Nigeria is losing an estimated ₦5 trillion every year as 30 to 40 million metric tonnes of food go to waste before reaching consumers, logistics experts have warned.
The warning was issued at the 10th Anniversary Lecture of City Business News in Lagos, themed “Logistics as the Engine Room of Nigeria’s Economy.”
Dr. Boboye Oyeyemi, President of CILT and former FRSC Corps Marshal, blamed the losses on poor transport infrastructure, multiple road checkpoints, rising fuel costs, and policy inconsistencies. He said these factors have crippled the movement of goods, especially agricultural produce.
He noted that despite its strategic importance, the logistics sector contributes only 3.73 per cent to Nigeria’s Gross Domestic Product (GDP), largely due to persistent structural challenges.
He explained that the agricultural sector bears the brunt of the crisis, with as much as 40 per cent of farm produce wasted before reaching markets because of poor road infrastructure and inadequate logistics systems.
“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,” he said.
Oyeyemi identified rising diesel prices and widespread extortion on Nigerian highways as major factors increasing logistics costs.
According to him, transport operators spend between N150,000 and N250,000 per trip on illegal payments at multiple checkpoints, adding that such practices significantly inflate the cost of moving goods across the country.
Oyeyemi advised the Federal Government to eliminate illegal road checkpoints, subsidise Compressed Natural Gas (CNG) to reduce transportation costs, and encourage a dual-fuel system that enables logistics operators to use both petrol and gas-powered vehicles.
He also advocated the appointment of a Coordinating Minister for Transportation to harmonise policies across the country’s transport sub-sectors and improve sectoral coordination.
He further urged the government to restore weighbridges on major highways to prevent overloading by haulage operators, noting that excessive axle loads are responsible for the rapid deterioration of newly constructed roads.
Founder of ABC Transport Plc, Sir Frank Nneji, lamented what he described as decades of inadequate government attention to the road transport sector.
He said while the aviation industry enjoys substantial investment and regulatory oversight to guarantee passenger safety, millions of Nigerians who rely daily on road transportation continue to face poor infrastructure and security challenges.
“The government should pay more attention to road redevelopment. They should hand off road development and concession some of the major roads,” Nneji advised.
He also expressed concern over the worsening security situation on Nigerian highways, urging government to strengthen measures to protect commuters and transport operators.