Nigeria loses an estimated $4 billion annually to transport inefficiencies caused by traffic congestion, poor multimodal integration, and fragmented logistics systems. Delays in implementing transport reforms add another N800 billion in avoidable logistics waste each year. This was disclosed at the 2026 Global Transport Policy (GTP) Multimodal Roundtable held in Lagos, themed ‘Transforming Nigeria’s Transport System: Integrating Solutions for Safety, Efficiency and Sustainability’.
High Logistics Costs Hamper Economy
Chairman of the Global Transport Policy, Dr Oluwasegun Musa, revealed that the country’s logistics costs account for over 42 per cent of Gross Domestic Product (GDP), far above the global best practice of less than 15 per cent. He warned that the current transport system continues to drain the economy and undermine national competitiveness. Musa noted that road transport currently carries over 90 per cent of Nigeria’s freight and passengers, while rail accounts for less than one per cent, describing the imbalance as unsustainable and increasing transportation costs and carbon emissions.
He highlighted that a container travelling from Lagos to Kano changes hands about five times and can take up to two weeks to reach its destination due to poor coordination among transport modes. According to him, developing integrated transport corridors could reduce travel time by 40 per cent, cut logistics costs by 25 to 30 per cent, lower commodity prices, and increase the country’s GDP by an estimated 1.5 per cent.
Call for Urgent Reforms
Musa called for stronger collaboration between the government and the private sector to accelerate infrastructure development. He stressed that public-private partnerships (PPPs), Build-Operate-Transfer (BOT) models, and foreign direct investment are critical to closing Nigeria’s transport infrastructure gap. He warned that every year of delay in implementing transport reforms adds N800 billion in avoidable logistics waste.
Lagos State Governor, Babajide Sanwo-Olu, represented by the Managing Director of the Lagos Metropolitan Area Transport Authority (LAMATA), Abimbola Akinajo, emphasized that the country’s economic ambitions—from becoming a leading African Continental Free Trade Area (AfCFTA) trade hub to achieving food security, industrialization, and competitive manufacturing—will rise or fall depending on the quality of its transport infrastructure and systems. He noted that fragmented logistics systems keep Nigeria’s distribution costs at between 20 and 30 per cent of the value of goods, compared to the global benchmark of 8 to 11 per cent.
Technology and Policy Alignment
Sanwo-Olu highlighted the importance of deploying technologies such as Artificial Intelligence (AI), smart mobility systems, digital ticketing, real-time traffic data, and connected infrastructure. He stressed that Nigeria must begin adopting these solutions now while also developing them locally to address its unique transport realities. The Governor said that countries leading in the next phase of global economic competition will be those that combine physical infrastructure investments with intelligent systems.
He further noted that transport challenges cross state boundaries, span federal competencies, and require coordinated national direction. Policy alignment, resource mobilization, and a regulatory framework that can truly transform Nigeria’s transport ecosystem must flow from the federal government in partnership with states and the private sector.
Integration of Transport Modes
Chief Operating Officer of GTP, Mark Onoruoiza, emphasized the potential of integrating maritime, aviation, road, rail, and pipeline transport. He noted that no single mode can unlock Africa’s trade potential on its own. Intra-African trade currently accounts for only 15 to 22 per cent of the continent’s total trade, compared to 60 per cent in Europe and 40 per cent in Asia. Onoruoiza also noted that logistics costs in Nigeria are estimated at 25 per cent of GDP, while freight, logistics, and other inefficiencies account for as much as 45 per cent of total trade value, compared to just five to 10 per cent in more efficient markets.
Call for National Land Transport Policy
President/Chairman of Council of the Chartered Institute of Logistics and Transport (CILT), Dr Boboye Oyeyemi, called on the Federal Government to urgently operationalize the National Land Transport Policy, eliminate overlapping regulatory mandates across the transport sector, and accelerate rail modernization to reduce high logistics costs and improve trade competitiveness. Oyeyemi said Nigeria must implement far-reaching structural reforms to unlock private sector investment, improve freight movement, and position the country to benefit from the AfCFTA. Such reforms would create a predictable and transparent legal framework capable of attracting large-scale PPP investments into the transport sector.
