Expert seeks opportunities to unlock potential of logistics industry

Dr Olusola Obabori, Chief Executive Officer, Red Star Express, has called on the three levels of governments to address the challenges inhibiting growth of the logistics industry to deepen economic growth.

Obabori made the call during the November Breakfast meeting of the Nigerian-American Chamber of Commerce (NACC) on Friday in Lagos.

The meeting was themed: “The Nigerian Logistics Industry: Current Trends and Persistent Challenges.”

Obabori said that there was a need to strategically position the industry to be globally-competitive to actualise its potential growth of N57.5 billion by 2022.

According to him, data from the National Bureau of Statistics (NBS), shows that the industry is worth about N250 billion, with a growth rate of about 20 per cent, as at quarter one, 2019.

He attributed the growth of the industry to robust e-commerce ecosystem, big data, technology disruption, innovation and changing landscape of the global logistics industry.

Obabori said that addressing the challenges of inadequate infrastructure, fuel costs, high-interest rate, multiple taxation, access to capital, improvement of regulatory environment would place the industry on growth trajectory.

The expert emphasised that effective implementation of the Economic Recovery and Growth Plan (ERGP) was crucial to boost the competitiveness and Gross Domestic Product (GDP) of the country.

Obabori said that safety, efficiency, speed and ease in operation were fundamental to boost the county’s logistics performance index.

Also, Ms Christine Kelly, Commercial Attache, U.S. Embassy, said that the phase of global logistic would continue to change and have an economic impact on the world.

“Logistics is no longer just the flow of goods and services but also the flow of information. This sector knows that data is the life line of a smooth operation.

“This is more important than ever before, as data can connect companies with their customers. Same way, airports and shipping lines connects goods to consumers.

“It is in this capacity that logistics has impacted innovations and economic platforms,’’ she said.

Kelly said that Nigeria had the potential to leapfrog by finding a niche in the data and information management aspect of logistics, saying that the country stands to benefit economically from the promising logistic sector.

Earlier, President, Nigerian-American Chamber of Commerce (NACC), Oluwatoyin Akomolafe, said that Nigeria should revolutionise its logistic industry to maximise opportunities in its various trade agreements.

He said that a stronger logistics industry would catalyse economic growth, reduce the cost of goods and services and enable Nigeria evolve to West Africa trade hub.