For decades, Nigeria’s logistics system has struggled under the weight of chronic underinvestment, fragmented customs procedures, and deeply entrenched bottlenecks. The result is a high-cost, high-friction environment where clearing goods at the port can take anywhere from 17 to 21 days—one of the slowest timelines in West Africa. These inefficiencies cost Nigerian businesses an estimated ₦2.5 trillion every year, according to the Lagos Chamber of Commerce and Industry, and have steadily pushed cargo volumes toward faster, more predictable neighbouring ports in Ghana, Benin, and Côte d’Ivoire.
But a new project on the edge of the Lekki peninsula is betting that it can fix Nigeria’s broken logistics system. TY Logistics Park FZE, a 29,000-square-metre facility located within Alaro City, a fully integrated logistics hub developed by General Theophilus Yakubu Danjuma’s TY Holdings Group, launched on Monday, December 8, as West Africa’s first Free Zone–based contract logistics platform. Located within the Lekki Free Zone and 20 minutes from the Lekki Deep Sea Port, the facility promises speed, predictability, and seamless automation.
Its CEO, Arno van der Merwe, claims the logistics park will cut container clearance time from an average of 19 days to just 5.
“We are situated right on the orbital cusp of the Lekki Port,” he told . “With the infrastructure and relationships we’ve built, the average turnaround time for containers coming through Lekki into our facility is now five days. That compares to the traditional 17 to 19 days at Apapa.”
Solving a deep, systemic problem
Nigeria’s port inefficiencies are longstanding and deeply structural. Chronic congestion, manual inspection processes, weak access roads, overlapping regulatory agencies, corruption, and poor coordination have combined to make the country one of the most expensive and slowest trade corridors in the world. While efficient global ports clear containers within three to five days, Nigeria routinely requires close to three weeks. Even Ghana—despite its own operational challenges— clears goods within seven to ten days.
The cost burden is just as severe. Clearing a 40-foot container in Nigeria now ranges between ₦18 million and ₦26 million ($12,000–$18,000) in 2025—up to 179% higher than in neighbouring ports such as Ghana, Togo, or Benin, where charges average between $3,500 and $7,000. These inflated costs are driven by a combination of complex and overlapping port fees, multiple regulatory checkpoints, infrastructure decay, unofficial payments, and slow, manual customs protocols.
The result has been a steady diversion of cargo away from Nigerian ports. Importers increasingly route goods through Cotonou or Tema, opting to pay higher trucking fees but benefiting from faster, more predictable clearance and lower overall costs. This shift erodes Nigeria’s competitiveness, squeezes local manufacturers, and underscores the urgency of comprehensive reforms, particularly full digitalisation, agency harmonisation, and infrastructure upgrades.
“The logistics challenges in Nigeria and West Africa are systemic,” Van der Merwe said. “Years of underinvestment in infrastructure and fragmented customs processes have created huge inefficiencies. But within those challenges, there is also an opportunity.”
For him, that opportunity lies in integrating clearing and forwarding, warehousing, free zone operations, and digital logistics into a single, seamless system.
“We realised the demand for quality supply chain solutions is far greater than the supply,” he explained. “TY Logistics Park brings all the key components under one system-driven ecosystem to simplify trade in West Africa.”
A smart hub built for speed and scale
At the core of TY Logistics Park’s offering is a highly automated smart hub designed to deliver speed, precision, and reliability at scale. The facility integrates advanced Enterprise Resource Planning systems, including SAP, Oracle, JD Edwards, Manhattan, Sage, and Microsoft. It houses more than 44,000 pallet positions, giving manufacturers, distributors, and retailers ample capacity to store and manage inventory efficiently.
“Beyond our advanced technology capabilities, our true focus is on partnership that allows our clients to focus on what’s important while we address their problems,” said Theo Danjuma Jr, chairman of TY Logistics Park FZE.
A tour of the hub showed a facility powered by electric forklifts, very-narrow-aisle equipment, and low-level auto-pickers, enabling operators to maximise space while improving safety and accuracy in high-density storage. The centre’s 28 automated dock levellers speed up loading and offloading, cutting truck turnaround time and easing congestion during peak hours.
All operations are coordinated through a centralised, digitised Warehouse Management System (WMS) that tracks inventory in real time. Crucially, customs clearance does not take place at the port, unlike in Apapa. Containers are moved directly from Lekki Port to the logistics hub, which is less than 20 minutes away, where clearance is handled on-site.
“Customs doesn’t do container checks at the port. Clearance is done at our facility,” Van der Merwe said. “This makes the process significantly faster.”
The cash-flow benefit is particularly attractive: businesses can store imported materials in the free zone without paying duties upfront.
If the items are entering the Nigerian market, they pay the same duties they would have paid if they were cleared at the port.
“It allows companies to keep inventory in-country but only pay duties on a consignment basis,” he added. “This alone is a game-changer for many sectors.”
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Capacity and regional ambition
The facility is already operational and already has clients in fast-moving and consumer goods (FMCGs), healthcare, automotive and spare parts, electronics and electrical, construction, and oil and gas. About 20% of the available space is currently occupied, a strong sign of demand from Nigerian and multinational companies.
“This project will sit in the economic history of Lagos State,” Babajide Sanwo-Olu, governor of Lagos State, said at the launch event. “This hub is what happens when serious-minded individuals place a bet on the future of this country. This kind of partnership moves the nation forward.”
With the first two buildings completed and 40,000 square metres still available for expansion, the park is targeting 500,000 to 1 million metric tonnes annually in the coming years.
“We want to bring trade back to Nigeria,” Van der Merwe said. “Nigeria is at a pivotal moment. With the right infrastructure and technology, we can transform West Africa from a high-cost trade corridor into a globally competitive logistics hub.”
Beyond profitability
TY Logistics Park says success extends far beyond strong financial performance or faster operational cycles. The company is framing its impact through a broader lens. A major part of this vision involves attracting and retaining a diverse mix of clients, from regional manufacturers to Fast-Moving Consumer Goods (FMCG) companies and multinationals seeking a more efficient entry point into West Africa.
Another key measure of success for TY Logistics Park is its ability to strengthen cross-border trade within the Economic Community of West African States (ECOWAS) and help Nigeria reclaim a larger share of regional cargo volumes. Historically, Nigeria has handled a significant portion of West and Central Africa’s containerised trade—estimates suggest as much as 70% of the region’s cargo once moved through ports such as Apapa and Tin Can Island in Lagos.
However, this dominance has been steadily eroding. More efficient ports in neighbouring countries have become attractive alternatives for importers seeking lower costs and faster clearance. Nigeria’s container traffic fell by nearly 7% in 2023, dropping to 1.57 million Twenty-foot Equivalent Units (TEUs), a decline driven in part by high charges, operational delays, and unpredictable port processes.
TY Logistics Park aims to reverse this trend. By delivering the speed, reliability, and modern infrastructure that businesses have long sought outside Nigeria, the hub is positioning itself as a catalyst for restoring regional confidence and reducing cargo diversion to competing West African ports.
Sustainability is also central to the park’s ambitions. TY Logistics Park is working to reduce its carbon footprint by using electric handling equipment and planning large-scale solar integration.
Ultimately, the project carries a deeper national significance. “This is a Nigerian story,” Van der Merwe said. “It’s a Nigerian-founded business built to global standards. We want to leave the industry better than we found it.”
