News

Nigeria Ranks 88th in World Bank Logistics Performance Index

Written by Jerry Alomatu on June 19, 2024

News Views: 64

Nigeria has climbed to the 88th position out of 141 countries in the latest World Bank Logistics Performance Index (LPI), improving from its 91st place in 2022.

The LPI serves as a benchmarking tool to help countries identify and address trade logistics challenges and opportunities. It evaluates the efficiency and effectiveness of a country’s logistics services based on factors like infrastructure, customs and border management, ease of arranging shipments, quality of logistics services, tracking and tracing consignments, and delivery timeliness.

In 2023, high-income nations dominated the top 12 positions. Singapore leads the index with a score of 4.3, a position it has consistently held since 2007. Following Singapore are eight European countries: Finland (4.2), Denmark, the Netherlands, Switzerland (4.1), Austria, Belgium, Germany, and Sweden (4.0). Other top performers include Canada, the United Arab Emirates, and Hong Kong SAR, China, all of which play significant roles in global supply chains.

Conversely, the bottom 10 spots are occupied mainly by lower-middle-income countries from various continents, often hampered by fragile economies, armed conflicts, natural disasters, political instability, or geographic challenges like being landlocked, which complicates their integration into international supply chains. Despite some average score improvements, these countries’ rankings remain low due to persistent logistics issues.

The World Bank’s report underscores the critical role of reliability and resilience in effective logistics, emphasizing that efficient logistics are crucial for international trade and economic growth.

Nigeria’s overall score in the LPI is 1.9 out of 5.0. The country scored 2.6 in customs efficiency, 2.4 in infrastructure, 2.4 in international shipping, 2.5 in logistics competence, 2.3 in tracking and tracing, and 2.7 in timeliness.