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Nigeria Courier, Express, and Parcel (CEP) Market Size

The Nigeria Courier, Express, and Parcel (CEP) market is experiencing significant growth, with its market size projected to expand substantially over the forecast period. This growth is driven by the increasing volumes of CEPs, facilitated by innovations such as self-service lockers for efficient domestic and international deliveries. The implementation of smart lockers across various locations, including partnerships with the Nigerian Postal Service, is enhancing delivery efficiency. The rapid development of the freight and logistics sector, alongside the booming e-commerce industry, is further contributing to the expansion of the CEP market in Nigeria.

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Market Size of nigeria courier, express, and parcel (cep) Industry

Nigeria Courier, Express, and Parcel (CEP) Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 119.69 Million
svg icon Market Size (2030) USD 186.81 Million
svg icon Largest Share by Destination Domestic
svg icon CAGR (2024 - 2030) 7.70 %
svg icon Fastest Growing by Destination International
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Nigeria Courier, Express, and Parcel (CEP) Market Analysis

The Nigeria Courier, Express, and Parcel (CEP) Market size is estimated at 119.69 million USD in 2024, and is expected to reach 186.81 million USD by 2030, growing at a CAGR of 7.70% during the forecast period (2024-2030).

119.69 Million

Market Size in 2024 (USD)

186.81 Million

Market Size in 2030 (USD)

6.31 %

CAGR (2017-2023)

7.70 %

CAGR (2024-2030)

Fastest Growing Market by Speed of Delivery

8.69 %

Projected CAGR, Express, 2024-2030

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The demand for same-day and next-day deliveries for which new services are being launched is significantly contributing to the growth of the express delivery market.

Fastest Growing Market by Model

10.01 %

Projected CAGR, Business-to-Consumer (B2C), 2024-2030

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E-commerce is a significant facilitator for B2C transactions generating delivery demand, wherein mobile shopping dominates online shopping activities and is a major driver.

Largest Market by Shipment Weight

55.55 %

value share, Light Weight Shipments, 2023

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Online orders for the delivery of personal care products, groceries, and FMCG goods are driving the segment's growth.

Largest Market by End User Industry

39.45 %

value share, Manufacturing, 2023

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Growth in Nigeria's pharmaceutical manufacturing industry is expected to generate the need for cold-chain and specialized delivery services.

First Leading Market Player

15.25 %

market share, Red Star Express, 2022

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Red Star Express has a fleet of over 700 vehicles operating within Nigeria. Also, the company supports delivery to more than 1500 communities in Nigeria.

The CEP market is witnessing steady growth due to increasing demand and sectoral advancements

  • The CEP value is expected to record a CAGR of 7.99% from 2023 to 2029. In Nigeria, self-service lockers are being implemented to handle domestic and international parcel deliveries. Registered individuals and companies can use SmartParcel to drop parcels and paperwork at a local smart locker run by a company franchisee. SmartParcel's delivery partners then deliver the items to a locker close to the receiver or any locker the consignee requests. The items can also be delivered directly to the recipients' residences or places of business by courier partners. As part of this plan, SmartParcel signed an agreement with the Nigerian Postal Service to install smart lockers in post offices across Nigeria's 774 local government areas in 2022. The aim is to set up 10,000 lockers via a franchise model wherein users and corporate entities can own lockers and monitor activities from a dashboard.
  • The freight and logistics market developed rapidly during the review period, led by the growing volumes of CEPs. As of 2022, Kobo360, a logistics company in Nigeria (Lagos) launched in 2016, had the highest number of employees compared to other logistics companies in the country. The company has over 260 workers, followed by Eden Life and Sendbox, with 86 and 68 employees, respectively.
  • In 2021, Nigerian Postal Services generated NGN 3.63 billion (USD 4 million). EMS-SpeedPost generated the highest income of NGN 1.27 billion (USD 1.7 million), accounting for 35.14% of the total revenue generated for the year. The volume of CEPs in the country is projected to rise due to growing e-commerce, which is expected to reach about USD 10.11 billion by 2027.
Nigeria Courier, Express, and Parcel (CEP) Market

Nigeria Courier, Express, and Parcel (CEP) Industry Segmentation

Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.

