The Nigeria freight and logistics market has been on a slow growth trend for the past many years but is expected to grow at a CAGR of around 4 % in the coming years. Over the past few years, Nigeria has experienced a slow down due to poor infrastructure and logistical issues along with delayed custom procedures and congestion on the roads.
New York, Nov. 19, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Nigeria Freight and Logistics Market - Growth, Trends, and Forecast (2020 - 2025)" - https://www.reportlinker.com/p05986882/?utm_source=GNW
As a result the country was ranked 145 out of 190 economies in 2018 in ease of doing business Index and ranks 112 in the Logistics Performance Index (2018). The current growth in Nigeria logistics Market has been due to the Infrastructural developments in Railways and Airways, improvement in foreign ties with other countries, developing manufacturing and export sector and the rising e-commerce sector.
Key Market Trends
Growing E-commerce sector to boost the Nigerian Logistics Market
The E-Commerce market has developed quite late in the African continent as compared to the US and China. In the last decade online grocery shopping has become a thing and has changed the way Nigerians shop. All kinds of items are now available online such as books, food, toiletries, clothes, electronics, furniture etc. In 2019, the revenue of the Nigerian E-Commerce market amounted to US$ 4,885.7 million. The revenue is expected to grow at a CAGR of 20.5% in the period of 2019-2023, resulting in a market volume of around US$ 10,290.6 million by 2023. In 2019, the market’s largest segment was Fashion with a market volume of US$ 1,761.9 million and User penetration was 52.2% and is expected to reach 75.2% by 2023. With the ease of payments through mobile money and debit cards, increasing internet penetration is expected to help this sector to grow further in Nigeria and also give a boost to the logistics and freight market.
With the booming ecommerce in Nigeria, the delivery providers in the country like DHL, FedEx, EMS, UPS etc. have seen a steady growth in their revenues and as the population is increasing with average revenue per user amounting to US$ 46.53 in 2019, the future of logistics market in the region looks promising.
Development of Manufacturing and Export Sector in Nigeria
The Nigerian government has prohibited the imports of 41 products due to recession in 2016-17 and has been focusing on building manufacturing and industrial units thereby increasing logistics demand. The project MINE is an initiative by the Nigerian president to develop special economic zones and promote the goods that are made in the country. The first round of funding will concentrate on developing Funtua Cotton Cluster, Enyimba Economic City and Lekki-Epe Model Industrial Park in Katsina, Abia and Lagos State respectively. This will increase the domestic demand as well as exports in the market giving a boost to the warehousing sector. Currently most warehouses are in and around Lagos State due to the presence of industrial parks and proximity to seaports and airports in the country. With the developing manufacturing industry and increasing demands for logistics, some companies have entered the market recently like Dangote, Vicampro Farm, BlackPace and Kiremko, as a result the costs incurred by the logistics market has started increasing since 2017.
The competition within Nigeria Logistics and Warehousing Market is highly fragmented in nature with the presence of national and international players such as DHL, ABC Transport, UPS (United Postal Services), BHN Logistics, Maersk Line, Redstar Logistics, TSL Logistics, MSC (Mediterranean Shipping Company), Nipost (Nigerian Postal Service), Bollore Transport and Logistics, GMT Logistics, MDS logistics and GIG logistics . The competition in the freight forwarding companies is more than warehousing due to the presence of multiple players with diversified solutions at competitive prices. With infrastructure development and growing e-commerce market, the competition in the logistics industry is expected to increase over the coming years.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p05986882/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
CONTACT: Clare: firstname.lastname@example.org US: (339)-368-6001 Intl: +1 339-368-6001