Nigeria Loses N5trn Annually As 40% Of Farm Produce Rot Over Logistics Failure

Nigeria is losing an estimated N5 trillion annually as logistics failures continue to undermine the agricultural value chain, with as much as 40 per cent of the country’s farm produce wasted before reaching consumers, industry stakeholders have warned.

The stakeholders raised the concern at the 10th Anniversary Lecture of City Business News themed, “Logistics as the Engine Room of Nigeria’s Economy,” where they identified poor infrastructure, illegal checkpoints, inconsistent government policies and insecurity as major impediments to efficient logistics operations in the country.

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), Dr Boboye Oyeyemi, disclosed that between 30 million and 40 million metric tonnes of food are lost annually due to post-harvest challenges, representing nearly 40 per cent of total agricultural output.

According to him, the losses translate to an annual economic drain of between $2.3 billion and $3.3 billion, equivalent to about N3.5 trillion to N5 trillion, with severe implications for food security and inflation.

Oyeyemi noted that the logistics sector currently contributes only 3.73 per cent to Nigeria’s Gross Domestic Product (GDP), stressing that inefficiencies within the transport system continue to weaken the country’s agricultural supply chain.

“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 before getting to the market,” he said.

He attributed the high level of food losses largely to inadequate transport infrastructure, poor road networks and the absence of an integrated logistics framework.

Beyond infrastructure deficits, Oyeyemi lamented the burden of multiple taxation and extortion on transport operators, revealing that truck drivers spend between N150,000 and N250,000 on an average trip navigating numerous checkpoints and illegal levies.

To address the challenges, he urged the Federal Government to drastically reduce illegal road checkpoints, subsidise Compressed Natural Gas (CNG) to lower transportation costs, and encourage the adoption of dual-fuel systems in vehicles.

He also advocated the appointment of a coordinating minister for transportation to harmonise policies and accelerate sector development.

Oyeyemi further supported the reintroduction of weighbridges across major highways to prevent overloading by haulage operators, noting that excessive axle loads contribute significantly to the deterioration of roads.

Founder of ABC Transport, Sir Frank Nneji, also expressed concern over what he described as the government’s longstanding neglect of road transportation.

He argued that while substantial investments are made in the aviation sector to guarantee passenger safety, road users, who constitute the majority of commuters, receive inadequate attention.

Nneji called for increased investment in road infrastructure and advocated the concessioning of major highways to improve maintenance and efficiency.

“The government should pay more attention to road redevelopment. They should hand off road development and concession some of the major roads,” he said.

He further warned that rising insecurity across the country has heightened fears among travellers and transport operators, urging government authorities to address the challenge decisively.

Responding to concerns over road safety, the Corps Marshal of the FRSC, Shehu Mohammed, assured stakeholders that the agency was intensifying efforts to make highways safer through partnerships with private organisations and strict enforcement of traffic regulations.

Also speaking, president of Women in Logistics and Transport (WiLAT), Khadijat Sheidu-Sabi, represented by Chartered Member of CILT, Mrs. Fatima Jatto of the Nigerian Ports Authority (NPA), stressed the need to promote greater female participation in the logistics sector.

She noted that women are increasingly taking up leadership roles and shaping policies within the industry, adding that inclusion and empowerment remain critical to the sector’s long-term sustainability.

“It is important to recognise and celebrate the increasingly significant role of women in the logistics sector. Today, women are leading organisations and shaping policies.

Inclusion and empowerment of women must remain a priority as this will significantly contribute to the sustainability of the sector,” she said.

Stakeholders at the event unanimously agreed that unless the Federal Government creates an enabling environment, protects ongoing investments in road infrastructure and ensures policy consistency, the country’s logistics sector will continue to constrain economic growth and food security.