Oyeyemi, Nneji Push Logistics Reforms to Unlock Nigeria’s Economic Potential

Nigeria’s quest for sustainable economic growth will remain constrained unless urgent reforms are implemented across the logistics and transportation value chain, industry leaders warned on Thursday, citing poor infrastructure, policy inconsistency and rising operating costs as major obstacles to business competitiveness.

The call came from President of the Chartered Institute of Logistics and Transport (CILT) Nigeria and former Corps Marshal of the Federal Road Safety Corps (FRSC), Dr. Boboye Oyeyemi, and Founder of ABC Transport Plc, Mr. Frank Nneji, at the 10th anniversary celebration of City Business News Online in Lagos.

Speaking at the event with the theme, “Logistics as the Engine Room of Nigeria’s Economy,” Oyeyemi described logistics as the backbone of economic activity, stressing that production, trade and national development depend largely on the efficient movement of goods and services.

According to him, logistics extend beyond transportation to include supply chain management, warehousing, storage, distribution and coordination, making it one of the most strategic sectors for economic growth.

Oyeyemi identified poor road infrastructure, inadequate rail connectivity, weak inland waterway transport, multiple checkpoints, high diesel prices, poor storage facilities and policy inconsistency as major factors undermining the country’s logistics ecosystem.

He noted that more than 90 per cent of freight and passenger movement in Nigeria is still carried by road, placing enormous pressure on highways, increasing transportation costs and creating inefficiencies across the economy.

The former FRSC boss expressed concern over post-harvest losses in the agricultural sector, revealing that about 40 per cent of farm produce is lost before reaching consumers because of poor transportation networks and inadequate cold-chain infrastructure.

“The Middle Belt remains the food basket of the nation, yet a significant percentage of agricultural products perish before reaching markets due to poor roads, transportation delays and inadequate storage facilities,” he said.

Oyeyemi added that billions of naira are lost annually through post-harvest waste, a situation that contributes to food inflation and reduces returns on agricultural investments.

He also lamented the impact of rising diesel costs and the proliferation of checkpoints and illegal levies along transport corridors, noting that the resulting delays and extortion increase logistics expenses that are ultimately passed on to consumers.

To address the challenges, he advocated the restoration of weighbridges on major highways, increased investment in rail and inland waterway transportation, and stronger collaboration among government agencies, professional bodies and private-sector operators.

Oyeyemi further stressed the need for policy continuity, warning that frequent abandonment of projects and policy reversals by successive administrations discourage investment and slow national development.

While commending government efforts to promote Compressed Natural Gas (CNG) and electric vehicles, he urged authorities to ensure sustainability by expanding supporting infrastructure and encouraging wider adoption of alternative energy solutions in the transport sector.

Earlier, Publisher of City Business News Online, Mr. Moses Ebosele, said the anniversary theme was chosen to highlight the growing importance of logistics in driving economic competitiveness, trade facilitation and industrial development.

He noted that Nigeria’s ambition to become a leading logistics hub in Africa would require sustained investments in infrastructure, technology, multimodal transport systems and policy reforms.

Chairman of the occasion, Frank Nneji, described transportation and logistics as critical pillars of national development, urging the Federal Government to pay greater attention to the road sector, which remains the dominant mode of travel and freight movement in the country.

Nneji also called for accelerated road concession programmes and increased private-sector participation in infrastructure development, arguing that improved transport networks would reduce logistics costs, boost productivity and enhance Nigeria’s competitiveness.

Participants at the event agreed that strengthening logistics infrastructure, eliminating operational bottlenecks and ensuring policy consistency are essential to lowering the cost of doing business and driving long-term economic growth.