Nigeria’s Weak Supply Chain Threatens Blue Economy Gains, Says Expert
Omolabake Fasogbon
Nigeria’s longstanding logistics and port inefficiencies are eroding its competitiveness in regional and global trade, despite sitting on an enormous blue economy.
Senior Partner Akabogu& Associates and Founder of OTL Downstream Development, Dr. Emeka Akabogu, stated further that the country’s strategic coastal position makes it a natural hub for West and Central African trade, adding that inefficiencies in local supply-chain system continue to push value offshore.
Akabogu, while speaking at the Africa Centre for Supply Chain (ACSC) Annual Awards and Dinner Night in Lagos recently, highlighted Nigeria’s low participation in intra-African trade.
According to him, trade between African countries accounts for only 11 percent of the continent’s total commerce, adding that the status quo limits the growth of domestic supply-chain activities and suppresses value creation within the region.
He said, “Expanded intra-African trade will directly accelerate the development of the continent’s supply-chain systems.”
He noted that Nigeria currently maintains a trade surplus, with exports accounting for 59.8 percent of total trade, driven largely by crude oil.
He warned that reliance on oil remains largely unsustainable.
“The day we begin to fully harness non-oil resources and services, the value unlocked for supply-chain operators will be far greater,” he said.
He lamented Nigeria’s underperforming port system, citing that Togo, despite being one of Africa’s smallest economies, has become one of Nigeria’s biggest import and export gateways due to the efficiency of its port.
“It is telling that Togo consistently appears as Nigeria’s top trading interface. That does not reflect the final destination of goods, but weaknesses in our port infrastructure and logistics performance.
“Cargo that should naturally move through Nigerian ports is being diverted because traders find smoother operations elsewhere, “he said.
On the blue economy spanning fisheries, aquaculture, maritime waterways, and inland waterways, amongst others, Akabogu sees it as the next major economic frontier whose success hinges largely on sustainability and governance.
Earlier in his opening remark, Director General of ACSC, Dr. Obiora Madu, highlighted the role of supply chain management in driving economic growth and integration into global markets, noting that 50 percent of Nigerian logistics companies were incorporated in the last five years.
The event marked the launch of the center’s 7th edition industry report, recognition of excellence, induction of new members, and conferment of fellowship title.
