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Nigeria Freight and Logistics Market Size

The market size of Nigeria's logistics industry is experiencing significant growth, driven by various factors including government initiatives to enhance air cargo competitiveness and the expansion of road infrastructure. The establishment of specialized committees to improve cargo facilities and the substantial investment in highway reconstruction are key components of this growth. Despite challenges in the air cargo value chain that could impact Nigeria's position in the African Continental Free Trade Area, the logistics sector, particularly the courier, express, and parcel market, continues to develop rapidly.

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Market Size of nigeria freight and logistics Industry

Nigeria Freight and Logistics Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 10.2 Billion
svg icon Market Size (2030) USD 15.05 Billion
svg icon Largest Share by Logistics Function Freight Transport
svg icon CAGR (2024 - 2030) 6.70 %
svg icon Fastest Growing by Logistics Function Courier, Express, and Parcel (CEP)

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

Key Players

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Nigeria Freight and Logistics Market Analysis

The Nigeria Freight and Logistics Market size is estimated at 10.2 billion USD in 2024, and is expected to reach 15.05 billion USD by 2030, growing at a CAGR of 6.70% during the forecast period (2024-2030).

10.2 Billion

Market Size in 2024 (USD)

15.05 Billion

Market Size in 2030 (USD)

5.50 %

CAGR (2017-2023)

6.70 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

7.35 %

Projected CAGR, Sea and Inland Waterways, 2024-2030

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Nigeria has significant and diverse marine resources, with a coastline of 852 kilometers bordering the Atlantic Ocean in the Gulf of Guinea and a maritime area of 46,000 km.

Largest CEP Market by Destination

64.58 %

value share, Domestic, 2023

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The domestic segment witnessed growth fueled by the e-commerce industry growth. The e-commerce industry is expected to grow with a CAGR of 10.79% during the period 2023-2027.

Largest Market by End User Industry

39.02 %

value share, Manufacturing, 2023

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The manufacturing end-user segment experienced growth in 2023 supported by the rise in the manufacturing industry. Investments in Nigeria’s production sector rose by 67% in 2023.

Largest Warehousing Market by Temperature Control

91.55 %

value share, Non-Temperature Controlled, 2023

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The key growth drivers of the non-temperature-controlled warehousing sector are the increasing investments in the industrial parks in export-promoting zones with the PPP framework.

Fastest Growing Warehousing Market by Temperature Control

6.43 %

Projected CAGR, Temperature Controlled, 2024-2030

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The pharmaceutical sector is one of the factors driving demand for the cold storage market. The OTC pharmaceuticals market is expected to grow at a CAGR of 12.46% from 2024 to 2028.

Gradually improving sector demand witnessed owing to marginal reduction in logistics costs

  • As of March 2023, the Nigerian government is enhancing the country's air cargo competitiveness by establishing specialized committees comprising representatives from both public and private sectors. These committees are tasked with the construction and operation of airports equipped with modern cargo infrastructure. Overall, the various shortcomings in Nigeria's air cargo value chain could potentially disadvantage the country in the African Continental Free Trade Area (AfCFTA), an emerging free trade market in Africa. Overall, NGN 1.5 trillion (USD 5 billion) is required to fix the country's air infrastructure.
  • The freight and logistics market has been developing rapidly from 2017 to 2021, and it is led by the volume of the courier, express, and parcel market. As of 2022, as a comparison among logistics startups in Nigeria, 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 business counted over 260 workers, followed by Eden Life and Sendbox, with 86 and 68 employees, respectively.
  • Nigeria has the largest road network in West Africa and the second largest south of the Sahara, totaling about 194,200 km. Federal roads make up 17.6%, state roads 15.7%, and local and rural roads 66.7% of this network. The Nigerian National Petroleum Company intends to invest USD 4.1 billion in reconstructing 44 highways, which will cover 4,500 km of federal highways. Furthermore, the Federal Executive Council has approved 25-year concessions on nine corridors that connect vital population and economic centers.
Nigeria Freight and Logistics Market

Nigeria Freight and Logistics Industry Segmentation Nigeria Freight and Logistics Industry Segmentation

Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function.

