One of the fastest growing industries within the Nigerian economy is the logistics and supply chain sector, although it is still in its developing phase.
As of the year 2018, the valuation of the Nigerian logistics sector was pegged at 250 billion naira ($696 million), a rise of 50 billion naira ($140 million) from 2017 figures. This data was according to the 2018 logistics and supply chain industry report as reported by Vanguard.
In the year 2018, out of 190 countries, Nigeria was ranked 145 in its ease of doing business, also ranked 112 in the logistics performance index.
The Nigerian logistics and supply chain sector is faced with a myriad of challenges ranging from infrastructural deficit to deep-rooted corruption and so on. However, the possibilities and opportunities that the Nigerian logistics industry presents are endless and limitless.
In this article, we would be touching on some of the opportunities that are available and waiting to be maximized by existing and potential investors.
Talking about some of the ‘yet to be fully tapped’ opportunities that are available presently in the Nigerian logistics industry, the under listed are part of these opportunities:
Absence of a fully technologically driven system and processes.
Expected construction of the Lekki Port.
Planned development of Free Trade Zones in Katsina, Abia and Lagos.
The expected exponential growth of the e-commerce sector.
Talking about technology in relation to the Nigerian logistics industry, the unfortunate reality is such that the logistics system and processes have not yet been fully synchronized with the necessary state-of-the-art technologies that are obtainable in similar industries in advanced societies of the world, technologies like GPS tracking and control towers, for example, are not yet very popular in Nigeria, and this definitely presents entry opportunities for many technology companies who possess the required technical competence across the world, to fill the vacuum in the market.
Emerging technologies include:
Real-time fuel management systems
Warehousing management systems
Cargo management systems
Communication and information systems. For example, Electronic Data Interchange (EDI), is useful for reducing paperwork and reducing the turnaround time taken for compliance procedures.