Nigeria Third-Party Logistics (3PL) Market Size

Nigeria Third-Party Logistics (3PL) Market Analysis

The Nigeria Third-Party Logistics Market size is estimated at USD 7.28 billion in 2024, and is expected to reach USD 11.19 billion by 2029, growing at a CAGR of 8.98% during the forecast period (2024-2029).

• COVID-19 severely impacted the Nigeria 3PL Market as the supply chains were disrupted worldwide. The growth of the Nigeria 3PL The growth of intra-continental trade through the African Continental Free Trade Agreement (AfCFTA) is what fuels the growth of the Nigerian 3PL market. Moreover, the growth in the manufacturing sector and the change in consumption patterns contribute to market growth, which has increased demand for logistics services.
• The main economic constraints are infrastructure gaps and disjointed supply chains among the nations. African countries have to strategically and heavily invest in their infrastructure.
• Along with the infra development, the synchronization of regulations related to different sectors (such as pharmaceutical products) and sub-regional blocks is necessary to support trade and a favorable business climate.
• Nigeria's logistics sector is expanding due to infrastructure development in railways and airways, improved ties with other countries, growth in the manufacturing and export sectors, and e-commerce.
• According to a survey conducted by the Lagos Chamber of Commerce and Industry, the Nigerian economy lost an estimated annual revenue of 3.46 trillion naira (USD 8.4 billion) due to poor infrastructure, poor implementation, and corruption at ports, of which 2.5 trillion naira (USD 6 billion) are corporate earnings losses across the economy.
• According to the report, profit margins of corporate entities that use some of the country's key infrastructure, such as the Apapa port, have gradually shrunk as logistics costs have risen significantly.
• In the first quarter of 2021, Apapa port handled the majority of export transactions, with goods worth 2.58 trillion nairas (USD 6 billion), accounting for 88.91% of total exports. Port Harcourt came in second with 167.29 billion nairas (USD 406 million), or 5.75%. Revenue at Mohammed Murtala International Airport increased by 2.5% to 75.4 billion naira (USD 183 million).
• In terms of imports, Apapa Port had the most transactions, valued at 2.92 trillion nairas (USD 7.1 billion), accounting for 42.73% of total imports. Tin Can Island came in second with 1.2 trillion nairas (USD 2.9 billion) or 17.95%, Port Harcourt came in third with 691.7 billion nairas (USD 1.6 billion) or 10.10%, and Muhammed Murtala International Airport came in third with 625.7 billion nairas (USD 1.52 billion) or 9.13%.