The report identifies infrastructure deficits, policy inconsistencies, and security risks as the most critical bottlenecks undermining the smooth flow of goods across the country.

Nigeria has about 195,000 kilometres of roads, but only a small fraction is paved, driving up transportation costs by as much as 40% and increasing the final price of goods by up to 30%.

In agriculture, where the sector contributes roughly 25% of GDP and employs over 35% of the workforce, weak logistics and storage systems result in post-harvest losses of up to 40% for crops such as tomatoes and maize.

he report notes that smallholder farmers, who produce 80–90% of Nigeria’s food, are disproportionately affected, limiting food security and income growth.

The manufacturing sector has also suffered heavily. SCM failures, combined with energy instability and logistics costs exacerbated by the 2023 fuel subsidy removal, have contributed to factory shutdowns and the loss of an estimated 1.5 million manufacturing jobs.

Despite these challenges, the report argues that targeted investments in roads, ports, cold-chain infrastructure, and digital logistics systems could unlock significant economic value.

Improved SCM efficiency alone could add billions of dollars to national output while reducing inflationary pressures driven by high distribution costs.

… 200,000 barrels of crude lost daily

Nigeria’s oil and gas supply chains, responsible for about 90% of the country’s foreign exchange earnings, are bleeding value due to theft, vandalism, and logistical delays.

The Rome Business School Nigeria report reveals that crude oil theft and illegal bunkering account for losses of approximately 200,000 barrels per day, while upstream operators face customs delays that inflate operating costs by 20–30%.

These inefficiencies weaken government revenues and reduce investor confidence in the sector.

Maritime logistics remain another major pressure point. Nigeria relies on sea transport for over 95% of exports and 97% of imports, with Lagos ports, particularly Apapa, handling around 42% of inbound cargo.

Yet port congestion, outdated customs procedures, and manual documentation systems cost businesses an estimated $4 billion annually in demurrage.

To address these challenges, the Nigerian Customs Service launched the Authorized Economic Operator (AEO) programme in 2025, aimed at fast-tracking clearance for trusted traders and improving supply chain security. The report notes that such reforms, if fully digitised and scaled, could significantly reduce dwell time and logistics costs.

Beyond oil, improved SCM could strengthen non-oil exports, especially in agriculture and manufacturing, reducing Nigeria’s historic dependence on petroleum revenues and stabilising foreign exchange inflows.

In his new role, Rahul will lead IFS’s growth strategy across key MEA markets, scale the company’s regional presence, strengthen strategic partnerships, and elevate the customer experience.

A visionary business and technology leader, Rahul brings more than 25 years of experience in driving transformation, fostering high-performance teams, and leading enterprise growth across the Middle East and Africa.

He joins IFS after an 18-year career at Oracle, where he held several strategic leadership positions, most recently heading the Cloud Applications business across the Gulf and South Africa. Under his leadership, the business achieved consistent double-digit growth and drove significant industry and regional transformation.

Hannes Liebe, President for APJMEA at IFS, commented:

“We are thrilled to welcome Rahul Misra to the IFS leadership team. The Middle East and Africa represents one of our most strategic growth regions globally, with nations like Saudi Arabia and the UAE leading ambitious national transformation agendas and infrastructure development across Africa gaining rapid momentum. Our strengths in Enterprise Asset Management, Service Management, and Cloud ERP—underpinned by IFS.ai—are perfectly aligned with the needs of asset and service-intensive industries in these markets, including oil and gas, utilities, construction, engineering, and aerospace & defense. Rahul’s deep expertise, regional insight, and strong leadership make him the ideal choice to lead this exciting next chapter.”

