With e-commerce growing by over 15% to 20% in Nigeria annually and over 60% of businesses rely on third-party logistics to move goods, we can now call delivery services the backbone of the country’s informal and formal economy. 

Nigeria’s courier, express, and parcel (CEP) market was valued at over $129.8 million in 2025, and projections suggest it will hit $186.8 million by 2030.

Sometimes, moving a package from Ikeja to Ikoyi or even the UK or Canada is sometimes more complicated than applying for a visa, and logistics giants like DHL and FedEx, are working to ensure seamless delivery locally and internationally. 

It’s no longer just about express international shipping; the demand now includes fast, affordable, and reliable local delivery, as well as seamless international exports for Nigerian businesses and individuals.

With cross-border e-commerce growing and SMEs shipping products abroad, Nigerians now ask: Who does it better locally and globally?

Snapshot: The Two Global Giants

Local Logistics: Presence vs Precision

DHL has spent years embedding itself in Nigeria’s urban logistics space. You’ll find DHL offices and drop-off points not just in Lagos and Abuja, but in cities like Ibadan, Kano, Enugu, and even satellite towns. Their use of motorbikes, vans, and location hubs makes them visibly active in last-mile fulfilment.

FedEx, operating via Red Star Express, is more visible in corporate corridors, business districts, airports, and office parks. Their operations feel optimised for structured deliveries, not Nigeria’s unstructured situations where a rider may need to call ten times to find your house.

Result: If you’re sending documents to a law firm, FedEx works; if you’re shipping phone accessories to a customer in Asaba, DHL has the network.

Pricing and Usability

Intra-city or inter-state shipping with DHL is relatively affordable for personal and small business use. Their flat-rate pricing for standard-size packages and pre-paid labels help SMEs manage costs. Walk-in access is easy, with drop points across most commercial areas.

FedEx’s pricing model is slightly higher and skewed towards corporate clients. Their standard customer may not be an individual walking in with a package, it’s more often a business dispatching ten at once.

And from a usability perspective, DHL’s mobile tools, WhatsApp support, and integration with e-commerce platforms make it easier for everyday users to plug into their ecosystem.

Local pricing models differ:

• DHL offers flat-rate intra-city delivery starting at around ₦2,500, depending on weight.
• FedEx (via Red Star) ranges from ₦3,000 to ₦5,500, and pricing is often less predictable.

In terms of usability, DHL has better integration with WhatsApp, e-commerce fulfilment tools, and walk-in accessibility. Most SMEs prefer DHL’s prepaid labels and cash-on-delivery integration.

International Delivery: Who Handles Nigeria’s Exports Better? DHL or FedEx?

Here’s where things get interesting.

DHL:

• More integrated with customs and border control, especially for low-weight and commercial packages.
• Handles a large volume of Nigeria’s international e-commerce shipments—thanks to partnerships with Jumia, Konga, and even Shopify merchants.
• Known for speedy clearance and delivery tracking when exporting to the UK, US, Europe, and parts of Asia.
• Offers better individual-level support for walk-in international senders (e.g. families sending items abroad, job seekers submitting documents, etc.).

FedEx:

• Maintains strong lanes into North America, especially for legal and corporate documents.
• Often preferred by multinational corporations and embassies due to compliance handling and traceability.
• Less accessible to walk-in customers shipping small parcels internationally, many still get redirected to Red Star Express locations with less clarity on pricing or package status.

On international delivery, DHL again comes across as more open to the individual and SME-level shipper, while FedEx remains a more formal, high-value logistics player.

DHL:

• Handles over 50% of Nigeria’s outbound e-commerce shipments (mostly via SMEs).
• Average delivery time to the UK/Europe: 2–4 business days.
• Strong customs integration via Murtala Muhammed Airport.
• Charges for UK/US shipment start from ₦18,000 to ₦25,000 for a 0.5kg parcel.

FedEx:

• Preferred by multinationals for legal, academic, and regulatory documents.
• Average delivery time to North America: 3–5 business days.
• Limited access for low-volume, individual exporters.
• Shipping cost to UK/US ranges between ₦20,000–₦30,000 for 0.5kg parcel.

Customer Support & Trust

Both brands provide global customer service, but DHL is visibly more responsive within Nigeria. Whether through their official helpline or social media support teams, customer complaints are usually acknowledged and resolved faster.

FedEx, unfortunately, struggles with consistency. Many Nigerian users have reported delays in getting updates, confusion around tracking numbers (especially when Red Star Express is the middleman), and poor escalation protocols.

DHL Nigeria has an average rating of 4.1/5, commended for responsiveness and tracking transparency.

FedEx/Red Star Express averages 3.5/5, with complaints about poor feedback loops and delayed pickups.

