Key Issues & Challenges of Logistics in Nigeria and Remedy


In recent years, despite the population of Nigeria, the logistics market has witnessed a slow growth rate due to certain challenges, such as congested roads and customs issues. 

Much has been said already about the challenges facing the Nigerian logistics industry. Poor infrastructure, multiple taxations, tax regulations and hostile business environments are no longer new in the industry. 

Struggling with low margins and a lack of access to capital, unfriendly customs procedures, unfavourable government policies that negatively affect the ease of doing business, heavy traffic, poor road network, and corruption are some of the reasons attributed to the slow growth of the logistic & transportation sector. 

More recently, the Covid19 pandemic has been a great challenge. The pandemic has had a negative and positive impact on logistics in Nigeria and globally. Movement restrictions and lockdowns have made it extremely difficult for service providers in the logistics and shipping industry to perform their duties and deliver their services. 

There was also the mental and psychological effect of the pandemic on logistics service providers. Transportation costs, which can easily reach up to 50% of total costs, are another big challenge for the industry as fuel prices continue to rise.  

Despite these challenges,  the future of the logistics market in Nigeria is very promising. The market has great potential for the economic growth of the country. The contribution of the logistics sector to the country’s GDP has increased in the third quarter of 2022.

However, for the Nigerian transport and electronic commerce (eCommerce) sub-sector to grow exponentially and add more value,  more support is needed from the government to create a conducive environment for growth.   

Thus, the restructuring of sectoral policies would open up the market, attract new investors, create more small and medium enterprises (SMEs) and facilitate business activities in the sector. Due attention should also be given to the sector in its difficult areas such as infrastructure deficits, outdated policies, insecurity, high corruption rates, lack of freedom of speech, deficit reduction knowledge and skills, etc.   

Within the industry, there is a need for greater adoption of the use of modern technologies, communications and security systems to monitor and regulate processes.

What are the Logistics Barriers?

The logistics industry faces constant challenges and adversities. The logistics industry consists of a vast network of contacts, organizations and technologies.

Key Issues and Challenges in Logistics

  • Logistics Management:

This is associated with the total control of actions in the logistics industry: a complex process that involves supervision, communication between several units – timely decisions and synchronization of units and departments. These requirements must be continually improved in order for a logistics business to provide quality service and gain a competitive advantage.

  • Customer Service:

Customer service is very important in every business. Their functions are a fundamental part that suggests whether or not a customer will use your service again. During logistics processes, customers want complete and transparent progress reports about their shipment at all times, and are many times, unaware of the challenges that carriers face on the job. Customer service takes care of this part of the logistics process, to ensure that customers are satisfied and extract more values from them. A bad customer care arrangement would inadvertently affect the growth of your logistics business.

  • Economy:

The logistics industry depends directly on the state of the economy, which makes it often unstable. The Nigerian economy is connected, any fluctuation or interference in any part of the nation will directly affect the logistics sector.

  • Compliance with Regulations:

Regulations vary by area and mode of transportations are updated frequently. Sometimes, different regulations in different areas affect how logistics businesses are carried out. Any discrepancies make it difficult for companies to comply with and track the constant updates, and often turn to third parties, in order to manage the necessary documentation.

How to Overcome the key issues and challenges

While the global logistics challenges mentioned above shape much of what the consumer sees, the reality of logistics encompasses several other everyday challenges. Overcoming them requires an advanced, articulated and organized logistics network. Companies can also choose to outsource with a reliable logistics company. KV Global Logistics Limited is highly recommended. They have one of the best integrated logistics systems that delivers. This allows your business to focus on other essential activities while [KVGLL] provides quality logistics service.


Overcoming the core logistics issues and challenges directly impacts the profitability of the business. Therefore, by improving the efficiency of the logistics process, profitability will also increase. 

Leave a Reply

Your email address will not be published. Required fields are marked *