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Logistics, energy costs threaten Nigerian non-export sector survival

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The Nigerian non-oil export sector is facing threats from logistics and energy costs despite the massive growth potential the sector signals, a new report revealed.

The report, titled ‘3T Impex Non-Oil Export Index Report 2026’, published on Wednesday, revealed the paradox of Nigeria’s international trade sector.

Published by 3T Impex Trade Consulting, the report synthesised data from 87,824 export transactions between 2021 and 2025, alongside a detailed sentiment survey of 94 active non-oil exporters across Nigeria’s six geopolitical zones.

The report stated that while exporter confidence and global demand have reached record highs, severe structural bottlenecks, specifically skyrocketing logistics and energy costs, are actively neutralizing these gains and pushing smaller exporters out of the market.

The findings present a 75-point chasm between market ambition and operational reality.

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According to the report, the ‘Business Confidence Index’ stands at a strong 87.8 out of 100, with 75.5 per cent of exporters reporting actual sales growth and 91.5 per cent expecting global demand to improve.

This optimism is further reflected in the ‘Predictive Outlook Index’, which scored an exceptional 92.8, as 83.0 per cent of respondents plan to invest and expand their capacity.

Challenges

However, this optimism is heavily overshadowed by the ‘Logistics Benchmark Index’, which plummeted to a critical low of 12.8 out of 100, the weakest index in the entire study.

In the index, a staggering 77.7 per cent of exporters reported increased inland transport and port handling costs over the period.

“Nigeria’s non-oil exporters are confident, market-facing, and growing. But a Logistics Benchmark of 12.8 out of 100 is a structural emergency, not a policy inconvenience.

“When 77.7 per cent of exporters face rising logistics costs while simultaneously recording the strongest sentiment scores (87.8 confidence, 92.8 outlook), the system is trapping its own best performers,” the report stated.

The report further identified operational hurdles, rather than market demand, as the primary constraints to scaling.

It showed that 51.1 per cent of exporters cited the high cost of energy and processing as their absolute number one barrier, which forces many to avoid value-addition and revert to exporting raw commodities.

Also, 28.7 per cent identified quality and standardization rejections as their top constraint, highlighting the urgent need for better certification infrastructure to meet strict global requirements like the EU Deforestation Regulation (EUDR).

Additionally, the report warned of a worsening national risk, noting that 71.7 per cent of all exports now exit through just two Lagos ports (Tincan Island and Apapa), with Tincan’s share alone growing to 45.9 per cent in 2025.

Intervention

While the total export value grew by an impressive 93 per cent over five years to reach $6.17 billion in 2025, the actual transaction count dropped from 18,280 in 2021 to 16,683 in 2025.

This indicates that Micro, Small, and Medium Enterprises (MSMEs) are being systematically excluded from the formal export system due to prohibitive logistics overheads.

The report presented other key metrics that reveal a stagnant operating environment. The ‘Regulatory Efficiency Index’ scored 54.8, reflecting a system that acts as a passive constraint.

The ‘Financial Health Index’ stood at a fragile 52.7, indicating that current export growth is occurring despite a lack of robust financial system support.

The report further advocated immediate, deliberate action from policymakers and financial institutions to embark on urgent recommendations addressing the high export costs issues.

READ ALSO: How US, Chinese investment models are reshaping Nigeria’s trade, energy sector

The report advised policymakers to diversify export port infrastructure by activating Onne Port to relieve Lagos, resolving grid power reliability for export zones, expanding NEXIM export credit insurance, and creating logistics-linked pre-export financing to support struggling businesses.

It also advised exporters to consolidate shipments and prioritize quality compliance.

The report presented tools for tracking exporter sentiment and performance, and provided actionable insights to accelerate Nigeria’s export diversification agenda to unlock sustainable economic growth.

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NAICOM Chief, Omosehin, Visits Family of Late Barrister Rotimi Edu

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From left: Mr Ola Gam-Ikon, Deputy Commissioner, Finance and Administration, NAICOM; Mr Olusegun Ayo Omosehin, Commissioner for Insurance, NAICOM; Mrs Edu, The Widow; Dr Usman Jankara, Deputy Commissioner, Technical, NAICOM; and other visitors.


The management of the National Insurance Commission (NAICOM), led by the Commissioner for Insurance, Mr Olusegun Ayo Omosehin, has paid a condolence visit to the family of the late Barrister Rotimi Edu.

The regulatory body’s leadership visited the bereaved family to commiserate with them and honour the remarkable legacy left behind by the deceased.

Describing Barr. Edu’s life as a true celebration of impactful service, the Commission praised his invaluable contributions to the growth, transformation, and development of the Nigerian insurance sector.

NAICOM noted that his dedication, leadership, and visionary approach would continue to inspire future generations within the industry.

In a statement, the Commission expressed its solidarity with the Edu family during this difficult time of grief, adding that the insurance community would forever cherish his enduring achievements and the indelible mark he left on the profession.

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Otedola to invest $100 million in Dangote Petroleum Refinery through private placement

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Femi Otedola, the chairman and biggest shareholder of financial services group First HoldCo Plc, hopes to invest $100 million in the proposed private placement of Dangote Petroleum Refinery.

The billionaire tycoon made this known to journalists during a tour by the management team of First HoldCo to the refinery in Lagos on Wednesday.

“On a personal note, I have approved him. I’ve been here with him 25 times, so my compensation is that he’s going to allocate to me shares valued at $100 million in the private placement. That was one of the reasons I sold my shares in Geregu Power Plants — to invest in the IPO of Dangote Refinery,” Mr Otedola said of Aliko Dangote, Africa’s richest man and owner of the refinery.

Dangote Petroleum Refinery, Africa’s largest oil refinery, is raising $2 billion through a private placement targeting institutional investors and high-net-worth individuals.

A similar plan to source $5 billion through an initial public offering, equivalent to 10 per cent of its valuation, is also in the works. According to a Bloomberg report this month, the refinery is targeting a valuation of around $50 billion ahead of the planned share sales.

Mr Otedola noted that he hopes to invest part of the proceeds from the divestment of his shareholding in Geregu Power, an electricity generation company he took public in October 2022, in the private placement.

He sold his stake in the power company last December in a $750 million transaction.

The refinery is looking to list the shares from the planned offers across multiple stock exchanges through cross-border listings, opening them to investors in different markets.

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