Nigeria’s efforts to build a globally competitive economy will continue to face serious setbacks unless urgent reforms are implemented across the transportation and logistics sector, leading industry experts warned on Thursday.
Speaking at the 10th anniversary celebration of City Business News Online in Lagos, President of the Chartered Institute of Logistics and Transport (CILT) Nigeria and former Corps Marshal of the Federal Road Safety Corps (FRSC), Dr. Boboye Oyeyemi, and Founder of ABC Transport Plc, Mr. Frank Nneji, identified poor infrastructure, policy inconsistency and soaring operating costs as major barriers to economic growth and business competitiveness.
Addressing participants at the event themed, “Logistics as the Engine Room of Nigeria’s Economy,” Oyeyemi described logistics as the backbone of national development, stressing that efficient movement of goods and services remains critical to production, trade and economic prosperity.
He noted that Nigeria’s logistics challenges extend beyond transportation to include supply chain management, warehousing, storage and distribution, making the sector one of the country’s most strategic economic enablers.
According to Oyeyemi, poor road networks, inadequate rail infrastructure, underdeveloped inland waterways, multiple checkpoints, rising diesel prices, poor storage facilities and inconsistent government policies have combined to undermine the nation’s logistics ecosystem.
He disclosed that over 90 per cent of Nigeria’s freight and passenger traffic still depends on roads, creating severe pressure on highways, escalating transportation costs and reducing efficiency across the economy.
The former FRSC boss also expressed concern over agricultural losses, revealing that nearly 40 per cent of farm produce is lost before reaching consumers due to poor transportation systems and inadequate cold-chain infrastructure.
“The Middle Belt remains Nigeria’s food basket, yet huge volumes of agricultural produce perish before getting to markets because of poor roads, transportation delays and inadequate storage facilities,” he said.
Oyeyemi lamented that billions of naira are lost annually through post-harvest waste, worsening food inflation and reducing returns on agricultural investments.
He further decried the impact of rising diesel costs, illegal checkpoints and multiple levies on transport corridors, noting that the resulting delays and extortion significantly increase logistics costs that are ultimately passed on to consumers.
To reverse the trend, Oyeyemi advocated the restoration of weighbridges on major highways, increased investment in rail and inland waterway transportation, and stronger collaboration among government agencies, professional bodies and private-sector operators.
He also stressed the need for policy continuity, warning that frequent project abandonment and policy reversals discourage investment and slow economic progress.
While commending ongoing efforts to promote Compressed Natural Gas (CNG) and electric vehicles, Oyeyemi urged government to accelerate supporting infrastructure development to ensure sustainable adoption.
Earlier, Publisher of City Business News Online, Mr. Moses Ebosele, said the anniversary theme was chosen to spotlight the critical role of logistics in driving economic competitiveness, trade facilitation and industrial growth.
He noted that Nigeria’s ambition to emerge as a leading logistics hub in Africa would require sustained investments in infrastructure, technology, multimodal transportation systems and policy reforms.
Chairman of the occasion and Founder of ABC Transport Plc, Frank Nneji, described transportation and logistics as indispensable pillars of national development, urging the Federal Government to prioritize the road sector, which remains the dominant mode of passenger and freight movement.
Nneji also called for accelerated road concession programmes and greater private-sector participation in infrastructure development, arguing that improved transport networks would significantly reduce logistics costs, boost productivity and strengthen Nigeria’s competitiveness.
Participants at the event unanimously agreed that improving logistics infrastructure, eliminating operational bottlenecks and ensuring policy consistency remain critical to reducing the cost of doing business and unlocking sustainable economic growth in Nigeria.
©Copyright MOTORING WORLD INTERNATIONAL. All rights reserved. Materials, photographs, illustrations and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior written permission from Motoring World International
Contact: editor@motoringworldng.com
