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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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Stanbic IBTC Holdings disclaims WhatsApp scheme offering investment opportunities

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Stanbic IBTC Holdings Plc has disclaimed responsibility for social media advertisements, asking the public to join WhatsApp groups that purportedly offer them investment opportunities with “guaranteed returns” in “high-quality stocks.”

The financial services group disclosed in a regulatory filing on Wednesday that such advertisements are fraudulent, false and unauthorised.

The announcement followed the circulation of social media posts featuring the image of Busola Jejelowo, the CEO of Stanbic IBTC Asset Management Limited, together with the Stanbic IBTC Stockbrokers logo.

“They do not originate from Stanbic IBTC Holdings PLC or any of its subsidiaries, and they have not been approved, endorsed, or issued by the group in any form,” the financial institution said.

“The use of our name, logo, brand identity, and the images of our executives in these materials is fraudulent and intended to deceive unsuspecting individuals,” it added.

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The bank holding company disclosed that it has already reported the fraudulent activities to the Securities and Exchange Commission of Nigeria.

Victims

Stanbic IBTC Holdings advised people who have already fallen prey to such dubious schemes, or who have made payments or disclosed any personal or financial information, to report the matter immediately to the nearest law enforcement agency.

READ ALSO: FCCPC, NTDA to bolster consumer protection, tourism standards

It urged the public to be cautious of unauthorised communications by individuals purporting to be associated with Stanbic IBTC, especially when they relate to investments and promises of financial returns.

Customers should rely only on authentic and verified information about Stanbic IBTC communicated through its official communication platforms, it said.

“Such messages should be treated as suspicious unless independently verified through our official channels,” Stanbic IBTC Holdings stated.

“For authentic and verified information about Stanbic IBTC and its products and services, please rely only on our official communication platforms, including @StanbicIBTC on Facebook, LinkedIn, X (Twitter), Instagram, and YouTube.”

It further expressed its commitment to taking all appropriate steps to safeguard its brand and customers from fraudulent and deceptive activities.


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Strong Growth, Profitability Drive AIICO’s 2026 Insurance Company of the Year Victory

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BY NKECHI NAECHE-ESEZOBOR—AIICO Insurance Plc has been named Insurance Company of the Year 2026 at the Nairametrics Capital Market Awards, a recognition that underscores the company’s strong financial performance, sustained growth, and commitment to delivering value to shareholders.

The award, presented during the second edition of the Nairametrics Capital Market Awards, honours insurance companies that have demonstrated excellence across key performance indicators, including profitability, premium growth, return on equity, claims efficiency, and market share expansion.

According to Nairametrics, the selection process was guided by a comprehensive evaluation framework designed to assess financial strength, operational efficiency, and long-term value creation. AIICO emerged as the leading performer among its peers, reflecting its ability to maintain growth momentum while navigating an increasingly competitive operating environment.

The recognition highlights AIICO’s consistent execution of strategic initiatives aimed at strengthening its market position and enhancing customer value. With more than six decades of operations, the company has continued to adapt to evolving industry dynamics while maintaining a strong focus on innovation, operational excellence, and customer relevance.

A significant milestone in the company’s transformation journey was the unveiling of its refreshed brand identity in December 2025. The rebranding marked a strategic move to modernise AIICO’s image and strengthen its appeal among younger consumers, while reinforcing the trust and confidence it has built with existing customers over the years.

Since the launch of the new identity, AIICO has increased its visibility across traditional and digital channels, supporting broader efforts to deepen customer engagement and reinforce its leadership position within Nigeria’s insurance sector.

The award comes at a time when the industry is facing heightened competition, evolving customer expectations, and increased regulatory scrutiny. AIICO’s strong showing across the award’s assessment criteria demonstrates its ability to balance profitability with operational efficiency while delivering sustainable value to stakeholders.

Held on June 5, 2026, at the Civic Centre in Lagos, the Nairametrics Capital Market Awards brought together regulators, investors, policymakers, and corporate leaders to celebrate organisations contributing to the growth and development of Nigeria’s capital market ecosystem.

For AIICO, the latest recognition adds to a growing list of industry accolades and reinforces its reputation as one of Nigeria’s most resilient and forward-looking insurance institutions, committed to driving innovation and creating long-term value in the financial services sector.

The post Strong Growth, Profitability Drive AIICO’s 2026 Insurance Company of the Year Victory appeared first on Business Today NG.

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