Weak logistics cost Nigeria N3.2trn yearly as infrastructure gaps, delays squeeze operators

Nigeria loses an estimated N3.2 trillion annually to inefficiencies in its logistics system, as infrastructure gaps including poor roads, high operating costs, weak coordination and disconnected transport networks, increase operating costs for transport businesses and disrupt the movement of goods across the country.

These issues were highlighted at BusinessDay 2026 Mobility & Logistics Conference, themed, ‘Scaling The Future: Building a Resilient and Efficient Mobility & Logistics Ecosystem in Nigeria.’

Obiora Madu, director general, Africa Centre for Supply Chain (ACSC), said the country’s logistics challenges extend beyond inadequate infrastructure to include fragmented operations, poor data sharing and limited integration among the different players responsible for moving goods across the supply chain.

He said logistics costs in Nigeria account for about 30 percent of the cost of goods, compared with a global average of 11 percent, while freight-related inefficiencies can account for as much as 45 percent of trade value in some cases.

Read also: Crippling logistics, energy costs threaten Nigeria’snon-oil export growth

The figures highlight the burden placed on manufacturers, distributors, transport operators and consumers by a system in which delays and operational disruptions raise the cost of moving goods.

Buchi Ochuba, group business driver of Chisco Transport Nigeria Ltd., said a road trip by the company that was supposed to take 12 hours, stretched to 36 hours, with the delay requiring an additional diesel to fuel the vehicle.

The experience illustrates how road conditions and unpredictable journey times increase costs for transport companies, while potentially affecting fares, delivery schedules and the reliability of services.

Ifeanyi Onwuachu, MD/CEO, Janskmay Global Services Limited, also highlighted the financial consequences of delays in freight movement, which exposes businesses to detention notices from shipping lines.

“Such delays can generate additional charges and disrupt delivery schedules, increasing pressure on businesses that depend on predictable cargo movement,” Onwuachu said.

Madu argued that Nigeria must move away from treating logistics as a collection of separate transport activities and instead develop a connected system in which roads, ports, rail, digital platforms and logistics operators work together.

He cited the country’s position in the World Bank’s Logistics Performance Index, which he said improved from 110th to 88th, but maintained that stronger coordination and better operational efficiency remain necessary to improve the country’s competitiveness.

He also pointed to the importance of reducing port dwell time, advocating a reduction from about 21 days to fewer than seven days. Shorter clearance and turnaround times would help reduce delays, improve cargo movement and limit the additional costs businesses incur while goods remain in ports.

The challenge was also echoed by industry operators during a panel discussion, where representatives of transport and logistics businesses described how poor road conditions, fuel expenses, delays and infrastructure gaps affect their operations.

The discussion also highlighted the role of technology in improving transport services. Mildred Ekanem, executive director, Lagride Nigeria Limited, described the use of data and digital systems to support operations and safety, while noting the challenges of expanding electric mobility amid unreliable power supply.

For Madu, addressing the country’s logistics weaknesses requires a coordinated framework built around resilience, faster responses to disruptions, performance monitoring, integration and continuity planning.

Industry participants said improving Nigeria’s transport and logistics performance will require more than expanding individual services or acquiring new technology. Better roads, stronger links between transport modes, reliable energy, skilled workers and closer coordination among public and private operators will be essential to reducing delays and operating expenses.

Without these improvements, logistics inefficiencies will continue to raise the cost of doing business, weaken supply-chain reliability and place additional pressure on consumers through higher transport and distribution costs.