The Co-founder and Chief Operating Officer of truQ, Foluso Ojo, in this interview, speaks to TEMITAYO JAIYEOLA about the low level of adoption of technology in the Nigerian logistics sector, and how a myriad of challenges is limiting the sector’s growth
What importance of the logistics sector to the Nigerian economy?
Logistics is the bedrock of any economy. Without logistics, there is no commerce. Imagine a manufacturer that manufactures goods but has no logistics to distribute or deliver them to the end users. Logistics facilitates trade, enhances the supply chain, creates jobs, and drives the growth of our economy. The contribution that logistics plays in any sector cannot be overemphasised.
The Nigerian logistics sector has yet to reach its potential due to many problems such as infrastructural deficits, weak government policies, and more.
How do you think the sector can navigate these challenges and start to fulfill its potential?
We can navigate some of these challenges through public-private partnerships, to accelerate the development of Nigeria’s logistics infrastructure. Logistics are largely dependent on infrastructure, which is something that developed countries enjoy that we do not. We need the government to step up and improve the current infrastructure to enable logistics to thrive. And on the private side, we need more interaction, innovation, and collaboration among players in the logistics sector.
What is the major problem affecting the country’s logistics sector, and how can it be addressed?
Poor infrastructure is a major challenge. Insecurity, low technology adoption, and inconsistent policies and regulations also affect companies in the sector. For instance, a commercial truck going from Lagos to Kano will get billed by law enforcement agencies on the road several times before it gets to its final destination, even when the vehicle has all the required papers.
There seems to be some kind of disconnect between regulation and reality in the sector. We need to improve the logistics system of Nigeria very fast by working on our infrastructure, streamlining and improving regulations, resolving the insecurity issues, and promoting sustainable practices.
How is technology reshaping the Nigerian logistics sector?
The adoption of technology in the logistics sector in Nigeria is very low. Logistics is still one of the sectors that have not been really impacted by modern technology. In the last few years, we have seen the emergence of digital solutions like logistics management systems, last-mile automation, route planning and optimisation, warehouse automation, and so many others. But we need to see wide adoption of these technologies across the sector. At truQ, we have made it our mission to automate the middle-mile logistics sector that is still plagued with manual processes. We have come a long way, but we believe that we have a long way to go, not just in Nigeria but also in Africa.
What is the future of the nation’s logistics sector?
The logistics sector in Nigeria has significant potential for growth and opportunities. If maximised effectively, factors such as economic growth, our large population and urbanisation, the rise of e-commerce, our strategic location for trade in Africa, cross-border trade, innovation, and technology adoption will contribute to the growth of the sector and enable us to be at par with the developed countries while establishing logistics as the bedrock of our economy.
Logistics is not a well-funded subsector of the tech ecosystem. How have players such as you been able to cope with this?
You are right. Logistics is not well funded in Africa when compared to other sectors like fintech and e-commerce. Despite these challenges, some companies have been able to stay in business and thrive. This is by focusing on different business and growth strategies such as innovation, bootstrapping, strategic partnerships, cost optimisation, service quality and pricing.
Can you walk us through what your company, Truq, does?
At truQ, we are building the operating system for third-party logistics in Africa. We connect people/businesses with logistics needs to the closest vehicles in real-time and provide software as a service infrastructure that helps businesses to coordinate and automate their logistics operations.
What are some of the challenges facing your company?
As already mentioned above. We are not insulated from the industry problems at large like poor infrastructure, inconsistent policy and regulation, low technology, and so many others. We are aware of these challenges and are putting in our own internal structures to not only survive but thrive in this sector with an eagle-eye focus on the customers we are serving.
