At a recent conference hosted by the Lagos Chamber of Commerce and Industry (LCCI), maritime stakeholders addressed significant inefficiencies plaguing Nigeria’s logistics and supply chain systems. These challenges include infrastructural deficits, regulatory bottlenecks, endemic corruption, and high operational costs, which have inflated logistics expenses to as much as 40% of product prices—among the highest globally. Despite ongoing reform efforts, participants at the conference, themed “From Ports to Prosperity: Fixing the Links in Nigeria’s Supply Chain,” emphasized that these issues deter investment, stifle productivity, and ultimately hurt national prosperity.
The conference gathered various stakeholders, including regulatory agencies, shipping lines, terminal operators, freight forwarders, and importers/exporters, to discuss pressing issues affecting the logistics chain. LCCI President, Mr. Gabriel Idahosa, noted that while Nigeria benefits from its strategic location, thriving ports, and entrepreneurial capacity, it continuously grapples with systemic inefficiencies. He highlighted several structural gaps, such as inadequate road and rail infrastructure, poor power supply, outdated port operations, and a lack of coordination among port agencies.
Additionally, the logistics sector suffers from bureaucratic delays, fragmented logistics services, and the absence of integrated data systems, resulting in multiple checkpoints and security concerns. The Executive Secretary of the Nigerian Shippers’ Council, Dr. Pius Akutah, stressed that while Nigeria serves as a gateway for over 80% of international trade by volume, ongoing inefficiencies hinder the sector’s full potential. Key issues include prolonged port and cargo clearance times, limited intermodal connectivity, and security vulnerabilities like theft and poor enforcement of regulations.
Akutah further identified a lack of digital integration and data sharing among logistics operators, which leads to fragmented operations and high transaction costs due to duplicative inspections and informal levies. He advocated for substantial investments in infrastructure and the establishment of a conducive policy environment to transform Nigeria’s ports into engines of economic growth.
Las Alli-Shobande, Chairman of LCCI’s Freight Forwarders Group, emphasized the timeliness of the conference, urging stakeholders to collaborate on improving port and cargo handling efficiency. Despite the ongoing need for infrastructure upgrades, he noted significant advancements thanks to recent investment in rail, road developments, and the emergence of the Lekki Port, which have improved cargo evacuation at major ports like Apapa and Tin Can Island.
In summary, addressing Nigeria’s logistical inefficiencies requires a multifaceted approach that includes infrastructure development, enhanced regulatory frameworks, and the integration of digital technologies. Only then can stakeholders leverage the nation’s logistical potential to drive economic prosperity.
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