MVX, a Nigerian digital freight and trade finance startup, has ceased operations, highlighting the mounting challenges facing businesses in the country’s logistics sector. The company’s website is now up for sale, and its Co-founder and Chief Technology Officer, Tobi Amusan, has since moved on to establish a new venture, FleetPlus Africa.
MVX’s closure reflects broader turbulence in Nigeria’s logistics and trade ecosystem, exacerbated by economic pressures and systemic inefficiencies. Launched in 2019 by Tonye Membere-Otaji and Amusan, MVX initially aimed to simplify vessel chartering but later pivoted to offering digital freight and trade finance solutions. Despite early momentum and investor backing, the company struggled to sustain its operations.
Startups in Nigeria have faced significant obstacles, ranging from currency volatility to inflationary pressures. The naira’s dramatic depreciation — trading as low as ₦1,700 to $1 on the parallel market in 2024— has eroded business margins. Inflation, now exceeding 30%, has driven up the costs of essentials such as food, fuel, and electricity, placing additional burdens on businesses.
For logistics companies, these economic conditions have been compounded by policy decisions. The Nigerian Customs Service (NCS) has been adjusting foreign exchange rates used for calculating tariffs and duties since January, leading to uncertainty and higher costs for cargo clearance.
These pressures have affected even industry leaders. Kobo360, another prominent Nigerian logistics company, has experienced funding challenges and leadership changes. Its CEO, Ciku Mugambi, recently resigned after just a year in the role, raising concerns about the company’s stability.
MVX was founded on a vision to streamline Africa’s fragmented logistics sector. The startup began as MVXchange, a platform connecting operators with offshore support vessels. However, the sharp drop in oil prices and the economic impact of the pandemic in 2020 forced the company to rethink its model.
Pivoting to digital freight services under the brand MVXtransit, the company expanded its offerings to include trucking, warehousing, and trade finance through its MVXpay solution. These services were consolidated into a single platform aimed at simplifying cross-border trade for African businesses.
The company raised $1.3 million in seed funding in 2021 from investors including Kepple Africa Ventures, Founders Factory Africa, and Launch Africa Ventures. With this backing, MVX sought to scale its operations across Nigeria and other markets such as Kenya, South Africa, Ghana, and Rwanda.
Despite its ambitions, the company faced hurdles in maintaining traction. Economic instability, coupled with operational costs and market competition, ultimately led to its closure.
MVX’s shutdown raises questions about the sustainability of digital logistics models in Africa. While the sector is projected to generate $32 billion in revenue by 2025, challenges such as limited access to finance for small merchants and inefficiencies in infrastructure persist.
Companies like Ghana’s Jetstream and Nigeria’s SEND have continued to attract investor interest, but MVX’s fate discloses the difficulty of navigating the continent’s economic and regulatory landscape.