  • The CEP value is expected to record a CAGR of 7.99% from 2023 to 2029. In Nigeria, self-service lockers are being implemented to handle domestic and international parcel deliveries. Registered individuals and companies can use SmartParcel to drop parcels and paperwork at a local smart locker run by a company franchisee. SmartParcel's delivery partners then deliver the items to a locker close to the receiver or any locker the consignee requests. The items can also be delivered directly to the recipients' residences or places of business by courier partners. As part of this plan, SmartParcel signed an agreement with the Nigerian Postal Service to install smart lockers in post offices across Nigeria's 774 local government areas in 2022. The aim is to set up 10,000 lockers via a franchise model wherein users and corporate entities can own lockers and monitor activities from a dashboard.
  • The freight and logistics market developed rapidly during the review period, led by the growing volumes of CEPs. As of 2022, Kobo360, a logistics company in Nigeria (Lagos) launched in 2016, had the highest number of employees compared to other logistics companies in the country. The company has over 260 workers, followed by Eden Life and Sendbox, with 86 and 68 employees, respectively.
  • In 2021, Nigerian Postal Services generated NGN 3.63 billion (USD 4 million). EMS-SpeedPost generated the highest income of NGN 1.27 billion (USD 1.7 million), accounting for 35.14% of the total revenue generated for the year. The volume of CEPs in the country is projected to rise due to growing e-commerce, which is expected to reach about USD 10.11 billion by 2027.
Destination
Domestic
International
Speed Of Delivery
Express
Non-Express
Model
Business-to-Business (B2B)
Business-to-Consumer (B2C)
Consumer-to-Consumer (C2C)
Shipment Weight
Heavy Weight Shipments
Light Weight Shipments
Medium Weight Shipments
Mode Of Transport
Air
Road
Others
End User Industry
E-Commerce
Financial Services (BFSI)
Healthcare
Manufacturing
Primary Industry
Wholesale and Retail Trade (Offline)
Others
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Nigeria Courier, Express, and Parcel (CEP) Market Size Summary

The Nigeria Courier, Express, and Parcel (CEP) market is experiencing significant growth, driven by the increasing volumes of e-commerce and advancements in logistics infrastructure. The market is characterized by the implementation of innovative solutions such as self-service lockers, which facilitate both domestic and international parcel deliveries. Companies like SmartParcel are expanding their operations by partnering with the Nigerian Postal Service to install smart lockers across the country, enhancing the efficiency of parcel handling. Despite challenges such as infrastructure deficits, the logistics industry in Nigeria is valued substantially, with major players like ABC Transport PLC, DHL Group, Nipost, Red Star Express, and UPS actively participating in the market. These companies are leveraging strategic partnerships and technological advancements to improve service delivery and expand their market presence.

The CEP market's growth trajectory is supported by the burgeoning e-commerce sector, which is expected to continue its upward trend, contributing to the market's expansion. However, the transportation and storage sector has faced recent contractions, attributed to economic factors such as the removal of fuel subsidies, which have led to increased operational costs. This economic backdrop has influenced the logistics sector's contribution to the national GDP, highlighting the need for infrastructure improvements and strategic investments. Despite these challenges, the market remains fragmented, with a competitive landscape that encourages innovation and growth. The ongoing developments in logistics and e-commerce are poised to drive the CEP market's growth, positioning it as a critical component of Nigeria's economic landscape.

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Nigeria Courier, Express, and Parcel (CEP) Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes Market Value in USD, Forecasts up to 2030 and analysis of growth prospects)

    1. 1.1 Destination

      1. 1.1.1 Domestic

      2. 1.1.2 International

    2. 1.2 Speed Of Delivery

      1. 1.2.1 Express

      2. 1.2.2 Non-Express

    3. 1.3 Model

      1. 1.3.1 Business-to-Business (B2B)

      2. 1.3.2 Business-to-Consumer (B2C)

      3. 1.3.3 Consumer-to-Consumer (C2C)

    4. 1.4 Shipment Weight

      1. 1.4.1 Heavy Weight Shipments

      2. 1.4.2 Light Weight Shipments

      3. 1.4.3 Medium Weight Shipments

    5. 1.5 Mode Of Transport

      1. 1.5.1 Air

      2. 1.5.2 Road

      3. 1.5.3 Others

    6. 1.6 End User Industry

      1. 1.6.1 E-Commerce

      2. 1.6.2 Financial Services (BFSI)

      3. 1.6.3 Healthcare

      4. 1.6.4 Manufacturing

      5. 1.6.5 Primary Industry

      6. 1.6.6 Wholesale and Retail Trade (Offline)

      7. 1.6.7 Others

Nigeria Courier, Express, and Parcel (CEP) Market Size FAQs

The Nigeria Courier, Express, and Parcel (CEP) Market size is expected to reach USD 119.69 million in 2024 and grow at a CAGR of 7.70% to reach USD 186.81 million by 2030.

In 2024, the Nigeria Courier, Express, and Parcel (CEP) Market size is expected to reach USD 119.69 million.

Nigeria Courier, Express, and Parcel (CEP) Market Report Snapshots

Nigeria Courier, Express, and Parcel (CEP) Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030