In the heart of Nigeria’s bustling commercial capital, Lagos, 38-year-old Ibrahim Yusuf starts his day before sunrise. A seasoned haulage operator with over 15 years of experience, Ibrahim has seen firsthand how logistics has transformed from a predictable system into a gamble. On a recent delivery from Apapa Port to Ibadan- a journey that should take four hours – his truck was delayed for three full days. The delay? Gridlocked traffic around the port caused by poor road infrastructure, chaotic truck queues, security check points, and ineffective port access protocols. His delivery of raw materials to a manufacturing client missed the production window, triggering penalties and tarnishing trust.

Ibrahim’s experience is not unique. It reflects a nationwide challenge threatening Nigeria’s haulage industry, and by extension, the country’s broader economic potential. The haulage and logistics sector is a backbone of trade and commerce in any economy, moving goods across cities, borders, and ports. But in Nigeria, this industry is chained by crumbling road networks, inefficient port systems, and fragmented policies. If left unresolved, these challenges will continue to erode investor confidence, inflate operating costs, and compromise Nigeria’s ambition to be Africa’s trade hub.

The Nigerian haulage industry is a vital enabler of commerce, agriculture, manufacturing, and oil and gas. With more than 90% of goods in Nigeria transported by road, the industry contributes significantly to GDP. According to PwC, Nigeria’s logistics and supply chain market was valued at over $60 billion as of 2022 and is projected to hit $3 trillion by 2030 on the back of the implementation of the African Continental Free Trade Agreement (AfCFTA). But the bottlenecks are becoming unbearable.

The condition of Nigeria’s 200,000km road network is alarming. The Federal Roads Maintenance Agency (FERMA) estimates that only 30% of federal roads are in good condition. From the Lagos-Ibadan Expressway to the East-West Road in the Niger Delta, critical arteries are riddled with potholes, erosion, and collapsed bridges. This means increased vehicle maintenance costs, more frequent accidents, and extended delivery timelines.

In the port space, Apapa and Tin Can Island ports handle over 70% of Nigeria’s imports, yet they are plagued by aging infrastructure and access congestion. According to the Lagos Chamber of Commerce and Industry, cargo dwell time at Nigerian ports is 20 days on average, compared to 4 – 5 days in South Africa and 5 – 7 days in Kenya. This inefficiency results in demurrage fees, lost goods, and massive logistics costs that are eventually transferred to the end consumer.

Nigeria’s port and haulage challenges are not insurmountable. Countries like Kenya and South Africa offer instructive examples of how targeted investment and reform can transform logistics efficiency.

Kenya’s investment in the Standard Gauge Railway (SGR), connecting the Port of Mombasa to Nairobi and Naivasha, has significantly improved cargo movement. The railway now carries over 40% of cargo from Mombasa Port, reducing reliance on trucks and decongesting roads. Kenya also implemented the National Electronic Single Window System (KenTrade) to streamline port documentation, cutting clearance time from 9 days to 3.

South Africa, with its relatively advanced transport system, maintains an integrated freight logistics framework through its Transnet Freight Rail and Port Terminals. The Durban port, Africa’s busiest, benefits from automated port management systems, efficient customs clearance, and solid inland connectivity. These improvements didn’t happen overnight but were the result of intentional investment, public-private partnerships, and political will.

To unlock the haulage sector and boost trade, Nigeria must embrace practical and scalable solutions through government and private sector collaboration. Here are key recommendations:

Federal and state governments must accelerate the rehabilitation of priority road corridors critical to economic activity. This includes:

• Lagos-Ibadan Expressway

• Abuja–Kaduna–Zaria–Kano Road

• Onitsha–Enugu Expressway

• East-West Road

Creating dedicated logistics corridors with reinforced pavements and truck parking zones would reduce congestion and enhance goods movement. Such corridors can be funded through infrastructure bonds and managed via public-private partnerships (PPP) to ensure sustainability.

Nigeria’s major ports require digital transformation. A unified Port Community System (PCS) should be deployed to automate port processes including cargo tracking, documentation, truck call-up systems, and customs clearance. The Nigerian Ports Authority (NPA) and Nigeria Customs Service (NCS) must integrate their platforms to avoid duplication and eliminate manual interference, which often breeds corruption.

The ETO electronic call-up system for Apapa is a commendable step, but poor enforcement has limited its impact. A stronger monitoring and feedback system with third-party technology providers can improve compliance and reduce turnaround time for trucks.

The overreliance on road transport in Nigeria is unsustainable. A more efficient haulage industry depends on a multimodal approach – integrating road, rail, and inland waterways. The Lagos-Ibadan railway must be extended to connect key logistics zones and dry ports. Inland waterways along the Niger and Benue Rivers should be dredged and developed to support barge operations, reducing the pressure on roads.

The private sector can support this through logistics hubs and dry ports, strategically located near industrial clusters. The Funtua Inland Dry Port in Katsina and the Kaduna Inland Dry Port are early successes that must be replicated across regions.

Haulage operators face a maze of levies, taxes, and multiple licensing regimes across states. The Presidential Enabling Business Environment Council (PEBEC), chaired by His Excellency Vice President Kashim Shettima, should work with state governments to create a harmonized regulatory framework for logistics operators. This should include a unified license, single-tax regime, and digital platforms for tracking compliance.

Lack of logistics data is a blind spot in Nigeria’s planning. The government should collaborate with haulage unions, NPA, freight forwarders, and fintechs to create a national logistics data repository. This will guide infrastructure investments, identify traffic patterns, and monitor performance.

Digital telematics from trucks can provide real-time insights into road usage, congestion points, and infrastructure fatigue. With accurate data, Nigeria can channel funds more effectively and improve road safety.

A Path Forward

If Nigeria is to harness the full potential of the AfCFTAand reposition itself as a trade giant in Africa, the haulage and logistics industry must be reformed with urgency and innovation.

The government must show the political will to prioritize infrastructure, while the private sector must invest in smarter, sustainable logistics solutions. Collaboration, not competition, between sectors will be the difference-maker.

Ibrahim Yusuf and thousands like him don’t just move goods – they move the economy. Giving them efficient roads, smarter ports, and a predictable haulage system isn’t a favour. It’s an economic imperative.

About the Author

Ernest Eleodinmuo is the CEO of NNORUKA ELEODINMUO GLOBAL SERVICES LTD, a leading Nigerian haulage firm with over a decade of experience in logistics, shipping, and freight forwarding. He writes from Lagos, Nigeria.