Africa
By Anthony Isibor
A former Corps Marshal of the Federal Road Safety Corps, FRSC, and President of the Chartered Institute of Logistics and Transport, CILT Nigeria, Boboye Oyeyemi, has warned that Nigeria’s logistics sector is operating under severe strain, costing the country billions of naira annually through supply chain inefficiencies.
Delivering the keynote address at the 10thCityBusinessNews Anniversary Lecture in Lagos, Oyeyemi described logistics as the “engine room of Nigeria’s economy,” arguing that inefficiencies in the sector are fueling inflation, increasing business costs and undermining food security.
According to him, Nigeria’s freight and logistics market is now valued at $11.66 billion and contributes over N1 trillion to the nation’s Gross Domestic Product, GDP, making it one of the country’s most strategic economic sectors.
He noted that the country loses between $2.3 billion and $3.3 billion annually due to post-harvest losses caused by poor roads, inadequate cold-chain infrastructure and inefficient transportation systems.
Oyeyemi said that as much as 40 per cent of farm produce spoils before reaching consumers, contributing significantly to rising food prices in major cities such as Lagos and Abuja.
The logistics expert also highlighted the burden of soaring diesel prices, illegal checkpoints and multiple taxation, saying these factors have pushed fuel costs to consume up to 65 per cent of long-haul transport expenses.
He called for harmonised interstate taxation, greater investment in transport infrastructure and stronger regulation to improve efficiency across the logistics value chain.
“Logistics is not a peripheral service industry it is the vascular system of the Nigerian economy,” he said, urging policymakers to prioritise reforms capable of reducing costs and improving the movement of goods nationwide.
A.I
June 26, 2026
Tags: Boboye Oyeyemi CILT Nigeria CityBusinessNews FRSC