Nigeria Third-Party Logistics (3PL) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)
Description
Nigeria Third-Party Logistics (3PL) Market Analysis
The Nigeria Third-Party Logistics Market was valued at USD 4.56 billion in 2025 and estimated to grow from USD 4.74 billion in 2026 to reach USD 5.78 billion by 2031, at a CAGR of 4.03% during the forecast period (2026-2031).
A sustained, if uneven, infrastructure build-out, the growing weight of e-commerce, and customs digitization initiatives together anchor expansion even as chronic road deficits and currency volatility dilute gains. The Dangote Group’s ongoing deployment of 4,000 compressed-natural-gas (CNG) trucks, coupled with local truck-assembly output of 10,000 units each year, underscores how private capital is stepping in to fill logistics capacity gaps while insulating operators from foreign-exchange exposure. At the same time, Nigeria’s e-commerce transaction value is climbing toward USD 75 billion by 2025, a trend that intensifies last-mile delivery needs in Lagos, Abuja, Port Harcourt, and Kano. Advances such as the Authorized Economic Operator (AEO) program—piloted in April 2024—and the deep-sea port addition at Lekki signal a structural shift toward faster border clearance and larger vessel calls that should raise throughput and lower per-unit handling expenses.
Nigeria Third-Party Logistics (3PL) Market Trends and Insights
Booming e-commerce & social-commerce volumes
Nigeria’s online retail economy is on course to quadruple from USD 17 billion in 2022 to USD 75 billion in 2025 as mobile-first consumers and formal retailers converge on omnichannel models. Higher basket sizes and buyer expectations for two-day delivery are prompting 3PLs to establish micro-fulfillment nodes in Lagos Island, Ikeja, and Victoria Island for faster order aggregation. Social-commerce storefronts on Instagram, Facebook Marketplace, and TikTok Shop now account for a rising share of parcel movements, pushing providers to offer payment-on-delivery and real-time tracking. NITDA estimates that digitizing micro-, small-, and medium-enterprises could inject USD 53 billion into GDP while lowering operating costs by 22% That upside reinforces why the Nigerian third-party logistics market is weaving dedicated return-management and reverse-logistics workflows into standard contracts to protect merchant reputations. Providers that integrate warehouse-management systems with e-commerce application programming interfaces are capturing sticky revenue through fulfilment-as-a-service agreements.
AfCFTA-led cross-border trade liberalization
The African Continental Free Trade Agreement, formally adopted by Nigeria in late 2023, removes tariffs on 90% of goods over the next five years and elevates the country’s role as West Africa’s natural gateway. Freight forwarders are investing in bonded consolidation hubs at Seme-Krake, Illela, and Jibiya to streamline customs procedures and exploit faster transit windows into Benin, Niger, and Cameroon. Niger-bound agricultural produce that once faced multi-day border queues now enjoys pre-arrival processing through the AEO fast-track lane, trimming clearance by 48 hours. The Nigerian third-party logistics market is therefore pivoting toward multimodal corridors that marry road haulage with coastal cabotage, enabling exporters of frozen fish and processed foods to reach Dakar in under five days. As ECOWAS trade settles into electronic single-window systems, providers that hold AfCFTA-compliant certificates are booking premium margins for end-to-end visibility and guaranteed schedules.
Chronic road infrastructure deficits & checkpoints
More than 30 police, customs, and union stops dot the 1,200-kilometer Lagos–Kano corridor, inflating transit times by 24 hours and adding USD 425 to bribe and demurrage costs per truckload. Potholes on Benin–Ore–Sagamu cut average speeds to 25 km/h, wrecking just-in-time delivery windows and forcing firms to over-specify fleets by 15% to meet service commitments. Delays ripple backward to ports, where containers incur extended dwell charges that bleed margins. The Nigerian third-party logistics market therefore, prices a ‘corridor risk surcharge’ into domestic line-haul quotes, nudging manufacturers to locate warehouses nearer to consumer clusters. Until the Federal Government completes the USD 1.5 billion Lagos–Ibadan expressway upgrading, operators will keep rationing high-capacity trailers to safer, toll-road alignments even if detours add distance.
Other drivers and restraints analyzed in the detailed report include:
- Rapid growth of tech-enabled last-mile startups
- Expansion of dedicated CNG truck fleets
- FX volatility driving import-linked cost spikes
For complete list of drivers and restraints, kindly check the Table Of Contents.
Segment Analysis
Domestic Transportation Management controls 41.45% of the Nigerian third-party logistics market and remains the revenue anchor because 95% of freight moves by road inside national borders. Per-kilometer tariffs climbed 11% in 2024 owing to diesel inflation and checkpoint delays, squeezing retailers that rely on frequent restocking cycles. Asset-light hauliers mitigate exposure by subcontracting to verified owner-operators, but poor road stock nevertheless weighs on productivity ratios. Long-standing structural gaps give forwarders scope to upsell fleet-tracking dashboards, predictive maintenance, and optimized milk-run scheduling packages that recapture lost hours. As state governments ramp up public-private partnerships on highway rehabilitation, shippers should see gradual rate relief, though full cost normalization hinges on bridging the USD 15 billion national road-repair backlog.
