Industry leaders have urged the Federal Government to address gaps in Nigeria’s logistics and transport sector through strategic investment in advanced technology and broadband infrastructure.
The call was made at the Courier & Logistics Management Institute’s 2024 International Conference and Investment event in Lagos, where stakeholders underscored the sector’s potential to drive significant economic growth.
Delivering the keynote address, the Chairman of the Africa Economic Summit, Dr Sam Ohuabunwa, emphasised broadband and infrastructure as essential enablers for the sector.
“Broadband is a critical tool for modern logistics, bridging the gap between production and consumption in real-time,” he said.
Ohuabunwa also stressed the need for accessible credit for small businesses and agriculture, adding that robust infrastructure could reduce production costs and improve Nigeria’s global competitiveness.
Countries around the world are already leveraging technology to improve their logistics industries. In the Gulf Cooperation Council countries, including Saudi Arabia, AI, IoT, and blockchain are being used to modernize logistics and capture a share of the global logistics market, which is projected to reach $12.8tn by 2025, according to an industry report.
While Nigeria is investing in expanding its broadband infrastructure, the country still faces significant challenges in establishing a robust digital framework necessary to support its logistics sector.
Meanwhile, Nigeria plans to invest $2bn to expand its fibre/optic network by 90,000 kilometers, increasing total capacity from 35,000 km to 125,000 km.
Ohuabunwa spoke on the theme, “Unlocking Economic Potentials and Fostering Nation-Building through Logistics Instruments.
He explained, “Logistics is the process of planning and executing efficient transportation and storage of goods. It’s fundamental to economic growth, acting as a bridge to meet consumer needs in a cost-effective and timely manner.”
Ohuabunwa encouraged a return to productivity-driven economic planning, proposing government investment in essential infrastructure to stabilize the economy, improve foreign reserves, and strengthen the naira.
The Executive Chairman of CLMI, Prof Simon Emeje, described the sector as critical to Nigeria’s economic future, estimating its current value at over N15tn, with the potential to grow to N25tn if fully developed.
Emeje explained, “In many countries, this sector contributes approximately 7-8 per cent to GDP. However, in Nigeria, its contribution currently stands at around 4%, revealing a substantial gap that, if addressed, could unleash transformative growth.”
He called on the Nigerian government to harness the resources within the sector, stressing that investment could unlock revenue streams contributing up to 60 per cent of the annual national budget.