Business a.m.
Nigeria has made only marginal improvements in its performance in the World Bank Logistics Performance Index (LPI) as the most populous African country moved up just three places from 91st to 88th out of 141 countries, an indication that the country continues to lag behind other nations in logistics, according to the World Bank.Â
With an overall score of 1.9 out of a potential 5.0 in the World Bank’s Logistics Performance Index (LPI), Nigeria’s logistics sector is seen to have performed poorly across various dimensions. While the country scored a slightly higher 2.6 on the Customs Score, the other categories such as Infrastructure (2.4), International Shipping (2.4), Logistics Competence (2.5), Tracking and Tracing (2.3), and Timeliness (2.7) all indicated areas for improvement.
Developed by the World Bank, the LPIÂ is considered a vital tool that provides a comprehensive assessment of a country’s logistics sector, enabling policymakers and industry leaders to identify areas for improvement.Â
According to the World Bank’s assessment, the performance of a country’s logistics sector is determined by a range of factors, including the efficiency of customs and border management, the ease of arranging shipments, the quality of logistics services, the tracking and tracing of consignments, and the timeliness of deliveries.
The report further revealed that high-income countries continue to dominate the rankings, with Singapore leading the pack with a score of 4.3 out of 5.
A majority of the top-scoring countries, namely Finland (4.2), Denmark, the Netherlands, Switzerland (4.1), Austria, Belgium, Germany, and Sweden (4.0), are from Europe, followed by Canada, the United Arab Emirates, and Hong Kong SAR, China.
The lower rungs of the World Bank’s LPI are largely occupied by lower-middle-income countries, often struggling with fragile economies, political turmoil, or natural disasters, as well as landlocked nations that face challenges in connecting to international supply chains.
Despite a general upward trend in average scores among low performers on the World Bank Logistics Performance Index, the report showed that many countries remain in the same poor performance bracket. The report also indicated that the countries that continue to experience severe logistics limitations tend to have persistent low rankings in the LPI. The World Bank attributed this to long-standing challenges including political instability, inefficient government policies, lack of infrastructure investment, or challenges related to their geography or limited connectivity to global supply chains.
The World Bank’s report highlighted the vital importance of reliability and resilience in the logistics sector. Global trade, it stated, is a vital engine for economic growth, and efficient and reliable logistics services are considered the foundation that support its growth.
