Logistics is vivacious for the economic performance of any economy. Nigeria has the meager infrastructure and logistical problems along with delayed custom measures and congestion on the roads. It is an import-based region and the economy is reliant on the export of crude oil. Nigeria was ranked 145 out of 190 economies during 2018 in the effortlessness of doing business Index and ranks 112 in the Logistics Performance Index (2018). The growth in Nigeria’s logistics Market has been owing to the Infrastructural improvements in Railways and Airways, enhancement in foreign ties with other countries, and the increasing e-commerce segment.
Whereas, the Best B2B Service Providers in Nigeria were estimated to grow energetically during the period of 2013-2018. The growth was majorly due to augmenting international trade volumes, market entry of international players, increment in the e-commerce market, and building fresh manufacturing units and industries around Nigeria in order to generate the country self-reliance. Sustained energies have been taken by the government along with the Chinese government for encouraging free trade zone areas and industrial parks around the country. Foremost investment by foreign corporates has driven the entire warehousing market around the country.
Although, the Nigeria Freight Forwarding market is greatly scattered with over 1,200 local freight forwarding corporates registered under the Council for Freight Forwarders around Nigeria. While the international players are few, they control the mainstream of the Airfreight and Sea freight forwarding market. Domestic corporates register in the road freight forwarding market with almost all native and regional transporters/truckers. The industry is at a growth stage in the terms of parameters such as technology, proficiency, and service portfolio but not pricing as the logistic price is too great leading to contraction of the manufacturing segment in the GDP. The price for transporting 40ft container and 20 ft container to warehouses has augmented 400% during the past few years.
Not only has this, the research companies predict that the Nigerian baby food market is presently at an increasing stage. There was a slight deduction in 2016 owing to recession around the country and the policies accepted by the government to encourage breastfeeding, despite this market showed an entirely positive trend throughout 2013-2018 duration. The baby food industry is propelled by the growing disposable income of the people, increasing awareness amongst the parents to deliver healthier food to the babies, augment in the internet retailing amongst several other factors. The market is projected to present positive growth and continue to encourage during the coming years.
Furthermore, United States, United Kingdom, and European regions are the foremost sources of remittance around Nigeria. The effective growth in the number of migrants has a direct and confident impact on the growth of the remittance industry. Internal migration is also on the augmentin Nigeria. Availability of jobs and migration have collectively encouraged the growth of the international as well as domestic remittance industry. The growth in the industrial and communication segments has substantially given augment to the job opportunities around the country.
Related Reports by Ken Research:-
South Africa Logistics Market Outlook to 2023 – By Sea, Land, Air Freight Forwarding; International and Domestic Freight, Integrated and Contract Logistics Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Others), 3PL Warehousing, Cold Chain; By Express Logistics and E-commerce Logistics
Ankur Gupta, Head Marketing & Communications