By Peter Dansu A new report by Rome Business School Nigeria has warned that Nigeria’s economic growth food security and industrial developm...
By Peter Dansu
A new report by Rome Business School Nigeria has warned that Nigeria’s economic growth food security and industrial development are being quietly undermined by weak and fragmented supply chains even as it reveals that fixing these gaps could unlock billions of naira and transform the economy.
The report released in January 2026 describes supply chain management as the invisible system that keeps the country running linking farms to markets factories to ports hospitals to suppliers and consumers to essential goods. According to the study addressing long standing inefficiencies in Nigeria’s supply chains could add between two and three percent to annual GDP growth reduce inflationary pressure and create jobs across key sectors.
The report stresses that supply chains are no longer just about moving goods but about shaping national development and everyday quality of life. It notes that when supply chains fail ordinary Nigerians feel the impact immediately through food shortages higher prices and limited access to medicines but when they work growth becomes inclusive and sustainable.
Tracing Nigeria’s supply chain evolution the report recalls the colonial era when the economy revolved around exporting raw materials such as cocoa palm oil and minerals and the oil boom of the 1970s which restructured trade and logistics around petroleum. While oil and gas still account for about 90 percent of Nigeria’s foreign exchange earnings the report points out that these supply chains remain highly vulnerable to theft vandalism and bureaucratic delays costing the country billions of naira every year.
Beyond oil Nigeria exports over 1.5 billion dollars worth of cocoa and sesame annually yet much of the value is lost due to poor logistics limited local processing and weak links between farmers processors and exporters. These gaps according to the report continue to deny the country the full benefits of its vast agricultural potential.
Infrastructure challenges remain one of the biggest bottlenecks. Only a small fraction of Nigeria’s 195000 kilometres of roads are paved pushing transport costs up by as much as 40 percent and driving final consumer prices higher by nearly 30 percent. Congested ports unreliable electricity and inadequate cold storage facilities also contribute to massive post harvest losses with up to 40 percent of perishable crops spoiling before reaching the market.
Security issues further disrupt the movement of goods. Banditry in the North and vandalism in the Niger Delta frequently interrupt supply routes putting drivers and logistics workers at risk and increasing the cost of doing business. The report also highlights the 2023 removal of fuel subsidies as a major shock noting that rising transport and logistics costs have strained supply chains and worsened price pressures for consumers.
While the COVID 19 pandemic pushed many businesses toward digital tools such as e procurement and online inventory systems Nigeria still lags behind in adopting advanced technologies like artificial intelligence and blockchain. High costs poor broadband coverage and a shortage of skilled professionals continue to limit adoption especially among small and medium sized businesses.
The impact is most visible in agriculture and healthcare. Smallholder farmers who produce most of Nigeria’s food often lose large portions of their harvest because poor roads and storage prevent timely access to markets and processors. In the health sector weak supply chains have led to recurring shortages of essential medicines including malaria drugs particularly in northern Nigeria while unreliable power and poor cold chain systems damage vaccines and other temperature sensitive products.
Despite the challenges the report strikes an optimistic tone. It identifies the African Continental Free Trade Area as a major opportunity projecting that intra African trade could grow by more than 20 percent if countries improve logistics customs processes and infrastructure. It also points to city based warehousing electric delivery vehicles and greener logistics models as emerging solutions that could cut costs reduce emissions and support the growth of e commerce.
Speaking on the findings Prof Antonio Ragusa Dean and Founder of Rome Business School Nigeria said the country is at a critical crossroads where long standing weaknesses can be turned into competitive advantages with the right reforms.
Nigeria has the resources the market and the talent he said what is needed now is coordinated action to modernise infrastructure embrace technology and build resilient supply chains that work for businesses and citizens alike.
The report concludes that strengthening supply chain management is no longer just a business concern but a national development priority. With the right mix of policies private investment and regional cooperation it says Nigeria can unlock new growth improve food and health security and build a more resilient economy for the future.
No comments