The country’s real Gross Domestic Product, GDP, fell steeply from $573 billion in 2014 to $483 billion in 2015, representing more than 14 per cent drop in one year.
This was as import/export trading activities slowed down with export dropping by 32 per cent from $82.6 billion in 2014 to $50.7 billion in 2015 and import dropping by 21 per cent from 61.6 billion in 2014 to 48.4 billion in 2015.
Lead Consultant, ECOWAS Commission for Industry and Private Sector Development, Ken Ife, who spoke at the Nigerian Logistics and Supply Chain: Industry Report 2016 in Lagos, said that logistics sector is estimated at well over N200 billion and is growing at annual rate of 10 per cent.
According to him, regulatory pressures and investment have led to increased professionalization and modernization of the haulage and logistics companies. On the overview, size and the potential of the logistics and supply chain sector, he explained that Nigeria is among the lowest cost crude oil producer, and with international oil prices fixed in US dollars, could not care less until now that the economy faces severe meltdown with the steep drop in oil prices.
“To grow a diversified export economy, development of import substitution and backward integration policies around increased value addition requires an urgent but fundamental review of the transport logistics and supply chain industry and developing our national logistics strategy to achieve greater competitiveness and increased trade facilitation,” he said.