Sterling Bank targets N15tn logistics boom with new transport blueprint

By: Amarachi Okonkwo

Sterling Bank has unveiled an ambitious strategy aimed at transforming Nigeria’s transport and logistics sector into a N15tn economic engine, as industry leaders warn that inefficiencies and chronic underinvestment continue to stifle growth.

The plan was presented at the inaugural Nigeria Transport and Logistics Summit 2026, themed “Funding the Engine of Growth,” where policymakers, financiers, and private sector operators converged to assess the structural gaps limiting the sector’s potential.

Despite contributing an estimated N1tn to Nigeria’s gross domestic product, stakeholders at the summit said the logistics ecosystem remains significantly underdeveloped, with as much as N14tn in untapped value due to weak infrastructure, fragmented systems, and limited access to financing.

Speaking through the Chief Executive Officer of the Sterling One Foundation, Olapeju Ibekwe, Sterling Bank’s Managing Director and Chief Executive Officer, Abubakar Suleiman, called for a decisive shift from policy discussions to coordinated execution.

“We must move beyond diagnosing the problem to building integrated, modern logistics systems that can power productivity at scale,” Suleiman said. “This means fixing our ports, strengthening logistics corridors, improving road and rail connectivity, and embedding efficiency across the value chain.”

He emphasised that Nigeria’s economic competitiveness increasingly depends on the speed and cost-efficiency of moving goods, services, and people, warning that incremental reforms would no longer suffice.

“The time for incremental change has passed; what is required now is bold, coordinated execution across public and private sectors,” he added.

The summit also spotlighted the sector’s broader economic significance beyond its direct GDP contribution. Sterling Bank’s Divisional Head of Renewable Energy, Mobility and Tourism, Darlington Nwankwo, noted that while logistics accounts for less than four per cent of GDP, it serves as a critical enabler for key sectors such as agriculture and manufacturing.

“We must be deliberate about fixing the logistics backbone of the economy if we are to unlock the growth we need,” Nwankwo said. “Nigeria’s trade competitiveness is directly linked to the efficiency of its logistics corridors, from ports to inland distribution networks.”

He added that the bank’s approach goes beyond traditional project financing, focusing instead on de-risking investments across the value chain.

“At Sterling, we see our role as connecting capital to execution, designing financing solutions that do not just fund infrastructure but unlock entire value chains,” he said. “The opportunity is not just to fix what is broken but to build a logistics ecosystem that is faster, more efficient, and globally competitive.”

Read Also:

• U.S. slashes Nigerian crude imports by 47% in January
• Dangote Turns to U.S. for Crude Amid Local Supply Constraints

Public sector stakeholders echoed the urgency for implementation. Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, urged both government and private investors to sustain momentum beyond the summit.

“I urge policymakers to move swiftly from planning to implementation, call on investors to support infrastructure and innovation, and encourage industry leaders to champion efficiency, sustainability, and accountability,” he said.

However, structural challenges remain significant. Delivering the keynote address, economist Biodun Adedipe highlighted Nigeria’s heavy reliance on road transport, which accounts for roughly 90 per cent of logistics movement. This overdependence, he noted, contributes to persistent congestion, high operating costs, and accelerated infrastructure wear.
Adedipe cautioned that meaningful transformation would take time, noting that tangible economic gains are unlikely to materialise within 18 months.

The summit concluded with a consensus that Nigeria’s logistics sector could unlock substantial economic value if supported by coordinated investments in multimodal transport systems integrating rail, road, air, and maritime networks, alongside the adoption of cleaner energy solutions.

If successfully executed, stakeholders believe the sector could evolve from a bottleneck into a catalyst for national productivity, trade expansion, and long-term economic resilience.