Nigeria’s freight and logistics sector is witnessing a fresh wave of transformation as new industry findings project the market to grow from $10.95 billion (about ₦17.96 trillion) in 2025 to nearly $15.97 billion (about ₦26.19 trillion) by 2031.

The projection, contained in the latest report by ResearchANDMarket and supported by insights from Mordor Intelligence reflect how infrastructure upgrades, e-commerce expansion, digital innovation and growing urbanisation are rapidly reshaping Nigeria’s logistics ecosystem.

According to the report, the market is expected to rise to $11.66 billion (approximately ₦19.12 trillion) in 2026, recording a compound annual growth rate of 6.49 percent between 2026 and 2031.

Analysts noted that the commissioning of the Lekki Deep Sea Port and capacity expansion at Onne Port are already improving cargo movement and reducing congestion across major trade corridors. Together, both facilities are expected to add about 4.5 million TEU annual capacity, thereby strengthening vessel turnaround efficiency and accelerating freight operations nationwide.

At the same time, Nigeria’s booming e-commerce culture continues to fuel massive demand for courier and last-mile delivery services. The report revealed that domestic parcel deliveries accounted for 64.5 percent of courier, express and parcel activities in 2024, driven largely by rising smartphone penetration and increased digital payment adoption.

Consequently, logistics companies are now establishing micro-fulfilment centres closer to residential communities to meet growing next-day delivery expectations.

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Additionally, the Dangote Refinery’s expanding output is redirecting refined petroleum distribution across West Africa, creating fresh logistics opportunities and strengthening Nigeria’s strategic trade position within the region.

The report further highlighted how digital freight-matching platforms, compressed-natural-gas trucking fleets and the proposed National Single Window initiative are gradually improving operational efficiency and customs processes across the industry.

However, despite the growth momentum, the sector still faces major operational pressures linked to poor road infrastructure, insecurity and rising diesel costs, which reportedly account for over 35 percent of trucking expenses.

The Lagos-Kano corridor, one of the country’s busiest commercial routes, continues to suffer from deteriorating road conditions and security challenges that increase delivery timelines and operating costs.

Still, operators are increasingly turning to rail and inland waterways to reduce dependence on road transportation and improve cargo efficiency.

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The manufacturing segment currently remains the industry’s largest revenue contributor, generating about $4.24 billion (roughly ₦6.95 trillion) in 2025 and accounting for 38.76 percent of market revenue.

Meanwhile, Lagos’ rapidly expanding population is also expected to intensify demand for warehousing and urban delivery infrastructure. With projections showing the city could add 4.5 million residents between 2025 and 2030, logistics operators are already repositioning aggressively around high-density locations.

Several global and local players continue to strengthen their presence within the sector, including DHL Group, FedEx, UPS, A.P. Moller – Maersk, GIG Logistics and Red Star Express plc.

Industry observers believe the sector is steadily evolving beyond traditional cargo movement into a major economic growth driver capable of reshaping trade, retail distribution and regional commerce across Africa.