Stakeholders in the transport and logistics sector have said Nigeria is losing between N3.5 trillion and N5 trillion every year as about 40 million metric tonnes of food are wasted due to logistics challenges across the country’s food supply chain.
They said poor road infrastructure, multiple illegal checkpoints, inadequate storage facilities and an inefficient transport system continue to delay the movement of farm produce from farms to markets, leading to huge post-harvest losses, rising food prices and threats to food security.
The stakeholders disclosed this at the 10th Anniversary Lecture of City Business News in Lagos on Thursday, themed, “Logistics as the Engine Room of Nigeria’s Economy.
Speaking at the event, former Corps Marshal of the Federal Road Safety Corps, FRSC, and President of the Chartered Institute of Logistics and Transport, CILT, Boboye Oyeyemi, said inefficient logistics and poor road infrastructure were responsible for severe post-harvest losses across the country’s agricultural value chain.
According to him, Nigeria records annual post-harvest losses of between 30 million and 40 million metric tonnes, representing about 40 per cent of farm produce, with an estimated economic loss of $2.3 billion to $3.3 billion, equivalent to about N3.5 trillion to N5 trillion yearly.
He said: “The Middle Belt is the food basket of the nation. To move goods from the Middle Belt to Lagos, about 40 per cent of them rot away.”
Oyeyemi noted that the logistics sector contributes only 3.73 per cent to Nigeria’s Gross Domestic Product, GDP, despite its critical role in supporting agriculture, trade and industrial development.
He attributed the situation to poor road infrastructure, rising diesel costs and multiple illegal checkpoints, saying transport operators spend between N150,000 and N250,000 on an average trip due to extortion on highways.
He urged the Federal Government to remove illegal checkpoints, subsidise Compressed Natural Gas, CNG, for haulage operators and encourage dual-fuel vehicles to reduce transportation costs.
Oyeyemi also called for the appointment of a coordinating minister for transportation to harmonise policies and recommended the reintroduction of weighbridges to prevent overloading of trucks, which he said damages road infrastructure.
Founder of ABC Transport, Sir.Frank Nneji, also expressed concern over what he described as the government’s neglect of road transport.
According to him, while aviation receives significant attention, millions of Nigerians who depend on the nation’s highways are exposed to poor infrastructure and growing insecurity.
He said: “The government should pay more attention to road redevelopment. They should hand off road development and concession some of the major roads to private entities.”
Nneji also urged the government to address insecurity on highways to restore confidence among transporters and commuters.
