Logistics bottlenecks threaten Nigeria’s economic growth, industry leaders warn

Industry experts have warned that Nigeria’s ambition to achieve sustainable economic growth will remain elusive unless urgent reforms are undertaken to address persistent challenges in the country’s logistics and transportation sector.

The warning was issued by the President of the Chartered Institute of Logistics and Transport (CILT) Nigeria and former Corps Marshal of the Federal Road Safety Corps (FRSC), Dr. Boboye Oyeyemi, alongside the Founder of ABC Transport Plc, Mr. Frank Nneji, during the 10th anniversary celebration of City Business News Online held in Lagos.

The event, themed “Logistics as the Engine Room of Nigeria’s Economy,” brought together stakeholders from the transport, logistics and business sectors to examine the role of efficient logistics in driving economic competitiveness and national development.

Delivering the keynote address, Oyeyemi described logistics as the backbone of every thriving economy, noting that the movement of goods, services and people remains central to production, commerce and industrial growth.

He explained that logistics encompasses transportation, warehousing, supply chain management, inventory control, storage, distribution and coordination, making it one of the most strategic drivers of economic development.

According to him, Nigeria’s logistics sector continues to face significant obstacles, including poor road infrastructure, inadequate railway connectivity, underdeveloped inland waterways, multiple security checkpoints, rising diesel prices, poor storage facilities and inconsistent government policies.

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He observed that over 90 per cent of freight and passenger traffic in Nigeria is transported by road, placing enormous pressure on the country’s highways and increasing transportation costs for businesses.

“The country’s overdependence on road transport has created inefficiencies across the supply chain, increased vehicle operating costs and slowed the movement of goods,” he said.

Oyeyemi also raised concerns over the nation’s agricultural logistics system, revealing that approximately 40 per cent of farm produce is lost before reaching consumers due to poor transportation networks, inadequate storage facilities and the absence of efficient cold-chain infrastructure.

He noted that the Middle Belt, widely regarded as Nigeria’s food basket, continues to experience significant post-harvest losses because farmers struggle to move produce quickly from farms to markets.

“The Middle Belt remains the food basket of the nation, yet a significant percentage of agricultural products perish before reaching markets due to poor roads, transportation delays and inadequate storage facilities,” he stated.

According to him, the losses amount to billions of naira annually, contributing to food inflation, reducing farmers’ incomes and discouraging investment in agriculture.

The former FRSC Corps Marshal further lamented the rising cost of diesel, describing it as a major burden on transport operators, while also condemning the proliferation of checkpoints and illegal levies along highways.

He explained that the delays and extortion experienced by transporters inevitably translate into higher logistics costs, which businesses pass on to consumers through increased prices of goods and services.

To reverse the trend, Oyeyemi called for the restoration of weighbridges on major highways to protect road infrastructure from overloaded vehicles, while advocating increased investment in rail transportation and inland waterways to reduce pressure on the road network.

He also urged stronger collaboration between government agencies, professional bodies and private sector operators to modernise Nigeria’s logistics ecosystem.

The logistics expert stressed the importance of policy consistency, warning that the frequent abandonment of infrastructure projects and policy reversals by successive administrations discourage investors and slow economic progress.

While commending ongoing government initiatives promoting Compressed Natural Gas (CNG) and electric vehicles, he advised authorities to complement the programmes with adequate refuelling infrastructure, charging stations and supportive policies to ensure long-term sustainability.

Earlier in his remarks, the Publisher of City Business News Online, Mr. Moses Ebosele, said the conference theme was carefully selected to draw attention to the strategic importance of logistics in enhancing trade, industrialisation and economic competitiveness.

He noted that Nigeria’s aspiration to emerge as Africa’s leading logistics hub would require sustained investments in transportation infrastructure, digital technology, multimodal transport systems and regulatory reforms.

Chairman of the occasion and Founder of ABC Transport Plc, Mr. Frank Nneji, described transportation and logistics as indispensable pillars of national development.

He urged the Federal Government to prioritise investment in road infrastructure, noting that roads remain the country’s dominant mode of transporting passengers and freight.

Nneji also advocated accelerated road concession programmes and greater private-sector participation in infrastructure development, arguing that improved transport networks would lower logistics costs, enhance productivity and strengthen Nigeria’s competitiveness in regional and global markets.