Technology & Logistics Intelligence

DHL has invested more visibly in digital logistics infrastructure that speaks to Nigerian realities. Their barcode-based tracking, bulk upload systems for SMEs, and real-time location alerts give the impression of a company that understands where it’s operating.

FedEx, while globally advanced, sometimes lags in local execution. Their global website provides deep functionality, but doesn’t always reflect Nigeria’s shipping nuances, e.g. lack of Naira-based calculators, poor integration of Red Star in live tracking, and fewer customer-friendly mobile tools.

Brand Reputation in Nigeria

DHL is like a Nigerian logistics brand with German roots, FedEx still feels like a foreign logistics brand trying to adapt.

Among SMEs, vendors, and even families shipping items abroad, DHL is more trusted. Their everyday visibility, ease of use, and “we’ll find you even if your street has no name” delivery approach has created brand loyalty.

FedEx holds strong ground in structured sectors, banks, law firms, large corporates, but feels distant from the average Nigerian small business owner or hustler trying to ship goods abroad

Among everyday Nigerians:

• DHL is seen as reliable, fast, and user-friendly.
• FedEx is seen as prestigious but distant, good for serious paperwork but not urgent errands.

For corporate exports, sensitive international documents, and high-value overseas deliveries, FedEx is a trusted and solid option.

For local deliveries, SME exports, personal shipments, and end-to-end visibility, DHL is the stronger, more universal choice.

So if you’re running a business in Nigeria and need a reliable logistics partner for both inside Nigeria and outside its borders, DHL wins the day..

Nigeria is fast becoming a production and export base for fashion, tech accessories, food products, and documentation services. Logistics companies must adapt or risk becoming irrelevant.

DHL seems to be moving with the market while FedEx is still trying to meet up.

In this business, proximity to customers beats prestige. DHL has understood that, but FedEx might still be learning.

Recall that the ISO 9001:2015 certified company had raked in N1.3 billion from the sale of 336,855,291 units of its shares through rights issue for expansion of its operations.

Speaking during a media parley at the company’s office in Lagos, Dr Sola Peter Obabori, the Group Managing Director of Red Star Express PLC., said that the facilities located along Lagos Airport and Lagos-Ibadan Expressway, respectively, are meant to create a better storage of its customers’ cargos and goods, purchase more trucks to improve logistics, and put in place ICT resources among others.

“We are hopeful that by the end of the financial year (March 30, 2022), the cargo facility at the airport will have been completed.

“Two other facilities are coming up on Lagos-Ibadan Expressway from where  the company will respond to customer requests. The facilities are also targeted for commissioning this year.

“So we’re grateful the company has grown in our fixed assets, in our current assets and the cash-flow has grown and the staff strength has also grown”, Obabori said.

A look at Red Star Express ’ Financial Records

Despite the numerous challenges that bedevilled the courier industry during the Covid-19 lockdown, Red Star Express Plc, the number one listed courier and package delivery company in the country in its audited result and accounts for the full year ended March 31, 2021 recorded growth in assets quality.

Principal financial assets

The company’s principal financial asset comprises trade and other receivables, cash and short term deposits that arise directly from its operations; while the principal financial liabilities comprises lease liabilities, trade and other payables and borrowings.

During the 2021 financial year, the Red Star Express recorded N89.09 million and N76.2 million as short-term lease expenses for the Group and the company respectively, compared to N136.5million and N107. 87million recorded in 2020.

Similarly, N719.45 million and N250.7 million were recognized as an expense for inventories carried at net realisable value in 2021 compared to N729.6million and N237.9 million in 2020 respectively.

Also, Red Star Express’ investment in property is N95.8million in 2021 compared to N98.1 million in 2020. Its investment in shares in 2021 is N3.44million compared to N2.99 million in 2020. FGN Bond in 2021 is N585.45million compared to N547.4million in 2020.

On liabilities position, Red Star Express recorded a 12 per cent increase in total liabilities to N3.31billion in 2021 from N2.95billion in 2020.

The breakdown of total liabilities showed that Total current liabilities gained three per cent to N2.72billion in 2021 from N2.64 billion in 2020 while non-current liabilities closed 2021 at N586 Million from N308.8million in 2020.

However, total equity dropped by 3.3 per cent to N4.23billion in 2021 from N4.38billion in 2020.

The major factor Red Star Express recorded decline in total equity was the group’s six per cent decline in retained earnings to N2.33billion in 2021 from N2.48billion recorded in 2020.

Red Star Express technology adoption

​Technology has become the mainstay of many organisations and Red Star Express is no different.

To this end, the GMD said, since the advent of COVID-19 in 2020 the Company’s boardroom has not been put to use more than three times.

“We haven’t had any board meetings, physically, since 2020. All board meetings and management meetings have been held virtually, except for one of two that required us to display some facts and figures. That is what technology has done for us and we are trying to see how it could further help us improve our business environment; how we cut costs and interact among ourselves including the customers.

