Rising logistics and energy costs are constraining the growth of Nigeria’s non-oil export sector, forcing many small exporters out of the market despite growing global demand, a new report has revealed.
The report, titled Non-Oil Export Index 2026 and released by 3T Impex Trade Consulting, highlights a widening disconnect between strong exporter optimism and worsening operational conditions across the country’s export value chain.
Drawing from 87,824 export transactions recorded between 2021 and 2025, as well as a sentiment survey involving 94 active non-oil exporters across Nigeria’s six geopolitical zones, the report identified logistics and energy costs as the most significant barriers to expansion.
According to the report, exporter confidence remains robust, with the Business Confidence Index scoring 87.8 out of 100. About 75.5 percent of respondents reported growth in export sales, while 91.5 percent expressed optimism that global demand for Nigerian products would improve further.
The sector’s Predictive Outlook Index also rose sharply to 92.8, reflecting strong investment and expansion intentions among exporters, with 83 percent planning to increase capacity.
However, these positive indicators were overshadowed by severe operational challenges. The report showed that the Logistics Benchmark Index fell to a critically low 12.8 out of 100 — the weakest performance indicator in the study.
It revealed that 77.7 percent of exporters experienced sharp increases in inland transportation and port handling costs over the review period.
Commenting on the findings, Bamidele Ayemibo, chief executive officer and lead consultant at 3T Impex Trade Consulting, said operational bottlenecks, rather than weak demand, are now the biggest obstacles to growth in the sector.
“Nigeria’s non-oil exporters are confident, market-facing and growth-oriented, but the country’s logistics system is undermining their competitiveness,” the report stated.
According to the report, the poor logistics performance represents a structural crisis rather than a temporary policy challenge, warning that the system is “trapping its best-performing exporters.”
Energy, Quality Compliance Challenges Persist
Beyond logistics constraints, the report identified high energy and processing costs as another major challenge facing exporters.
It noted that 51.1 percent of respondents ranked energy costs as their biggest operational constraint, forcing many businesses to abandon value-added processing and revert to exporting raw commodities.
In addition, 28.7 percent of exporters cited quality and standardisation issues as their top concern, particularly in meeting stringent international requirements such as the European Union Deforestation Regulation (EUDR).
The report stressed the need for improved certification and quality assurance infrastructure to help Nigerian exporters meet evolving global standards.
Lagos Ports Dominate Export Traffic
The report also raised concerns over Nigeria’s growing dependence on Lagos ports for export activities.
According to the findings, 71.7 percent of the country’s non-oil exports are processed through Apapa and Tincan Island ports, with Tincan alone accounting for 45.9 percent of total export traffic in 2025.
The concentration, it warned, increases congestion risks and exposes exporters to higher operational costs and delays.
MSMEs Being Forced Out
Although Nigeria’s total non-oil export value rose by 93 percent within five years to reach $6.17 billion in 2025, the number of export transactions declined from 18,280 in 2021 to 16,683 in 2025.
The report attributed the decline to the growing exclusion of Micro, Small and Medium Enterprises (MSMEs) from the formal export ecosystem due to rising logistics expenses and weak infrastructure support.
It further noted that regulatory efficiency remained weak at 54.8 percent, describing the business environment as a “passive constraint” on exporters.
To address the challenges, 3T Impex Trade Consulting called for urgent intervention by policymakers, regulators and financial institutions.
Among its recommendations are the expansion of export infrastructure through the activation of Onne Port, improved electricity supply to export-processing zones, expansion of export credit insurance by Nigerian Export-Import Bank, and the creation of logistics-linked pre-export financing schemes for exporters.
The report also advised exporters to adopt shipment consolidation strategies and strengthen quality compliance systems to remain competitive in international markets.
According to the consulting firm, the Nigeria Non-Oil Export Index is designed to serve as a strategic tool for tracking exporter performance and sentiment, while supporting Nigeria’s broader export diversification and economic growth agenda.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
