‘Nigeria loses N3.6tn to transport inefficiencies’

Politics Spice Special Features Education Sex & Relationship Interview Columns Opinion Advertise with us ‘Nigeria loses N3.6tn to transport inefficiencies’ Business & Economy October 29, 2026 12:00 am Director-General of the Africa Centre for Supply Chain, Dr Obiora Madu,

The Director-General of the Africa Centre for Supply Chain, Dr Obiora Madu, has said Nigeria loses more than N3.6tn to inefficiencies and distortions in its transportation and logistics sector.

Madu warned that poor connectivity across the country’s transport network was undermining business operations, particularly those of small-scale enterprises, and limiting the sector’s contribution to economic growth.

He spoke at the BusinessDay Mobility and Logistics Conference, held in Lagos, where industry stakeholders called for an integrated transport system to reduce logistics costs, improve the movement of goods and strengthen Nigeria’s economic competitiveness.

Madu said expanding infrastructure without ensuring effective coordination among the different modes of transportation would fail to address the sector’s underlying challenges.

“If we don’t get the logistics right, the small-scale businesses would not be optimised. We do not need digital islands, we do not need superlative infrastructure, what we need is connected systems,” he said.

He stressed that a resilient logistics ecosystem required seamless connections between transport infrastructure, businesses and distribution networks, rather than isolated investments in individual components of the system.

Madu estimated that the country “loses more than N3.6tn to inefficiencies and distortions in the transportation and logistics sector,” arguing that a connected system would unlock opportunities across the industry.

The Managing Director of the Nigerian Railway Corporation, Dr Kayode Opeifa, identified an integrated transportation and logistics system as a critical driver of Nigeria’s economic resilience and competitiveness.

Speaking on the theme, ‘Scaling the Future: Building a Resilient and Efficient Mobility and Logistics Ecosystem in Nigeria,’ Opeifa said inefficiencies in the country’s transport network contributed to congestion, rising logistics costs, delayed deliveries, lower productivity and higher prices of goods and services.

He argued that connecting rail, road, maritime and air transport would help businesses move goods more efficiently, improve access to markets and reduce avoidable costs across the supply chain.

According to him, rail transportation has a strategic role in building an efficient national transport network because of its capacity to move large volumes of passengers and freight over long distances.

He said rail could ease pressure on highways while strengthening connections among seaports, industrial clusters, inland terminals and urban centres.

“Rail should not be viewed as a competitor to road, maritime or air transportation, but each should continue to develop as complementary components of an effective integrated transport system,” Opeifa said.

He explained that road transport remained essential for cargo collection and last-mile delivery, while maritime transport connected Nigeria to international trade. Inland terminals, he added, facilitated cargo handling and distribution, with rail providing a high-capacity link between these facilities and centres of production and consumption.

Opeifa said effective coordination among the various modes would lower logistics costs, promote regional commerce and improve the competitiveness of Nigerian products.

Akinlotan is a journalist at Punch Newspapers with over eight years of experience reporting on politics, social justice, motoring, railways, and aviation. His work focuses on accountability, public interest, and social change, producing stories that inspire reform and amplify underrepresented voices. Akinlotan’s reporting reflects extensive newsroom experience, editorial insight, and a strong commitment to accurate, impact-driven journalism.

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