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Nigeria loses more than ₦3.6tn to inefficiencies and distortions in its transportation and logistics sector, the Director-General of the Africa Centre for Supply Chain, Dr Obiora Madu, has said.

Madu warned that poor connectivity across the country’s transport network was increasing business costs, undermining small-scale enterprises and limiting the sector’s contribution to economic growth.

He spoke at the BusinessDay Mobility and Logistics Conference in Lagos, where stakeholders called for an integrated transportation system to improve the movement of goods, reduce logistics expenses and strengthen Nigeria’s economic competitiveness.

According to Madu, expanding infrastructure without effective coordination among the different modes of transportation would not resolve the underlying challenges facing the sector.

“If we don’t get the logistics right, the small-scale businesses would not be optimised. We do not need digital islands, we do not need superlative infrastructure, what we need is connected systems,” he said.

He stressed that a resilient logistics ecosystem required seamless connections between transport infrastructure, businesses and distribution networks rather than isolated investments in individual components.

Madu said an integrated system would unlock opportunities across the logistics industry, particularly for small businesses that depend on efficient transportation to move goods and reach markets.

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Also speaking at the conference, the Managing Director of the Nigerian Railway Corporation, Dr Kayode Opeifa, identified an integrated transportation and logistics network as critical to Nigeria’s economic resilience and competitiveness.

Speaking on the theme, “Scaling the Future: Building a Resilient and Efficient Mobility and Logistics Ecosystem in Nigeria,” Opeifa said weaknesses in the transport network contributed to congestion, rising logistics costs, delayed deliveries, reduced productivity and higher prices of goods and services.

He said connecting road, rail, maritime and air transportation would help businesses move goods more efficiently, improve access to markets and reduce avoidable costs across the supply chain.

According to him, rail transportation has a strategic role in developing an efficient national transport network because of its capacity to move large volumes of passengers and freight over long distances.

Opeifa added that rail could ease pressure on highways while strengthening connections among seaports, industrial clusters, inland terminals and urban centres.

“Rail should not be viewed as a competitor to road, maritime or air transportation, but each should continue to develop as complementary components of an effective integrated transport system,” he said.

He explained that road transport remained essential for cargo collection and last-mile delivery, while maritime transport connected Nigeria to international trade.

Inland terminals, he added, facilitated cargo handling and distribution, while rail provided a high-capacity link between these facilities and centres of production and consumption.

Opeifa maintained that effective coordination among the different transport modes would reduce logistics costs, promote regional trade and improve the competitiveness of Nigerian products.

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Afusat Adebayo
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