Nigeria: The Logistics Market Space in Africa
Logistics refers to the whole process of planning, implementation and management of raw materials, semi-finished products, finished products and related information from the place of origin to the place of consumption of goods in order to meet the needs of customers at the lowest cost by means of transportation, storage and distribution. Logistics is generally composed of transportation, storage, packaging, handling, handling, circulation and processing of goods, as well as related logistics information and other links. It is an optimal system formed by synthesizing and compounding each link. The management of logistics is how to deliver the required materials and goods to any place needed in the field of production and circulation on time, quality and quantity, and at the lowest cost of the system, so as to meet people's demand for goods in space and time.
The Nigerian freight and logistics market has maintained a slow growth trend over the past few years, ranking Nigeria 112th out of 160 countries in the World Bank's Logistics Performance Index (LPI) 2018.
Nigeria has many modes of transport: road, rail, air, sea, inland waterways and pipelines. Among them, the inland waterway network is considered one of the longest in the world, covering more than 3,000 kilometers and including nearly 50 rivers, but this mode of transportation is underutilized. In addition, most airports serving the transport and logistics industry lack security, rail transport systems are inefficient and unreliable, and road transport plays a major role in moving goods across borders. The development of Nigerian roads is still dominated by government investment, but attracts more foreign investment than any other mode of transport.
There are several obvious problems with the Nigerian road system, such as the lack of street names and house numbers, the lack of updated map information, and a flawed address system, which hinder the delivery of logistics. As a result, couriers often need to contact buyers via WhatsApp, text or phone when they arrive at certain locations, such as landmark buildings, and the buyers tell the riders how to arrive or come out to pick up the goods.
The current market competition in Nigerian logistics is highly fragmented, with international and local companies such as DHL, United States Postal Service (UPS) and Nigeria Post (Nipost). In recent years, a large number of technology companies have emerged, such as MVXchange and Send, which integrate shipping services, Kobo360, which solve the integration of medium and long distance transportation capacity, MAX and Gokada, which transform motorcycle travel into last kilometer distribution, etc. They are committed to solving the problems in different segments of the logistics industry by means of science and technology.
Between 2017 and 2030, the Nigerian government plans to spend 3.7% of GDP on infrastructure each year. In terms of specific projects, the Nigerian government plans to spend $1.5 billion to build an airport and the largest deep-sea port on 3,000 hectares of land to reduce traffic congestion and promote efficient transportation near Lagos, but due to the impact of the pandemic, the project will take longer to complete. Nigeria has signed bilateral Free Trade agreements with other countries, participated in ECOWAS and AGOA and initiated the African Continental Free Trade Agreement, Improve trade with neighboring countries and promote trade and logistics development.
In the development of local logistics, there must be a means of transportation, so what kind of model is better? The first choice is the flatbed semi-trailer, van truck, etc. The logistics load is heavy and the load is large, so you must choose a large vehicle. SUNSKY is the manufacturer of logistics transportation trucks, which can provide various logistics transportation vehicles. Contact us and place an order.
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