Nigeria Freight And Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Nigeria Freight And Logistics Market Analysis

The Nigeria freight and logistics market is expected to grow from USD 10.95 billion in 2025 to USD 11.66 billion in 2026 and is forecast to reach USD 15.97 billion by 2031 at 6.49% CAGR over 2026-2031. Growth stems from synchronized infrastructure upgrades, a sharp rise in e-commerce parcel volumes, the commissioning of Lekki Deep Sea Port and Onne capacity upgrades, and the Dangote refinery’s ramp-up that redirects refined-product flows across West Africa. Simpler customs formalities under the forthcoming National Single Window, a steady pivot toward compressed-natural-gas (CNG) trucking fleets, and widespread adoption of digital freight-matching platforms collectively raise service efficiency while widening geographic coverage. Operating conditions remain price-sensitive because diesel costs account for at least 35% of trucking outlays, yet modal diversification toward rail and inland waterways has begun to dilute this exposure. Rapid urbanization, with Lagos projected to add 4.5 million residents between 2025 and 2030, concentrates last-mile delivery demand and fuels warehouse construction near high-density residential zones. Foreign direct investment in port, pipeline, and rail projects keeps long-term capacity additions on track, cushioning the market against cyclical trade shocks.

Nigeria Freight And Logistics Market Trends and Insights

E-commerce Parcel Boom

Domestic parcel volumes captured 64.50% of CEP activity in 2024 as smartphone adoption and mobile wallets eased purchase friction across major metro areas. Logistics networks now face next-day delivery expectations, prompting operators to deploy micro-fulfilment centers inside residential clusters. Cross-border orders linked to diaspora spending add customs-clearance complexity and reinforce demand for temperature-controlled storage, especially for pharmaceuticals and electronics. Platform operators integrate routing algorithms to pool orders and shrink per-parcel costs, accelerating consolidation among smaller carriers that cannot fund technology upgrades. Resulting density gains lift truck utilization and lower failed-delivery rates, deepening service penetration in secondary cities.

Port Modernization (Lekki, Onne Expansion)

Lekki Deep Sea Port and fresh berths at Onne together unlock 4.5 million TEU in annual capacity, cutting dwell time and relieving chronic congestion at Apapa. Larger vessel calls reduce transshipment reliance and trim ocean-freight surcharges for importers. Improving connectivity via the Abidjan-Lagos highway and a planned rail spur to the hinterland widens market access for northern manufacturers. Dedicated petrochemical handling lanes support Dangote refinery exports, while strengthened customs processes under the National Single Window target 24-hour clearance. During the transition, logistics providers juggle dual gateway operations and invest in new cranes and training to meet stricter turnaround benchmarks.

Dilapidated Road Network and Insecurity

Poor highway conditions and security incidents lift operating costs by up to 20% and force convoy scheduling on the Lagos-Kano axis. Average truck speeds have fallen below 30 km/h, raising transit variability and insurance premiums. Illegal checkpoints and informal levies can add NGN 50,000–100,000 (USD 32–65) per trip, costs that trickle into delivered-goods pricing. Night curfews lower asset utilization to roughly 55% of potential capacity, prompting operators to purchase more tractors to meet delivery commitments. State and federal repairs lag a NGN 12 trillion (USD 13.37 billion) backlog, entrenching modal diversification toward rail and inland waterways for bulk shipments.

Other drivers and restraints analyzed in the detailed report include:

1. Oil and Gas Megaproject Logistics (Dangote Refinery, Pipelines)
2. National Single Window and AEO Rollout
3. Currency Volatility and Diesel Price Spikes

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Manufacturing held USD 4.24 billion and 38.76% revenue in 2025, backed by local assembly policies that incentivize domestic production of autos, processed foods, and pharmaceuticals. Component imports continue to dominate inbound freight, pressing logistics firms to align just-in-time delivery windows with variable port lead times. The Nigeria freight and logistics market size allocated to wholesale and retail trade is forecast to compound at a 6.88% CAGR between 2026-2031 as supermarket penetration rises in urban clusters.

Retail growth reshapes warehouse footprints toward city-edge micro-hubs, while reverse-logistics loops recover returned goods at a higher frequency. Oil and gas, although set to ease as a revenue share, remains logistics-intensive due to megaprojects and refined-product distribution. Agriculture and construction each create specialized movement demands, further diversifying revenue streams and tempering sector-specific downturn risks.

Freight transport contributed 58.92% of the revenue share in 2025, underscoring Nigeria’s import dependence and the steady pull from the manufacturing sector. Bulk cargo through Lagos and Port Harcourt still funnels inland via road caravans, yet forthcoming rail links will progressively skim heavy loads off highways. Digital brokerage platforms match backhaul capacity, boosting truck utilization from 55% to nearly 70% on key corridors. CEP, though smaller, outpaces all other functions at a 7.18% CAGR (2026-2031) as online retail adoption rises to 15% of domestic sales.

Warehousing and forwarding services bridge expanding supply-chain complexity. Ambient storage dominates floor space, but pharmaceutical and food shippers are catalyzing cold-chain build-outs. Integration of customs data with freight-visibility tools supports value-added services such as bonded warehousing and kitting. Collectively, these shifts keep the Nigeria freight and logistics market on a diversified growth path while maintaining freight transport as its revenue anchor.

The Nigeria Freight and Logistics Market Report is Segmented by End User Industry (Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, and Others) and by Logistics Function (Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage, and Other Services). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

1. A.P. Moller - Maersk
2. Africa Access 3PL Ltd.
3. Africa Delivery Technologies Ltd.
4. AfriGlobal Logistics
5. Aramex
6. CMA CGM Group (Including CEVA Logistics)
7. DHL Group
8. DP World (Including Imperial Logistics Pty Ltd.)
9. FedEx
10. Fortune Global Shipping and Logistics Ltd.
11. GIG Logistics
12. Gulf Agency Company (GAC)
13. GWX Logistics
14. Hapag-Lloyd
15. JOF Nigeria Ltd.
16. MDS Logistics, Ltd.
17. OnePort 365, Inc.
18. Red Star Express plc
19. Redoxcorp Shipping and Logistics, Ltd.
20. United Parcel Service of America, Inc. (UPS)
21. Valuehandlers International, Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support