Rahul Misra, SVP & Managing Director, Middle East and Africa, said:

“IFS is entering a defining phase of its journey—crossing €1 billion in ARR and experiencing exceptional momentum in the adoption of IFS.ai. The Middle East and Africa is a region full of promise, where visionary national programs like Saudi Arabia’s Vision 2030, the UAE’s innovation-led economic transformation, and the continent-wide infrastructure acceleration in Africa are creating powerful tailwinds for digital and industrial innovation. With IFS’s global leadership in Enterprise Asset and Service Management, and a modern, composable Cloud ERP platform, we are uniquely positioned to create lasting value for customers across the region. I’m excited to work with our customers and partners to deliver meaningful outcomes and set new benchmarks for success.”

Rahul succeeds Mehmood Khan, who after six successful years leading the MEA region, will transition into a broader executive role as Vice President, Install Base and Success for APJMEA. Under Mehmood’s leadership, IFS MEA experienced transformative growth and strengthened its reputation as a trusted digital transformation partner.

“We thank Mehmood for his outstanding contributions and leadership. His impact has been instrumental in shaping the region’s success, and we look forward to the value he will continue to deliver in his expanded role,” added Hannes Liebe.

IFS is the world’s leading provider of Industrial AI and enterprise software for businesses that power, service, and protect our planet. Our solutions enable companies that manufacture goods, maintain complex assets, and deliver service-focused operations to unlock the transformative potential of Industrial AI—driving efficiency, productivity, and sustainable growth. 

The AI-powered IFS Cloud platform is fully composable and built for adaptability, supporting the evolving needs of our customers across Enterprise Resource Planning (ERP), Enterprise Asset Management (EAM), Field Service Management (FSM), and Supply Chain Management (SCM). With real-time data, analytics, and machine learning, IFS empowers businesses to succeed at their Moment of Service. 

Founded in 1983, IFS today operates in over 80 countries with more than 7,000 employees. Built on a foundation of agility, customer-centricity, and trust, IFS is the most recommended vendor in its category. 

While AI is still in its early stages for many organisations, the next few years will usher in widespread adoption and integration, particularly within healthcare, manufacturing, the public sector, retail, and financial services.

These AI trends not only promise to redefine the way industries operate but also present unique opportunities for African businesses to leapfrog traditional challenges and accelerate their digital transformation.

Generative AI: transforming content creation and innovation 

Generative AI, typified by models like GPT-4, will expand beyond creative industries and permeate sectors that rely heavily on innovation and content creation. In 2025, businesses will increasingly use generative AI for a variety of applications—such as writing, design, and even coding.

This AI capability allows companies to scale creativity while maintaining quality and consistency.

In the healthcare sector, for example, AI can assist with the creation of personalised treatment plans and medical documentation, significantly improving efficiencies.

AI-driven systems will streamline research processes by synthesising large volumes of medical literature, aiding in the discovery of new treatments.

In manufacturing, generative AI could be used to design prototypes or simulate product performance before production begins. This helps companies in sectors like automotive or consumer electronics reduce development costs and shorten time-to-market.

AI in healthcare: from diagnostics to telemedicine

In 2025, AI’s role in healthcare will extend far beyond diagnostics. AI-driven systems will be able to analyse medical data with greater precision, helping clinicians diagnose conditions faster and more accurately. Enhanced decision-making support tools, powered by AI, will assist doctors in recommending highly personalised treatments, potentially saving lives and improving patient outcomes.

AI in telemedicine will also experience a surge, with algorithms helping doctors offer consultations remotely, expanding access to quality care in underserved regions.

With its ability to process vast amounts of medical data quickly, AI will improve the management of chronic conditions by offering real-time recommendations on treatment plans.

South African examples, such as Envisionit Deep AI, are already demonstrating how AI can be leveraged in radiology, helping detect and treat medical conditions more efficiently.

Edge AI: real-time processing at the source

Edge AI, or the ability to process data on devices rather than relying on central servers, is set to revolutionise industries that require real-time decision-making. This will be particularly impactful in sectors such as manufacturing, where AI-enabled sensors and devices can monitor equipment, predict failures, and enable real-time intervention on factory floors.

