Nigeria is losing an estimated N5 trillion every year because of poor logistics and transportation systems that prevent farm produce from reaching consumers. Industry experts say nearly 40 percent of food produced by farmers is wasted before it gets to markets due to bad roads, insecurity, and inefficient transport networks.
The concerns were raised during the 10th Anniversary Lecture of City Business News, themed “Logistics as the Engine Room of Nigeria’s Economy.” Participants at the event warned that unless urgent reforms are introduced, the country’s logistics challenges will continue to affect food security, increase inflation, and slow economic growth.
Speaking at the event, former Corps Marshal of the Federal Road Safety Corps (FRSC) and President of the Chartered Institute of Logistics and Transport (CILT), Dr. Boboye Oyeyemi, revealed that Nigeria loses between 30 million and 40 million metric tonnes of food every year because of poor post-harvest handling and transportation.
According to him, the value of these losses is estimated at between $2.3 billion and $3.3 billion, which is roughly N3.5 trillion to N5 trillion annually. He explained that these losses reduce food availability, increase prices, and weaken the country’s economy.
Oyeyemi noted that the logistics sector contributes only 3.73 percent to Nigeria’s Gross Domestic Product (GDP), showing that the industry is not performing at its full potential.
He pointed out that the Middle Belt, widely known as Nigeria’s food-producing region, suffers heavily because poor road conditions cause a large portion of food transported to major markets such as Lagos to spoil before arrival.
Apart from poor infrastructure, Oyeyemi blamed multiple illegal checkpoints and unofficial taxes for increasing transportation costs. He disclosed that truck drivers often spend between N150,000 and N250,000 on illegal levies and checkpoints during a single trip.
To improve the situation, he urged the Federal Government to remove unnecessary roadblocks, subsidise Compressed Natural Gas (CNG) to reduce transport costs, encourage the use of dual-fuel vehicles, and appoint a coordinating minister to oversee transportation policies across the country.
He also recommended bringing back highway weighbridges to stop overloaded trucks, which he said are responsible for damaging many Nigerian roads.
Founder of ABC Transport, Sir Frank Nneji, also expressed concern over what he described as years of neglect of road transportation. He argued that while the aviation sector receives significant investment, road transport—which serves the majority of Nigerians—has not received enough attention.
Nneji called on the government to invest more in road construction and maintenance and suggested concessioning major highways to private operators for better management. He also stressed that rising insecurity on Nigerian roads continues to discourage both travellers and transport operators.
Responding to the concerns, FRSC Corps Marshal Shehu Mohammed assured stakeholders that the agency is working with private organisations to improve road safety and strengthen enforcement of traffic laws across the country.
Also speaking at the event, President of Women in Logistics and Transport (WiLAT), Khadijat Sheidu-Sabi, represented by Mrs. Fatima Jatto of the Nigerian Ports Authority (NPA), encouraged greater participation of women in the logistics industry. She said women are increasingly occupying leadership positions and helping shape policies, adding that gender inclusion is essential for the long-term development of the sector.
Stakeholders agreed that improving road infrastructure, ensuring policy consistency, reducing illegal levies, and tackling insecurity are critical steps needed to strengthen Nigeria’s logistics sector, reduce food losses, and support sustainable economic growth.
