Nigeria’s transport, logistics, and supply chain industry has exceeded a market value of $2.3 billion, driven by economic reforms and infrastructure investments under the administration of President Bola Ahmed Tinubu.
Industry experts say the sector has experienced significant expansion, fueled by improvements in transportation infrastructure, the rapid growth of e-commerce, and stronger cross-border trade relations.
A transport and logistics expert, Dr Ganiyu Olaogun, disclosed that the industry has recorded remarkable growth over the past 18 months.
According to him, Nigeria’s logistics and supply chain market was valued at approximately $2 billion as of December 2024. He noted that the figure has now risen to more than $2.3 billion, with projections indicating it could reach $3 billion by 2029, representing an annual compound growth rate of about four per cent.
Olaogun attributed the sector’s expansion to ongoing investments in rail and port infrastructure, which have helped address longstanding transportation and logistics bottlenecks. He also highlighted the role of digital innovations and logistics technology platforms in improving delivery efficiency and streamlining supply chain operations across the country.
The emergence and expansion of major logistics firms, including A.P. Moller-Maersk, JOF Nigeria Limited, and GIG Logistics, further underscore the sector’s growing competitiveness and improved service delivery.
Another industry analyst, John Nweke, said the combination of market expansion, increased technology adoption, and improving trade policies under the current administration points to a positive outlook for the industry.
He, however, stressed the need for additional infrastructure development and regulatory reforms to unlock the sector’s full potential and maximize its contribution to Nigeria’s economy.
Nweke noted that challenges such as inadequate infrastructure, high operational costs, cumbersome Customs procedures, and poor road networks had previously constrained growth and discouraged investment in the sector.
According to him, these issues contributed to Nigeria’s low ranking on the World Bank’s Logistics Performance Index, underscoring the need for sustained government intervention and investment.
He added that unreliable electricity supply, deteriorating road networks, and outdated port and Customs systems continue to affect logistics efficiency and increase business costs.
The Lagos Chamber of Commerce and Industry (LCCI) has also highlighted the economic impact of these inefficiencies, noting that poor infrastructure and high logistics costs have historically resulted in substantial financial losses for businesses across the country.
Despite the challenges, industry stakeholders remain optimistic that ongoing reforms and infrastructure projects will further strengthen Nigeria’s logistics sector and support broader economic growth in the coming years.