Nigeria Freight and Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022-2027)

Nigeria Freight and Logistics Market is Segmented by Function (Freight Transport (Road, Shipping and Inland Water, Air, Rail), Freight Forwarding, Warehousing, and Value-added Services and Others) and End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry, Construction, Distributive Trade (Wholesale and Retail Segments - FMCG included), and Other End Users (Telecommunications, Pharmaceuticals, etc.)).

Market Snapshot

Nigeria Freight and Logistics Market Overview
Study Period: 2017-2027
Base Year: 2021
CAGR: >3 %

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Market Overview

The Nigerian freight and logistics market is expected to record a CAGR of over 3% during the forecast period 2022-2027.

Nigeria was one of the first countries in Sub-Saharan Africa to report instances of COVID-19. Nigeria's overall foreign trade (import and export) fell by 18% in Q1 2020, from NGN 10.12 trillion in Q4 2019 to NGN 8.3 trillion at the end of Q1 2020. The fall in manufactured goods exports in the first quarter of 2020 was a sign of the country's poor industrial and manufacturing activity. Nigeria shipped USD 33.5 billion worth of goods worldwide in 2020, down from USD 53.6 billion in 2019.

Nigeria serves as the world's entrance to West Africa, and Lagos is one of the country's most active international trading centers. Two seaports in Lagos, namely Lagos Port Complex and Tin Can Port, handle the majority of sea freight trade. The construction of a new deep-sea port in Lekki and the Trans-African Highway is planned to further open Nigeria to foreign trade. Nigeria is connected to major foreign countries by air, with MMI Airport in Lagos being the busiest in terms of cargo shipping.

Nigeria's retail e-commerce company has a lot of potential for expansion since the COVID-19 pandemic boosted the e-commerce market. The country's population is enormous and growing, and it is expected to be the world's third-largest by 2050. The most popular product categories in Nigerian e-commerce are consumer electronics, household appliances, and apparel. Nigeria's infrastructure, on the other hand, hampers full-fledged e-commerce development. For a substantial section of the population who live in rural areas with weak transportation systems, e-commerce fulfillment remains a considerable challenge.

Scope of the Report

Freight refers to any type of goods, items, or commodities that are transported in bulk via air transport, surface transport, or sea/ocean transport. Logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. The Nigerian freight and logistics market is segmented by function (freight transport (road, shipping and inland water, air, rail), freight forwarding, warehousing, and value-added services and others), end user (manufacturing and automotive, oil and gas, mining, and quarrying, agriculture, fishing, and forestry, construction, distributive trade (wholesale and retail segments - FMCG included), and other end users (telecommunications, pharmaceuticals, etc.)). The Nigerian freight and logistics market covers the current market trends, restraints, technological updates, and detailed information on various segments and the market’s competitive landscape. The impact of the COVID-19 pandemic has also been incorporated and considered in the study.

By Function
Freight Trasnport
Road
Shipping and Inland Water
Air
Rail
Freight Forwarding
Warehousing
Value-added Services and Others
By End User
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Construction
Distributive Trade (Wholesale and Retail Segments - FMCG included)
Other End Users (Telecommunications, Pharmaceuticals, etc.)

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Key Market Trends

Demand for Nigerian Crude Oil Across the Globe to Drive the Market

Nigeria has large and diverse marine resources, with a coastline of 852 kilometers along the Atlantic Ocean in the Gulf of Guinea and a maritime area of 46,000 kilometers. Various national economic activities rely on or draw from ocean resources, and it has become more obvious that Nigeria's blue economy's potential is far from being completely realized, necessitating a coordinated policy framework to meet this emerging reality. Inadequate finance, poor port infrastructure, a lack of maritime infrastructure, inefficiencies, and a lack of transparency and harsh practices are some of the primary elements influencing the development of the shipping industry in Nigeria.

Nigeria is Africa's largest oil producer. It has the continent's greatest natural gas reserves and was the world's seventh-largest exporter of liquefied natural gas (LNG) in 2021. Nigeria’s crude oil and natural gas resources are the mainstay of the country’s economy. Since Nigeria heavily depends on oil revenue, its economy is noticeably affected by crude oil price changes. Even though Nigeria is Africa's top crude oil producer, the output is hampered by intermittent supply disruptions. Natural gas, tin, iron ore, coal, limestone, niobium, lead, zinc, and arable land are some of Nigeria's other natural resources, in addition to petroleum. Petroleum exports account for over 86% of total export revenue, while the oil and gas sector accounts for roughly 10% of GDP.

