Nigeria has been home to a numeral of the ancient and indigenous kingdoms and states over the millennia. Nigeria is often referred to as the “Giant of Africa” due to its great populace and economy. Nigeria has the third-largest youth populace across the globe, after China and India, with more than 90 million of its populace under age 18. Not only has this, but Nigeria is also the 12th the wildest manufacturer of petroleum across the globe and the 8th largest exporter, and has the 10th greatest proven reserves.
According to the market research company in Nigeria, logistics is vigorous for the economic performance of any region. Nigeria has poor infrastructure and logistical issues along with the overdue convention processed and congestion on the roads. It is an import-based region and the region is dependent on the export of crude oil. Moreover, Nigeria was ranked 145 out of 190 regions during the recent past years in ease of doing business Index and ranks 112 in the Logistics Performance Index during the recent past. The growth in the Nigeria logistics market has been owing to the Infrastructural improvements in the Railways and Airways, development in foreign ties with several other regions and the effective increase in the e-commerce segment.
Nonetheless, the government of Nigeria and the private corporates are the underwriters for augmenting the requirement of the cold storages for the agricultural and pharmaceuticals drugs and medicines. The Lagos has been the commercial hub of the region and the most prime area in the terms of trade and logistics owing to the proximity to the foremost seaports, airports and the industrial parks in the region. On the basis of Market Research Firms in Nigeria, the market is stringently regulated by NAFDAC owing to the poor warehousing standards and the increasing trafficked goods in the market. The growing automation technology along with the more developed inventory management systems is predicted to support the positive growth of the warehousing sector.
By the courier, parcel and express logistics market, the boost of the e-commerce and easing of e-payment systems such as PIN-based debit cards, Paystack in Nigeria have augmented the requirement of the couriers and parcel market in the region. The effective increase in the prominence of the online shopping will also underwrite towards a long term growth for the Express Delivery Segment in the coming years. Furthermore, the growth of the e-commerce business has led to a junction of B2B and B2C traffic, with the parcel logistics delivers progressively embracing both to the service consumers’ Omnichannel supply chains.
Nonetheless, based on the Market Research Company in Nigeria, the Nigeria Warehousing market was evaluated to increase speedily during the review duration. The growth was majorly owing to the growth in the international trade volumes, market entry of the international companies, increasing the e-commerce market and building new manufacturing units and industries in Nigeria in order to create the region self-reliant. Not only has this, but the sustained efforts have also been taken by the government along with the Chinese legal authorities for improving the free trade zones locations and industrial parks in the region. Foremost investment by the foreign corporates has fueled the overall warehousing market in the region. Therefore, it is anticipated that in the coming years, the markets across Nigeria will increase more positively over the coming years.
Ankur Gupta, Head Marketing & Communications