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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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Firm linked to Otudeko’s Honeywell Group buys 14% stake in Ikeja Hotel

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HGL Real Estate Limited, a company with no significant digital presence, linked to billionaire tycoon Oba Otudeko, has acquired a 14.1 per cent stake in Lagos-listed hospitality provider Ikeja Hotel.

Ikeja Hotel “received notification from HGL Real Estate Limited, an affiliate of Honeywell Group Limited, that it has acquired 305,323,525 units of Ikeja Hotel Plc’s shares,” according to a regulatory filing on Thursday.

Based on Thursday’s closing share price, the firm’s holding in Ikeja Hotel is valued at over N13.2 billion.

The share purchase places HGL Real Estate among the top seven shareholders of the company, second only to Oma Investments Limited, which occupies the pinnacle of the pecking order with a 25.8 per cent interest.

HGL Real Estate does not own or run a known website, which is odd for a company financially enabled to own shares worth several billion naira in another firm.

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Even on the Honeywell Group Limited (HGL)’s website, HGL Real Estate is not mentioned anywhere among the subsidiaries, including among the group’s real estate subsidiaries, which comprise Anchorage Leisures Limited and Uraga Real Estate.

PREMIUM TIMES’ checks with the Corporate Affairs Commission, as well as the commission’s beneficial ownership register, did not return any information related to the company.

In May 2023, Honeywell Group announced the appointment of Kemi Adeoye, its chief financial officer, to the board of Ikeja Hotel as a non-executive director.

“As a member of the board, Mrs Adeoye will play a crucial role in representing HGL’s interest in the company and ensuring continued value creation for stakeholders,” Honeywell Group said at the time.

“HGL’s investment in Ikeja Hotel Plc is in line with its mission to create, build, and invest in great businesses that create enduring value and improve lives,” it added.

In 2022, Honeywell Group consummated a deal to sell its 71.7 per cent shareholding in Honeywell Flour Mills to Nigeria’s largest flour-maker, Flour Mills.

READ ALSO: Group petitions EFCC over N117‎ billion rice importation fraud

The enterprise value of the transaction was N80 billion.

Mr Otudeko served as the chairman of FBN Holdings (now First HoldCo) from 2012 until 2021, when he was ousted during a board shake-up by the Central Bank of Nigeria for his role in what the regulator described as a breach of corporate governance.


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Insurance Meets Tech Unveils Nigeria’s Top 10 Digital Insurance Innovators

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Insurance Meets Tech (IMT) has unveiled its inaugural “10 To Watch Insurance Innovators” ranking, recognising Nigerian insurance companies leading the industry’s digital transformation through technology-driven innovation and improved customer access.

The ranking, developed by Creato Urban, assessed insurers using two equally weighted criteria: digital transformation depth, which measures the sophistication of technology infrastructure and automation, and market impact, which evaluates how digital innovations improve accessibility and reach for policyholders.

Heirs Insurance Group emerged as the overall leader with a combined score of 89/100, earning praise for its digital insurance experience centre, AI-powered customer services, automated claims processing, and expansion of insurance access to more than three million Nigerians since 2021.

Leadway Assurance ranked second with 85/100, recognised for its enterprise-wide digital transformation strategy, AI-powered claims verification, and innovative products such as pay-as-you-go motor insurance. SanlamAllianz Nigeria placed third with 84/100, driven by its nationwide digital agent platform and same-day USSD-enabled claims service.

The remaining companies in the top 10 are Cornerstone Insurance Plc, CubeCover, Sovereign Trust Insurance Plc, Rex Insurance Limited, Enterprise Life Assurance Company Nigeria, Noor Takaful, and Zenith General Insurance Company Limited.

IMT also presented its inaugural “Most Promising Innovation Yet” recognition to emPLE for its cloud-based Data Lake platform, which aims to unify customer data across insurance operations and enable AI-powered underwriting, fraud detection, and embedded insurance services once deployed.

Speaking on the rankings, IMT Convener and Creato Urban Founder/CEO Odion Aleobua said the recognition reflects the Nigerian insurance industry’s gradual shift towards full digitalisation in line with regulatory expectations.

“This list indicates that the transformation of the Nigerian insurance industry is incrementally aligning with the growing demand for complete digitalisation of insurance services as required by NAICOM. The companies featured are taking the initiative rather than waiting for the industry to evolve,” Aleobua said.

The “10 To Watch” framework was developed by IMT’s editorial and advisory team to recognise insurers advancing technology adoption while expanding access to insurance across Nigeria. The announcement comes ahead of the fifth edition of Insurance Meets Tech, scheduled for September 18, 2026, at the Balmoral Convention Centre, Sheraton Hotel, Ikeja, Lagos.

The post Insurance Meets Tech Unveils Nigeria’s Top 10 Digital Insurance Innovators appeared first on Business Today NG.

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