SIFAX Group chairman identifies warehousing, cold-chain services, agricultural aggregation and technology as growth opportunities, cautions against asset-led investment decisions.
L-R; Mr. Abdulrahman Yinusa, Group Managing Director, Oodua Investment Company Limited (OICL), Oliver Omajuwa, Deputy Director, Strategy & Operation, SIFAX Group; Dr. Tola Kasali, Chairman, OICL and Otunba Bimbo Ashiru, immediate past Chairman, OICL during the company’s 2026 annual strategy retreat held in Ibadan
Investors seeking to tap into Nigeria’s growing logistics market should prioritise cargo demand, operational efficiency and cash flow rather than rush into acquiring trucks, warehouses and other physical assets, Chairman of SIFAX Group, Dr. Taiwo Afolabi, has advised.
Afolabi stressed that the profitability and long-term sustainability of logistics investments depended more on customer demand, productive asset utilisation and the ability to generate returns on invested capital than on the volume of assets owned.
He gave the advice while delivering a speech at the 2026 Annual Strategy Retreat of Odu’a Investment Company Limited, held at the International Institute of Tropical Agriculture (IITA), Moniya, Ibadan.
Afolabi, who was represented by Oliver Omajuwa, Deputy Director, Strategy and Operations, identified warehousing, transportation, agricultural aggregation, cold-chain services, technology and specialised logistics as viable investment opportunities.
He urged prospective investors to first identify gaps across the logistics value chain and establish the market demand for their proposed services before committing funds.
The SIFAX Group chairman specifically advised Odu’a Investment Company Limited to assess the transportation, storage and distribution needs of its portfolio companies, noting that their combined logistics requirements could provide a viable foundation for developing a shared logistics platform.
According to him, such an integrated platform would enable the investment company to leverage the collective needs of its businesses, improve operational efficiency and create additional value across its investment ecosystem.
On opportunities in port logistics, Afolabi noted that investment prospects extended beyond terminal operations to include cargo handling, freight forwarding, customs clearing, equipment maintenance, storage and export consolidation.
He explained that integrating these services could streamline cargo movement, minimise operational complexities and provide customers with access to multiple logistics solutions through a single service platform.
Turning to agricultural logistics, Afolabi observed that increased agricultural production would deliver limited economic benefits without adequate infrastructure for aggregation, preservation, storage and distribution.
He identified cold rooms, temperature-controlled transportation and strategically located warehouses as critical investments for connecting agricultural production centres with processing facilities, retail markets and export channels.
The SIFAX Group chairman also highlighted different entry strategies available to investors, including greenfield developments, acquisitions and strategic partnerships with established operators.
He said the choice of investment model should be guided by an investor’s financial capacity, technical expertise and the market opportunities identified.
Afolabi further emphasised the growing importance of technology in modern logistics operations, identifying cargo tracking, inventory management and operational monitoring systems as essential tools for improving visibility, efficiency and service delivery across the value chain.
However, he cautioned against investment decisions driven primarily by the desire to own physical assets, warning that acquiring trucks, constructing warehouses or procuring equipment did not automatically translate into profitability.
He urged investors to undertake proper assessments of customer requirements, asset utilisation, cash conversion cycles and returns on invested capital before committing resources to logistics ventures.
He maintained that a demand-driven approach, supported by efficient operations and sound financial management, remained critical to building sustainable and profitable logistics businesses in Nigeria.
Pearl Ngwama is a prominent Nigerian media professional, an advocate of Nigeria Transport Sector development and Managing Director of JustAlive Communications Ltd, publishers of JustNet News.
She is the convener of the annual Nigeria Transport Summit.
