South Africa, Egypt, Benin Republic are among African countries that have beaten Nigeria in the latest Logistics Performance Index. Nigeria ranks 95 out of 160 nations in the global rating.
Findings by Shipping Position Daily have revealed that Nigeria fell behind several small African countries and landlocked nations in the latest global Performance Index released by the World Bank for 2023.
The Logistics Performance Index evaluates countries based on six key parameters: Customs, Infrastructure, International Shipments, Logistics Competence and Quality, Timeliness, and Tracking and Tracing. These indicators provide a comprehensive overview of the efficiency and quality of a country’s logistics and trade environment.
The recent data shows that other African countries such as South Africa, Egypt, and Benin ranked ahead of Nigeria in various logistics parameters. For instance, South Africa ranks number 25 among the 139 countries assessed, while Egypt and Benin also performed significantly better, ranking at 57 and 80, respectively. Nigeria, on the other hand, is positioned at 95, indicating significant challenges in its logistics sector.
Also, checks by our correspondent revealed that some landlocked countries also outperformed Nigeria in the logistics rankings. Countries such as Rwanda and Uganda including Mali, despite their lack of direct access to ports, have managed to secure better rankings due to efficient logistics system and streamlined customs procedures.
For instance, Rwanda has leveraged its strategic investments in infrastructure and regional trade facilitation to rank higher than Nigeria.
Checks by our correspondent revealed Nigeria’s total overall score of 2.6 is indicative of systemic issues that need urgent attention to enhance trade competitiveness and economic growth.
On Customs efficiency Nigeria scored 2.4, falling short of the performance of South Africa, which scored 3.3 and Egypt, which scored 2.8. Streamlined customs procedures are essential for reducing delays and costs in the logistics chain, and Nigeria’s lower score suggests a need for significant reforms in this sector.
Another parameter used in the ranking is the infrastructure, where Nigeria’s scored of 2.4 as against South Africa that boasts of 3.6, supported by its well-developed road, port, and rail infrastructure. Egypt, with a score of 3.0, also outpaced Nigeria, emphasizing the need for Nigeria to invest in modernizing its infrastructure to facilitate more efficient trade.
Also, the ability to handle international shipments effectively is measured under the ‘International Shipments’ parameter. Nigeria’s score of 2.5 in this category; again, lower than that of South Africa (3.6) and Egypt (3.2)
Logistics Competence and Quality measure the proficiency of logistics services, including the competence of service providers. Nigeria scored 2.3 in this parameter, compared to South Africa’s impressive 3.8 and Egypt’s 2.9.
However, in ‘Timeliness’, which assesses the punctuality of shipments in reaching their destination Nigeria performs relatively better, with a score of 3.1. However, this is still below South Africa’s 3.8, indicating room for improvement in ensuring the reliability and predictability of logistics operations.
Under the ‘Tracking and Tracing’, which is essential for transparency and efficiency in the supply chain, Nigeria scored of 2.7 in this parameter; lower than both South Africa’s 3.8 and Egypt’s 2.9, indicating that enhancing tracking systems can provide better visibility and control over shipments, reducing uncertainties and improving overall logistics performance.
Meanwhile Singapore, Finland and Denmark remain as top 3 on the table with South Africa as the only African country in the top 30.
Reacting to Nigeria’s performance, Dr.Muda Yussuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), highlighted the pressing need for infrastructure investment to address Nigeria’s logistics challenges.
He said, “the lack of domestic connectivity and an intermodal transport system is critical. In many countries, once a vessel docks, it can easily connect to rail transport.
However, Nigeria is almost 95% dependent on road transport, which is inefficient and costly due to their poor condition. This inadequacy in transport infrastructure—covering rail, road, and motor transport, is a major issue. The current insecurity only exacerbates these problems, affecting logistics further”, he noted.
On his part, Dr. Obiora Madu, Director General of the African Centre for Supply Chain and President of the Association of Outsourcing Professionals (AOPN), offers a critical view on Nigeria’s ranking.
“If you examine the indices and pillars considered by the World Bank, you might score Nigeria even lower than 95th place. Although there has been some improvement in port access, there is still much work to be done. Port Harcourt, for example, still needs significant upgrades. We are lagging in trade logistics infrastructure and the quality of logistics services, which are crucial for efficient operations. The ease of bringing goods in and sending them out is hampered by outdated customs procedures.
“Despite some improvements in customs efficiency, the overall logistics infrastructure remains in severe deficit. Our challenge lies in deliberately improving infrastructure to lower business costs and market prices”, he said
However, expressing a divergent opinion, Prof. Bamidele Badejo of Olabisi Onabanjo University questions the validity of the LPI report. “The issue isn’t just the report; it’s about who generates these statistics. Often, foreign consultants, unfamiliar with Nigeria’s unique cultural and infrastructural context, may not provide accurate assessments. They may not understand our complex socio-economic landscape and could be dismissive of our local challenges. It’s essential for us to look inward and develop solutions tailored to our own conditions”, he stated.
