Nigeria is losing an estimated N5 trillion annually as between 30 million and 40 million metric tonnes of food perish before reaching consumers due to the country’s inefficient logistics system, industry stakeholders have warned.
The alarming revelation was made on Thursday at the 10th Anniversary Lecture of City Business News, held in Lagos under the theme, “Logistics as the Engine Room of Nigeria’s Economy,” where experts called for sweeping reforms to reverse the nation’s worsening logistics crisis.
Speaking at the event, the President of the Chartered Institute of Logistics and Transport (CILT) and former Corps Marshal of the Federal Road Safety Corps (FRSC), Dr. Boboye Oyeyemi, said Nigeria’s weak transport infrastructure, multiple road checkpoints, rising fuel costs and policy inconsistencies have crippled the movement of goods, particularly agricultural produce.
According to him, the country’s logistics inefficiencies are responsible for post-harvest losses valued at between $2.3 billion and $3.3 billion annually, translating to approximately N3.5 trillion to N5 trillion in economic losses each year.
Oyeyemi noted that despite its strategic importance, the logistics sector contributes only 3.73 per cent to Nigeria’s Gross Domestic Product (GDP), largely due to persistent structural challenges.
He explained that the agricultural sector bears the brunt of the crisis, with as much as 40 per cent of farm produce wasted before reaching markets because of poor road infrastructure and inadequate logistics systems.
“The Middle Belt is the food basket of the nation. To move goods from the Middle Belt to Lagos, about 40 per cent of them rot away,” he said.
Beyond infrastructure deficits, Oyeyemi identified rising diesel prices and widespread extortion on Nigerian highways as major factors increasing logistics costs.
He disclosed that transport operators spend between N150,000 and N250,000 per trip on illegal payments at multiple checkpoints, adding that such practices significantly inflate the cost of moving goods across the country.
To address the challenges, Oyeyemi called on the Federal Government to eliminate illegal road checkpoints, subsidise Compressed Natural Gas (CNG) to reduce transportation costs, and encourage a dual-fuel system that enables logistics operators to use both petrol and gas-powered vehicles.
He also advocated the appointment of a Coordinating Minister for Transportation to harmonise policies across the country’s transport sub-sectors and improve sectoral coordination.
The CILT President further urged the government to restore weighbridges on major highways to prevent overloading by haulage operators, noting that excessive axle loads are responsible for the rapid deterioration of newly constructed roads.
Also speaking, Founder of ABC Transport Plc, Sir Frank Nneji, lamented what he described as decades of inadequate government attention to the road transport sector.
He argued that while the aviation industry enjoys substantial investment and regulatory oversight to guarantee passenger safety, millions of Nigerians who rely daily on road transportation continue to face poor infrastructure and security challenges.
“The government should pay more attention to road redevelopment. They should hand off road development and concession some of the major roads,” Nneji said.
He also expressed concern over the worsening security situation on Nigerian highways, urging government to strengthen measures to protect commuters and transport operators.
Responding to concerns over road safety, the Corps Marshal of the Federal Road Safety Corps (FRSC), Shehu Mohammed, assured stakeholders that the Corps remains committed to improving safety on Nigerian roads through strategic partnerships with private organisations and stricter enforcement of traffic regulations.
Mohammed said the FRSC would continue to intensify public enlightenment campaigns and enforcement activities aimed at reducing road crashes and enhancing safer movement of people and goods nationwide.
On gender inclusion, President of the Women in Logistics and Transport (WiLAT), Mrs. Khadijat Sheidu-Sabi, whose address was delivered by Chartered Institute of Logistics and Transport (CILT) member Mrs. Fatima Jatto of the Nigerian Ports Authority (NPA), stressed that women’s participation is critical to the future growth of the logistics industry.
“It is important to recognise and celebrate the increasingly significant role of women in the logistics sector. Today, women are leading organisations and shaping policies. Inclusion and empowerment of women must remain a priority, as this will significantly contribute to the sustainability of the sector,” she said.
Stakeholders at the anniversary lecture unanimously agreed that unless the Federal Government creates a more enabling operating environment, protects investments in road infrastructure and ensures policy consistency, Nigeria’s logistics sector will remain a major impediment to economic growth.
They maintained that improving logistics efficiency is essential to reducing food inflation, strengthening supply chains, boosting agricultural productivity and unlocking Nigeria’s full economic potential.
