Courier Services Power Nigeria’s E-Commerce Boom Despite Lingering Hurdles

Courier operators are increasingly serving as the backbone of Nigeria’s fast-growing e-commerce ecosystem, efficiently connecting sellers and buyers and driving sharp growth in the post and courier sector. However, despite impressive gains, stakeholders warn that structural, regulatory and economic challenges continue to threaten the industry’s sustainability.

Data from the transport and storage sector show that Nigeria’s post and courier industry recorded a turnover of N248.14bn in the first nine months of 2025, representing a 56.28 per cent increase from N158.73bn recorded in the same period of 2024. The surge reflects rising parcel movements, intra-city dispatch services and small cargo deliveries driven largely by digital trade.

The sector earned N140.35bn in the first quarter of 2025, before declining to N54.79bn in Q2 and N53bn in Q3. Analysts attributed the strong first-quarter performance to dry-season mobility, festive spending spillovers and heightened consumer activity, while the slowdown in subsequent quarters was linked to heavy rains, weaker travel and reduced economic activity.

Experts describe logistics as a key indicator of economic health, noting that increased movement of goods signals stronger consumption and trade. Supply chain specialists say the seasonal nature of Nigeria’s economy largely explains the quarterly fluctuations, with logistics activity peaking between November and March.

The rise of e-commerce has been central to the sector’s expansion. Consumers increasingly rely on courier services for food, groceries, pharmaceuticals and online purchases, while small-scale exports to the diaspora have also grown amid favourable exchange rates.

However, industry players say challenges persist. High fuel prices, poor road infrastructure, congestion, limited access to affordable financing and multiple taxes continue to raise operating costs. Regulatory concerns, including the dominance of informal operators and perceived conflicts in oversight, also limit fair competition.

Despite these constraints, stakeholders agree that courier services remain critical to Nigeria’s digital economy and consumption recovery. With the right infrastructure investment, regulatory reforms and access to affordable credit, operators say the sector could unlock even greater growth and efficiency.