A major feature of the festive period is gift-giving. After all, Christmas is all about love and endearment among families and other loved ones.
During Christmas, people give gifts in different forms. Some buy hampers or popular gift baskets containing everything from groceries to personalized care items. And these days, these gift items are mostly bought online since many people do not have the time to go to the shopping malls.
Increased online shopping also means more need for delivery/dispatch. This is where logistics companies come in. And they are raking in revenue this Christmas season.
More context: The dire security situation in the country means that people are less likely to travel. But they will still want to send gifts across states, especially those who do not live and work in the same cities as their family members.
People living in big metropolitan cities like Lagos, Abuja, and Port Harcourt are likely to use logistics services during this period.
There is also the subject of Nigerians in the diaspora who may be sending gifts back to their loved ones back home. This group is significant as global flight prices have escalated this year, prompting many to favour sending items back home instead of travelling.
Windfall despite inflation: As you may well know, Nigeria’s inflation rate has been soaring throughout the year, causing a lot of people to experienced difficulties in day-to-day living.
Core (non-food) inflation hit 18.24% in November of 2022, a significant uptick from the 13.85% recorded in the corresponding month in 2021.
Despite these challenges, macroeconomic indicators have shown that delivery services are trending upward. Nigeria’s Post and Courier Services sub-sector recorded a year-on-year real gross domestic product growth rate of 5.36% in Q3 2022 and has increased with every quarter this year.
Awaiting Q4 figures: It will be very interesting to see the figures for Q4 2022, but on-ground research projects that delivery and logistics companies are busy as ever. Visits to some popular interstate logistics companies by Nairametrics showed that they are still as in demand as ever, if not more. It is still, however, the economic conditions, the season of love, family, and friendship.
