Oyeyemi, Nneji Seek Transport Revolution to Slash Business Costs, Boost Economy

Oyeyemi, Nneji Seek Transport Revolution to Slash Business Costs, Boost Economy

 

Nigeria is paying a heavy economic price for decades of neglect of its logistics and transportation system, with poor infrastructure, policy inconsistency and rising operating costs eroding business competitiveness, driving up food prices and costing the nation billions of naira annually, leading industry experts have warned.

The President of the Chartered Institute of Logistics and Transport (CILT) Nigeria and former Corps Marshal of the Federal Road Safety Corps (FRSC), Dr. Boboye Oyeyemi, alongside Founder of ABC Transport Plc, Mr. Frank Nneji, made the call in Lagos, urging the Federal Government to embark on sweeping reforms capable of transforming logistics into a catalyst for economic growth.

They spoke at the 10th anniversary celebration of City Business News Online, themed “Logistics as the Engine Room of Nigeria’s Economy”.

Delivering the keynote address, Oyeyemi described logistics as the backbone of every thriving economy, stressing that efficient movement of goods and services is indispensable for production, trade, industrialisation and national development.

He noted that logistics extends beyond transportation to encompass warehousing, supply chain management, storage, distribution and coordination, making it one of the most strategic sectors for sustainable economic growth.

According to him, Nigeria’s logistics ecosystem is weighed down by poor road infrastructure, inadequate rail connectivity, weak inland waterway transport, multiple checkpoints, soaring diesel prices, poor storage facilities and inconsistent government policies.

Oyeyemi observed that over 90 per cent of freight and passenger movement in Nigeria still depends on roads, a situation that has overstretched the highway network, increased transportation costs and reduced operational efficiency across key sectors of the economy.

He lamented that about 40 per cent of agricultural produce harvested in the country never reaches consumers because of poor road networks, transportation delays and inadequate cold-chain infrastructure.

“The Middle Belt remains the food basket of the nation, yet a significant percentage of agricultural products perish before reaching markets due to poor roads, transportation delays and inadequate storage facilities,” he said.

He warned that the huge post-harvest losses translate into billions of naira in wasted investments annually while worsening food inflation and reducing farmers’ incomes.

Oyeyemi also decried the burden of rising diesel prices, multiple checkpoints and illegal levies along transport corridors, saying the resulting delays and extortion significantly inflate logistics costs that are eventually transferred to consumers.

To reverse the trend, he called for the restoration of weighbridges on major highways, accelerated investment in rail and inland waterway transport, and stronger collaboration among government agencies, professional bodies and private-sector operators.

The former FRSC boss further urged successive governments to maintain policy continuity, warning that abandoned projects and frequent policy reversals discourage investment and slow national development.

While commending ongoing efforts to promote Compressed Natural Gas (CNG) and electric vehicles, he stressed the need for supporting infrastructure to ensure their long-term sustainability and widespread adoption.

Earlier, Publisher of City Business News Online, Mr. Moses Ebosele, said the anniversary theme was deliberately chosen to spotlight the strategic role of logistics in enhancing trade, industrialisation and national competitiveness.

Chairman of the occasion, Mr. Frank Nneji, described transportation and logistics as indispensable pillars of economic development and urged the Federal Government to prioritise the rehabilitation and expansion of the nation’s road infrastructure, which still carries the bulk of passenger and freight traffic.

He also advocated accelerated road concession programmes and greater private-sector participation in infrastructure development, arguing that modern transport networks would reduce logistics costs, improve productivity and strengthen Nigeria’s competitiveness.

Participants at the event unanimously agreed that eliminating logistics bottlenecks, modernising transport infrastructure and ensuring policy consistency are critical to reducing the cost of doing business and unlocking Nigeria’s full economic potential.