Nigeria Freight and Logistics Market Size

Freight and Logistics Industry Supported by Rail Cargo

Nigeria and China have a strong railway development partnership. The Nigerian government and China Railway Construction Corporation inked a USD 3.9 billion agreement in October 2019 for the construction of the Abuja–Itakpe–Lokoja railway line as well as stations along the way. The PPP deal entails the Exim Bank of China funding 75% of the expenditure, the Chinese enterprise covering 10%, and the government providing the remaining investment.

The railway industry has played an important role in economic diversification, supporting GDP growth and providing a long-term alternate mode of ground transportation. According to industry statistics, the volume of rail freight in Nigeria was over 87.4 billion ton in 2020, down from over 200 billion ton in 2019. Africa is, without a doubt, one of the world's fastest-growing freight markets. The significant economic growth adds to increased volumes and great performance in freight traffic. While railroads transport a variety of agricultural products, the most common are corn, wheat, soybeans, barley, and sorghum, which account for over 90% of annual farm product rail tonnages.

The Nigerian government started its commercial operation of the Itakpe-Ajaokuta-Warri railway in September 2020, a line that connects the northern and southern areas of Africa's most populous country and was built with a Chinese construction business the main contractor. The 326-kilometer single-track railway, built by the China Civil Engineering Construction Corporation (CCECC), connects Kogi state in the north and Delta state in the south and is the country's first standard gauge railway. Aside from conveying people, the line will play an important role in moving iron ore from central Itakpe to Warri port, as well as promoting agricultural and mining development along the route. According to projections, the Itakpe-Ajaokuta-Warri line will carry about one million passengers and 3.5 million ton of freight each year.

Nigeria Freight and Logistics Market Report

Competitive Landscape

Nigeria's freight and logistics market is fragmented, with a mix of international and local businesses. DSV, DHL, FedEx, Agility, and Maersk are a few of the country's major players. The market is predicted to grow over the forecast period due to a growth in rail cargo, as well as several other factors. The sector has been restricted by a lack of infrastructure, but this is likely to improve and propel the logistics business forward. Companies were able to seize a large market share because of global crude oil exports. International players dominate the market.

Recent Developments

On March 16, 2021, the Airport Business Summit on Cargo & Aero Logistics and Drone Technology Expo was held at the NIGAV Expo Centre at Murtala Muhammed International Airport. The combined event was aimed at closing cargo operational capacity gaps in the Nigerian aviation industry, improving cargo revenue, linking the chain of aero logistics to national agro-export projects, and opening Nigeria to emerging opportunities in drone technology.

On April 14, 2021, Nigerian logistics giant GIG Logistics (GIGL) announced its expansion to Colchester, Essex, in the United Kingdom.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain/Supply Chain Analysis

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Function

      1. 5.1.1 Freight Trasnport

        1. 5.1.1.1 Road

        2. 5.1.1.2 Shipping and Inland Water

        3. 5.1.1.3 Air

        4. 5.1.1.4 Rail

      2. 5.1.2 Freight Forwarding

      3. 5.1.3 Warehousing

      4. 5.1.4 Value-added Services and Others

    2. 5.2 By End User

      1. 5.2.1 Manufacturing and Automotive

      2. 5.2.2 Oil and Gas, Mining, and Quarrying

      3. 5.2.3 Agriculture, Fishing, and Forestry

      4. 5.2.4 Construction

      5. 5.2.5 Distributive Trade (Wholesale and Retail Segments - FMCG included)

      6. 5.2.6 Other End Users (Telecommunications, Pharmaceuticals, etc.)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Mergers & Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 DSV

      2. 6.3.2 DHL

      3. 6.3.3 FedEx

      4. 6.3.4 Agility

      5. 6.3.5 Maersk

      6. 6.3.6 Delek Marine Services

      7. 6.3.7 Mediterranean Shipping Company

      8. 6.3.8 Sifax Group

      9. 6.3.9 GIG Logistics

      10. 6.3.10 Professional Shipping & Logistics Services

      11. 6.3.11 Fortune Global Shipping Services

      12. 6.3.12 ABC Cargo Express Services

      13. 6.3.13 AGS Worldwide Movers Services

      14. 6.3.14 Redline Logistics Nigeria Limited Services

      15. 6.3.15 Confidence Cargo Limited

      16. 6.3.16 Aerologistics Services

      17. 6.3.17 Deep Sea Logistics Services Limited

      18. 6.3.18 Cross Country Limited*

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Nigeria Freight and Logistics Market market is studied from 2017 - 2027.

The Nigeria Freight and Logistics Market is growing at a CAGR of >3% over the next 5 years.

DSV, DHL, FedEX, Agility, Maersk are the major companies operating in Nigeria Freight and Logistics Market.

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