Informal Transport Sector Hinders Accurate Measurement Of Nigeria’s GDP

Nigeria’s largely informal transport sector is making it difficult to accurately measure its contribution to the national economy, prompting stakeholders to call for measures to bring more operators into the formal system.

The challenge was highlighted at the 2026 National Conference and Annual General Meeting of the Chartered Institute of Logistics and Transport (CILT) Nigeria, where participants stressed the need for stronger regulation, reliable economic data and better coordination across the transport industry.

Speaking at the conference, the Special Adviser to the Vice President on Transportation, Segun Obayendo, said the informal nature of significant parts of the road transport and inland waterways sectors had complicated efforts to determine their actual economic value.

He said discussions with the National Bureau of Statistics (NBS) had highlighted difficulties in capturing economic activity in the informal transport sector, hindering efforts to quantify the industry’s contribution to Nigeria’s Gross Domestic Product (GDP).

The problem raises questions about how effectively policymakers can plan for a sector whose economic activities are not fully captured in official statistics.

Without more comprehensive data, the scale of economic activity in informal transport operations may be difficult to establish, potentially complicating decisions on infrastructure investment, regulation and sector development.

Obayendo called for collective action involving government agencies, professional bodies and transport operators to address the challenge.

He said formalisation would help improve the visibility of transport activities and demonstrate the contribution of industry professionals to economic growth.

At the conference, CILT Nigeria President, Dr Boboye Oyeyemi also called for a more coordinated approach to developing the country’s transport and logistics infrastructure.

Oyeyemi said transport services were central to economic activity, facilitating the movement of agricultural produce to markets, supplying raw materials to manufacturers, distributing goods and connecting people to employment opportunities.

He argued that the country needed to move beyond developing individual infrastructure projects towards an integrated system linking roads, railways, maritime transport, aviation, inland waterways, ports, terminals and logistics hubs.

According to him, infrastructure deficits, weak institutional coordination, high logistics costs, inconsistent regulatory requirements, security challenges and climate pressures continue to constrain the sector.

He said the conference would examine infrastructure financing, digital technology, artificial intelligence, intermodal connectivity, regulatory consistency and inclusive mobility.

The CILT president urged participants to develop practical solutions and partnerships that would improve transport efficiency and reduce operational challenges for businesses and other users.

He maintained that the conference’s success should be measured by the actions and commitments that emerge from its deliberations.

In a goodwill message, CILT International secretary-general, Paul Macdonald, commended the Nigerian chapter for its contribution to the institute’s global professional community.

Macdonald, who was unable to attend the conference, encouraged members to sustain collaboration, share professional knowledge and build on their collective achievements.