Courier operators in Nigeria are efficiently connecting sellers and buyers, driving e-commerce growth and nearly doubling sector revenue in just nine months. Yet, industry stakeholders warn that structural challenges continue to constrain its full potential, writes ARINZE NWAFOR.
According to data from the transport and storage industry, Nigeria’s post and courier sector generated N248.14 billion in the first nine months of 2025, up 56.28% from N158.73 billion during the same period in 2024. The growth reflects expanding parcel deliveries, intra-city dispatch services, and small cargo shipments nationwide.
A quarterly breakdown showed N140.35 billion in Q1 2025, followed by N54.79 billion in Q2 and N53 billion in Q3. For comparison, the same quarters in 2024 recorded N80.89 billion, N39.75 billion, and N38.09 billion respectively. Analysts attributed strong year-on-year growth to surging e-commerce, increased local deliveries, and small-scale exports, while seasonal trends influenced quarterly performance.
Experts said the unusually high Q1 revenue was driven by dry-season mobility, year-end festive spending, and robust consumer purchases. Conversely, the slowdown in Q2 and Q3 reflected heavy rains, reduced travel, and slower economic activity.
Despite these fluctuations, stakeholders agree that overall sector growth signals a gradual recovery in consumption and trade, cementing logistics as a key indicator of Nigeria’s economic health.
Grassroots Realities and Seasonal Trends
The sector’s resilience was evident, but growth remained uneven across the year. Mr Stephen, a driver with the Transport Company of Anambra State, noted that operations slowed during the peak rainy months of June and July due to poor weather and reduced travel. “Because of the rainy season, people are not able to move, so everything slows down,” he said. Business picked up from August onwards, making the overall 2025 performance comparable to the previous year.
He also highlighted the lingering effects of the 2023 economic shock caused by the naira devaluation, noting that while people could still afford to send waybills, drivers faced high fuel costs.
Supply chain expert Marcel Mba echoed these observations, explaining that logistics volumes in Nigeria typically peak during the dry season (January–March) when mobility and consumer spending increase. Conversely, the April–June rainy season slows movement, while festive periods between December and Easter boost deliveries. “Logistics mirrors the economy. High goods movement signals a vibrant economy; slow movement indicates economic contraction,” he said.
E-Commerce and Changing Consumer Behaviour
Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, attributed the sector’s growth to structural shifts in consumer habits, especially the rise of e-commerce. Intra-city courier services have expanded rapidly as Nigerians increasingly rely on home delivery. “People no longer travel for purchases; they order from home, and deliveries are made directly to them,” he said.
Yusuf also noted the rise of informal exports, with small consignments sent to Nigerians abroad increasing due to exchange rate incentives. Air cargo services, handled by international logistics firms, complement this domestic courier network. However, he warned that official statistics likely understate the sector’s size due to widespread informal delivery practices, including commercial vehicles and motor park operators.
Stakeholders Highlight Sector Challenges
Okey Uba, President of the Association of Nigeria Courier Operators (ANCO), said rising logistics costs have reinforced the value of courier services, as high fuel prices make delivery more practical for consumers. Health considerations and convenience have further fueled demand, particularly for groceries and pharmaceuticals.
Uba praised increased collaboration among operators, allowing firms to partner across cities rather than maintain costly branch networks. Yet he highlighted persistent challenges: weak manufacturing output limits parcel volumes, poor infrastructure delays deliveries, and high-interest financing hampers fleet expansion. He also noted regulatory issues, including overlapping roles of agencies and informal operators undercutting professional firms.
“Some traders and online merchants run their own delivery operations without meeting safety or regulatory standards, which distorts the market for established courier companies,” Uba said.
Conclusion
While Nigeria’s post and courier sector has grown rapidly, supported by e-commerce and changing consumer habits, infrastructure gaps, high operational costs, and regulatory inconsistencies continue to constrain its full potential. Stakeholders warn that addressing these structural issues is essential to sustain growth and ensure the sector can fully support the nation’s expanding digital economy.
