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Transport Inefficiency Cost Nigeria ₦3.2Trn Yearly – As CILT Demands Urgent Solutions To Nigeria's Transport System

 





The Chartered Institute of Logistics and Transport, CILT Nigeria, says Nigeria’s transport sector urgently needs a predictive, integrated, and technology-driven transformation to drive economic growth, improve safety, and boost national competitiveness.

Speaking at the Global Transport Policy, GTP, 2026 Annual Multimodal Roundtable in Lagos on Wednesday, CILT Nigeria Council Chairman, Dr. Boboye Oyeyemi, warned that the country’s disjointed transport system can no longer cope with rising population pressure and logistics demand.

The conference, themed “Transforming System: Integrating Solutions for Safety, Efficiency and Sustainability,” gathered key players across the transport and logistics value chain to map a new direction for the sector.

According to Oyeyemi, global transport trends have moved beyond basic infrastructure to include predictive safety systems, intelligent logistics, green transport, innovative financing, and future mobility solutions.

“Nigeria, with over 240 million people, a vast landmass of 923,000 square kilometres, 830 kilometres of coastline, and an extensive but poorly coordinated transport network, requires urgent modernisation and integration,” he said.


He noted that despite over 204,000 kilometres of roads and more than 14 million registered drivers, the transport ecosystem is hampered by poor interconnectivity between road, rail, inland waterways, and pipeline networks.

He added that the lack of a truly integrated multimodal transport system continues to hurt mobility, push up logistics costs, and limit economic productivity.

Oyeyemi said while successive governments have spent heavily on roads, bridges, rail, and seaports, weak institutional frameworks, poor maintenance culture, inadequate data management, and accountability gaps have reduced the impact of those investments.

He also identified truck overloading, non-functional weighbridges, and weak enforcement as key factors accelerating the deterioration of transport infrastructure nationwide.

“We have invested substantially in transport assets, but infrastructure alone is not enough. What Nigeria needs now is integration, intelligence, and efficient systems management to maximise returns on investment and improve mobility,” he stressed.

The former Corps Marshal of the Federal Road Safety Corps, FRSC, warned that without policy continuity, data-driven planning, and coordinated governance, Nigeria’s transport sector will keep struggling, leading to higher costs of doing business and slower economic growth.


Earlier, GTP Chairman, Dr. Segun Musa, described the economic toll of transport inefficiencies, revealing that Nigeria loses an estimated ₦3.2 trillion annually to logistics and transportation bottlenecks.

He disclosed that logistics costs now take up over 42 percent of Nigeria’s Gross Domestic Product, GDP, a figure he called unsustainable for a country pursuing economic transformation.

Musa also listed persistent challenges: over-reliance on road transport, underutilisation of rail, high accident rates, low digitalisation, and critical skills gaps in the transport workforce.

He said only about 18 percent of transport workers are digitally enabled, stressing the need for massive investment in capacity building and technology adoption.

He urged stronger public-private partnerships, faster rollout of smart mobility solutions, and the development of an integrated multimodal transport network to drive sustainable development.

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