What are the problems of home delivery/logistics startups in Nigeria and solutions suggested. Read on to discover all you need to know.

Despite making significant contributions to our daily lives, the logistics sector is frequently disregarded by the public. 

You won’t notice the contributions of the logistics business unless one of the products or things you are seeking is unavailable because the logistics channel becomes congested, thus unless you are actively participating in the industry in some way. 

What Are The Problems Of Home Delivery/Logistics Startups in Nigeria and Solution Suggested

About Home Delivery Logistics/Startups in Nigeria 

The logistics market is worth about $8 trillion globally, which is a huge amount. Due to the epidemic and lockdown, the business only experienced a modest rise in 2020, but in the post-COVID period, this industry is quickly regaining its value.

The difficulties facing the Nigerian logistics sector are impeding its development, and recent global events have made matters worse. 

Because the logistics sector contributes to every other business, resolving these issues will have a significant impact on the nation’s economy. 

What then are such difficulties? Let’s talk about them below.

Read- What are the major problems of artificial intelligence-based startup 

What are the problems of Home Delivery/Logistic Startups and Solutions Suggested

The problems of home/logistics startups and solutions suggested are:

  1. Government Regulations
  2. Inadequate Infrastructure
  3. Insecurity
  4. Multiple taxes and unstable economy
  5. Slow custom clearance and ineffective ports

1. Government Regulations 

First of all, over the years, various government regulations have significantly harmed the business. 

The Ministry of Communications and the Digital Economy announced certain rules in 2020, one of which was the introduction of additional licensing costs for domestic courier and logistics businesses.

It demonstrated that this industry was open to government interference at any time, even though it was entirely rejected by the people and led to some mistrust in the government as a result. 

Whether or not these rules and regulations are appropriate, they can already cause a lot of problems for a sector with a lot of promise. 

Solutions of too much Government Regulations 

Startups should employ the help of lawyers. They should ensure that the lawyers interpret everything to them in the simplest form possible to enable them to abide by the laws.

Once they understand everything, it’s unlikely to get into trouble with the authorities, and your business will run smoothly.

Read – What are the day-to-day problems of life on Which startup can be started

2. Inadequate Infrastructure 

The country’s inadequate infrastructure adds to the challenges facing the logistics industry. Our nation’s weak transportation networks, lousy roads, and power outages are posing challenges for the industry.

Any nation that wants to grow its logistics industry must ensure that its infrastructure is suitable for supporting the demands and needs of contemporary logistics. 

In Nigeria, the government has allocated a sizable portion of the budget to infrastructure compared to other areas, yet it is not enough to address the country’s current infrastructure crisis. 

People often use the example of logistics firms like YRC that operate in nations with superior infrastructures, like the USA, however, these firms cannot be compared to their Nigerian counterparts. 

Solutions to inadequate infrastructure 

The Nigerian government appears dedicated to finding a solution to the infrastructure crisis, but it appears that private money will also be required.

Startups should figure out easy and good routes they can use for effective and safe deliveries.

Read- What are the biggest startup problems and how to overcome them?

3. Insecurity 

The country’s logistical activities are further hampered by the rising levels of instability in various regions. Kidnappers, bandits, robbers, terrorist assaults, and intercommunal conflicts are all on the rise. 

Even though these are diverse individuals and things, they all contribute to insecurity in various regions of the nation. 

These issues can easily affect any truck carrying goods, which would be a significant loss for the business. 

Operations involving supply chains and logistics are challenging in the country’s affected regions due to this insecurity. 

Solution of Insecurity

Startups should always place a high priority on safety and make sure that the driving schedules of their employees are strictly adhered to. 

Startups should establish guidelines to make sure they didn’t work at night or they would suffer the repercussions. 

They should also push for and counsel against entering anyone’s home or complex to make deliveries. 

For their safety, they should constantly advise their employees to make deliveries in public spaces.

4. Multiple taxes & an Unstable Economy 

Nigeria’s economy isn’t very stable, and as a result, logistics businesses are subject to several levies, the majority of which are unofficial.

To run their logistics operations in the nation, logistics companies must pay several information taxes, company income taxes, and community levies. 

Because of the unstable economy and the high tax burden, it is challenging for businesses to operate in such a nation. 

The survival of local businesses is becoming more challenging as a result of these unofficial tariffs, which are blocking foreign firms like SF Express, TCS, DHL, and others from entering the nation. 

Solutions of multiple taxes and unstable economy

To ensure that your suppliers continue to provide you with the greatest items, it would be best to maintain positive relationships with them. 

Additionally, Startups should pay off taxes as soon as possible to prevent them from piling up

5. Slow customs clearances and ineffective ports 

When compared to seaports throughout the world, the country’s seaports are incredibly inefficient.

And that’s not all; in Nigeria, the logistics of cross-border transit are made extremely complicated and delayed by the lengthy and slow-moving customs procedures, which frequently include middlemen. 

Solutions of slow customs clearance and ineffective ports

The government is attempting to adopt alternatives, particularly digital ones, to address the issue of delayed customs processing, but it will take some time. 

The ports are busy for longer periods due to slow customs clearances, and commodities take a very long time to get to their destination.


As individuals who are passionate about business owners and their enterprises, Startupspot constantly strives to provide answers to the problems that they encounter. 

The goal is to make sure that Startups can conduct their numerous transactions with ease. 

If you run a logistics startup, make sure to use our recommended solutions to reduce the losses your business will sustain.


Hi, I am Chidimma, the Chief Editor of StartupSpot. I hold a bachelor's degree in Business Education (with a major in Accounting) from the Nnamdi Azikiwe University Awka, Anambra State, Nigeria and online certifications in Digital Marketing by SEMRUSH Academy. Startupspot was therefore born (in 2021) out of my passion to reach startups, small businesses and a greater audience to educate them about startups, the challenges facing startups and how to manage their finances. I also wish to educate people (especially women) to attain financial independence. I hope you find the contents useful, and should you need further help, I hope you ‌reach me.