Nigeria now ranks 88th out of 141 nations in the World Bank Logistics Performance Index, LPI, projecting a slight improvement in its global logistics ranking to 91st in 2022.
The LPI is an interactive benchmarking tool designed to assist countries discover trade logistics difficulties and possibilities, as well as what they can do to improve their performance.
The World Bank LPI is also used to evaluate the efficiency and effectiveness of a country’s logistics services sector.
The index assesses different aspects of logistics performance, such as infrastructure, customs and border control, simplicity of shipment arrangement, logistics service quality, consignment tracking and traceability, and delivery timeliness.
High-income countries account for the top 12 performances on the LPI in 2023.Singapore leads with a score of 4.3, a position it previously held in 2007 and 2012.
Europe accounts for eight of the top twelve scorers: Finland (4.2), Denmark, the Netherlands, Switzerland (4.1), Austria, Belgium, Germany, and Sweden (4.0). Canada, the UAE, and Hong Kong SAR, China, are also represented. For many years, the majority of these economies controlled global supply chain networks.
The worst ten performers are dispersed across several continents and are mostly lower-middle-income countries. They either have fragile economies that are hampered by armed conflict, natural disasters, or political unrest, or they are landlocked countries that struggle to link to global supply networks due to geography or economies of scale. Even though the average scores of low performers have increased, several countries’ ranks have stayed unchanged.
Those who face severe logistics constraints frequently perform poorly in logistics. According to the World Bank report, reliability and resilience play an important role in logistics effectiveness.
International trade is a major engine of economic growth, and logistics are the foundation of trade.
Nigeria received 1.9 points out of a possible 5.0 points on the Logistics Performance Score, and 2.6 points on the Customs Score.
Nigeria received a score of 2.4 for infrastructure, compared to another score of 2.4 for international shipping. The logistics competency score was 2.5, compared to 2.3 for tracking and tracing.
Why this matters
While there’s a slight improvement from 2022, ranking 88th out of 141 countries indicates challenges in Nigeria’s logistics sector.
Possible areas for improvement in Nigeria’s logistics could include:
- Infrastructure development: Investing in roads, railways, and ports to improve transportation efficiency.
- Streamlining customs processes: Reducing bureaucracy and delays at borders.
- Enhancing logistics competence: Developing a skilled workforce in the logistics sector.
- Improving tracking and tracing: Implementing technology solutions for better shipment visibility.
