Breaking News
Translate

World Bank rates Nigeria low in trade logistics index

By Daniel Gumm
Nigeria’s capacity to move and connect manufacturers with international markets around the world was still low, the World Bank has said.The bank disclosed this in its 2010 Logistics Performance Index (LPI) released in Abuja, recently.

Nigeria is ranked 100th among 155 countries in the bank in a survey on trade logistics, despite various reforms in the country’s economy.

The bank said in the report titled: “Connecting to Compete 2010: Trade Logistics in the Global Economy,” that more work was required to spur economic growth and help firms benefit from trade recovery.

High income economies dominate the top logistics rankings, with most of them occupying important places in global and regional supply chains.

The lowest performing countries are mostly from the low income groups.
South Africa, which occupied the 28th position, was the only African country that was rated high on the LPI.
Other African countries, Senegal (58), Tunisia (61), Uganda (66), Benin (69), Mauritius (82), Congo Democratic Republic (85), Egypt (92), Togo (96), Guinea (97), Kenya (99), were ranked before Nigeria.

The study, which was based on the most comprehensive world survey of international freight forwarders and express carriers ranked Germany as the top performer among the 155 economies. Singapore, Sweden, The Netherlands and Luxembourg followed on the chart.

Additionally, the high cost of moving goods along the West Africa’s roads, Nigeria inclusive, among the world’s highest, are a significant obstacle to the competitiveness of Nigerian companies.

Road transport is the primary means of moving goods along the major routes in Nigeria and a reduction in in costs would make Nigerian companies more competitive in international market.

The cost of transport is determined by a number of factors: the costs of fuel and maintenance and repairs of vehicles top the list.

But the costs of bribes which truck owners and drivers pay to pass the numerous police, customs, and other checkpoints and insurance are significant.


Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.