Zipline, the U.S.-based drone logistics company backed by major investors such as Goldman Sachs and Sequoia Capital, has announced plans to extend its operations to five additional states in Nigeria by the end of 2025.
This ambitious expansion follows a Memorandum of Understanding (MoU) signed with the Nigerian government in September 2024, enabling Zipline to utilize its drone technology for delivering essential medical supplies to remote and rural communities. Having entered Nigeria in 2022, Zipline currently operates drone distribution hubs, known as “nests”, in Bayelsa, Kaduna, and Cross River.
According to Akin Oyediran, Zipline Nigeria’s Country Manager and Head of Partnerships, discussions are underway with five more states to expand their network to seven operational nests. “The federal government is actively collaborating with us and the various states, as each state runs its own healthcare system. We are working together to deploy these nests and leverage drone technology for medical supply deliveries,” said Oyediran.
Nigeria’s healthcare delivery system faces persistent issues such as poor road infrastructure, inadequate storage facilities, prevalence of counterfeit drugs, and bureaucratic delays in medical procurement. These issues often leave rural hospitals and clinics struggling to access life-saving medicines, forcing residents to turn to costly private care or endure long waits for critical treatments.
In riverine regions of Southern Nigeria, where communities are accessible only by boats, bicycles, or on foot, it can take several hours — or even days — for essential medical supplies to arrive.
Before Zipline, organizations like LifeBank, Africa Resource Center for Excellence in Supply Chain Management (ARC_ESM), and the Nigeria Supply Chain Integration Project (NSCIP) had been addressing these healthcare supply chain challenges. However, their reach has been limited by inadequate funding, a hurdle Zipline has largely overcome.
In May 2023, Zipline secured $330 million in a Series F funding round, raising its total funding to approximately $900 million and elevating its valuation to $4.2 billion. The funds are being used to advance its drone technology and improve operational efficiency.
Zipline operates in eight countries across four continents, having launched in Rwanda in 2016, followed by Ghana in 2019, and later expanding into Nigeria, Kenya, and Côte d’Ivoire in 2022.
While Zipline has a well-established presence in Rwanda and Ghana, its Nigerian operations are set to deepen following an MoU signed in November 2024 with the National Blood Services Commission of Nigeria, aimed at establishing a national blood distribution system by the end of 2025.
Zipline’s drones are capable of delivering medical supplies within 30 minutes, compared to the up to 14 hours traditional delivery methods may require. According to an analysis by McKinsey & Company, the direct operating cost of a single-package drone delivery is estimated at $13.50, with labor making up about 95% of that cost.
Although Zipline has not publicly disclosed its pricing model for Nigeria, its contracts are designed to suit each partner’s needs and budgets. Instead of charging per flight, Zipline typically uses a monthly fee structure that covers centralized warehousing, inventory management, drone flights, and real-time data and analytics access.
Each Zipline nest can manage up to 300 drone flights per day, distributing vaccines, anti-malarial drugs, nutritional supplies, and other critical medicines. A single distribution hub can serve hundreds of delivery points within a 38,000 km² area, making hundreds of deliveries daily with drones capable of traveling over 200 km round trip.
Given that Nigeria is 36 times larger than Rwanda, replicating Zipline’s success will require approximately 36 nests to cover the country’s 36 states, compared to the two nests serving all of Rwanda.
Even with autonomous flight technology, Zipline employs staff to monitor and ensure the safe delivery of each drone’s cargo. A single nest can effectively serve areas within an 80-kilometer radius, extending its reach into neighboring states. “We’re starting to deliver blood and other essential medical equipment to riverine communities where access to quality healthcare is extremely limited,” Oyediran added.
Beyond its healthcare logistics focus, Zipline is exploring opportunities to support agricultural supply chains and potentially enter the e-commerce logistics sector in Nigeria.
Oyediran emphasized that Zipline views Nigeria as a critical market to demonstrate large-scale healthcare innovation. The company’s broader mission, he said, is “to make drone delivery accessible to everyone on earth.”
