2024 was quite a demanding year for a lot of sectors in the nation, especially the Logistics and E-commerce sectors. It seemed like a plague as issues kept rising in succession from skyrocketed fuel prices to high rate of inflation, clients as well as businesses scuffled to gain as much level ground with the rapidly escalating prices.
“Everyone was operating in survival mode,” remarked Ope Onaboye, CEO of Renda, Nigeria’s sole logistics startup to secure venture capital funding in 2024, raising $1.9 million.
Eight pioneers and investors were asked by us to try to foresee and predict what the new year (2025) has in store for the industry. In spite of the previous year’s obstacles, many are pretty sanguine about the future.
Industry analysts anticipate that the Dangote and Port Harcourt refineries will reduce energy costs, thereby alleviating operational expenses across the supply chain.
Additionally, advancements in global supply chain policies and innovations in food waste management are seen as potential contributors to lowering food prices—a significant factor driving Nigeria’s headline inflation.
There is optimism that e-commerce and logistics companies could enhance financial stability by boosting exports to generate dollar-denominated revenues. Furthermore, the industry is expected to witness increased merger and acquisition activity, following the 2024 merger of MaxAB and Wasoko to establish a market leader in their category.
A discussion about 2025 is definitely incomplete without Artificial Intelligence (AI), hence at least three pioneers predict that AI will notably swap processes in many online marketplaces.
Below are the forecasts – and the seers:
The year of social commerce
Pricepally’s CEO, Luther Lawoyin:
“The divide between online and offline retail is expected to significantly reduce. Digital-first retailers are likely to establish physical storefronts/outlets, while traditional brick-and-mortar businesses will expand their presence in e-commerce. This hybrid model is set to prevail, as consumers increasingly demand seamless and reliable shopping experiences that combine the strengths of both spheres.
Platforms such as WhatsApp and Instagram are poised to play a more prominent role, particularly for small businesses. These platforms provide cost-effective and direct avenues for customer engagement, making them indispensable tools for scaling operations and accessing new markets.”
The year of pivots, mergers and acquisitions
Remedial Health’s CEO, Samuel Okwuada:
“The supply chain sector in Nigeria is expected to continue grappling with persistent challenges, including global disruptions, local currency volatility, and inflation. Rather than pursuing cross-border expansion—which has yet to succeed at scale—further consolidation within the industry appears more likely.”
Ope Onaboye, CEO of Renda also commented:
“Many companies will face difficulties due to insufficient capital, leading to mergers among smaller startups. Logistics firms operating purely software-based models are likely to pivot towards infrastructure-focused, technology-enabled solutions, as the market is not yet ready for pure-software approaches. Perceptive companies will begin exploring alternative streams of revenue, given the limited prospects for investor interest in the sector.”
The year of increased export and reorganization of global supply chains
TradeDepot’s CEO, Kachi Izukanne:
“In US and Europe, the leadership alterations are opening doors as well as raising obstacles for Africa. The reorganization of global supply chains presents a unique opportunity for African businesses to thrive, but this potential can only be actualized if policymakers and companies act swiftly to bridge infrastructure gaps and enhance trade efficiency. Without decisive action, Africa risks losing ground in an increasingly competitive global marketplace.
The rapidly increasing global demand for ethnic foods and “Made-in-Africa” products poses a promising avenue for African exporters. Brands that adhere to international quality standards and leverage compelling storytelling will be well-placed to capitalize on these expanding markets. For both local and international stakeholders, 2025 will be centered on striking a balance between adaptability and strategic focus to navigate the complexities that accompany these opportunities and challenges.”
Adeola Ayoola, CEO of Famasi also commented:
“The political developments this year, particularly in trade and export policies, are likely to increase uncertainty. New regulatory requirements and evolving border policies may drive businesses to focus more on supply chain optimization and procureing export channels.”
Iyin Aboyeji, founder of Future Africa and Accelerate Africa, shared a pretty optimistic outlook:
“I’m bullish on exports. We’ll see substantial growth in food exports, including staples like yam, as global demand for African foods continues to rise.”
The year of dollar revenue
Iyin Aboyeji, founder of Future Africa and Accelerate Africa:
“Retail markets with split into two: a dollar-based market for dollar earners and a naira-based market for naira earners, however, infrastructure solutions will be essential to support and accommodate both needs.”
Lower costs, higher predictability
Pricepally’s CEO, Luther Lawoyin:
“With increased production at the Dangote Refinery, the operational NNPCL refinery, and other upcoming refineries, energy costs will likely balance or even reduce. This will lower logistics costs, enhance predictability, and improve overall operational efficiency.
Investments in better infrastructure and heightened focus on local production will decrease reliance on imports, streamline supply chains, and drive cost reductions.”
The year of AI
Eghosa Omoigui, Founder of EchoVC:
“We’re seeing a significant shift with AI. In e-commerce, expect the widespread adoption of AI agents for customer service and semi-autonomous transactions. These innovations will help ease consumer concerns about spending by providing budget forecasts and value assessments through AI tools.”
Adeola Ayoola, CEO of Famasi:
“Pharmacies will increasingly utilize AI and customer consumption data for predictive analytics to optimize inventory management. AI agents are set to play a vital role in primary care, reducing reliance on human labor for managing routine health issues such as common colds or minor home injuries.”
Akinropo Taiwo, HeyFood:
“The global retail industry will significantly adopt AI, automating and streamlining a wide range of processes. This will encompass customer-facing functions, such as ordering systems and communications, as well as back-end operations like inventory management.”
The year of lower food prices
ThriveAgric’s CEO, Uka Eje:
“In 2025, food inflation will reduce as more interest will be placed in the agricultural sector. Also, if local insecurity is dealt with, large-scale farming will be practiced by farmers who previously left their farms, resulting in increased food availability and accessibility, reduced food costs and increased agricultural productivity.”
Eghosa Omogui, Founder of EchoVC also mentioned:
“Food waste, which amounts to an estimated $4-9 billion annually, is often viewed solely as a waste management issue. However, it is also a significant contributor to rising food prices. Cutting food waste by half could reduce food costs by 10-20%. At EchoVC, we are conducting private experiments to address this challenge and anticipate significant innovations in food waste management emerging in 2025.”
In conclusion, though 2024 was a pretty rough year, 2025 seems to be looking really bright and forthcoming with bundles of advancements and improvements in a wide range of the sectors in the Nigerian economy. Stay tuned for the outcomes of these predictions as the year unfolds.
