Nigeria’s non-oil export sector is facing mounting pressure from rising logistics and energy costs despite growing global demand and increasing export value, a new industry report has revealed.
The report, unveiled on Wednesday during a virtual event themed “High Confidence, High Cost: Nigeria’s Non-Oil Exporters Signal Growth Amid Structural Constraints,” showed that 77.7 per cent of exporters experienced rising inland transportation and port handling costs between 2021 and 2025.
The findings were contained in the 3T Impex Non-Oil Export Index Report 2026, released by 3T Impex Trade Consulting.
According to the report, Nigeria’s non-oil export value rose by 93 per cent within five years to reach $6.17bn in 2025, reflecting strong international demand for Nigerian products.
The report, authored by trade expert Dr Bamidele Ayemibo, analysed 87,824 export transactions conducted between 2021 and 2025 and also surveyed 94 active non-oil exporters across the six geopolitical zones.
Despite the growth recorded in export value, the report warned that structural challenges, particularly logistics and energy costs, were threatening the survival of many exporters, especially Micro, Small, and Medium Enterprises.
It noted that the Logistics Benchmark Index dropped to a critical 12.8 out of 100, the lowest score recorded among all performance indicators assessed in the study.
The report stated, “Nigeria’s non-oil exporters are confident, market-facing and growing. But a Logistics Benchmark of 12.8 out of 100 is a structural emergency, not a policy inconvenience. When 77.7 per cent of exporters face rising logistics costs while simultaneously recording the strongest sentiment scores, the system is trapping its own best performers.”
The report further disclosed that the Business Confidence Index stood at 87.8 out of 100, while the Predictive Outlook Index reached 92.8, indicating strong optimism among exporters. It added that 75.5 per cent of exporters recorded actual sales growth, while 91.5 per cent expressed confidence that global demand would continue to improve.
According to the report, 83 per cent of respondents also indicated plans to invest and expand production capacity despite prevailing economic constraints.
However, exporters identified operational bottlenecks rather than market access as the biggest obstacle to expansion. The report showed that 51.1 per cent of exporters ranked the high cost of energy and processing as their most pressing challenge.
It noted that rising electricity and production costs were forcing many businesses to abandon value addition and revert to exporting raw commodities. The report stated, “High energy costs are discouraging processing and industrial value-addition, thereby limiting Nigeria’s competitiveness in higher-value export markets.”
It also revealed that 28.7 per cent of exporters cited quality and standardisation rejections as their major concern, stressing the need for stronger certification and compliance infrastructure to meet international standards such as the European Union Deforestation Regulation.
The report further warned against increasing dependence on Lagos ports, noting that 71.7 per cent of Nigeria’s non-oil exports now pass through Apapa and Tincan Island ports. It added that Tincan Island Port alone accounted for 45.9 per cent of export traffic in 2025, raising concerns over congestion and national supply chain risks.
While export value increased significantly during the review period, the report noted that the total number of export transactions declined from 18,280 in 2021 to 16,683 in 2025.
According to the report, the drop suggests that smaller exporters are gradually being excluded from the formal export system due to prohibitive operating and logistics costs. It added that the Regulatory Efficiency Index scored 54.8, reflecting a business environment still constrained by administrative and operational inefficiencies.
The Financial Health Index also stood at 52.7, indicating fragile financial support for exporters. The consulting firm called for urgent intervention by the Federal Government and financial institutions to address the growing challenges facing the sector.
Among its recommendations were the diversification of export port infrastructure through increased use of Onne Port to relieve Lagos, resolving grid power reliability for export zones, improved power supply to export processing zones, expansion of export credit insurance by the Nigerian Export-Import Bank, and the introduction of logistics-linked pre-export financing schemes.
“Exporters are also advised to consolidate shipments and prioritise quality compliance,” the report read.
