Stakeholders in the transport and supply chain industries have raised the alarm over the compounding crises crippling Nigeria’s logistics sector, revealing that the nation loses a staggering N5 trillion annually due to structural inefficiencies, poor infrastructure, and inconsistent policies.

Speaking at the 10th Anniversary lecture of City Business News, themed: “Logistics as the Engine Room of Nigeria’s Economy”, the former Corp Marshal of the Federal Road Safety Corps (FRSC) and President of the Chartered Institute of Logistics and Transport (CILT), Boboye Oyeyemi, said the numerous challenges facing the logistics sector have triggered high cost of products in the country.

He said: “The financial consequences of these logistics failures are immense. Post-harvest logistics failures result in an estimated annual financial drain of $2.3 billion to $3.3 billion, which translates to a massive N3.5 trillion to N5 trillion loss to the Nigerian economy every single year.”

According to him, the logistics sector currently contributes a paltry 3.73 per cent to Nigeria’s Gross Domestic Product (GDP), adding that the most devastating fallout of this underperformance is felt in the agricultural supply chain, where poor infrastructure translates directly into wasted food.

Oyeyemi said the infrastructure deficiency is posing a serious setback to food security, noting that a staggering 30 to 40 million metric tonnes of food are lost annually to post-harvest wastage, meaning that up to 40 per cent of all farm produce is eroded before ever reaching a retail shelf.

He said: “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 rots away.” Beyond infrastructure, he said transport operators are battling exorbitant operational costs, driven by a spike in diesel prices and predatory local actor demands.

Oyeyemi lamented the burden of multiple taxation on the roads, pointing out that “drivers spend betweenN150,000 – N250,000 on an average trip” just dealing with checkpoints and extortions.

To combat the menace threatening the sector, Oyeyemi urged the government to reduce illegal road checkpoints.

He enjoined government to aggressively subsidise Compressed Natural Gas (CNG), encourage a dual energy system (Petrol and gas) in vehicles, so as to enable cheaper fuel for logistics vehicles.

He further urged the Federal Government to appoint a coordinating minister for transportation in Nigeria to streamline policies and facilitate sector development.

Oyeyemi also backed regulatory tightening, canvassing for the return of weighbridges to stop logistics firms from carrying loads heavier than recommended guidelines, which mostly destroy newly built roads.

The Founder of ABC Transport, Sir Frank Nneji, expressed deep concern over the government’s historical neglect of road transport compared to other sectors.

He argued that while heavy funding and strict attention are given to aviation to protect air travelers, the safety of millions who use the highways is treated with levity.

Nneji pushed for a fundamental shift in how federal roads are managed, stating: “The government should pay more attention to road redevelopment. They should hand off the road development and concession some of the major roads.”

He also noted that raging national insecurity has left travelers terrified, , urging the government to the matter very serious.

Corp Marshal, Federal Road Safety Corps (FRSC), Sheu Mohammed, in response to safety concerns, assured that the FRSC is making frantic efforts to ensure that the roads are safe by partnering with private organizations and ensuring the strict enforcement of road safety rules.

President of Women in Logistics and Transport (WiLAT), Mrs. Khadijat Sheidu-Sabi, whose speech was delivered by the Chartered Member, Chartered Institute of Logistics and Transport (CILT), Mrs. Fatima Jatto, of the Nigerian Ports Authority (NPA), emphasized that the future of logistics relies heavily on closing the gender gap.

“It is important to recognize and celebrate the increasingly significant role of women in the logistics sector. Today, women are leading organisations, shaping policies. Inclusion and empowerment of women must remain a priority. As this will significantly contribute to the sustainability of the sector,” she said.

Stakeholders at the lecture collectively agreed that unless the federal government creates an enabling environment, protects its N2.3 trillion road construction budget, and stabilizes its policy implementations, the engine room of Nigeria’s economy will remain stalled.