How Proto Can Help Improve Logistics in Nigeria

10 min readAug 22, 2024

Nigeria is one of the most populous countries in the world, with over 233+ million people as at August 17, 2024, according to Worldometer. This huge number of people means the country has a lot of streets, from busy roads in big cities like Lagos and Abuja to quiet lanes in smaller towns. These streets are important for everyday life, helping people travel, do business, and connect with each other.

Mapping all of these streets is extremely important for different reasons. It helps with accurate record keeping, making sure that every street is documented and easy to find when needed.

This is crucial for logistics, as businesses rely on detailed maps to plan delivery routes, manage transportation, and ensure goods reach their destinations on time.

Also, having a comprehensive map of the streets helps in organizing and managing public services like emergency responses, incase of fire outbreaks, flooding, etc.

Unfortunately, Nigeria as a developing country lacks proper addressing systems, which causes problems for various sectors of her economy, including logistics.

In this article, we’ll look at the following topics:

Nigeria’s Addressing Problem
How This Affects Logistics
Introducing Proto and LocalCode
How can Proto solve the issue of Logistics in Nigeria?
Why Proto is the Solution Nigeria needs
Conclusion
References

Nigeria’s Addressing Problem

In Nigeria, although local governments are officially responsible for creating streets and assigning names, in reality, people often take matters into their own hands, naming and even creating streets without much oversight. As a result, no one really looks into how streets are created, leading to potential confusion and inconsistency.

In 2017, on behalf of the Nigerian government, the Nigerian Postal Services (NIPOST) set up a National Digital Addressing System to make street naming and numbering digital across the country. Little progress has been made since then, hence these problems still exist.

Improper addressing is a problem in both rural and urban areas because new streets are constantly being added. Since these new streets and addresses aren’t being digitalized, it causes a lot of issues.

This lack of up-to-date information makes things very difficult for postmen and people working in logistics. They struggle to find the right locations, which leads to delays and mistakes. Without a proper digital system, managing deliveries and services becomes a real challenge, impacting efficiency and service quality.

Popular map services like Google Maps do their best but can’t help in cases where the address isn’t listed on their map servers or has an inconsistent format. This makes it hard to reach customers, creating a major issue for delivery companies.

How This Affects Logistics

The word “logistics” here refers to the process of planning and managing the movement of goods/packages from one place to another.

A 2021 report by the World Bank highlighted that moving goods locally in Nigeria is 500% more expensive than in the USA. This means that, on average, it costs about 5.3 times more to move goods over the same distance within Nigeria compared to the United States. This high cost is largely due to the challenges of finding accurate locations, which leads to delays, lost packages, and dissatisfied customers.

According to the 2023 recent World Bank Logistics Performance Index (LPI), Nigeria is ranked 88th out of 141 countries, an indication that the country continues to lag behind other nations in logistics, according to the World Bank.

So, although the logistics sector in Nigeria is booming, it still faces lots of difficulties. Some of the ways inaccurate addresses affect logistics in Nigeria include:

High Cost of Deliveries

Nigerian businesses spend between ₦3,000 and ₦3,500 on last-mile deliveries due to problems with addresses and traffic congestion. For many Nigerians, this is a lot, especially if the cost of delivery is higher than the price of the package itself.

For businesses, these high costs eat into profit margins, making it more difficult to offer competitive pricing and how much profit they make.

Delivery Delays

A lot of deliveries are delayed because of inaccurate addresses. This is not just an inconvenience — it leads to tangible losses in revenue and damages customer trust.

Imagine waiting days or even weeks for a package, only to find out that it was delayed due to a wrong address. Personally, I’ve had to redirect postmen multiple times because the addresses listed on Google Maps were incorrect.

For businesses, these delays can result in lost sales, as customers may turn to competitors who can offer more reliable delivery services.

Lost Packages

In 2020, the global logistics industry reported an estimated loss of around $30 billion due to lost or stolen packages. Most of these packages were reported lost or undelivered due to address-related issues. If a delivery person can’t find the exact address of the customer, the package may end up undelivered or lost entirely.

This is not only a financial loss for businesses but also a major source of frustration for customers.

Introducing Proto and LocalCode:

Proto is a platform that’s changing how we manage and share location information by creating an on-chain map system. Proto is building a large, community-driven database of locations that anyone can add to.

This data can be easily integrated into different apps and websites, helping businesses improve how they manage deliveries and other logistical tasks.

A key feature of Proto is that it lets users add their specific location to the map themselves, without needing anyone else to do it for them. This gives you control over your own location data.

Plus, Proto rewards users with tokens when they add their location to the map, so you can earn rewards while helping to build a better map.

Proto offers a tool called Localcode, which makes all of this even easier. Localcode turns traditional addresses into personalized domains that you can manage and share securely.

This tool allows developers to create new on-chain products that connect with real-world locations, opening up new possibilities for improving logistics and other services.

LocalCode Structure. Img from Proto Blog

With Localcode, you can add multiple addresses and give each one a unique identifier. For example, I have three addresses — two homes and an office — this is how it could look on Proto:

1st residential address: snow.home.proto.lagos
2nd residential address: snow.home.proto.benin
Office address: snow.office.proto

This feature is especially useful for businesses with multiple locations in the same state or country. It allows them to easily organize and manage their different addresses.

One of the best parts about Localcode is how customizable it is. Imagine being able to personalize your address on a map! The possibilities are endless. Not only is it practical, but it’s also fun.

Plus, there are events where communities come together to map out entire neighborhoods, making it a collaborative experience.

Proto also offers rewards for contributing to their map. By adding locations, you can earn rewards like gift cards, native tokens, discounts, and more. This makes the experience not just helpful but also rewarding.

