Uche Cecil Izuora
Experts in the country’s transportation industry have advocated for a broader approach to achieve a virile transport system in the country.
They agreed that Public-Private Partnerships (PPPs) should be adopted in building transport infrastructure in Nigeria, with the Federal Government further liberalizing the rail sub-sector to allow for private sector participation in the system.
The transportation sector in every economy is the backbone of productivity and a key driver of industrialisation and development. Accessibility and connectivity are twin factors in the transportation system, which are indications of how much a country has developed her transport infrastructure.
However, developing the transport infrastructure is very capital intensive and therefore a burden to a developing economy such as Nigeria’s.
At a one-day summit chaired by Mr. Fola Tinubu, the Managing Director/Chief Executive Officer (CEO) of Primero Transport Services Ltd, the operator of the Blue BRT Buses in Lagos, other distinguished analysts opined that the Federal Government must drive transport sector development through creation and implementation of workable transport policies that comprise the various modes of transportation in Nigeria. This will ensure connectivity and growth potential.
Nigeria’s transport sector faces many tremendous challenges. Despite natural resources that favour transport sector growth, which includes 853 kilometers of coastline, Nigeria still suffers grossly inadequate transport infrastructure. The inability to harness existing multi-modal transport opportunities severely limits connectivity.
The country’s roads are under pressure, the inland water transport and rail transport are developing at a very slow pace, and out of step with the nation’s population growth rate. Despite being on the concurrent list, states’ investment and participation in railway transport have failed to pick up outside Lagos, while private sector investment remained zero.
The aviation industry in Nigeria is falling short of growth expectations, as airlines grapple with shortage of investment capital, poor passenger population, and fueling and maintenance challenges. The implication of this is that airports have become graveyards of aircraft. Our airports continue to operate below average efficiency targets, making the country not to enjoy her natural aviation hub status.
Similarly, Nigerian seaports are still struggling with low ease-of-doing-business, as international trade processes remain herculean with unnecessary bureaucratic bottlenecks. With over 850 kilometres coastline and a hub status in the Gulf of Guinea, Nigeria cannot boast of a vibrant cabotage trade, as there are no indigenous vessels trading on her waters, while foreign ships flout existing law in the Cabotage Act meant to check their excesses.
Painfully, the country’s waterways also remain underutilised due to safety issues, poor regulation and absence of private sector investment outside Lagos.
In seeking the way forward, JUSTALIVE COMMUNICATIONS LIMITED, organised its maiden transport summit and brought experts and stakeholders from both public and private sectors to identify the problems and challenges, as well as provide solutions.
The summit with the theme, ‘Nigeria’s Transport Infrastructure: Innovation for a Sustainable Future’, attracted hundreds of participants.
Keynote speaker was the Lagos State University (LASU) Professorial Chair on Transport Studies, Prof. Bamidele Badejo. Badejo delivered a paper on ‘The Future of Transportation In Nigeria: Trends, Challenges, Opportunities, And The Way Forward’. The second paper, ‘Modernising Freight Forwarding Infrastructure: Driving Sustainable Transport Logistics and Trade Facilitation in Nigeria’, was delivered by Dr. Oluwasegun Musa, Chief Executive Officer, Widescope Logistics International Group and senior consultant, Global Transport Policy.
The participants urged the Federal Government to act fast in decongesting and lessening the pressure on the roads by paying attention to other modes of transportation. It should create an enabling environment to drive private sector investment in inland water transport, indigenous shipping, aviation and railways.
They also challenged the Federal Government to avoid politicising the transport sector and strengthen the institutions in the sector by engaging competent professionals in relevant positions across board.
According to them, “Tackling present challenges and attaining good connectivity in Nigeria requires innovation and enabling adaptation. The Government must drive innovation across all the different modes of transport through adoption of digitalisation and automation. It must quicken work on the National Single Window initiative and bring it into operation as soon as possible.”
In their opinion the Lekki Free Zone should be connected with railway and access roads, while the Federal Government should assist the airlines to access affordable credits by borrowing cheaply from development partners and giving the credits to airlines at single-digit interest rates.
The Federal Government should improve on governance issues in the aviation industry, including urgent discontinuation of collection of Ticket Sales Charge (TSC) and Cargo Sales Charge (CSC) or carry out a downward review of the charges to rescue the sector from total collapse.
They added that Nigeria must improve her green energy adoption in transportation by reducing her overall carbon footprint, in line with what obtains in South Africa, Brazil and the European Union.
Establishment of a National Aircraft Leasing Company to provide affordable access to aircraft and spare parts financing, was another interesting point raised at the summit.
They also called for the establishment of a long-term National Aviation Infrastructure Master Plan that integrates airport upgrades, technology adoption, and transit connectivity.
The participants called for establishment of security coordination through unified standards and real-time data sharing among airport stakeholders, reform governance structures in regulatory agencies to ensure professionalism, continuity, and insulation from political influence and the launch a coordinated image-rebranding campaign to reposition Nigeria as a safe, reliable, and competitive hub for regional transit.
Other recommendations include consistent and regular stakeholder dialogue between the public and private sectors to sustain reforms and monitor progress. Such a forum will develop and adopt a commitment statement and position for the sector, provision of transit facilities at the major international airports across the country, to ease passenger traffic and support logistics, as such a gap that limits the growth of the aviation sector in Nigeria.
They called for the fastrack of Customs processes at the ports, a situation that has remained a herculean, leading to long cargo waiting time and causing traders to incur losses in form of demurrage charges.
1st Session during the event included Capt. Ado Sanusi, CEO of Aero Contractors (represented by Mr. Olufemi Oluwafemi); Grp. Capt. John Ojikutu (Rtd), CEO, Centurion Security Services Ltd; Capt. Samuel Caulcrick, former Rector, Nigerian College of Aviation Technology (NCAT), Zaria; Mr. Remi Jibodu, Acting Chief Operating Officer (ACOO), Bi-Courtney Aviation Services Ltd (BASL); Dr. Alex Nwuba, President, Aircraft Owners and Pilots Associations of Nigeria (AOPAN); Dr. Chinedu Eze, Author, Aviation Editor and Deputy Business Editor, ThisDay Newspaper. The session was anchored by Olusegun Koiki, Head, Transport, Aviation and Tourism, The Guardian Newspaper.
2nd Session: Dr. Femi Aiyegbajeje, Senior Lecturer, University of Lagos (UNILAG); Chizoba Anyika, CiOTA National Publicity Secretary and Deputy Director at the Nigerian Maritime Administration and Safety Agency (NIMASA); Frank Ogunojemite, President, Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON); Dr. Azeez, Managing Director, A-Z Logistics and Mr. Frank Kintum, CEO, Transport Day Media. The session was moderated by Mr. Eguono Odjegba, Publisher, Pinnacle Time Newspaper.