ACSC hinges trade expansion on competitive freight logistics hub

The Director-General of African Centre for Supply Chain, (ACSC), Dr Obiora Madu, has hinged increased bilateral ties and diversification on a competitive freight hub and exploitation of opportunities in the logistics sector.

Speaking at the 5th fellowship investiture and membership induction ceremony in Lagos recently, Madu noted that ‘by virtue of Nigeria’s geographical location on the world map, we should be a global logistics hub. Unfortunately, the absence of a national logistics strategy and the poor state of our logistics infrastructure has inhibited our ability to exploit the huge advantages at our disposal.

With the theme: “Making Nigeria a competitive freight logistics hub, he further noted that Singapore has transformed their country due to their strategic location, adding that we don’t even have a logistics strategy.

Speaking further, he said ‘The World Bank in her Logistics Performance Index states that ‘Better Logistics performance is strongly associated with trade expansion, export diversification, ability to attract foreign direct investments, and economic growth. In other words, trade logistics matter’.

Essentially, the goal of leveraging logistics as a strategic resource for the nation’s economy goes far beyond mitigating changes in input costs, to targeting the structure of the industry-the demand for and supply of logistics services.

Also, the President, Chattered Institute of Logistics and Transport Nigeria, Jubril Ibrahim expressed concern over Nigeria’s ranking on the Logistics Performance Index.

Represented by Dr Alban Igwe, the Acting Executive Secretary of Nigerian Institute of Freight Forwarders and Customs’ Brokers, further stated that in 2010, out of 160 counties, Nigeria was rated 100.“In 2012, Nigeria was rated one hundred and twenty one. In 2014, Nigeria was rated 75. In 2016, Nigeria is number 90.

Nigeria is strategically positioned but we are not harnessing the opportunities. We need good infrastructure, strategic policy and good ICT network and development of logistics eco system.

“A port in Singapore takes about 1000 ships in a day. Singapore does not produce oil and yet they export petrol. The country has good ease of doing business and also has one of the best airlines in the world. The country has maximized their logistics positioning. The ports in Nigeria remain less competitive. Some people even go to Cotonou in Benin Republic to buy cars. Our roads are also bad. We don’t even have parameters on how much logistics contribute to our economic growth. Global economies are also driven by logistics. Manufacturing is no longer a strong index”, he added.