Nigeria’s overreliance on road transport is driving up logistics costs, increasing the price of goods and weakening the competitiveness of businesses, a transport policy expert has warned.

The Chairman of Widescope Logistics International and Chief Consultant on Global Transport Policy, Dr Segun Musa, said the country’s transport system remains inefficient because road, rail, air and inland waterways have yet to function as an integrated network capable of supporting large-scale trade and industrial growth.

According to him, the heavy dependence on roads for freight movement has created supply chain bottlenecks that raise operational costs for businesses and ultimately translate into higher prices for consumers.

Musa said reducing logistics costs has become critical for businesses grappling with rising production expenses, foreign exchange pressures and inflation, noting that transportation efficiency remains a key determinant of the cost of moving goods from producers to markets

He argued that a functional multimodal transport system would improve cargo movement, lower transportation expenses and boost productivity by enabling seamless connections between seaports, rail terminals, airports and road networks.

Speaking ahead of a transport stakeholders’ roundtable, Musa identified rail transportation as one of the most strategic infrastructure investments needed to improve freight efficiency, citing its capacity to move large volumes of cargo at a lower cost than road transport.

He noted that stronger rail connectivity would ease pressure on highways, reduce vehicle operating costs, minimise cargo losses and enhance the overall efficiency of supply chains across key sectors of the economy.

The transport expert also identified inadequate infrastructure investment as a major constraint to efficient logistics operations, stressing that government resources alone are insufficient to bridge Nigeria’s growing transport infrastructure deficit.

He therefore called for greater private sector participation through Public-Private Partnerships (PPP), Build-Operate-Transfer (BOT) arrangements and other investment models capable of attracting long-term capital for transport infrastructure development.

Musa further advocated the wider adoption of digital technologies for cargo tracking, supply chain management and operational planning, adding that sustained investment in infrastructure, technology and human capital would strengthen trade, support industrialisation and position Nigerian businesses to take fuller advantage of opportunities under the African Continental Free Trade Area (AfCFTA).