The public sector will also benefit from edge AI in urban management systems, helping monitor traffic flows, manage city infrastructure, and ensure more responsive public services.

For example, AI could analyse real-time data from sensors across a city to predict traffic congestion or detect criminal activities, enhancing both public safety and urban planning.

In retail, edge AI will enable hyper-local, personalised shopping experiences by processing data from customer interactions at the point of sale.

This can provide real-time recommendations or promotions to consumers, enhancing customer experience and increasing conversion rates.

AI for cybersecurity: protecting the digital ecosystem

As businesses continue to digitise operations, cybersecurity will be one of the most critical areas where AI plays a pivotal role. AI will help detect threats in real time, analyse unusual patterns in vast volumes of data, and automatically respond to security breaches.

In financial services, AI systems will work round the clock to identify potential fraud before it happens, drastically reducing the risk of cyber-attacks.

With the increase in remote working and the growing volume of interconnected devices, AI will be essential for identifying and mitigating potential vulnerabilities and creating robust security measures across industries.

Explainable AI: Building Trust and Transparency

As AI becomes more embedded in decision-making processes, there will be increasing demand for transparency. Explainable AI (XAI) is a response to this demand, helping businesses and consumers understand how AI models make decisions.

In 2025, businesses will increasingly adopt explainable AI to ensure that their AI systems are not “black boxes” but offer clarity on how results are generated.

This trend will have far-reaching impacts on financial services and healthcare, where trust is paramount. Financial institutions, for example, will need to ensure that AI-driven credit scoring or loan approval processes are transparent to customers and regulators.

Similarly, in healthcare, AI-driven recommendations for treatment will need to be explainable to both doctors and patients to ensure they are trusted and effectively used.

AI-driven automation: a catalyst for operational efficiency

AI-driven automation will continue to accelerate across industries, enabling businesses to streamline operations and focus human efforts on high-value tasks.

By automating routine tasks like data entry, scheduling, and customer support, organisations will see improvements in efficiency, cost reduction, and employee satisfaction.

In retail, AI automation will transform supply chain management, inventory control, and customer service. Retailers will use AI-driven chatbots to handle customer inquiries and automate the fulfilment process to speed up deliveries.

Meanwhile, in manufacturing, automation will enable “smart factories” that adapt to real-time conditions, ensuring that production is both efficient and sustainable.

Organisations like BCX, have been and continue to be at the forefront of these developments, helping businesses optimise their operations through AI-driven solutions that promote automation, reduce operational costs, and enhance service delivery.

AI ethics and regulation: ensuring responsible adoption.

As AI technology becomes pervasive across all sectors, the need for strong governance frameworks will increase. By 2025, we can expect to see more robust AI regulation and a greater focus on ethical considerations. Businesses will be required to ensure that their AI systems are developed and deployed in a way that is fair, transparent, and free from bias.

For financial services and the public sector, in particular, there will be a heightened focus on compliance with AI regulations to ensure that algorithms are not discriminatory and are aligned with societal norms. AI-driven credit scoring or law enforcement tools must meet ethical standards and be held accountable.

In 2025 and beyond, AI’s transformative potential is becoming clearer, with advancements that will revolutionise industries across Africa, South Africa, and beyond. From healthcare to manufacturing, the AI trends outlined are just the beginning of what promises to be a decade of innovation.

Organisations that embrace these changes and implement responsible, transparent AI solutions will gain a competitive edge, driving growth and improving service delivery.

For companies like BCX, AI is not just a technological shift but a powerful enabler of growth.

By providing tailored AI solutions across industries such as finance, retail, and the public sector, BCX is helping businesses in South Africa and Africa leverage AI’s full potential to drive success in an increasingly digital world.

As AI continues to evolve, the ability to navigate its complexities and adopt it strategically will be a defining factor for organisations looking to stay ahead in 2025 and beyond.

[Featured Image Credit]

Transportation lies at the core of the complex supply chain management network and serves as the critical link that ties every cycle step together.

