LAGOS — Nigeria is losing an estimated N5 trillion annually as between 30 million and 40 million metric tonnes of food perish before reaching consumers due to the country’s poor logistics system, stakeholders have warned.
The alarming disclosure was made at the 10th Anniversary Lecture of City Business News held in Lagos under the theme, “Logistics as the Engine Room of Nigeria’s Economy,” where industry leaders called for urgent reforms to rescue the nation’s struggling transport and logistics sector.
President of the Chartered Institute of Logistics and Transport (CILT) and former Corps Marshal of the Federal Road Safety Corps (FRSC), Dr. Boboye Oyeyemi, blamed the huge losses on poor transport infrastructure, multiple illegal road checkpoints, soaring fuel prices and inconsistent government policies.
According to him, logistics inefficiencies are responsible for post-harvest losses valued at between $2.3 billion and $3.3 billion annually, translating to approximately N3.5 trillion to N5 trillion in economic losses every year.
Oyeyemi lamented that despite its strategic importance to national development, the logistics sector contributes only 3.73 per cent to Nigeria’s Gross Domestic Product (GDP) because of deep-rooted structural challenges.
He explained that the agricultural sector remains the biggest casualty, with nearly 40 per cent of harvested food wasted before reaching the market.
“The Middle Belt is the food basket of the nation. To move goods from the Middle Belt to Lagos, about 40 per cent of them rot away,” Oyeyemi said.
He also identified the rising cost of diesel and widespread extortion by security operatives and other officials on Nigerian highways as major factors driving up transportation costs.
According to him, transport operators spend between N150,000 and N250,000 per trip on illegal payments at multiple checkpoints, a situation that ultimately pushes up food prices and the cost of doing business.
To reverse the trend, Oyeyemi urged the Federal Government to dismantle illegal roadblocks, subsidise Compressed Natural Gas (CNG) to reduce transportation costs and encourage the adoption of dual-fuel vehicles powered by both petrol and gas.
He further called for the appointment of a Coordinating Minister for Transportation to harmonise policies across the transport sector and improve efficiency.
The former FRSC Corps Marshal also advocated the restoration of weighbridges on major highways to curb overloading by haulage operators, warning that excessive axle loads are destroying newly constructed roads across the country.
Also speaking, Founder of ABC Transport Plc, Sir Frank Nneji, decried what he described as years of neglect of the road transport sector by successive governments.
He noted that while the aviation industry receives significant government attention and investment, millions of Nigerians who depend daily on road transportation continue to grapple with poor infrastructure and insecurity.
“The government should pay more attention to road redevelopment. They should hand off road development and concession some of the major roads,” Nneji said.
He also called on the government to strengthen security on highways to protect commuters and transport operators from criminal attacks.
Responding, the Corps Marshal of the Federal Road Safety Corps (FRSC), Shehu Mohammed, assured stakeholders of the agency’s commitment to improving safety on Nigerian roads through stronger collaboration with private sector players and stricter enforcement of traffic regulations.
Mohammed said the Corps would intensify public enlightenment campaigns and enforcement activities aimed at reducing road crashes and ensuring safer movement of people and goods across the country.
On gender inclusion, President of Women in Logistics and Transport (WiLAT), Mrs. Khadijat Sheidu-Sabi, whose address was delivered by Mrs. Fatima Jatto of the Nigerian Ports Authority (NPA), stressed the need to increase women’s participation in the logistics industry.
“It is important to recognise and celebrate the increasingly significant role of women in the logistics sector. Today, women are leading organisations and shaping policies. Inclusion and empowerment of women must remain a priority because they are critical to the sustainability of the sector,” she said.
Stakeholders unanimously agreed that unless the Federal Government creates a more enabling business environment, protects investments in transport infrastructure, eliminates illegal roadblocks and ensures policy consistency, Nigeria’s logistics sector will continue to hinder economic growth.
They maintained that an efficient logistics system remains key to reducing food inflation, strengthening supply chains, boosting agricultural productivity and unlocking Nigeria’s economic potential.
