E-commerce and SMEs are driving progress in Nigeria’s $8bn air freight market – Aramex Nigeria MD 

Nigeria’s air freight logistics sector is experiencing fast progress, pushed by rising e-commerce exercise and increasing commerce amongst small and medium-sized enterprises (SMEs), Faisal Jarmakani, Managing Director of Aramex Nigeria, informed Nairametrics.

He estimated the market to be value over $8 billion, with exercise concentrated in Lagos, Abuja, Port Harcourt, and Kano, and Lagos dealing with the most important share of volumes.

Having spent a decade working in Nigeria’s air freight sector, Aramex Nigeria has constructed vital experience throughout key cargo corridors, giving it a powerful perspective on the developments, challenges, and alternatives shaping the market.

In this unique interview with Nairametrics, Jarmakani mentioned the construction of Nigeria’s air freight ecosystem, the busiest cargo routes, operational and value challenges, bottlenecks in warehousing and last-mile supply, and the way expertise and infrastructure enhancements are influencing the following section of the sector’s progress.

Nairametrics: Out of your perspective, what are the expansion prospects for air freight logistics in Nigeria, and what components are at the moment driving demand on this section?

Faisal Jarmakani: Nigeria’s air freight logistics market is already sizable, estimated at over $8 billion, with exercise closely concentrated round Lagos, Abuja, Port Harcourt, and Kano, and Lagos accounting for the most important share of volumes. This focus displays the place commerce, consumption, and worldwide connectivity are strongest.

From a progress perspective, the outlook is medium-term. Demand fundamentals stay sturdy, and information point out continued enlargement over the approaching years, despite the fact that progress might be uneven throughout routes and sectors.

The first drivers of this progress are e-commerce and SME commerce. As extra Nigerian companies take part in cross-border commerce. We’re additionally seeing a notable improve in export volumes, pushed largely by Nigeria’s diaspora and the fast enlargement of B2B and C2C commerce channels.

These segments are rising exponentially and have a tendency to favor air freight due to shorter supply timelines and better cargo worth density.

Total, whereas infrastructure and value challenges stay, the demand facet for air freight in Nigeria is robust and increasing, notably for time-sensitive, high-value, and cross-border shipments.

Nairametrics: What are the important thing challenges holding again the expansion of air freight logistics within the nation, and which options do you imagine would make the most important distinction?

Faisal Jarmakani: The largest constraints to the expansion of air freight logistics in Nigeria are operational inefficiencies, value construction, and last-mile execution, with airport processing remaining essentially the most essential bottleneck.

First, inefficiencies in airport cargo processing considerably have an effect on turnaround occasions. These embody a number of clearance steps, overlapping regulatory companies, documentation high quality points, bodily inspections, and—most significantly—the dearth of expertise integration throughout companies.

To place this in context, in markets just like the UAE, when a cargo arrives at Dubai Worldwide Airport within the morning, it’s usually already out for supply by the afternoon. Nigeria nonetheless has far to cowl, however it is very important observe that processing occasions have improved meaningfully in recent times, indicating that the nation is shifting in the precise route.

The second main problem is value construction. Nigeria stays comparatively costly in comparison with neighboring West African international locations throughout dealing with, aviation-related prices, and last-mile prices.

This has actual strategic implications, as some firms more and more select different West African hubs to optimize prices, even when Nigeria is their main market.

The third key problem is fragmented addressing and last-mile supply challenges. Poor tackle high quality results in failed deliveries, increased return charges, and elevated value per cargo.

That is compounded by expertise gaps in real-time monitoring, dwell supply updates, and proof of supply, all of which straight influence buyer expertise and operational effectivity.

From a options standpoint, the most important positive aspects would come from deeper digitization and inter-agency integration at airports, value rationalization by way of coverage and infrastructure enhancements, and technology-driven tackle validation and last-mile optimization.

Addressing these areas would considerably cut back variability, decrease prices, and unlock sooner, extra dependable air freight progress in Nigeria.

Nairametrics: Based mostly on Aramex’s operations, which cargo routes are at the moment the busiest, and which routes have recorded the quickest progress in recent times?

Faisal Jarmakani: In Aramex Nigeria’s air-express and air freight combine, the busiest worldwide inbound corridors are sometimes Asia, North America, and the UK/Europe, with China normally the most important driver due to cross-border e-commerce and SME sourcing. The highest origin international locations are China, USA, UK

Domestically, Lagos is our hub that feeds the highest locations like Abuja, Port Harcourt, and Kano.

Nairametrics: Air freight relies upon closely on coordination with different transport modes. How does Aramex combine heavy items autos, mild business autos, and bike couriers into its air freight operations?

Faisal Jarmakani: At Aramex, we place ourselves as each a logistics integrator and a technology-enabled firm, working an asset-light mannequin that enables us to keep extremely customer-centric whereas scaling effectively.

In Nigeria, our busiest air-linked cargo flows are anchored round Lagos, which serves as the first worldwide gateway, feeding home routes into main business and inhabitants facilities comparable to Abuja, Port Harcourt, and Kano.

These corridors persistently carry the very best volumes as a result of they mix worldwide imports and exports with sturdy home demand.

When it comes to progress, the fastest-expanding routes are these linked to cross-border e-commerce and SME commerce, notably inbound site visitors into Lagos that’s then distributed by way of these home corridors.

When it comes to progress, the fastest-expanding routes are these linked to cross-border e-commerce and SME commerce, notably inbound site visitors into Lagos that’s then distributed by way of these home corridors.

Our mannequin depends on deep partnerships with mid-mile and last-mile operators, which permits us to scale shortly, optimize prices, and meet rising supply expectations with out heavy asset possession.