  • As of March 2023, the Nigerian government is enhancing the country's air cargo competitiveness by establishing specialized committees comprising representatives from both public and private sectors. These committees are tasked with the construction and operation of airports equipped with modern cargo infrastructure. Overall, the various shortcomings in Nigeria's air cargo value chain could potentially disadvantage the country in the African Continental Free Trade Area (AfCFTA), an emerging free trade market in Africa. Overall, NGN 1.5 trillion (USD 5 billion) is required to fix the country's air infrastructure.
  • The freight and logistics market has been developing rapidly from 2017 to 2021, and it is led by the volume of the courier, express, and parcel market. As of 2022, as a comparison among logistics startups in Nigeria, 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 business counted over 260 workers, followed by Eden Life and Sendbox, with 86 and 68 employees, respectively.
  • Nigeria has the largest road network in West Africa and the second largest south of the Sahara, totaling about 194,200 km. Federal roads make up 17.6%, state roads 15.7%, and local and rural roads 66.7% of this network. The Nigerian National Petroleum Company intends to invest USD 4.1 billion in reconstructing 44 highways, which will cover 4,500 km of federal highways. Furthermore, the Federal Executive Council has approved 25-year concessions on nine corridors that connect vital population and economic centers.
End User Industry
Agriculture, Fishing, and Forestry
Construction
Manufacturing
Oil and Gas, Mining and Quarrying
Wholesale and Retail Trade
Others
Logistics Function
Courier, Express, and Parcel (CEP)
By Destination Type
Domestic
International
Freight Forwarding
By Mode Of Transport
Air
Sea and Inland Waterways
Others
Freight Transport
By Mode Of Transport
Air
Pipelines
Rail
Road
Sea and Inland Waterways
Warehousing and Storage
By Temperature Control
Non-Temperature Controlled
Temperature Controlled
Other Services
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Nigeria Freight and Logistics Market Size Summary

The Nigerian logistics industry is experiencing a gradual expansion, driven by developments in the freight and logistics sector, particularly in courier, express, and parcel services. The country's logistics landscape is characterized by a significant road network, the largest in West Africa, which plays a crucial role in facilitating transportation. However, infrastructure challenges have hindered faster growth, with the government taking steps to enhance air cargo competitiveness and invest in road reconstruction. The removal of fuel subsidies has led to increased fuel prices, impacting the transportation sector's contribution to the national GDP. Despite these challenges, the market is poised for growth, supported by investments in infrastructure and the burgeoning e-commerce sector.

The logistics market in Nigeria is fragmented, with major players like A.P. Moller - Maersk, Africa Access 3PL Limited, and Bolloré Group holding significant shares. The industry is also witnessing strategic moves, such as Maersk's divestment from energy-related activities to focus on integrated logistics solutions. The market's growth is further bolstered by the country's oil reserves and ongoing efforts to improve infrastructure, which are expected to enhance its position in the African Continental Free Trade Area. As the logistics sector continues to evolve, it is anticipated that these developments will contribute to a more robust and competitive market landscape in the coming years.

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Nigeria Freight and Logistics Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes 1. Market value in USD for all segments 2. Market volume for select segments viz. freight transport, CEP (courier, express, and parcel) and warehousing & storage 3.Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Agriculture, Fishing, and Forestry

      2. 1.1.2 Construction

      3. 1.1.3 Manufacturing

      4. 1.1.4 Oil and Gas, Mining and Quarrying

      5. 1.1.5 Wholesale and Retail Trade

      6. 1.1.6 Others

    2. 1.2 Logistics Function

      1. 1.2.1 Courier, Express, and Parcel (CEP)

        1. 1.2.1.1 By Destination Type

          1. 1.2.1.1.1 Domestic

          2. 1.2.1.1.2 International

      2. 1.2.2 Freight Forwarding

        1. 1.2.2.1 By Mode Of Transport

          1. 1.2.2.1.1 Air

          2. 1.2.2.1.2 Sea and Inland Waterways

          3. 1.2.2.1.3 Others

      3. 1.2.3 Freight Transport

        1. 1.2.3.1 By Mode Of Transport

          1. 1.2.3.1.1 Air

          2. 1.2.3.1.2 Pipelines

          3. 1.2.3.1.3 Rail

          4. 1.2.3.1.4 Road

          5. 1.2.3.1.5 Sea and Inland Waterways

      4. 1.2.4 Warehousing and Storage

        1. 1.2.4.1 By Temperature Control

          1. 1.2.4.1.1 Non-Temperature Controlled

          2. 1.2.4.1.2 Temperature Controlled

      5. 1.2.5 Other Services

Nigeria Freight and Logistics Market Size FAQs

The Nigeria Freight and Logistics Market size is expected to reach USD 10.20 billion in 2024 and grow at a CAGR of 6.70% to reach USD 15.05 billion by 2030.

In 2024, the Nigeria Freight and Logistics Market size is expected to reach USD 10.20 billion.

Nigeria Freight and Logistics Market Report Snapshots

Nigeria Logistics Industry Size & Share Analysis - Growth Trends & Forecasts UP TO 2029