In the recent era, the research market in Nigeria is at an augmenting stage. Whereas, with the foremost growth in the amount of second hand and fresh passenger and commercial vehicles in the economy, the market of Lubricants has augmented over the present past years. In addition, Logistics is playing a critical role in the economic performance of any region. For instance, Nigeria has deprived infrastructure and logistical issues along with the delayed custom processes and overcrowding on the roads. It is an import-based region and the country is based on the export of crude oil. The Market Research Firms in Nigeria states that the growth in the Nigerian logistics market has been owing to the infrastructural advancements in the Railways and Airways, advancement in the foreign ties with the other regions and the growing e-commerce segment.
The food and beverages, industrial and retails segments in the region played a proficient role in the growth of the freight forwarding market in Nigeria. Not only has this, the market research firms in Nigeria predict that the effective growth in the requirement for Nigeria’s local food and agricultural products in the region has promoted the requirement for cold logistics and warehousing services. Sea freight is the most overriding method of transportation followed by road and air freight. Over the many past years, Europe has substituted Asia as the foremost trading partner of Nigeria owing to the ECOWAS Economic Partnership Agreement with the EU.
Although, the market research firms in Nigeria states that the Nigerian warehousing market was evaluated to increase robustly throughout the forecast duration. The growth was mainstream owing to the foremost augment in the international trade volumes, market entry of the international players, accumulative e-commerce market and building fresh producing units and industries in Nigeria in order to make the region self-reliant. The food and beverage industry has been effectively registering the end-user sector owing to the effective growth in the trade of food products with the Asian and European regions and increasing the middle-class populace in the region.
Furthermore, the emergence of the supermarkets and several other stores are even underwriting the increasing retail market in the region. The Nigeria government and private corporates are underwriters for the growth in the requirement of cold storages for agricultural and pharmaceutical drugs and medicines.
In Nigeria, the third-party logistics has been flourishing in the Nigeria Freight Forwarding Market. The Nigerian freight forwarding market constitutes several small and medium corporates. Owing to the infrastructural challenges, big market players choose to outsource services to local transporters and aim at their core competencies. The corporates do not wish to engage their own logistics arm since it comprises capital investment and a lot of hassle.
In addition, the Domestic corporates dominate in road freight forwarding market with almost all local and provincial transporters/truckers. The industry is at a growth stage in terms of considerations such as technology, effectiveness and service portfolio but not pricing as the logistic cost is too great leading to contraction of the manufacturing segment in the GDP.
Whereas, the market research firms in Nigeria states that the market is predicted to increase at a positive double-digit CAGR and the foremost growth drivers would involve a growing requirement for the products through the online buy which has increased the e-commerce market. The effective augment in international trade capacities and domestic production are predicted to augment the requirement of the freight forwarding services. Therefore, it is predicted that the market firms will increase more effectively in Nigeria across the globe throughout the short span of time more progressively.
Ankur Gupta, Head Marketing & Communications