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The Nigerian logistics industry, talking solutions!

AMG Logistics

Just like every other industry, the Nigerian logistics industry is equally faced with challenges hindering it from reaching its full capacity, however, it is worthy of note that it’s an industry filled with unlimited potential and opportunities

Enough has been said about the many challenges that the Nigerian logistics industry face.

There are volumes of articles discussing many of these challenges, but going forward from here, we would pay more attention to discussing some of the needed solutions to many of the challenges the industry is faced with.

  • Closing the Infrastructure gap: Nigeria’s infrastructure deficit is said to be estimated at $100 billion annually, this is a 189.77% increase on the 2021 federal budget, which was projected at $34.51 billion.

With the volume of infrastructure deficit, it is almost impossible to think or expect that government alone can fill the infrastructure gap in the country, so as a result of this, it is important for the government to build Public Private Partnerships (PPP) in its quest to meeting the infrastructure requirement of Nigeria.

It is also very key to make investments in infrastructure in the short term and reap the benefits in the long term. Most infrastructure projects will significantly require upfront and massive investments, but it is certain to reap good rewards over time.

  • Policy consistency: Policymakers have been under heavy criticism of the culture of inconsistent policies over time, this situation has caused uncertainty within the logistics industry, thereby making stakeholders and operators be apprehensive and unsure of what to expect from the government. In moving forward, it is important for authorities at all levels to have long term policies that a lot of thoughts, considerations and consultations with relevant stakeholders within the industry would have gone ahead with the final implementation of policies.

  • Improvements on road network & power supply: On a general note, we have earlier touched on the infrastructure deficit or gap in the country, how it affects the logistics industry and the need for government to increase investment by way of Public Private Partnerships (PPP), equally important is the state of most roads and the inadequate power supply. These two challenges call for urgent attention and intervention, as they both have direct and or indirect negative impacts on the logistics industry.

There have been numerous cases of fully loaded trucks falling off different roads across the country, thereby causing a various degree of losses to vendors and customers within the industry, and sometimes delays are experienced with customs as a result of poor power supply, all this need to be investigated by the appropriate government authorities with the aim of permanently solving them.

  • Fight against corruption: Corruption, unfortunately, has remained a constant threat to the growth and development of the logistics industry, and in order to reposition the industry, concerted efforts must be undertaken by government at all levels and relevant players within the sector to save the industry from billions of naira lost to corruption within the sector.

It is worthy of note that one of the best and most effective ways of tackling the issue of corruption is by the deployment of technology. Deploying relevant state of the art technology to drive the industry’s processes will almost eliminate corruption within the system.

  • Taxation harmonization: According to the National Tax Policy Document, multiple taxations happens where the tax, fee or rate is levied on a particular person in respect of the same liability by more than one state or local government council.

Multiple taxations have negatively impacted the logistics industry in Nigeria, and there have been calls from various stakeholders within the industry to see that an end is brought to this trend, this goal however remains a dream for now. The government needs to do more in harmonizing tax collection in the country, as this will go a long way in ameliorating the sufferings of operators within the logistics sector.

In conclusion

There is no doubt that the Nigerian logistics industry is one with a lot of growth potential waiting to be tapped by different investors.

For the sector to fully maximize its potential, it is crucial for relevant stakeholders and most importantly government and policymakers to do the needful to move the industry from where it currently is, to where it deserves to be.

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



Tel: +234 909 199 9866
+234 909 199 9866
+234 909 199 9841
+234 909 199 9805
+234 909 199 9813

AMG Logistics Locations

7c Creek Road

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

NAMA Admin Building
Port Harcourt International Airport
River State