Nigeria - Distribution and Sales Channels Nigeria - Distribution & Sales
The Nigerian Import value chain comprises a couple of players; the foreign exporter and export terminal through to the Nigeria import terminal, Customs, clearing agent and transport companies. Prior to the concession, the major port (Apapa), was a critical bottle neck in the ease of logistics and distribution of goods imported into Nigeria. However, some improvements have been made at the ports which are helping to increase the efficiency of the port. About $350 million investment was made in equipment (cargo handling equipment, mobile harbor cranes, rubber tyred gantrys, etc.) and infrastructure improvements, and yard expansion projects are being conducted to increase the terminals capacity. Information technology investments have also been made to improve the operating system of the terminal. In addition, a training center and crane simulation facility have been created for employees at the terminal to improve their productivity. In as much as these investments have been made, there is still room for improvement in infrastructure and good road networks which will further improve the state of logistics and distribution of goods from the port.
Three modes of transportation are available in Nigeria for distribution, but road is the most widely used. Local companies have developed capacities to distribute goods and services across the length and breadth of Nigeria where the market is available. U.S. companies would need to sign agreements with local companies and trade partners who already have established routes-to-market to sell their goods after it has been cleared at the port. Partnering with a local partner on this is critical as they have good working knowledge of the environment, the people and the market. Considering that the market is highly segmented, the sale channel partners would give insights on how to profitably serve customers, even the ‘last-mile’ customer.