Nigeria is losing an estimated N5 trillion annually to an inefficient logistics system that allows between 30 million and 40 million metric tonnes of food to perish before reaching consumers, stakeholders have warned.

The concern was raised at the 10th Anniversary Lecture of City Business News in Lagos, themed “Logistics as the Engine Room of Nigeria’s Economy,” where industry leaders urged the Federal Government to implement far-reaching reforms to strengthen the country’s transport and logistics sector.

President of the Chartered Institute of Logistics and Transport (CILT), Dr. Boboye Oyeyemi, said poor transport infrastructure, multiple illegal road checkpoints, high fuel costs and inconsistent government policies have continued to undermine the efficient movement of goods across the country.

Oyeyemi, who is also a former Corps Marshal of the Federal Road Safety Corps (FRSC), said Nigeria records post-harvest losses worth between $2.3 billion and $3.3 billion annually, equivalent to about N3.5 trillion to N5 trillion.

He noted that despite its strategic role in national development, the logistics sector contributes only 3.73 per cent to Nigeria’s Gross Domestic Product (GDP) because of longstanding structural challenges.

According to him, the agricultural sector is the hardest hit, with nearly 40 per cent of produce lost before reaching markets due to poor road networks and inadequate logistics infrastructure.

“The Middle Belt is the food basket of the nation. To move goods from the Middle Belt to Lagos, about 40 per cent of them rot away,” Oyeyemi said.

He also blamed rising diesel prices and extortion at multiple checkpoints for escalating transport costs, revealing that haulage operators spend between N150,000 and N250,000 per trip on illegal payments.

To reverse the trend, Oyeyemi called on the Federal Government to dismantle illegal roadblocks, subsidise Compressed Natural Gas (CNG) to lower transportation costs and promote dual-fuel vehicles for logistics operators.

He further advocated the appointment of a Coordinating Minister for Transportation to harmonise policies across the transport sector and recommended the restoration of weighbridges on major highways to curb overloading, which he said contributes significantly to road deterioration.

Founder of ABC Transport Plc, Sir Frank Nneji, also urged the government to prioritise investment in road infrastructure, arguing that road transport has received far less attention than the aviation sector despite serving millions of Nigerians daily.

“The government should pay more attention to road redevelopment. They should hand off road development and concession some of the major roads,” Nneji said.

He also called for improved security on highways to safeguard commuters and transport operators.

Responding, FRSC Corps Marshal Shehu Mohammed reaffirmed the Corps’ commitment to improving road safety through stronger collaboration with stakeholders, enhanced public awareness campaigns and stricter enforcement of traffic regulations.

On gender inclusion, President of Women in Logistics and Transport (WiLAT), Mrs. Khadijat Sheidu-Sabi, whose remarks were delivered by Mrs. Fatima Jatto of the Nigerian Ports Authority (NPA), stressed the need to sustain efforts aimed at increasing women’s participation in the industry.

She said women are increasingly occupying leadership positions and shaping policies in the logistics sector, adding that greater inclusion would enhance the industry’s long-term sustainability.

Stakeholders at the event agreed that creating an enabling business environment, protecting road infrastructure investments and ensuring policy consistency are essential to transforming Nigeria’s logistics sector.

They maintained that an efficient logistics system would reduce food inflation, strengthen supply chains, improve agricultural productivity and drive broader economic growth.