Focus for 2022 –

SME1000:

“We are focused on the Small and Medium Enterprises (SMEs) space for this year. We have a programme called SME1000 which is a platform that enables us to impact the SME sub-sector in Nigeria by giving them access to our services at a reduced cost. Essentially, it presents a golden opportunity for these SMEs to grow.

AfCFTA:

“On the African Continental Free Trade Area (AfCFTA) is also coming with many good needs. For example, the Pan-African Payments and Settlement System (PAPSS) has been launched for cross-border payments that will entrench cost reduction; reduction in duration and time variability; decreasing liquidity requirements of of central banks for settlement as well as its own payments; and strengthening Central Banks’ oversight of cross border payment systems. These are major challenges we faced in the recent past and PAPSS will help us resolve the problem. Therefore, all the assets we have invested in them in the past will now help us to reap the benefits in AfCFTA”, he said.

Regulations:

The agitation to improve and better the industry has been a standing battle for over 21 years.

In 2021, the National Assembly (Nigeria) passed the Postal Industry Reform bill, but industry players, majorly the independent operators under the auspices of the Nigeria International Air Courier Association (NIACA) and the Association of Nigerian Courier Operators (ANCO), are not satisfied with some provisions in the bill. (The independent courier operators’ observations are captured here).

But as a company, how is Red Star Express preparing itself should President Muhammadu Buhari give assent to the Bill as passed by the National Assembly?

Obabori speaks:

“We are always prepared. We have been in the mix for a long time. We are not only preparing to survive but to thrive under the new regulatory regime if the status quo (of the Bill) is maintained as passed by the NASS.

“Meanwhile, I haven’t seen the final bill as sent to the President, but based on deliberations during the process of the Bill’s passage, we (operators) submitted memoranda showing a collective discontent with some provisions, and suggested how they can be redrafted. For instance, certain roles and powers are given to the Nigeria Postal Service (NIPOST) which may not augur well for the industry. We believe that the NASS could not have thrown our observations out of the window.

“So, if it is assented to today by the President, I believe we will be fine. I haven’t heard any contrary voice from the NIACA team. We have also spoken to Prof. Isa Pantami, the minister in-charge of Communications and Digital Economy on the same matter and I am confident that we shall have the course to breathe a sigh of relief very soon.

E-commerce as a major growth area for Red Star Express

The e-commerce space sustained essential services in the heights of global Coronavirus Pandemic (COVID-19) lockdown. Of course, e-commerce would become unattainable if you remove the efforts of delivery agents – courier and logistics.

One won’t forget in a hurry how the services of these e-commerce companies, logistics and delivery agents led essential delivery services to thousands of homes in Nigeria at the time.

Recently, the Federal Government of Nigeria revealed the improving impact of e-commerce on the country’s economy, saying the current e-commerce spend in Nigeria has grown to $13billion per annum and is expected to hit $75billion in revenue per annum by 2025.

Speaking to this, the Red Star Express GMD, said: “I am happy to say that e-commerce is a major growth area for Red Star. If you check our numbers within the last six years you would see a lot of jump in e-commerce revenue because we are a major in the space.

“Prior to 2016, many platforms approached us for partnerships and till date we are still partnering with them. We are conversant with happenings around the world like what Amazon is doing in the US, and we are learning. What have we done? Our e-commerce platform has a cluster of e-commerce shippers who have tapped into our SME1000 programme. They tap into our delivery network and expertise. Our core expertise is delivery. So, we are using technology across the value chain to add value to partners and the customer at large.

“From the current e-commerce spend in Nigeria of about $13billion per annum, I can guarantee that Red Star has a large chunk of that figure. Meanwhile, the (logistics) space has become so turbulent as many ‘pretenders’ are parading in the industry, but we will see how far they will go. In the last three to five years, some of them bought motorcycles, tricycles and what have you, and got some equity funding and now we can’t see some of them again. It shows you that it is tough terrain.

“The challenges are enormous – maintaining the vehicles and motorcycles, financing, staffing, security, regulations/levies, double taxations, etc., are among the difficulties. But smart e-commerce organisations have stayed in their lane and partner with organisations like us for last mile delivery. What many don’t realise is that e-commerce space appears more attractive from the outside.

A licensee of Federal Express (FedEx) Corporation, the world’s largest delivery solutions provider, Red Star Express Plc., has approximately 150 offices throughout Nigeria and foreign branches in Niger, Burkina Faso, and Benin.

Its network includes over 1,500 communities in Nigeria and 214 countries across the world.

Red Star Express Plc has four divisions and business units specialising in Express Delivery, Logistics, Freight, Outsourcing services, Supply Chain Management, E-Commerce Facilitation, Printing and Packaging, E-Archiving, and Agro Trade Logistics.