleet management is high and streamlining the internal operations will require additional time


Ratio of Staff

  • Typical size of an internal team is 15–20
  • A minimum of 10–12 for fleets in the range 150–200
  • 100 percent internal staff
  • No external staff managing fleet

Role of Internal and External Staffs

  • Role of internal staff includes contract management, supplier relations, financial analysis and budgeting, accounting and billing, performance and audit, fuel, insurance/claims, vehicle safety, tracking, roadside/accident assistance, driver safety, training, licensing, maintenance, servicing, vehicle utilization/performance, supplies, parts and disposal


Ratio of Staff

  • Internal staffs include a fleet manager and 5–7 department heads, who report to him
  • A minimum of 4–5 employees for fleets in the range 150–200

Role of Internal and External Staffs

  • 90 percent of the activities are outsourced
  • Typical departments under fleet manager are acquisition, disposal, maintenance, training, and safety
  • Internal team is responsible for coordinating the entire activities between leasing company and the organization
  • Leasing company/fleet management company manages daily operations