Nigeria’s logistics sector is at a crossroads. While the country has made significant strides in digital innovation—deploying delivery apps, freight-matching platforms, and automated inventory systems—these advancements only scratch the surface of what’s needed to build a truly competitive and resilient logistics system. The hard truth is that technology, while transformative, does not move goods independently. It’s a tool, not a replacement for the fundamental drivers of logistics performance: people, physical assets, and infrastructure.
Logistics is the backbone of trade and national productivity. It dictates whether farmers can access markets, whether manufacturers can secure inputs, and whether consumers can afford essential goods. In Nigeria, where over 95 per cent of imports arrive through seaports and more than 80 per cent of goods are transported by road, the efficiency of ports and the condition of roads are critical to logistics costs and delivery timelines. The World Bank’s 2023 Logistics Performance Index underscores this reality, ranking Nigeria 88th globally—behind South Africa (19th), Egypt (57th), and Benin (66th). The index highlights infrastructure reliability, clearance processes, and delivery consistency as key areas for improvement. These are structural challenges that digital platforms alone cannot resolve.
The human element is often the most overlooked asset in logistics. Every operation relies on people who execute and interpret physical processes: drivers, warehouse supervisors, route planners, customs professionals, and safety teams. Their decisions, training, and discipline determine performance outcomes. Yet, investment in workforce development remains limited. High turnover rates, inadequate training for dispatch staff, and inconsistent safety cultures continue to undermine service reliability and operational efficiency. A well-trained driver who understands route planning, customer handling, safe loading, and cost management is invaluable. Similarly, a well-structured operations team can deliver stronger performance than any platform alone. Strengthening this human capability is both a cost-saving and service-improving strategy.
Physical assets are the real carriers of value in logistics. Nigeria’s logistics networks are built on a diverse fleet: motorcycles and tricycles for urban deliveries, vans and light trucks for last-mile and store deliveries, rigid trucks and articulated trailers for interstate haulage, cold-chain vehicles for pharmaceuticals and food, and barges and coastal vessels for water-based transport routes. Software may optimise routes and fleet utilisation, but it cannot replace the vehicles themselves. A company with inadequate or poorly maintained fleet assets will struggle regardless of the digital tools it adopts. Similarly, without warehouses, cross-docking facilities, and reliable power, inventory and throughput efficiency remain constrained.
Several systemic issues currently shape logistics performance in Nigeria: port congestion and slow cargo evacuation, which increase dwell time and costs; road infrastructure gaps, particularly along key trade corridors; volatility in fuel prices, which directly affects cost per kilometer; regulatory inconsistencies and multiple taxation across states, affecting fleet deployment and route planning; and challenges in informal settlements, leading to delivery delays and failed delivery attempts. These issues contribute to logistics costs representing up to 40 per cent of the final cost of goods in Nigeria, compared to 9–10 per cent in more efficient economies. The issue is not a lack of technology. It is the cost of compensating for weak infrastructure.
To create a logistics system that supports business growth, reduces supply chain costs, and ensures reliable service delivery, Nigeria must take a balanced and strategic approach. The future of logistics in Nigeria is neither purely digital nor purely manual. It is phygital—a deliberate integration of physical assets, skilled people, and technology. This involves strengthening road and port infrastructure along critical economic corridors, establishing workforce development standards, supporting access to fleet financing, enhancing regulatory coherence across states, and promoting technology adoption as an enabler.
Technology remains vital. It improves transparency, speeds decisions, and enhances coordination. However, technology performs best in environments where infrastructure is functional, assets are available, and people are skilled. To unlock the full benefits of digital logistics innovation in Nigeria, we must focus on strengthening the physical and human foundations on which logistics operates. In doing so, we position our logistics sector not just to serve today’s needs, but to support the broader economic growth agenda—efficient trade, competitive manufacturing, robust agriculture supply chains, and accessible consumer markets.