Stakeholders Task FG on N15tn Logistics, Transportation Industry to Unlock Economy

Emma Okonji and Agnes Ekebuike

Industry stakeholders have called on the federal government to prioritise investment in Nigeria’s courier, logistics and transport industry, valued at over N15 trillion, in order to unlock and further boost the Nigerian

economy.

The stakeholders made the call in Lagos during the Courier & Logistics Management Institute (CLMI’s) 2024 International Conference & Investiture, where industry experts and professionals gathered to discuss Nigeria’s

economic growth and the roles of courier and logistics in nation-building.

In his keynote address, Chairman, Africa Economic

Summit, Dr. Sam Ohuabunwa, described logistics as an essential tool for Nigeria’s economic transformation.

Speaking on the theme: “Unlocking Economic Potentials and Fostering Nation-building through Logistics Instruments,” Ohuabunwa said: “Logistics is the process of planning and executing efficient transportation and storage of goods. It’s fundamental to economic growth, acting as a bridge to meet consumer needs in a cost- effective and timely manner.”

He therefore called for strategic investment in infrastructure, energy, and broadband technology, adding that robust infrastructure can reduce production costs, increase global competitiveness, and stimulate industrial growth. He stressed the need for better access to credit at single-digit interest rates to enable growth in agriculture and small businesses.

Ohuabunwa noted that despite Nigeria’s abundant resources, the country’s economy is hampered by insufficient infrastructure, underdeveloped industrial

capacity and over-reliance on imports.

Executive Chairman of CLMI, Prof. Simon Emeje, who projected that the combined worth of Nigeria’s courier, logistics, transport, and management industry, valued at no less than N15 trillion, explained the importance of the sector to Nigeria’s economic future growth. He cited research showing the market potential could be as high as N25 trillion if fully harnessed.

According to Emeje, “In many countries, the sector contributes approximately seven-eight per cent to GDP.

However, in Nigeria, its contribution currently stands at around four per cent, revealing a substantial gap, which if addressed, could unleash transformative growth in Nigeria’s economy.”

He called on the Nigerian government to harness the resources within the sector, stressing that investment could unlock revenue streams contributing up to 60 per cent of the annual national budget.

To underscore these points, industry experts at the event presented strategies such as logistical innovations and advanced transport management approaches, advocating that the sector should become a cornerstone of Nigeria’s economic agenda.

Benue State governor, Reverend Father Hyacinth Iormem Alia, said the state queued into the courier and transportation sector to enhance its citizens’ welfare.

The governor, who was represented by the CEO of FarmBasket Global Resources Limited, Chief Aber Terseer Benjamin, said: “Benue Links Company holds greater economic opportunities for our dear State and our administration needed to act fast to rescue and reposition the Company that almost went comatose to its current status.”

Also speaking at the event, CEO of Widescope International Logistics, Dr. Oluwasegun Musa, stressed the need for modernisation and policy reform within Nigeria’s logistics sector.

According to Musa, “Logistics is the motive force behind every economy, and a strong logistics framework is essential for sustainable growth.” He urged the government to prioritise the logistics sector and implement policies that would transform it into a true driver of economic development.

Other speakers highlighted the importance of strategic investments and infrastructure development to unlock Nigeria’s full economic potential.