Experts Call for Reforms in Nigeria's Supply Chain System Amid Global Trade Shifts

Strategic Insights -

Nigerian businesses are at risk of losing competitiveness and struggling to adapt to a changing global trade environment due to the country's weak logistics sector and infrastructure. Experts have emphasized the need for reforms in Nigeria's supply chain system, including better power infrastructure, streamlined port processes, and reduced checkpoints. They stressed that without stronger and smarter supply chains, businesses will continue to struggle to compete and adapt to rising tariffs, global trade shifts, and infrastructural challenges. A logistics policy, not just a transport policy, is needed to address the country's logistics challenges and make Nigerian businesses more competitive.

Key Takeaways:

  • Experts have called for reforms in Nigeria's supply chain system, citing the need for a logistics policy beyond just transport policy.
  • Weak infrastructure, high logistics costs, and poor policy frameworks are crippling Nigerian businesses and making them uncompetitive.
  • Obiora Madu, director-general of the African Centre for Supply Chain, emphasized the importance of data, sustainability, and technology, including artificial intelligence, in building the supply chain.
  • Cephas Afebuameh, group director, Supply Chain, Flour Mills of Nigeria, highlighted talent as Nigeria's most significant gap in the supply chain, and urged the government to fix infrastructure gaps that align with policies.
  • Omolara Akanji, director, International Chamber of Commerce, stressed the need for diversification, digital adoption, ESG compliance, and stronger partnerships to withstand global trade tensions and domestic governance challenges.
  • Experts noted that shifting trade policies, tariffs, digital transformation, and sustainability requirements are reshaping trade flows and forcing companies to adapt.
  • Businesses must reconfigure their processes, build strong partnerships, and collaborate with other countries and organizations to navigate global trade shifts.
  • Diversifying trade factors, products, and services can help mitigate risks associated with global trade shifts.

Statistics:

  • 10%: The U.S government's baseline tariff imposed on imports in April 2025, which disrupts supply chains, increases costs, and reduces profit margins (Omolara Akanji).

Sources:

  • Obiora Madu, director-general, African Centre for Supply Chain
  • Cephas Afebuameh, group director, Supply Chain, Flour Mills of Nigeria
  • Omolara Akanji, director, International Chamber of Commerce