Skip to content

The Nigerian logistics industry and some of its opportunities

AMG Logistics

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.

Opportunities

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:

  1. Absence of a fully technologically driven system and processes.

  2. Expected construction of the Lekki Port.

  3. Planned development of Free Trade Zones in Katsina, Abia and Lagos.

  4. 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.

 

AMG Logistics

The Lekki Deep Sea Port

The expected Lekki Lagos port is in the works. This project is on a 3,000-hectare plot.

The Lekki Deep Sea project is gulping a whopping budget of $1.5 billion, and the anticipated completion of its phase 1 is expected to be delivered in the year 2022.

Upon completion of this project, it is being hoped that this new development will, to a very large extent, decongest the incessant traffic situation experienced around the Apapa seaport. Additionally, it will also open new logistics routes within the Lagos metropolis.

This presents many new business opportunities within the sector.

Other opportunities

  • The Nigerian Special Economic Zones Investment Company also has currently been raising capital of $250 million from different lenders to develop free trade zones in three states, namely Katsina, Abia and Lagos states, this will largely fill the supply-demand gap within the economy.

  • The Nigerian e-commerce sector is also projected and expected to experience exponential growth considering the level of Investments generated via direct and third-party logistics operators in the sector in order to boost the Nigerian courier and parcel market.

Within the last decade, online or virtual shopping has increasingly become entrenched in the country and has greatly changed the way Nigerians go about shopping. The digital shopping platforms have given convenient and stress-free access to various types of both local and foreign items.

The above are some of the opportunities that abound in the Nigerian logistics industry, and this is a goldmine that has only merely been exploited by investors.

Share this post:

LinkedIn
Facebook
Twitter
Pinterest
Tumblr

AMG Logistics is a Lagos-based TRACE certified logistics company. Our services include Freight Forwarding, Customs Clearance, Trucking, Distribution, and Warehousing within Nigeria.

CONTACT US

 

Tel: +234 909 199 9866

sales.nigeria@amglogistics.com
+234 909 199 9866

customer.services@amglogistics.com
+234 909 199 9841

cs.abuja@amglogistics.com
+234 909 199 9805

documentation.department@amglogistics.com
+234 909 199 9813

AMG Logistics Locations

HEAD OFFICE
7c Creek Road
Apapa
Lagos

ABUJA BRANCH
B3 ground floor
84 Keane Nkrumah Street
Asokoro Business & Lifestyle centre
Abuja

PORT HARCOURT BRANCH
NAMA Admin Building
Port Harcourt International Airport
Omagwa
River State

LET US CONTACT YOU

CONTACT US NOW