Fixing Nigeria’s Supply Chains Could Unlock Billions and Transform the Economy — RBSN

A new report by Rome Business School Nigeria has sounded a strong admonition that Nigeria’s economic growth, food security and industrial future are being held back by weak and fragmented supply chains, even as it highlights enormous opportunities if long-standing challenges are fixed.

Released in January 2026, the report describes Supply Chain Management (SCM) as the often unseen system that keeps the country running, connecting farms to markets, factories to ports, hospitals to suppliers and consumers to essential goods. According to the report, addressing persistent inefficiencies in Nigeria’s supply chains could add between 2 and 3 per cent to annual GDP growth, while easing inflationary pressure and creating jobs across key sectors of the economy.

The report highlights that supply chains are no longer just about moving goods from one place to another, but about shaping national development and everyday quality of life.

“Supply chains are the backbone of modern economies. “For Nigeria, strengthening them means better access to food, medicines and jobs, stronger industries and a reduced dependence on oil. When supply chains fail, ordinary people feel it immediately; when they work, growth becomes inclusive and sustainable.”

The report traces Nigeria’s supply chain journey from the colonial era, when economic activity was largely limited to exporting raw materials such as cocoa, palm oil and minerals, to the oil-driven expansion of the 1970s that reshaped trade and logistics around petroleum. While oil and gas still generate about 90 per cent of Nigeria’s foreign exchange earnings, the report notes that these same supply chains remain highly vulnerable to theft, vandalism and bureaucratic delays, costing the country billions of naira each year.

Beyond oil, Nigeria exports more than $1.5 billion worth of cocoa and sesame annually, yet much of the value is lost due to poor logistics, limited local processing and weak integration between farmers, processors and exporters. According to the report, these gaps continue to prevent the country from fully benefiting from its vast agricultural potential.

Infrastructure remains one of the most serious obstacles. Only a small portion of Nigeria’s 195,000 kilometres of roads are paved, driving up transport costs by as much as 40 per cent and pushing final consumer prices up by nearly 30 per cent. Congested ports, unreliable power supply and poor cold storage facilities result in massive post-harvest losses, with up to 40 per cent of perishable crops spoiling before reaching the market.

Security challenges further complicate the movement of goods. Banditry in the North and vandalism in the Niger Delta frequently disrupt supply routes, endangering drivers and logistics workers while increasing the cost of doing business. The report also points to the 2023 removal of fuel subsidies as a major shock, noting that the resulting spike in transport and logistics costs has strained the supply of essential goods and contributed to higher prices for consumers.

While the COVID-19 pandemic pushed many businesses to adopt digital tools such as e-procurement and online inventory systems, the report finds that Nigeria still struggles to keep pace with advanced technologies like artificial intelligence and blockchain. High implementation costs, poor broadband coverage and a shortage of skilled professionals have limited adoption, especially among small and medium-sized enterprises.

The consequences are felt most sharply in agriculture and healthcare. Smallholder farmers, who produce the majority of Nigeria’s food, often lose significant portions of their harvest because poor roads and storage prevent timely access to processors and markets. In the health sector, inconsistent supply chains have led to frequent shortages of essential medicines, including malaria drugs, particularly in northern parts of the country. Weak cold-chain systems and power outages mean that vaccines and other temperature-sensitive products are regularly damaged before reaching patients.

Despite these challenges, the report paints a hopeful picture of what is possible. It identifies the African Continental Free Trade Area (AfCFTA) as a major opportunity, projecting that intra-African trade could grow by more than 20 per cent if countries improve cooperation on logistics, customs processes and infrastructure. It also points to emerging trends such as city-based warehousing, electric delivery vehicles and greener logistics models as ways to cut costs, reduce emissions and support the rapid growth of e-commerce.

Prof. Antonio Ragusa, Dean and Founder of Rome Business School Nigeria said Nigeria stands at a crossroads, where targeted reforms and investments could turn long-standing weaknesses into competitive advantages.

“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 Rome Business School Nigeria report concludes that strengthening supply chain management is not just a business imperative but a national development priority. With the right policies, private investment and regional collaboration, it says Nigeria can unlock new growth, improve food and health security and build a more resilient economy for the future.