Expert: Logistics, transport sectors will boost Nigeria’s GDP if reforms are carried out

Sein Dokubo, a chartered procurement professional and an international supply chain leader, says Nigeria will boost its gross domestic product (GDP) if the federal government taps into the huge potential in the logistics and transport sector.

Speaking in an interview with journalists in Lagos, Dokubo said the country’s strategic location, large population, and vibrant market create a fertile ground for leveraging logistics to boost the GDP.

He stressed the need for the government to improve infrastructure such as roads, railways, seaports and airports to take advantage of the economic potential in the logistics and transportation sectors.

“These are the gateways to seamless transportation. Politically, we need to simplify regulations, offer investment incentives, and implement trade facilitation measures focusing on targeted political reforms,” Dokubo said.

“Technologically, I am technology-inclined, so I would encourage embracing digital tools and data analytics to optimize logistics operations.

“There are other potentials such as regional integration through ECOWAS protocol and developing Regional Transport Corridors to enhance cross-border trade.”

Speaking on the challenges limiting the growth and potential of logistics and transport sectors, he said Nigeria’s road network spans approximately 195,000 kilometres, noting that about 30 percent of federal roads are in poor condition.
“This results in high transportation costs and delays. For the rail network, the Nigerian railway system covers around 3,500 kilometres, but less than 20 percent is currently operational due to outdated infrastructure,” Dokubo said.

“For ports and airports, Nigerian ports face significant congestion, with the Apapa port in Lagos operating at over 150 percent capacity, leading to long wait times and inefficiency.”

He lamented that political, regulatory and bureaucratic hurdles have also hindered the potential of the sectors.

“Some of these hurdles include complex procedures. It takes an average of 20 days to clear goods through Nigerian ports, compared to the global average of seven days, due to bureaucratic bottlenecks,” he added.

“ Also, corruption. Nigeria ranks 154th out of 180 countries on Transparency International’s 2023 Corruption Perceptions Index, indicating a high level of corruption affecting business operations.

“Thirdly, inadequate technology adoption. This includes a lack of digital solutions. Only about 30 percent of logistics firms in Nigeria use advanced tracking and automation systems, limiting efficiency.

“On cybersecurity risks, the rate of cyber-attacks in Nigeria has increased by 25 percent in the past two years, posing risks to digital logistics infrastructure.”

Dokubo said despite these challenges, there are ongoing policies and works that may be the solutions if they are executed successfully.

“I know that there are plans in place to invest over $3 billion in road and railway projects by 2025 to improve connectivity and reduce transportation costs,” he said.

“The government has initiated the Deep Sea Port project at Lekki, expected to increase port capacity by 50 percent upon completion in 2024- this year. Also, they are implementing single-window systems for customs and the expectation here is to reduce clearance time by 40 percent.

“On the technology side of things, the adoption of GPS tracking and warehouse automation is projected to increase by 50 percent by 2025, driven by government incentives. For cybersecurity measures, investing in robust cybersecurity frameworks can reduce the risk of cyber-attacks, protecting critical logistics data.”

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