NBCC: Infrastructure, Regulatory Bottlenecks, Others Limiting Full Potentials of Nigerian Maritime, Logistics Sector

Dike Onwuamaeze

The Nigerian-British Chamber of Commerce (NBCC) has stated that challenges such as port congestion, infrastructure deficits, regulatory bottlenecks, and high logistics costs have continued to limit its full potential of the Nigerian maritime and logistics sector that controls over 90 per cent of the country’s export trade.

This was declared recently by the Deputy President of NBCC, Mr. Akin Osuntoki, in his welcome address during the NBCC’s Maritime and Logistics Forum, with the theme “Unlocking Nigeria’s Maritime & Logistics Potential for Trade Competitiveness and Economic Growth.”

Osuntoki said: “At NBCC, we remain committed to promoting trade, investment, and economic cooperation between Nigeria and the United Kingdom.

“Today’s forum reflects that commitment, as we bring together key stakeholders to explore practical solutions for strengthening Nigeria’s maritime and logistics sector.

“The sector accounts for over 90 percent of Nigeria’s international trade, yet challenges such
as port congestion, infrastructure deficits, regulatory bottlenecks, and high logistics costs
continue to limit its full potential.

“Addressing these issues is essential to improving efficiency, reducing trade costs, and positioning Nigeria as a leading trade hub in Africa.”

He said that with the opportunities presented by the African Continental Free Trade Area, the need for a more efficient and integrated logistics ecosyst⁶em has never been more critical.

He said that strengthening this sector will not only enhance trade but also drive economic growth, job creation, and competitiveness.

In her goodwill message, the Postmaster General (PMG) and Chief Executive Officer of the Nigerian
Postal Service (NIPOST), Ms. Tola Odeyemi, said that the theme of this engagement is both timely and strategic, as Nigeria stands at a pivotal moment in redefining its logistics and
trade architecture.

Odeyemi said that the maritime and logistics sector remained a cornerstone of Nigeria’s national development.
She said that the sector’s efficiency directly impacts trade flows, cost of goods, investment attractiveness and ultimately, economic growth.

Odeyemi said: “As we all recognize,
addressing longstanding challenges, ranging from port congestion and infrastructure deficits to regulatory inefficiencies, is not optional; it is imperative.
“At NIPOST, we see ourselves as a critical enabler within this ecosystem. Beyond traditional postal services, we are actively repositioning to play a stronger role in last-mile delivery, e-commerce logistics and national distribution networks.”

Making a presentation at the forum, the President, Chairman of Council, Chartered Institute of Logistics and Transport, Dr. Boboye Oyeyemi, stated that crises and inefficiencies in the logistics sector is costing Nigeria more than 25 per cent of its gross domestic product (GDP) in spite of the country’s potential to become West Africa’s logistics hub.

Boboye, in the presentation titled “Building a Comprehensive Logistics Ecosystem for Nigeria’s Future Trade” outlined a strategic, multi-pillar framework to transform Nigeria into Africa’s premier trade and logistics hub by 2035.

He stated that Nigeria has enormous logistics’ infrastructure challenges as it’s roads, rail ports, which are the physical backbone are critically underdeveloped.

According to him, only 30 per cent of the country’s 240,000 kilometers road network is paved and less than 60 per cent of this road network is in good condition and requires N880 billion annual repair cost.
He also said that Nigeria has just 3,505 kilometers of narrow gauge rails, which caused 90 per cent of freight to be moved by road due to rail unreliability.

He said that Apapa ports congestion is costing Nigerian economy more than $3 million annually while the average truck dwell time in the port is between 18 and 21 days against the global best practice of four maximum days.
He also noted that only four airports in the country has cargo handling capability.

Boboye said that these infrastructure challenges have compelled exporters to route over 60 per cent of the country’s exports through foreign hubs.

He stated that Nigeria should view building a comprehensive logistics ecosystem as a matter of strategic national security and sovereignty imperative.

These constraints caused Nigeria to be ranked 88th in the Logistics Performance Index.
They have also made the Nigerian economy less competitiveness and placed an invisible tax on every product that is made, bought and sold in the country.

Boboye, therefore , emphasised the need for building comprehensive logistics ecosystem on five-pillar framework that he described as an integrated approach to ecosystem development.

These five pillars, according to him, are physical infrastructure, digital ecosystem, policy and regulation, human capital and sustainability.

He warned that no single intervention could transform Nigeria’s logistics sector because sustainable transformation of the sector would “require simultaneous progress across these five interdependent pillars” and that “Nigeria must adopt and adapt, not merely copy best practices and customising them to its federal structure, resource base and cultural context.”

Boboye recommended that Nigeria required “500,000 certified logistics professionals by 2030; needs 20 centres of logistics excellence and attain 75 per cent professional certification rate” in order to start getting things right in the logistics sector.

The Registrar/CEO of the Council for the Regulation of Freight Forwarders in Nigeria (CRFFN), Mr. Kingsley Igwe, said that potentials alone do not guarantee prosperity.

Igwe said that it “is the system we build, the efficiency we achieve, and the policies we implement that determine whether we rise or remain stagnant.”

He described the maritime and logistics sector as Nigeria’s gateway to economic diversity.

According to him, “efficient ports, seamless customs processes, and reliable logistic systems directly impact costs of goods, competitiveness, investment inflow, job creation, cost of goods because inefficiencies increases import and export costs.
“Averagely, the logistic cost in Nigeria seems to take almost 45 percent of your total trade costs, both freight, logistics, and the cost of the goods, invoice value.
“In comparison with other clients, this logistic cost takes only about 5 to 10 percent of all the total cost of the shipment.”

He attributed the high cost of logistics in Nigeria to inefficiencies and the poor state of infrastructure.

“And that affects the competitiveness of the Nigerian trade environment and makes businesses struggle to compete globally,” Igwe said.