Logistics Transport · members with less than five (5) credit level passes in two sittings in GCE,...

National Council of CILT Nigeria’s Courtesy Visit to the Corps Marshal/Chief Excecutive officer of Federal Road Safety Corps

2015 CILT Africa Forum in Arusha, Tanzania- CILT Nigeria National President, Maj Gen UT Usman (Rtd), FCILT was elected the Int’l Vice President and Chairman, Africa Forum.

2015 CILT Africa Forum in Arusha, Tanzania- CILT Nigeria National President, Maj Gen UT Usman (Rtd), FCILT was elected the Int’l Vice President and Chairman, Africa Forum.

The Growth of e-Commerce and its Impact on Logistics Industry in Nigeria

State of Transportation in Nigeria: Consolidation Or Unbundling the Transport Ministries and Agencies in Nigeria

The Future of Ports Development in Nigeria and the Increasing Attraction To Free Trade Zones/Special Economic Zones

Evaluating Traffic Congestion in Developing Countries: Case Study of Nigeria

The Growth of e-Commerce and its Impact on Logistics Industry in Nigeria

State of Transportation in Nigeria: Consolidation Or Unbundling the Transport Ministries and Agencies in Nigeria

The Future of Ports Development in Nigeria and the Increasing Attraction To Free Trade Zones/Special Economic Zones


www.ciltnigeria.org April 2015 Vol.2 No.3 A Publication Journal of The Chartered Institute of Logistics & Transport-Nigeria.

DigestDigestLogistics TransportLogistics Transport&

A Publication of CILT-Nigeria. www.ciltnigeria.org

Logistics & Transport Digest-3

CILT NIGERIA

ClLT Nigeria was founded in 1958 and operates under the Royal Charter as an International Branch (IB), (now a

Territory). The National Patron of CILT Nigeria is the Honorable Minister of Transport. The Institute is saddled with the functions of Education and Training, certification, setting standards of practice, licensing of professionals, monitoring and regulating professional practice in Nigeria, and is governed by a National Council whose membership is drawn from relevant sectors of the economy. The Institute also has a Board of Trustees, Branches spread across the country and a National Secretariat that manages its day to day affairs.In order to effectively support the profession and the industry, we have a mutually benefiting relationship with other National Councils, Local and International professional bodies, relevant Statutory bodies and Ministries, including Tertiary Institutions.

MISSION:To develop highly skilled and productive professionals that enhances industry efficiency.

VISION:To promote the development of the art and science of Logistics, Transport and Supply Chain in all its ramifications

WHO WE ARECILT is a professional body in the Logistics, Transport and Supply Chain Management sector that educates, trains, researches, develops processes and systems for the good of the society.

WHAT WE DOHuman capacity development through long and short educational training programmes, Certification and Licensing, Monitoring and Evaluation, Membership Registration (Individual and Corporate), Research and Development, Advocacy, Organization of Local and International Workshops/Conferences, Local and International Technical Guided Tours, etc. OBJECTIVES The objectives of ClLT are to: • Ensure adequate supply of qualified personnel to the industry. • Keep qualified individuals up to date throughout their profes sional working lives • Play active and influential roles in shaping logistics and trans port policies for the future development of the sector• Promote the study of the art and science of Logistics, Transport and Supply Chain Management.• Offer quality educational programmes that meet the criteria for professional membership of CILT. • Encourage members’ active participation in Continuing Professional Development (CPD). • Collaborate with the educational sector, statutory bodies and professional institutions with the objective of raising standards for certification. • Foster investigation and research into the development and improvement of Logistics, Transport and Supply Chain by every practical means.• Initiate regular meetings and exchange of ideas with relevant stakeholders and those interested in transportation sector through conferences, round table, regular meetings, discussion groups, seminars etc.

