A report on the Nigerian Freight and Logistics Market predicts a Compound Annual Growth Rate (CAGR) of 6.11% between 2023 and 2028. The report indicates that Nigeria’s road transport industry is experiencing rapid growth, aided by infrastructure projects such as the reconstruction of 21 federal roads. The domestic segment is the largest destination type, with the wholesale and retail trade end-user segment dominating the market with a 35.5% share in 2022.
In 2021, the end-user segment of Nigeria’s freight and logistics market experienced a year-on-year (YoY) growth of 7.28%, followed by an 8.17% YoY growth in 2022. The wholesale and retail trade end-user segment accounted for the largest share of 29.26% in 2022. The Nigerian government is investing in transport infrastructure to facilitate the growth of the freight and logistics market, with the Nigerian Railway Modernisation Project planning to construct a standard gauge line spanning 1,315 km.
Port development is also receiving significant attention, with construction work more than 85% complete by the end of February 2022. The overall end-user segment of the goods and logistics market is predicted to grow at a CAGR of 6.11% during the forecast period, with the wholesale and retail trade end-user segment projected to grow at a CAGR of 7.48%.
The rise in retail e-commerce is expected to drive the growth of the wholesale and retail trade end-user segment. At the same time, an increase in the production of oil and gas is expected to drive the growth of the oil and gas, mining, and quarrying end-user segment.
The Nigerian Freight and Logistics Market is characterised by a high degree of fragmentation, with the participation of both national and international players. Some of the key players in the market include Africa Access 3PL Limited, AfriGlobal logistics, Bollore Transport and Logistics, CMA CGM, Fortune Global Shipping and Logistics Limited, GIG Logistics, Gulf Agency Company (GAC), GWX Logistics, Hapag-Lloyd, JOF Nigeria Limited, Maersk, MDS logistics, and Red Star Express PLC.
The Nigerian Freight and Logistics Market has witnessed some recent developments, including:
- In November 2022, GIG announced its plan to purchase two ATR 72-500 freighters to cater to the increasing e-commerce demand and expand its air freight services across Africa.
- In September 2022, CEVA Logistics expanded its SKYCAPACITY Program and added five more stations to its air freight locations network certified under the CEIV Lithium Battery Program.
- In September 2022, APM Terminals and Maersk joined hands to enhance the operational efficiency of Fixed Berthing Windows, which were launched at the West Africa Container Terminals in Lagos, Nigeria. The initiative aims to reduce the time and cost associated with cargo handling by enhancing the predictability of vessel arrivals and departures.