Stakeholders in the transport sector have called for increased competitiveness and efficiency in the Nigeria logistic and supply chain sector in order for companies and organisations to meet the growing needs of their consumers in the global market.
The Chairman Governing Council African Centre for Supply Chain (ACSC), Dr. Abdul Sumaila, stated that the Nigeria is at a crossroad because of the sustained losses in projected revenue, and the drop in oil prices which the world is experiencing currently.
He noted that the global tendency towards a diversified export based economy and the urgent need to expedite the process of economic growth, has made it imperative to develop a national logistics strategy, “efficient infrastructure and logistics transport system are vital for any nation that wants to attain economic prosperity.”
Sumaila spoke yesterday in Lagos, at the National Logistics Strategy Summit and the Presentation of the 2016 industry report on Nigeria Logistics and Supply Chain, with the theme; ‘Building National Logistics Strategy for Better Economic Diversification.’
He said for any economy to achieve full economic sustainability and growth, the logistics sector should constitute the backbone of its trade, and associated economic activities, adding that the cost of trading whether by sea, land or air forms a critical component of the final price of a commodity, but an efficient logistics system reduces this cost, while providing a competitive edge and propelling economic activities.
Furthermore, he stated that the current stress on the logistics system and its performance suggest that one of the key issues is the inadequacy of transportation logistics infrastructure, noting that Nigeria does not have good logistics infrastructure to do business.
The ACSC added: “Promoting economic development with human development, increasing competitiveness and utilising comparative advantages to implement effective diversification is a crucial fallout from efficient logistics and strengthening the positive linkages between economic growth and social development has become the differentiating factor between nations.
“At the moment, the report shows that there is a wide gap between the available and the needed infrastructure in the logistics industry. The current performance of the industry suggests that there is an urgent need to strategies and reposition the industry if Nigeria as a nation desires to grow and increase her market share of various products in the global market.”
The Director General of ACSC, Dr. Obiora Madu, stated that the report will showcase the state of logistics in Nigeria, adding that a situation where professionals cannot access useful information and data for decision making will impact negatively on operations.
Madu said the World Bank in its Logistics Performance Index stated that better logistics performance is strongly associated with trade expansion, export diversification, ability to attract foreign direct investments, and economic growth, adding, “the goal of leveraging logistics as a strategic resource for the nation’s economy goes beyond mitigating changes in input costs, to targeting the structure of the industry and the demand for logistics services.”