By Adaora Adibe and Nafisat Abdulraham
In a strategic move aimed at strengthening Nigeria’s industrial backbone and enhancing economic diversification, the Raw Materials Research and Development Council (RMRDC) hosted a compelling edition of its Lecture Series, transmitted virtually on YouTube from the Council’s headquarters in Abuja.
The lecture was delivered by Dr. Boboye Oyeyemi, OFR, mni, President and Chairman of Council, Chartered Institute of Logistics and Transport Nigeria (CILT Nigeria), under the theme: “Optimising Logistics and Transport Systems for Sustainable Raw Materials Supply Chains in Nigeria: A Strategic Assessment of Transport Systems to Drive Industrialisation and Sustainable Economic Diversification.”
In his presentation, Dr. Oyeyemi provided a comprehensive historical and strategic analysis of Nigeria’s logistics evolution, linking it directly to the country’s industrialisation and economic diversification goals. He began by tracing the history of raw materials transportation from the pre-colonial era, when indigenous communities operated structured trade networks across Trans-Saharan routes and inland waterways. Movement of goods relied on human porters and pack animals in the north, while rivers and creeks in the south facilitated canoe-based trade in palm oil and agricultural commodities. These systems, though informal, reflected early multimodal logistics practices.
The colonial period marked a structural shift toward extraction-driven infrastructure. Rail development began in 1898 with the Lagos–Ibadan line and expanded to link northern production hubs such as Kano and Zaria with southern ports. Rail routes were strategically aligned with resource zones including Enugu’s coal mines, Jos tin fields, and the famed groundnut pyramids of Kano. Port Harcourt was opened in 1913 to evacuate coal, while Apapa Port was expanded with deep-water berths by 1921. Roads during this period functioned primarily as feeder routes to rail lines rather than as independent freight corridors.
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Following independence in 1960, transport policy was repositioned to promote national integration and economic development. However, decades of underinvestment led to the decline of rail transport. Whereas rail carried over 60 percent of freight in the 1960s, it now accounts for less than 5 percent. Road transport has since become dominant, moving between 90 and 95 percent of freight nationwide. This overreliance has resulted in congestion, infrastructure deterioration, high vehicle operating costs, and significant inefficiencies. According to insights shared during the lecture, Nigeria loses an estimated $8 billion annually due to logistics inefficiencies, including manual customs processes and poor corridor management. Port congestion in Lagos increases costs by as much as 40 percent above global averages.
Dr. Oyeyemi emphasized that Nigeria’s abundant agricultural produce, solid minerals, hydrocarbons, and energy resources form the backbone of key industries such as food processing, textiles, pharmaceuticals, petrochemicals, steel, and emerging automotive manufacturing. The raw materials sector contributes approximately 13 percent to GDP and supports millions of jobs across value chains. With the logistics market valued at an estimated USD 73 billion in 2024, the potential gains from systemic optimisation are substantial.
Despite this potential, structural gaps persist. Over 70 percent of freight depends on overstretched road networks, while rail infrastructure remains underutilized. Inland waterways along the Niger and Benue rivers are largely untapped due to limited dredging and safety standards. The sector also faces environmental and operational challenges, including 30–40 percent raw material losses in some supply chains, rising emissions, and limited adoption of digital tracking technologies.
Drawing from global experiences, Dr. Oyeyemi cited comparative models from countries that have successfully integrated sustainability and efficiency into their logistics systems. He highlighted structured carbon accounting frameworks in South Africa, multimodal agribusiness corridors in Brazil, and Indonesia’s nationally coordinated logistics platform designed to reduce high logistics-to-GDP ratios. These examples underscore the importance of unified national planning, multimodal integration, and measurable sustainability standards.
To reposition Nigeria’s logistics architecture, the lecture proposed a six-pillar strategic roadmap. First is infrastructure development, particularly expanding rail freight along major corridors such as Lagos–Kano and revitalising inland waterways for bulk raw material movement. Rail transport, he noted, is approximately 30 percent cheaper per ton-kilometre than road and could reduce emissions by up to 25 percent while easing congestion and improving safety. Second is digitalisation, including real-time tracking systems, predictive analytics, and cloud-based visibility platforms to eliminate manual bottlenecks. Third is green logistics, encouraging low-emission fleets, renewable-powered facilities, and carbon accounting frameworks aligned with global climate standards. Fourth is stronger institutional coordination among RMRDC, the Ministry of Transport, and private sector operators to improve policy execution. Fifth is capacity building to equip logistics professionals with expertise in multimodal systems and digital technologies. Sixth is the strengthening of public-private partnerships to mobilise investment and innovation.
Dr. Oyeyemi stressed that addressing logistics inefficiencies is essential for Nigeria to maximise opportunities under the African Continental Free Trade Area (AfCFTA). With access to a market of 1.3 billion people, competitiveness will depend heavily on cost-efficient and sustainable supply chains. Optimised logistics could boost intra-African trade, reduce supply chain costs, and accelerate economic diversification.
In his remarks, the Director-General, RMRDC, Prof. Nnanyelugo Ike-Muonso commended Dr. Oyeyemi for delivering an insightful and intellectually stimulating lecture. He encouraged staff of the Council to actively engage in such knowledge-driven platforms, noting that participation enhances professional capacity and fosters institutional growth. The DG further assured the guest lecturer of the Council’s readiness to collaborate with him and CILT Nigeria in advancing sustainable raw materials development through strengthened logistics systems.
The lecture concluded with a clear message: while Nigeria’s transport and logistics environment are rich in policy frameworks, effective implementation remains the critical gap. Strategic optimisation, anchored on infrastructure renewal, digital integration, sustainability, and coordinated governance, is indispensable if the nation is to transform its raw materials base into a catalyst for industrialisation and long-term economic diversification.
