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For decades, Nigeria reigned as West Africa’s logistics heavyweight, its ports serving as the primary gateway for trade across the subregion. Today, that dominance is eroding at an alarming pace. According to the Sea Empowerment Research Centre, Nigeria stands to lose up to ₦130 billion annually in logistics revenue as neighbouring countries seize market share. The World Bank’s 2023 Logistics Performance Index paints an equally grim picture: Nigeria ranks 88th globally, lagging behind not only Ghana and Togo but also landlocked Rwanda.
This decline is not simply a matter of perception; it is firmly rooted in hard data. Cargo dwell time at Nigerian ports averages 13.76 days—more than double the global benchmark of five to six days. Such inefficiency has turned once-bustling ports into bottlenecks, prompting shipping giants like MSC Mediterranean Shipping Company to divert their largest vessels to Lomé. Togo has capitalised on this shift, positioning itself as a regional transshipment hub while Nigeria struggles with systemic inefficiencies.
The structural weaknesses driving this slide are well-known. Over 95 per cent of Nigeria’s goods are moved by road, yet its road networks are in disrepair and littered with illegal checkpoints that delay cargo and inflate costs. Exporters, facing unpredictable delays and crippling logistics costs, increasingly opt to route shipments through ports in Ghana, Togo, or Benin—an ironic but pragmatic decision that undermines Nigeria’s economic clout.
Even as Nigeria loses ground, its smaller neighbours are innovating. Ports in Lomé and Tema have become models of efficiency, offering predictable turnaround times, transparent customs processes, and modern infrastructure that attracts international carriers. Meanwhile, Nigeria’s response, though ambitious, has been uneven. Projects like the Lekki Deep Seaport are vital investments, but physical infrastructure alone cannot reverse years of decline. Cranes, container yards, and expanded berths will deliver little impact without a parallel overhaul of the “soft infrastructure” that drives efficiency: customs digitisation, regulatory simplification, logistics planning, and a credible crackdown on corruption.
This is not merely a logistics problem; it is an economic imperative. Trade is increasingly borderless under the African Continental Free Trade Area (AfCFTA), intensifying competition among ports and logistics corridors. Countries that provide seamless connectivity, efficient customs processes, and predictable costs will dominate regional trade flows. Nigeria, despite its size and resources, risks being left behind, its market potential squandered by governance failures.
To reclaim its logistics crown, Nigeria must embrace a holistic reform agenda. First, customs and port operations require full digitisation to reduce human interference, cut clearance times, and curb corruption. Second, roads and rail corridors must be prioritised not only for repair but also for security and efficiency, ensuring cargo movement is safe and predictable. Third, regulatory agencies must coordinate rather than duplicate efforts, as excessive bureaucracy currently drives shippers to friendlier markets. Finally, private sector investment in warehousing, cold storage, and integrated logistics parks should be incentivised to create a competitive ecosystem that meets global standards.
The stakes could not be higher. A strong logistics sector is a multiplier for economic growth, enabling Nigeria to attract investment, reduce costs for manufacturers, and expand export opportunities. Conversely, inaction risks permanent decline, as trade routes and shipping networks are redrawn to favour nations with stronger governance and better planning.
Nigeria’s choice is stark: watch its role as West Africa’s trade powerhouse slip away, or match its vast infrastructure investments with equally ambitious governance reforms. The latter path will demand political will, institutional discipline, and collaboration between government and industry leaders. But the reward—a logistics system that anchors Nigeria’s economic resurgence—is well worth the effort.
The next decade will determine whether Nigeria remains a gateway for African trade or becomes a cautionary tale of squandered potential. Its response today will shape not only the future of its ports but also its standing in the regional and global economy for generations.
Ziad Hamoui, President, Africa Borderless Alliance, Ghana