International Transportation Management currently captures a smaller slice of Nigeria's third-party logistics market size but is showing a 7.55% CAGR through 2031, the fastest among service lines. AfCFTA de-tariffing and Nigeria Customs’ digital one-stop shop have already cut end-to-end Lagos-Accra clearance by 40 hours. Ocean freight agents anchored at Lekki Deep Sea Port are pairing port-community-system data feeds with blockchain waybills to timestamp every hand-off, promoting chain-of-custody visibility demanded by pharmaceutical and electronics shippers. Cold-chain specialists leverage faster border processing to move temperature-sensitive products into landlocked Niger and Burkina Faso, reducing spoilage and widening export margins. Over the next five years, cross-border e-commerce parcels, factory overtime for auto-parts replenishment, and outward flows of refined petroleum from new modular refineries will keep ITM volumes expanding ahead of domestic averages.
The Nigeria Third-Party Logistics Market Report is Segmented by Service (Domestic Transportation Management, International Transportation Management, Value-Added Warehousing & Distribution), End User (Automotive, Energy & Utilities, Manufacturing, Life Sciences & Healthcare, and More), Logistics Model (Asset-Light, Asset-Heavy, Hybrid). The Market Forecasts are Provided in Terms of Value (USD).
List of Companies Covered in this Report:
- DHL Group
- CMA CGM (Bollore Transport & Logistics)
- UPS Nigeria
- Creseada International
- MDS Logistics
- GIG Logistics
- LOGISTIQ Xpeditors
- Redline Logistics
- Aramex Nigeria
- Cargoburg
- SIFAX Logistics Limited
- JT Global Logistics
- Prime Next Logistics Ltd
- DSV
- Renda Logistics
- Trans-Ex Cargo
- Intels Nigeria Limited
- ABC Transport
- TSL Limited
- GEx Logistics
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
- 1 Introduction
- 1.1 Study Assumptions & Market Definition
- 1.2 Scope of the Study
- 2 Research Methodology
- 3 Executive Summary
- 4 Market Landscape
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.2.1 Booming e-commerce & social-commerce volumes
- 4.2.2 AfCFTA-led cross-border trade liberalization
- 4.2.3 Rapid growth of tech-enabled last-mile startups
- 4.2.4 Expansion of dedicated CNG truck fleets (e.g., Dangote)
- 4.2.5 Deep-sea port capacity additions (Lekki)
- 4.2.6 Digitization of customs with AEO & PCS roll-outs
- 4.3 Market Restraints
- 4.3.1 Chronic road infrastructure deficits & checkpoints
- 4.3.2 FX volatility driving import-linked cost spikes
- 4.3.3 Security risks on key freight corridors (A1, A2)
- 4.3.4 Fragmented warehousing— <5 % Grade-A capacity
- 4.4 Value / Supply-Chain Analysis
- 4.5 Regulatory Landscape
- 4.6 Technological Outlook
- 4.7 Porter’s Five Forces
- 4.7.1 Threat of New Entrants
- 4.7.2 Bargaining Power of Buyers
- 4.7.3 Bargaining Power of Suppliers
- 4.7.4 Threat of Substitutes
- 4.7.5 Intensity of Competitive Rivalry
- 5 Market Size & Growth Forecasts (Value)
- 5.1 By Service
- 5.1.1 Domestic Transportation Management (DTM)
- 5.1.1.1 Roadways
- 5.1.1.2 Railways
- 5.1.1.3 Airways
- 5.1.1.4 Waterways
- 5.1.2 International Transportation Management (ITM)
- 5.1.2.1 Roadways
- 5.1.2.2 Railways
- 5.1.2.3 Airways
- 5.1.2.4 Waterways
- 5.1.3 Value-Added Warehousing & Distribution (VAWD)
- 5.2 By End User
- 5.2.1 Automotive
- 5.2.2 Energy & Utilities
- 5.2.3 Manufacturing
- 5.2.4 Life Sciences & Healthcare
- 5.2.5 Technology & Electronics
- 5.2.6 E-commerce
- 5.2.7 Consumer Goods & FMCG
- 5.2.8 Food & Beverages
- 5.2.9 Others
- 5.3 By Logistics Model
- 5.3.1 Asset-Light (Management-Based)
- 5.3.2 Asset-Heavy (Own Fleet & Warehouses)
- 5.3.3 Hybrid
- 6 Competitive Landscape
- 6.1 Market Concentration
- 6.2 Strategic Moves
- 6.3 Market Share Analysis
- 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)
- 6.4.1 DHL Group
- 6.4.2 CMA CGM (Bollore Transport & Logistics)
- 6.4.3 UPS Nigeria
- 6.4.4 Creseada International
- 6.4.5 MDS Logistics
- 6.4.6 GIG Logistics
- 6.4.7 LOGISTIQ Xpeditors
- 6.4.8 Redline Logistics
- 6.4.9 Aramex Nigeria
- 6.4.10 Cargoburg
- 6.4.11 SIFAX Logistics Limited
- 6.4.12 JT Global Logistics
- 6.4.13 Prime Next Logistics Ltd
- 6.4.14 DSV
- 6.4.15 Renda Logistics
- 6.4.16 Trans-Ex Cargo
- 6.4.17 Intels Nigeria Limited
- 6.4.18 ABC Transport
- 6.4.19 TSL Limited
- 6.4.20 GEx Logistics
- 7 Market Opportunities & Future Outlook
- 7.1 White-space & Unmet-need Assessment
- 8 Appendix
Pricing
Currency Rates
