Experts have reiterated that hgh transportation costs directly drive up the prices of commodities, as moving raw materials, farm produce, and finished goods from the production centres to markets is becoming more expensive.
Speaking to the Nigerian Tribune, an Entrepreneur, Tor Ikuan, explained that transport and logistics are core part of the supply chain, ‘Producers and traders do not absorb high transit expenses; instead, they add freight, fuel, and vehicle maintenance expenses directly into the final wholesale and retail price of goods to protect their profit margins.’
He said until the Federal government finds an alternative to fuel or road transportation, the country will continue to experience induced commodity price increases.
According to the National Bureau of Statistics (NBS), transport accounts for a designated expenditure weight (share of the average household consumption basket) of roughly 6.5 percent to 10.7 percent.
Analysts noted that recent monthly NBS reports (such as mid-2026 data), transport’s direct year-on-year contribution to headline inflation hovers around 1.64 percent to 1.70 percent (contributing 1.64 percent in July 2026 and 1.70 percent in April 2026.
Also speaking to Nigerian Tribune, an Economic Expert, Mr Eric Igulla revealed that increases in the price of diesel or petrol (such as from subsidy removals or global energy crises) immediately inflate vehicle-operating expenses, which ripple across every tier of the logistics chain.
He explained that long distances between production hubs (such as farms or ports) and consumer markets, combined with bad roads or degraded transport networks, slow down transit times and burn more fuel and spare parts.
Igulla stated further that non-tariff barriers-such as multiple government roadside taxes, unauthorised checkpoints, and transit bribes-add hidden surcharges that transporters pass on to the final buyer.
Analysts believe poor handling of products increases the risk of damage, theft, or spoilage (especially for perishable agricultural commodities), forcing sellers to markup surviving stock to cover losses.
NBS data further disclosed that transportation has a direct divisional contribution of under two percent to headline inflation numbers, stating that agricultural group (such as the All Farmers Association of Nigeria) note that transport acts as a critical multiplier.
‘Spikes in fuel and logistics costs heavily amplify Food and Non-Alcoholic Beverages-which remains the largest single driver of headline inflation, accounting for over six percent to eight percent of direct contribution and weighted heavily at 40 percent to 52 percent of the total basket,’ the data revealed.
Another Financial Expert, Pamela Oluwatoyin, asked the Federal government to leverage the rail sector as an alternative for cheaper means of transportation and logistics.
She said while the progress made by the FG in the railway sector is commendable, ‘it is important to acknowledge that additional opportunities for development remain. Financing and loan repayment are critical considerations in rail infrastructure development.
‘In this regard, reallocating a portion of the funds currently devoted to recurrent road construction and rehabilitation towards railway expansion could contribute significantly to addressing the persistent deterioration of the road network.
‘Although railway infrastructure requires substantial upfront capital investment, it typically offers lower long-term maintenance costs and greater durability once completed.
‘Furthermore, an efficient rail system can reduce pressure on road networks by shifting a significant share of passenger and freight traffic from roads to rail, thereby extending the lifespan of road infrastructure and generating broader economic benefits,’ she stated.
Even though the Federal government is expanding CNG conversions and usage, Analysts said currently, the initiative has not been able to suppress the influence of fuel in determining transportation fare in Nigeria.