How Can Proto Solve the Problems of Logistics in Nigeria?

Proto has the potential to improve the logistics sector in Nigeria by addressing many of the challenges that businesses and individuals face.

The current issues, such as incorrect addresses, high delivery costs, delays, and lost packages, are mostly due to the lack of a reliable and standardized system for mapping and addressing.

Here’s how Proto can make a difference:

Improving Address Accuracy

In Nigeria, where many areas are poorly mapped, Proto’s ability to let users create and customize their own addresses is very handy. This feature allows individuals and businesses to ensure their addresses are accurate and easy to locate.

With a lot of urban areas in Nigeria suffering from inconsistent or incomplete address data, Proto & Localcode will ensure that every address is unique and easy to find, reducing the chances of misdelivery.

You don’t have to go around asking people for directions to your destination.

Enhancing Efficiency

Delivery services in Nigeria are often delayed due to poor address systems. Proto’s map data can be integrated into logistics operations, allowing for more efficient route planning.

For example, in Lagos, where traffic congestion and poor address systems cause significant delays, Proto’s accurate mapping can reduce delivery times by up to 25%.

This not only speeds up deliveries but also helps logistics companies cut down on fuel costs and other operational expenses. When you know the exact location of where you’re going to, you know the exact route to take that’ll help you save time.

Boosting Security

By keeping the mapped data on-chain, Proto can ensure that address information is secure and tamper-proof, minimizing the risk of fraud or theft.

The blockchain is immutable and transparent, making sure no one can tamper with the addresses you or other members of the community has created.

Lowering Delivery Costs

The high cost of last-mile deliveries in Nigeria, is a major concern for businesses and consumers alike.

By providing a reliable and standardized mapping system, Proto can help businesses reduce these costs by minimizing the inefficiencies caused by inaccurate addresses and inefficient routes.

This could lead to a reduction in last-mile delivery costs by as much as 15–20%, making deliveries more affordable for both businesses and their customers.

Increasing Trust in Delivery Services

In Nigeria, where a lot of packages are reported lost or undelivered due to address issues, Proto can significantly enhance customer trust in delivery services.

By ensuring that addresses are accurate and easy to find, Proto reduces the risk of lost packages and delays, leading to higher customer satisfaction.

This is particularly important in a rapidly growing e-commerce market like Nigeria’s, where reliable delivery services are key to customer retention and business growth.

Community Involvement and Incentives

Proto promotes community involvement by allowing users to add their locations to the map and earn rewards for their contributions.

In a place like Nigeria, where local knowledge is often crucial for accurate mapping, this feature can lead to the creation of a more comprehensive and reliable map.

The token-incentivized system not only encourages participation but also helps build a sense of community ownership over the map data. This approach could lead to an increase in the accuracy and coverage of location data across Nigeria.

Why Proto is the Solution Nigeria Needs

Nigeria’s logistics industry has a lot of room to grow, but one major problem is holding it back: the lack of a reliable addressing system. Without accurate addresses, delivery companies face ongoing issues like high costs, delays, and unhappy customers.

To truly impove the effeciency of Nigeria’s logistics sector, a strong and dependable solution is needed — and Proto can provide just that.

Here’s why I believe Proto is the solution Nigeria’s logistics sector needs:

Proto fixes the gap in Nigeria’s traditional mapping systems. Proto offers a unique solution with its on-chain map-data system.

Unlike older mapping systems that may have outdated or missing information, Proto allows people to create and customize their own addresses directly on the map.

This ensures that their locations are correct, up-to-date, and easy to find.

For individuals, this means you can get your package delivered to any location of your choice, no matter how remote it is.

For instance, I can decide to get a package delivered to my 2nd residential address (snow.home.proto.benin). Because this address has been properly indexed and have proper landmarking, it’s going to be easy to find.

2. Proto will boost delivery efficiency across Nigeria.

By solving the problem of inaccurate addresses, Proto can bring many benefits to the logistics sector in terms of reduction in delivery costs and faster delivery times.

The ability of Localcode to back personalized address makes locations easy to find and improves delivery accuracy.

3. Proto’s Localcode tool adds even more value by letting users turn traditional addresses into personalized domains.

This makes it easier to manage and share addresses securely.

For businesses with several locations in Nigeria, this feature is super useful, as it helps organize addresses in a simple and understandable way.

Imagine being able to get the exact location of various local businesses in your area easily?

4. Proto encourages people to get involved by offering rewards for adding their locations to the map.

This approach not only makes the map more accurate but also gives people a sense of ownership, as mentioned earlier.

The more people contribute, the better the map becomes, which leads to even greater improvements in the logistics industry. Research shows that people are motivated by incentives, and Nigerians are not left behind. If you ask the average Nigerian to participate in a task and get a reward, best believe they’d jump on the opportunity.

In short, Proto is more than just a mapping tool; it has the potential to be a major step forward for Nigeria’s logistics sector.

So, as Nigeria’s logistics industry continues to grow, Proto offers the smart solution needed to solve its current problems and reach its full potential.

Conclusion

Nigeria is well-known for its supply chain and logistics challenges, as highlighted throughout this article. Proto offers a promising solution by building maps on-chain, giving control back to the people. With Proto, there’s no need to wait for the government to map out your neighborhood — you can do it yourself.

As the days go by, the Nigerian logistics market is only expected to grow by a huge margin.

Proto is not just shaping the future of maps; it’s also going to pave the way for a more efficient and reliable logistics sector in Nigeria.

By directly addressing the country’s addressing issues, Proto is opening up new opportunities for businesses to succeed in a competitive market.

References: