Nigerian businesses in the logistics industry will require the adoption of technology and digitalisation, an enabling environment and reduction in stringent regulatory requirements to thrive, stakeholders have said.
This was discussed at the Abuja logistics stakeholders’ forum themed ‘Harmonising the Public-Private Sector for Productivity’ held on Thursday in Abuja.
Speaking during a panel session, Abdulazeez Sadiq, CEO of AAT Logistics said technology is very important in logistics because it aids business operations such as helping to monitor and track the activities of riders.
“It also increases access to customers, improves service delivery,” he said.
He said that the market is huge and cannot be saturated adding that operators in Abuja are still scratching the surface, which is something that technology will help improve on.
“For such a business as logistics, there is so much going on and you need to be in a sane environment to have the right strategy,” he said regarding the business environment.
Khalil Halilu, CEO of Shap Shap Logistics said logistics is a necessity in daily life and activities, noting that the industry in Nigeria has a lot of untapped opportunities.
“Survival and sustainability logistics businesses are partly dependent on technology which makes it a very important tool, it helps to make it easier and better,” he said.
He also said for such an underserved market as this, a conventional method of operation is not sustainable hence the need for innovation and strategic planning.
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Amanda Etuk, co-founder, Messenger.ng said technology comes at a cost that can be very expensive for businesses however they can leverage existing technologies as well as social media platforms, and tracking devices, among other things to boost their business.
Sandra Okonkwo, CEO, Poshex logistics said although it is a profitable business, running such a business in Nigeria is very difficult to manage with challenges from various angles including the regulatory authorities, and touts among others.
She said business owners need to be more resilient to operate and urged that regulatory authorities harmonise their requirements to ease the burden of business operators.
Essien Etuk, cofounder at Messenger, who is also the president of the Association of Abuja Logistics Operators (AALO), who organised the event said, the goal is to have a thriving and successful logistics industry that will be encouraged in an enabling environment.
Abiodun Soroye, manager at Allianz Nigeria Insurance said, there are issues around the volatility of the business environment as well as issues around people taking undue advantage of this gap.
He however noted that business operations must continue and advised that logistics entrepreneurs prioritise having insurance which will help mitigate the impact of some of these challenges.