Nigeria Freight Forwarding Market Growth Forecast: Ken Research
“On the back of the new Standard Gauge Railway and improving foreign trade ties, the logistics sector in Nigeria experienced high growth in 2018.”
Analysts at Ken Research in their latest publication “Nigeria Freight Forwarding Market Outlook to 2023 – By Sea, Land, Air, Rail and Pipeline Freight Forwarding; International and Domestic Freight, Integrated and Contract Logistics Freight Forwarding” believe that the Freight Forwarding market has grown due to government spending on infrastructural projects, increasing volumes of imports and exports and geographical placement of Nigeria. The market is expected to grow at a CAGR of 15.4% during 2019-2023E.
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.
Focus on Manufacturing Sector: Nigeria is focusing in making the country self dependent. Hence, Manufacturing and Agriculture related industries are increasing due to the benefits and issuance of single-digit interest rate loans to firms, thereby having a ripple effect on the logistics sector used to transport the goods manufactured.
Infrastructure Development: Improving infrastructure in the country happens to be a key growth driver for the logistics industry of the county. A combined of N200bn (USD 646.6 million) of investment in new port infrastructure in just 10 years has been made. Also, Abuja-Kaduna SGR has been completed to facilitate cargo and passenger movement. The willingness of international players to enter the market has made Nigeria step up their logistics infrastructure and spending.
Focus on International Trade: For an import oriented country like Nigeria it is all the more crucial to participate in international initiatives towards trade relations. Nigeria has signed various trade agreements like ECOWAS, AGOA and AFCFTA. Therefore Nigeria has wide access to the entire African market as well as the Asian, European and North American markets for a number of goods.
Technological Advancement: While GPS and Control Towers are standard practices in logistics in developed countries, it is employed by only big domestic players and international companies in Nigeria. Supply chain visibility has become an increasing demand of clients and freight forwarders in Nigeria are also adopting new technologies such as ICT enabled vehicles, RFID Tags, Tracking solutions, among other such technologies.
Key Segments Covered:-
Nigeria Freight Forwarding Market
By Mode of 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
By Contract and Integrated
Contract Logistics Revenue
Integrated Logistics Revenue
By End User
Food and Beverages
Industrial and Retail
Others (Chemical products, fertilizers, pharmaceutical products, perfumes etc)
UPS (United Postal Services)
MSC (Mediterranean Shipping Company)
Key Target Audience
Freight Forwarding Companies
E Commerce Logistics Companies
Express Delivery Logistics Companies
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2019-2023
For More Information, Refer To Below Link:-
Related Reports by Ken Research:-
Uganda Freight Forwarding Market Outlook To 2023 – By Road, Rail And Air Freight; International And Domestic Freight, Integrated And Contract Freight And By End Users (Food And Beverages And Consumer Retail, Automotive, Healthcare And Others)
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
Ankur Gupta, Head Marketing & Communications