The Federal Government has been urged to prioritize investment in Nigeria’s courier, logistics, transport, and management industry, valued at over N15 trillion.
This call to action was highlighted at the Courier & Logistics Management Institute (CLMI’s) 2024 International Conference & Investiture event in Lagos, where industry experts and professionals gathered to address challenges and propose solutions for growth in this vital sector.
According to Dist. Prof. Simon Emeje, the executive chairman, Courier & Logistics Management Institute (CLMI), “The combined worth of Nigeria’s courier, logistics, transport, and management industry is staggering. Valued at no less than N15 trillion, this sector is crucial to Nigeria’s economic future.” He cited research showing the market potential could be as high as N25 trillion.
Prof. Emeje explained,
“In many countries, this sector contributes approximately 7-8% to GDP. However, in Nigeria, its contribution currently stands at around 4%, revealing a substantial gap that, if addressed, could unleash transformative growth.”
He called on the Nigerian government to harness the resources within the sector, stressing that investment could unlock revenue streams contributing up to 60% 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.
Following the CLMI’s offer to collaborate with the government at different levels to harness this potential through public-private partnerships, regulatory reforms, and targeted investment, Reverend Father (Dr.) Hyacinth Iormem Alia, the executive governor of Benue State, said the State has queued into the courier and transportation sector to better the worth of citizens.
The Governor, represented by Chief Aber Terseer Benjamin, the chief executive of FarmBasket Global Resources Limited, 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.
“We purchased one hundred buses with support from the Federal Government and handed them over to Benue Links Limited to provide affordable means of transportation for our people.
“The procurement of these Buses was to cushion effects of the transportation challenge that was occasioned by the removal of fuel subsidy by the Federal Government. Not quite long, our administration repaired some of the Marco Polo Buses of Benue Links that laed dormant for many years for an intercity movement.
“Passengers are being transported from one point of Makurdi town, worth almost four kilometres, to another destination just for two hundred naira only. Our people are very happy with this modest effort too.
“Benue Links Limited has also commenced the lifting of goods from Lagos to other parts of the country using high profile Trucks that have been positioned in Lagos specifically for this task. The rates offered by Benue Links in providing this service are more-friendly as compared to other Companies offering similar service”.
He extended partnership handshake to CLMI to liaise with the management of Benue Links Company on how best they could synergise to enhance the transportation system in the country.
Dist. Professor Anya O Anya, the chairman of the conference, said that Nigeria had a lot to benefit if the industry’s potential were properly harnessed for development.
“We have a path to follow and that is how we can be successful as a nation. It is not about where we are coming from, but where we are heading.
“Nigeria is blessed with brains that can help her grow, but the question is are we making use of the opportunities?
In his keynote address, Dr. Sam Ohuabunwa, chairman of the Africa Economic Summit, emphasized logistics as an essential tool for Nigeria’s economic transformation.
Speaking on the theme, “Unlocking Economic Potentials and Fostering Nation-building through Logistics Instruments,” he explained, “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.”
Dr. Ohuabunwa also called for strategic investment in infrastructure, energy, and broadband technology. “Robust infrastructure can reduce production costs, increase global competitiveness, and stimulate industrial growth,” he said.
He stressed the need for better access to credit at single-digit interest rates to enable growth in agriculture and small businesses.
The keynote speaker noted that despite Nigeria’s abundant resources, the country’s economy is hampered by insufficient infrastructure, underdeveloped industrial capacity, and over-reliance on imports.
He encouraged a return to productivity-driven economic planning, proposing government investment in essential infrastructure to stabilize the economy, improve foreign reserves, and strengthen the Naira.
Dr Adebayo Shittu, a former Minister of Communication, called on the government to extend its dragnet to those that are not in the “political party” to draw ideas from them.
“Ideas have their gestation period at which they grow. I am happy that we have a national assembly that listens.
“We want people with exceptional ideas to bring national reforms to boost the growth of the logistics industry,” Shittu said.
“We are still at the lowest stage of logistics compare to advanced countries.
“Considering the way we run logistics, we have yet to meet the expectations. Logistics is still at its infancy and we have yet to tap into the potentials within the confines of trade.
“Looking at the total value chain we realised that logistics takes a critical role especially if we have to develop the economy, “Musa said.
Musa noted that it was necessary to identify the potential in the industry and explore them.
“How do we explore the potential? There must be policy drive for the logistics sector to align with the best international practice around the world,” he said.
Musa also emphasised the importance of adequate infrastructure for the logistics sector.
“We need to collaborate and bring resources from areas that are concentrated, to where they are needed.
“We need to look at it holistically. The world has advanced from using bicycles to deliver packages. Others are looking at possibilities such as using drones to speed up delivery, ” he said.
Musa noted that it was necessary to modernise logistics by bringing experts together to discuss technical issues hindering the development of the industry in Nigeria.
Despite the inability of the Tola Odeyemi, the Postmaster General of the Federation (PMG)/CEO of NIPOST to grace the occasion, all speakers highlighted the importance of strategic investments in courier and logistics and infrastructure development to unlock Nigeria’s full economic potential.
Their recommendations included increasing public-private collaborations, placing industry experts in key positions, and adopting policies that support sector growth.
