The Influence of Transport Costs on the Competitiveness of Nigerian Agricultural Exports

Transport costs are a significant component of the total landed cost of Nigerian agricultural exports, directly influencing their price competitiveness in international markets. This study examines the influence of domestic transport costs on the competitiveness of selected Nigerian agricultural exports, with a focus on sesame seed, cashew, and ginger as commodities with significant growth potential across the North West, South West, and North East producing zones. A professional supply chain cost analysis design was employed, integrating field surveys of 60 export aggregators and logistics firms with secondary data from the Nigerian Export Promotion Council and port operations statistics. The study maps transportation cost components from farm gate to port of exit and benchmarks these against competitor countries including Ethiopia, Ghana, and Tanzania. Findings show that domestic transport costs constitute between 22 and 30 percent of the total export cost for sampled commodities, compared to 12 to 18 percent for key competitor countries. Road infrastructure quality from producing regions to export-processing clusters is identified as the dominant cost driver. The study also documents that fragmented cold chain and warehousing infrastructure in producing areas increases post-harvest losses before export, compounding the competitiveness deficit. Recommendations include targeted investment in agricultural corridor roads, bonded warehouse development at producing area hubs, and integration of export logistics planning into the national agricultural export promotion strategy. Keywords: transport costs, agricultural exports, competitiveness, supply chain, Nigeria.