This article examines the importance of transportation in supply chain management, illustrating its effects on efficiency, costs, and customer satisfaction.

Three Pillars of Effective Supply Chain

Think of a well-oiled conveyor belt. It is what a smoothly running supply chain looks like. Three key components work together seamlessly to keep goods flowing: procurement, production, and logistics. All these stages are complex, and you must do your best to get all the materials to reach the finish line: happy customers.

1. Procurement: Staging Success from the Start

The function of procurement is equivalent to the role of a foundation in a building – it creates a primary platform for everything that comes afterward. Here, critical decisions are made about what you should construct your product with. Engaging suitable suppliers and figuring out good deals depend on your entire supply chain’s quality, cost, and reliability. Choosing the right potential partners from the start guarantees that the later journey will be smoother.

2. Production: The Machine of Productivity

Materials are the next in line. Finally, production makes the process work as it moves along.

This phase includes decisions like how many to produce and what amount should be stored.

It’s a balancing act: meet demand but not over-produce; instead, have underground or open storage facilities ready. Efficient production keeps products available and contributes to savings in the cost chain.

3. Logistics: A Link Between Stages

Logistics can be seen as the backbone of the entire process. It encompasses all the stages of shipping goods to your customers.

Creating a comprehensive logistics chain is a collaborative process between how components are shipped in (inbound) and manufactured products are shipped out (outbound). Picking up the right logistics service providers and route planning leads to timeliness and cost-effectiveness of cargo transportation lists within this strategy.

Maximize Efficiency for Success

Efficient transportation management is one factor that makes the supply chain highly effective. Here are some key ways transportation contributes to a streamlined operation.

Instant Results and Better Stock Management

The selection process of advanced mode and precise route optimization will have a vital impact on the lead time shortening.

It means fast shipments, high customer satisfaction, and readiness to take action when changes are detected in the market. Moreover, a quicker and more convenient transport system allows for a favorable just-in-time inventory management system. Through this, we save space for the inventory and avoid stock-out or old inventory obsolescence.

Expenditure and Technical Progress

The transportation activity constitutes a large portion of the total logistics cost of stock expenditure. It means that route optimization, right vehicle choice based on load type, and budget-friendly warehouses for storage can all be combined to result in a massive cost reduction.

Besides that, an intelligent logistics management software can be used to deliver functionality beyond the basics for the systems to succeed. The software can also manage the trial times in real time, providing vital data analysis for optimal operation and correct decision-making.

Dangers and Strategies to Ensure a Safe Trip

The future route map of global logistics will have several hurdles. While the managers are busy maintaining the flow of commodities and avoiding hindrances, certain risks hinder smooth work. Here is a rundown of a few basic barriers:

i. Cybersecurity Concerns

Improvements in technology might be good, bad, or ugly. Along with automation and connected sensors, the industry model will face a new generation of cyberattacks. Attackers who plan to operate from the network level can disrupt operations. Installing solid security measures and providing driver training are vital to tackling this problem.

ii. Driver Shortage

This shortage will likely linger, and the American Trucking Association‘s prognosis is that the figure will go beyond 160,000 by 2028. The retirement rates would not be so high for the older workforce as the average trucker is 46, and the replacements might not work. But it would intensify the workload for the other drivers and would ultimately cause tiredness and car crashes.

iii. Deteriorating Infrastructure

The primary hazards every country suffers today are bridges crumbling, railways over-capacity, and congested airspace networks.

A delay due to infrastructure problems can result in additional fuel consumption and vehicle wear and tear, forcing more scheduled repairs.

As a standalone process, transportation is quite complex. Notwithstanding, it plays a crucial role in an efficient supply chain.

Fortunately, businesses can roll out efficient, cheap, and environmentally sustainable first, middle, and last-mile deliveries by identifying associated problems before they present themselves, optimizing transportation workflows, and using tech for business process automation.

[Featured Image Credit]