Logistics and Energy Costs Hinder Nigeria’s Non-Oil Export Sector Growth
Rising logistics and energy expenses are constraining growth in Nigeria’s non-oil export sector, compelling numerous small exporters to withdraw from the market despite an increase in global demand, according to a recent report. The analysis, titled ‘Non-Oil Export Index 2026’ and published by 3T Impex Trade Consulting, underscores the widening gap between a positive outlook among exporters and declining business conditions across the nation’s export value chain.
The report identifies logistics and energy costs as primary barriers to expansion, drawing insights from 87,824 export transactions recorded between 2021 and 2025, alongside a sentiment survey of 94 active non-oil exporters from Nigeria’s six geopolitical zones. Despite these challenges, exporters displayed a strong confidence level, with a business confidence index reaching 87.8 out of 100. Remarkably, 75.5% of respondents reported growth in export sales, with 91.5% expressing optimism that global demand for Nigerian products will continue to rise.
The sector’s outlook index likewise soared to 92.8, indicating robust plans for investment and expansion, with 83% of exporters intending to increase their production capacity. Yet, these encouraging figures are overshadowed by significant operational challenges, notably highlighted by a logistics benchmark index that plummeted to a stark 12.8 out of 100, marking it as the weakest performance indicator in the study.
According to the report, 77.7% of exporters experienced sharp increases in both inland transportation and port handling costs during the survey period. Bamidele Ayemibo, Chief Executive Officer and Principal Consultant at 3T Impex Trade Consulting, emphasized that operational bottlenecks, rather than weak demand, are currently the principal obstacles to growth in the sector. The report conveyed that while Nigerian non-oil exporters show confidence and a commitment to growth, the nation’s logistics system severely undermines its competitiveness.
The findings reveal that poor logistics performance constitutes a structural crisis rather than a mere temporary policy challenge, cautioning that the system hampers even the most successful exporters. Beyond logistics, high energy and processing costs emerged as additional significant challenges. Over half of the respondents—51.1%—identified energy costs as their primary operational constraint, forcing many to forego value-added processing in favor of exporting raw products.
Compliance Issues Add to Exporters’ Challenges
Furthermore, 28.7% of exporters expressed concerns regarding quality and standardization, particularly in meeting stringent international regulations such as the European Union Deforestation Regulation (EUDR). The report advocates for improved certification and quality assurance infrastructure to help Nigerian exporters meet dynamic global standards.
Lagos Ports Continue to Dominate Export Activities
The reliance on Lagos ports for export activities is another area of concern. According to the report, 71.7% of Nigeria’s non-oil exports are processed through Apapa and Tincan Island ports, with Tincan Island alone accounting for 45.9% of total exports in 2025. This heavy concentration raises the risk of congestion, subjecting exporters to heightened operating costs and delays.
Exclusion of MSMEs from Export Market
Despite a remarkable 93% growth in Nigeria’s total non-oil exports, which surged to $6.17 billion in 2025, the number of export transactions dropped from 18,280 in 2021 to 16,683 in 2025. This decline is largely attributed to the increasing exclusion of micro, small, and medium enterprises (MSMEs) from the formal export ecosystem, driven by soaring logistics costs and inadequate infrastructure support.
The report also highlights that regulatory efficiency remains low at 54.8%, describing the business environment as a “negative constraint” on exporters. To combat these challenges, 3T Impex Trade Consulting has called for immediate action from policymakers, regulators, and financial institutions. Recommended measures include enhancing export infrastructure by revitalizing Onne Port, improving electricity supply to export processing zones, expanding export credit insurance through the Export-Import Bank of Nigeria, and creating a logistics-related pre-export financing facility for exporters.
Additionally, exporters are encouraged to adopt shipping consolidation strategies and bolster quality compliance systems to maintain competitiveness in international markets. The Nigeria Non-Oil Export Index aims to serve as a strategic tool to monitor and enhance exporter performance while supporting broader export diversification and economic growth initiatives.
