2024: Defining the future of logistics

We got our train rolling like never before, delivering over 500+ Tonnes of parcels to customers around the globe.

In Nigeria, informal logistics operators play a crucial role in connecting producers of local commodities with the diaspora by providing export services including documentation, packaging, and access to global courier services.

This report examines the performance of these players, in an attempt to spotlight a community that is fast becoming an integral component in the global export industry in Nigeria.

17 million Nigerians live in the diaspora and over a million Nigerians migrate overseas annually, with 35% residing in the USA & UK.

Source: Integral Human Development | Country Profile - Nigeria (2024)

35% of the Nigerian diaspora reside in the UK & USA

This trend in migration is driving increased demand for the export of indigenous Nigerian consumer products.

Informal

Logistics Operators

In Nigeria, informal logistics operators play a crucial role in connecting producers of local commodities with the diaspora by providing export services such as documentation, packaging, and access to global courier services.

This report examines the performance of these players, to spotlight a community that is fast becoming an integral component in the global export industry in Nigeria.

Terminal Africa empowers informal logistics operators, individuals, and eCommerce merchants with the tools to grow and ship conveniently.

01

An Overview of Nigeria’s Informal Logistics Sector

The informal sector in Nigeria comprises around

58.2% of total GDP

In the past decade, the rise in migration engineered the creation of informal logistics operators to support the growing needs of local businesses looking to export goods to the diaspora.

Informal logistics operators primarily assist commodity producers with shipping services, such as packaging, quality assurance checks, documentation and tracking.

These businesses are typically owned by a single individual and generally employ between 3 - 5 people.

Commonly referred to as 3PLs (3rd Party Logistics), they play a crucial role in connecting the local populace with the growing diaspora community.

Notably, 37% of the 3PL operators on the Terminal platform are women, and the average age of a 3PL operator ranges between 30 and 35 years.

02

Creating Possibilities in Logistics

We are helping Africans

ship

At Terminal, we believe this growing community of Nigerians living in the diaspora will have significant impact on the economic growth of Nigeria over the next 10 years.

We also believe that the informal logistics operators that utilize our technology are uniquely positioned to drive immense value for this community. So in 2022, we developed technology that streamlines all aspects of global shipping, making it easier for businesses in Nigeria to ship parcels across the globe.

T-Hub Launched in February 2024

In February 2024, we launched our white-label software, T-Hub, which is designed specifically to streamline operations for third-party logistics businesses.

TakeOff Masterclass

Knowledge is indeed power. Supporting our community of 3PLs goes beyond providing access to our technology.

In October 2024, we launched the Takeoff Masterclass, designed to empower 3PL business owners with the practical and innovative insights they need to scale.

This in-person training featured leaders within the community who shared their valuable experiences, equipping attendees with the tools for success.

03

Shipping on Terminal in 2024

International Deliveries in 2024

Nigerians in the diaspora love a taste of home, and the data reflects their preferences. Clothing, beauty products & food items accounted for almost 80% of exports on the Terminal platform in 2024.

Local Deliveries in 2024

Small businesses in retail trade account for a significant portion of local deliveries conducted on the Terminal platform. Customers shipped over 2,800 packages containing 3264.9kg of skincare.

04

E-commerce & Payments Solutions

Recognizing the growing demand for seamless order fulfilment, we developed an e-commerce integration plugins for merchants selling on platforms such as WooCommerce, Shopify and Paystack.

Payment Gateway for Merchants

In 2024, we also added a payment layer to the plugin which is powered by Paystack, Stripe & PayPal.

This allows merchants to receive payments from their customers in over 12 currencies in the local currency making global trade for eCommerce businesses in Nigeria truly seamless.

05

Focus on Exports in Nigeria

In 2024, customers on the Terminal platform spent a total of ₦8.8 billion on deliveries shipping over 500 tonnes of commodites across the globe.

06

Supporting businesses in rural Japan

During our research for this report, our data team came across frequent shipments to Ōita Prefecture, a rural city in Japan.

Oita Prefecture

We came across a story of a Japanese woman, Hatsumi Koseki, who set up a store in her community, selling Nigerian fabrics to locals in her community.

07

The People’s Choice

What is the best courier service to use for deliveries?

At Terminal Africa, we work with over 15 active couriers — 9 international and 6 local — including trusted services such as DHL, FedEx, UPS, Aramex, and others.

Top 5 Pickup States

Lagos, FCT, Oyo, Rivers and Abia were the top 5 pickup states in 2024.

Local Courier Coverage

The South-West region led the way, accounting for 86.26% of total deliveries.

08

D-Day: Biggest Shipping Day in 2024

On February 26th, 2024:

Terminal customers shipped over 5.2 Tonnes of goods, making it our busiest shipping day in 2024 and also in the 3 year history of the Terminal platform.