High Transportation Costs Persist as Major Economic Concern in Nigeria – Experts

Experts have underscored the ongoing high cost of transportation as a major economic concern in Nigeria. In an interview with the Nigerian Tribune, entrepreneur Tor Ikuan emphasized the critical role transportation and logistics play within the supply chain, explaining that as costs rise for moving raw materials, farm produce, and finished goods from production centres to markets, so too do commodity prices. This issue, according to Ikuan, affects both manufacturers and consumers alike, contributing to the overall inflationary pressures in the economy.

The high cost of transportation is a perennial issue in Nigeria, with numerous factors contributing to the problem. These include inadequate infrastructure, poor road maintenance, and high fuel prices. According to a report by the Nigerian Bureau of Statistics, transport costs accounted for 32.5% of the Consumer Price Index (CPI) in October 2026, up from 30.8% in October 2025.

The impact of high transportation costs extends beyond the immediate economic concerns. According to the International Monetary Fund (IMF), higher transport costs can contribute to supply chain disruptions and reduced competitiveness for Nigerian businesses, ultimately hampering economic growth and development. The IMF recommends addressing the root causes of these high costs, including improving infrastructure, fostering competition, and implementing more efficient fuel subsidy policies.

For Nigerian consumers and businesses alike, the high cost of transportation remains a pressing issue. As the country continues to grapple with economic challenges, it is crucial to address this concern to promote a more stable and competitive economy.