Taiwo Hassan 
There are indications that the precise contribution of the transport and logistics sector to the country’s Gross Domestic Product (GDP) remains principally underreported. The Chairman, Governing Council of African Centre for Supply Chain (ACSC), Prof A.G Sumaila; made this known in an interview with New Telegraph in Lagos.
He said that in Nigeria, the economy is predominantly influenced by the informal sector, which is estimated to constitute between 38.83 per cent and 57.55 per cent of the national GDP. Sumaila explained that within this informal framework, the transport and logistics sector emerge as a key contributor.
He said that the logistics industry played an essential role in the economic framework of a nation, with its impact on GDP being considerable.
According to him, assessing the GDP contribution of the transport and logistics sector within Nigeria’s informal economy necessitates a thorough and methodological research strategy, taking into account the distinctive features of the Nigerian economy and the positive implications of the environmental factors such as the COVID-19 pandemic.
He explained that the logistics industry was essential for stimulating economic activities and facilitating trade, thereby serving as a vital contributor to a nation’s GDP. This sector includes various elements such as transportation, warehousing, logistics management, and other associated services.
The logistics expert stressed that the performance and effectiveness of logistics operations could significantly influence a nation’s economic outcome. His words: “The significance of the logistics sector in relation to GDP has been extensively documented across different economies. For instance, research indicates that the efficiency of logistics can have a favourable effect on the economic growth of the Commonwealth of Independent States (CIS) nations.
“Furthermore, regional logistics hubs have been identified as critical to the economic advancement of various countries.” Speaking on the problem in the sector, he said: “Previous research on Nigeria’s logistics industry has primarily focused on infrastructure deficits, regulatory inefficiencies, and operational challenges.
However, there remains a significant gap in understanding the specific contribution of logistics to Nigeria’s GDP, particularly the role of the informal sector, where a substantial portion of trade, transport, and logistics activities occur. “Current GDP estimation methods inadequately capture the economic impact of informal of logistics activities, leading to distorted economic planning, inadequate policy interventions, and suboptimal investment strategies.”
