Growth in Nigeria Logistics Market Driven by Infrastructural Investment, Increase in Trade and Entry of International Players: Ken Research

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“Marked with the booming economy and improving foreign ties, the logistics sector in Nigeria experienced high growth in 2018.”

Analysts at Ken Research in their latest publication “Nigeria Logistics and Warehousing Market Outlook to 2023 – By Sea, Land, Pipeline, Air Freight Forwarding; International and Domestic Freight, Integrated, and 3PL Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Others), By End Users, 3PL Warehousing, Type of Warehouses; By Courier Express and Parcel Logistics and E-commerce Logistics” believe that the Logistics market has grown due to Nigeria’s strategic location in the country, infrastructural developments and government efforts to improve foreign relations.

Strategic Location: Nigeria is the world’s gateway to West Africa and Lagos is one of the most vibrant international trading hubs in Nigeria. Most of the sea transportation is done by two seaports in Lagos namely Lagos Port Complex and Tin can Port. A new Deep Sea Port in Lekki and Trans-African Highway is being constructed, which is expected to further open up Nigeria to international trade.  Also, Airport connectivity is great with major foreign countries with MMI Airport in Lagos as the busiest one involved in cargo transportation.

Infrastructure Development: Improving infrastructure in the country happens to be a key growth driver for the logistics industry of the county. An Investment of NGN 200 Billion in just 10 years has been made regarding port infrastructure.  Also, Abuja-Kaduna SGR has been completed to facilitate cargo and passenger movements. The willingness of international players to enter the market has made Nigeria step up their logistics infrastructure and spending.

Growth in E-Commerce Sector: The presence of e-commerce players such as Jumia, Konga, Mall for Africa and the introduction of e-payment systems such as Paga has rejuvenated the express delivery services. The e-commerce players are rejuvenating the market by increasing same-day deliveries within Lagos. The services provided by the companies such as guaranteed delivery services to the remote areas, door to door delivery, order tracking and time pick up delivery services at affordable rates have further strengthened the growth of the express logistics market in the country.

The dominance of Third-Party Logistics: For companies whose core business is not logistics, it is advisable to outsource logistics contracts. There is a tough competition in the industry where the companies have to provide diversified services to gain the market which is difficult to provide with good profits. Outsourcing enables them to gain access to resources and capabilities that are not available internally.

Key Segments Covered:-

Freight Forwarding Market

By Mode of Freight

Road Freight

Rail Freight (Volume and Revenue)

Air Freight (Airfreight in Nigeria (Volume- Imports and Exports of Cargo and Mail by Airports)

Sea Freight (Volume By Import –Export And Cargo Type, Logistic cost, Container Freight Rates, Cargo duty, General Cargo Delivery Charges, And Ship Dues)

By Type of Freight

International Freight Revenue

Domestic Freight Revenue

By Flow Corridors

Asian Countries

European Countries

Middle East

America

African Countries

By Contract and Integrated

Contract Logistics Revenue

Integrated Logistics Revenue

By End-User

Food and Beverages

Industrial and Retail

Automotive

Others (Chemical products, fertilizers, pharmaceutical products, perfumes, etc)

Warehousing Market

Revenue by Business Model

Industrial/Retail

CFS/ICD

Cold storage and agriculture

Revenue by Region

Lagos

Kano

Kaduna

Ogun

Nassaraw

Others

Revenue by Type of Warehouses

Open warehouses

Closed warehouse

Revenue by Contract and Integrated warehouses

Contract warehouses

Integrated warehouses

Revenue by End User

Food and Beverages

Automotive

Consumer retail

Health care

Others (Agricultural products and other perishable commodities)

Revenue by Market Structure

Regulated

Unregulated

Courier, Express and Parcel Logistics Market

Revenue by International and Domestic Shipments

International Shipments

Domestic Shipments

Revenue by Type of Express

Air Express

Ground Express

Revenue by Market Structure

B2B

B2C

C2C

Volume by Delivery Period

Same Day Delivery

Next Day Delivery

Two or More Days Delivery

Revenue by Intra City and InterCity

Intra City

InterCity

Revenue by Region

Lagos

Abuja

Kano

Others (Enugu, Port Harcourt, Calabar and many more)

3PL Logistics Market

By Market Type (Freight Forwarding and Warehousing)

Snapshot on E-Commerce Logistics Market in Nigeria

Snapshot on Trucking Aggregators

Kobo360

Lori system

Companies Covered

DHL

BHN Logistics

ABC Transport

UPS (United Postal Services)

Redstar Logistics

Maersk Line

MSC (Mediterranean Shipping Company)

TSL Logistics

Bollore Transport and Logistics

UPS (United Postal Services)

GMT Logistics

GIG logistics

Nipost (Nigerian Postal Service)

MDS logistics

Key Target Audience

Freight Forwarding Companies

E-Commerce Logistics Companies

3PL Companies

Consultancy Companies

Express Delivery Logistics Companies

Logistics/Warehousing Companies

Real Estate Companies/ Industrial Developers

Time Period Captured in the Report:-

Historical Period – 2013-2018

Forecast Period – 2019-2023F

Key Topics Covered in the Report:-

Logistics Industry Nigeria
Open warehouse Market Share
Import and Export Shipment Cost Nigeria
Industrial parks Nigeria
Special Economic zones Nigeria
Nigeria food and beverages industry
Nigeria Packaged food industry
International trade of Nigeria 
Nigeria logistics and warehousing services
Nigeria export Revenue Market
bollore transport and logistics market share

UPS Nigeria Logistics Market Analysis

For More Information, Refer To Below Link:-

Nigeria Logistics and Warehousing Market

Related Reports by Ken Research:-

South Africa Logistics Market Outlook to 2023 - By Sea, Land, Air Freight Forwarding; International and Domestic Freight, Integrated and Contract Logistics Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Others), 3PL Warehousing, Cold Chain; By Express Logistics and E-commerce Logistics

Kenya Freight Forwarding Market Outlook to 2023 - By Sea, Land, Air, Rail, and Pipeline Freight; International and Domestic Freight, Integrated and Contract Logistics Freight Forwarding

Indonesia Logistics and Warehousing Market Outlook To 2023 – Driven By Infrastructure Spending For Airport And Seaports Albeit By Poor Existing Road Network

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com

+91-9015378249