Nigeria's Transport and Logistics Sector Grapples with Underinvestment and Infrastructure Deficits
Players in Nigeria's transportation value chain have raised alarms over the persistent challenges undermining the sector's performance, despite its critical role in driving economic growth. At the inaugural Nigeria Transport and Logistics Summit (NTLS) 2026, held in Lagos and hosted by Sterling Bank, industry leaders, policymakers, financiers, and innovators convened to develop actionable strategies for enhancing transport, mobility, and logistics across the nation.
Summit Highlights Sector's Untapped Potential
Themed 'Funding the Engine of Growth,' the summit underscored Nigeria's transport and logistics sector as a vital yet under-leveraged driver of productivity, regional integration, and economic expansion. Experts revealed that while the logistics sub-sector contributes approximately N1 trillion to Nigeria's gross domestic product (GDP), the broader market holds an estimated potential exceeding N15 trillion. However, chronic underinvestment, infrastructure deficits, and limited access to financing continue to stifle this potential.
Sterling Bank's Managing Director, Abubakar Suleiman, represented by Olapeju Ibekwe, CEO of the Sterling One Foundation, emphasized the urgent need for coordinated action to address systemic issues. "We must move beyond diagnosing the problem to building integrated, modern logistics systems that can power productivity at scale," he stated. He highlighted the necessity of fixing ports, strengthening logistics corridors, and improving road and rail connectivity to boost Nigeria's regional and global competitiveness.
Calls for Bold Execution and Public-Private Collaboration
Darlington Nwankwo, Sterling Bank's Divisional Head for Renewable Energy, Mobility and Tourism, described logistics as the backbone of trade and national competitiveness. He stressed that deliberate efforts to fix the logistics backbone are essential for unlocking economic growth, noting the sector's role as an enabler across agriculture, manufacturing, and trade.
Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, urged policymakers to accelerate implementation and called on investors to support infrastructure and innovation. He encouraged industry leaders to prioritize efficiency, sustainability, and accountability in their operations.
In a keynote address, Prof. Biodun Adedipe pointed out structural realities, such as the heavy reliance on road transport for nearly 90% of Nigeria's logistics, which leads to congestion and high maintenance costs. He advocated for diversification into rail and more resilient infrastructure, cautioning that meaningful transformation would require sustained effort over time.
Strategies for a More Competitive Future
Panel sessions at the summit explored various strategies, including reducing logistics costs, improving aviation-road integration, modernizing energy distribution systems, and accelerating the adoption of sustainable mobility solutions. The event strongly advocated for enhanced public-private collaboration, improved regulatory coordination, and the development of structured financing mechanisms to de-risk infrastructure investments.
As Nigeria aims to strengthen its regional trade position and unlock non-oil export growth, NTLS 2026 represents a significant step toward building a more integrated, resilient, and globally competitive transport and logistics ecosystem. The summit's outcomes highlight the critical need for bold, coordinated execution across both public and private sectors to overcome existing challenges and harness the sector's full economic potential.
