Nigeria logistics crisis threatens ₦1.6tn loss annually

Nigeria logistics crisis could cost the nation up to ₦1.6tn yearly in lost revenue and investments. Experts urge reforms to restore logistics hub status

Nigeria logistics crisis is now a looming national emergency, with experts warning that the country may lose up to ₦1.6 trillion annually due to reduced port activity, declining customs revenue, and missed investment opportunities.

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The Sea Empowerment Research Centre (SEREC), through its Head of Research, Mr. Eugene Nweke, revealed that Nigeria could lose ₦130 billion each year in customs duties, VAT on imports, and other port-related taxes.

This decline could slash government revenue by 10 to 20%, amounting to a staggering ₦300bn to ₦600bn loss.

Nweke cautioned that Nigeria risks losing billions in logistics investments as businesses shift operations to more efficient neighboring ports.

“A 20% drop in foreign investments could result in ₦500bn to ₦1tn in lost capital,” he said.

Combined, the projected losses from decreased revenue and investments could total ₦800bn to ₦1.6tn annually.

He described the current situation as a wake-up call for government and industry leaders, stressing that immediate action is vital. He recommended:

Developing a National Logistics Policy

Investing in rail-port connectivity, dry ports, and secure logistics zones

Embracing digital port operations and single-window trade platforms

Tackling congestion at Apapa and Tincan ports

“Only by improving efficiency and reducing costs can Nigeria reclaim its logistics hub status and attract global investment,” Nweke emphasized.

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With powerful reforms and cooperation among stakeholders, Nigeria can turn this crisis into a transformative opportunity.

Quadri Olaitan