Infrastructure development and logistics experts have identified the challenges and proffered solutions to issues hindering Nigeria’s emergence as a global logistics hub.
The experts offered their perspectives in various presentations during a session organised by the Nigeria Branch of the Chartered Institute of Procurement and Supply (CIPS) in Abuja recently.
Various presentations which dwelled on the theme: “The Role of Logistics Infrastructure in Nigeria’s Supply Chain Efficiency” were of the consensus that Nigeria could do better as a force to reckon with in the global logistics arena if steps were taken to adopt institutional policies that would help eliminate factors curbing the smooth operations of the sector of the economy.
The Branch Chair of CIPS Nigeria, Harold Nwariaku in his welcome address described the theme of the seminar as both timely and critical, as the country grapples with the complexities of supply chain management in an era of globalization and rapid technological advancement.
Noting the importance of logistics infrastructure as the backbone of an efficient supply chain, Nwariaku said for Nigeria to compete effectively both locally and globally, it must address the existing gaps and explore innovative solutions.
He spoke of efforts by the CIPS Nigeria Branch over the past two years to empower procurement and supply professionals with the knowledge and tools needed to thrive in an ever-evolving landscape, saying the seminar was one of such efforts to help Nigeria become a forum for discourse and growth.
On the objective of the seminar, Nwariaku said it was organised to provide the platform for industry leaders, government, and academia to discuss the state of Nigeria’s logistics systems and their impact on supply chain efficiency.
“Together, we will explore innovative approaches to transportation networks, warehousing, and technology to unlock new levels of performance and competitiveness,” he said. .
The DG Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, tasked members of the institute and procurement professionals to prepare and present ideas on the key areas of national concern, including the National Procurement Strategy for Nigeria to help in addressing procurement and logistics issues.
Other areas of interest include
suggestions for the improvement of Nigeria’s logistics framework; developmen of Supplier/Vendor Management strategies for the country as well as other . ideas that would help in changing the approach to procurement in Nigeria.
The DG charged procurement bodies and professionals to make themselves willing and available as tools to transform the country’s procurement and supply chain trajectory.
Participants, which included CIPS members and procurement & supply Chain professionals, received keynote presentations from Dr Eniang Nkang, a logistics and development practitioners and Dr Bola Afolabi, a Chartered Fellow of the institute.
In his presentation, Dr Nkang, a former senior staff of the Nigerian National Petroleum Company Limited, who spoke on
“The Role of Logistics Infrastructure in Nigeria’s Supply Chain Efficiency” said adequate logistics infrastructure efficiency in Nigeria could lead to cost reduction, efficient supply chains, optimized transportation, warehousing, and inventory, and overall reduction in consumer prices, increased purchasing power and enhanced demand.
Also, he said increased competitiveness and efficient supply chains could enable companies to respond quickly to market demands, adapt to
changes, and manage risks, while enhancing their
competitiveness, increased
market share, export growth, and overall economic expansion.
In terms of economic productivity, Nkang said streamlined supply chains would boost productivity, by reducing delays and waste, enabling businesses to focus on innovation and expansion.
“This fosters more robust economic growth, ensures Job creation, apart from efficient supply chains benefits to industries, such as manufacturing, retail, and logistics, by reducing
costs and boosting profitability.
He recommended that steps should be taken to modernise and expand the country’s network of roads, railways, airports, seaports, waterways and telecommunications infrastructure through Public-Private Partnerships (PPPs).
Dr Afolabi who presented a “Detailed Analysis of Nigeria’s Road Infrastructure and its impact on Transportation Costs and Efficiency” identified the consequences of poor infrastructure in the country’s transport sector.
He said these include limitation of access to opportunities, jobs, education, and other services, higher business costs, less trade, and fewer investors, environmental degradation, increased healthcare costs,
air pollution from traffic congestion, and reduced productivity.
The loss of productivity as a result of poor road infrastructure, he pointed out, accounts for about 2-4 percent of the country’s gross domestic product (GDP); agricultural losses due to high post-harvest losses, especially for perishable
agricultural products,with 40-
50% of perishable goods
lost due to delays and poor
handling during
transportation.
Besides, he said incessant road traffic accidents due to poor road quality and congestion, according to World Health Organisation (WHO) data, result in over 20,000 road traffic deaths annually with dire
economic and social impact
He identified poor funding and efficient use of resources as
underlining challenges for efficient road infrastructure network in the country, adding that improved funding allocation would attract private investment, while implementation of better management practices could significantly improve transportation costs and efficiency.
“The poor condition of Nigeria’s roads adds substantial costs to transportation by increasing maintenance, fuel, labour, and
insurance expenses, raises the price of goods and services,
economic inefficiency and
limits overall productivity and the standard of living of the people.
On his part, Daniel Bassey who spoke on the topic: “Positioning Nigeria as a Global Logistics Hub Despite Economic and Infrastructure Challenge” said adequate logistics was crucial to global trade, as it ensures the efficient movement of goods across borders, timely delivery, cost-effective supply chains, facilitates international commerce, and improves competitiveness.
He identified current logistics challenges in the country to include supply chain disruptions,
port congestions, rising fuel and transportation costs, labour shortages, delays due to increased demands, and regulatory complexities.
Although Bassey acknowledged Nigeria’s logistics sector was growing, he said it was facing significant challenges like
modernized ports, good roads, standard railways.
Despite the hurdles, he said the sector was benefitting from a booming e-commerce market and regional trade opportunities, adding that the growth in the country’s logistics sector was driven by the expansion of e-commerce, increased trade activities and government investment in infrastructures, like ports, railways and roads.
He said Nigeria’s strategic location and its role/involvement through initiatives like
the African Continental Free Trade Area (AfCFTA) further fuels the development of the logistics sector in the country.
Despite the challenges of high inflation, inconsistent fuel costs, fluctuating exchange rates, inadequate infrastructure, poor access to financing, regulatory and customs inefficiencies as well as rising security concerns, he said there were strategic opportunities that could be exploited to enhance the sector’s growth and efficiency.
These, he said, include e-commerce expansion, infrastructure development,
technological adoption,
regional trade integration,
public-private partnership and
sustainability focus to strengthen its logistics sector, improve on competitiveness as well as position strategically as a regional logistics hub in West Africa.
On some policy recommendations to make Nigeria a Logistic Hub, Bassey called for more investments in Infrastructure (roads, ports, airports), Public-Private Partnerships to boost funding, policies to stabilize the economy and attract local and foreign investments that would establish Nigeria as a pivotal player in global logistics.
“Addressing the issues of infrastructure deficits,
traffic congestion, security issues and regulatory insufficiencies.are critical to unlocking the full potential of Nigeria’s logistics industry,” Bassey said. .
“Nigeria’s strategic location, large population, expanding infrastructure and growing industries, positions it as a key player in Africa’s logistics landscape. This can only be achieved following strategic and continuous investments in infrastructure and policy reforms,” he added.