MEMBERSHIP OF THE INSTITUTEThere are six (6) categories of CILT’s Membership, namely;• Student Member• Affiliate• Member (MILT)• Chartered Member (CMILT)• Chartered Fellow (FCILT)• Honorary Fellow (FCILT)

MEMBERSHIP PROCEDUREYou can obtain CILT membership application form at our National Secretariat with a fee of N15, 000, or download it from our website http://www.ciltnigeria.org/membership/education/. Upon completion of the form, you should submit with the following: Complete the application form as required and submit with the following:

• A detailed CV prepared in line with the information at the rear of the application form• All credentials (photocopies), with original presented for sighting• Two passport photographs with names and signature at the back• Any other document that will aid your application• A teller showing appropriate payments in their specified currencies in favour of Chartered Institute of Logistics and Transport, using the following bank details: Bank: Sterling Bank Plc Account No. 0010864826

CILT PROFESSIONAL EDUCATIONProfessional Education is a prerequisite for developing quality membership and highly skilled manpower for the industry. Accordingly, CILT Nigeria has relationship with higher institutions of learning and specialized organizations which are accredited to undertake the training of candidates for the various levels of examinations.To this end, the Institute offers five levels of educational programmes as follows;

a. ENTRY QUALIFICATIONSi. Introductory Certificate in Logistics and Transport: Open to members with less than five (5) credit level passes in two sittings in GCE, SSCE, WASC etc at O/Level. Matured members and those with long industry experience.

ii. International Certificate in Logistics and Transport: GCE, SSCE, WASC, O/Level with 5 credits in not more than two sittings, holders of National Diploma in non logistics and transport fields. Matured candidates can apply.

iii. International Diploma in Logistics and Transport: Holders of National Diploma in Logistics and Transport, HND, First Degree in any discipline from recognized institutions.

iv. International Advanced Diploma in Logistics and Transport: Holders of International Diploma in Logistics and Transport, HND, BSc. in logistics and transport or related disciplines from recognized Institutions. Masters Degree in other fields can also apply. b. ACCREDITED TRAINING INSTITUTIONSProfessional Education remains a pre-requisite for developing quality membership and highly skilled manpower for the industry. In order to achieve this, CILT Nigeria has relationship with higher Institutions of learning and specialized organizations. These institutions and organizations are accredited to undertake the training of candidates for the various levels of examinations. As at date, we have accredited the following Institutions through which we deliver all levels of our courses.

i. Lagos State University (LASU), Ojoii. The Polytechnic Ibadaniii. Ladoke Akintola University of Technology (LAUTECH), Ogbomoshoiv. Olabisi Onabanjo University (OOU), Ago-Iwoyev. Federal University of Technology, Owerri (FUTO)vi. Maritime Academy of Nigeria, (MAN) Oronvii. Multimix Academy, Surulere, Lagosviii. Nigerian Army College of Logistics (NACOL), Lagosix. Nigerian Institute of Transport Technology, (NITT) Zaria x. Federal University of Technology, Akure (FUTA)xi. Redeemer’s University (RUN)xii. Centre for Logistics and Transport Education (CELOTE),Lagos


Logistics & Transport Digest -4

Maj Gen UT Usman (Rtd), FCILTNational President, CILT Nigeria

International Vice President and Chairman Africa Forum

Prof. Kayode Oyesiku, PhD FCILTNational Deputy President,

CILT Nigeria

Mr. Ibrahim Abubakar Jibril, FCILT, FNIM, ACIPM, CNI The International Vice President (IVP) for Nigeria, at the Inter-

national Executive Committee of the CILT, International

Dr. Shehu Usman Gidado, FCILT(Sea/Maritime Mode Representative,

CILT Nigeria)

Alh. M. Yusuf, FCILTVice President, North

Dr. Desmond Amiegbebhor, FCILT(Road Mode Representative,

CILT Nigeria)

Mr. Paul Ndibe, FCILTAg. National Executive Director,

CILT Nigeria

Prof. Princewill Ugo. Owualah, Bsc, MBA, M.Phil, Ph.D, FCILT, Fnimn, FNIER, MNIM(Pipeline Mode Representative, CILT Nigeria)

Mr. John Dottie, CMILTRail Mode Representative,

CILT Nigeria

Engr. Moroof G. Ibikunle, FCILT(Air Mode Representative, CILT Nigeria)

Dr. Ekwuribe Bob, FCILTVice President, East

Mrs. Ogochukwu Ugboma, CMILT(Logistics Mode Representative,

CILT Nigeria)

Hajia Aisha Ali Ibrahim, FCILT, FNIS, FPTM(Global Convener/Chairperson WiLAT,

CILT Nigeria)

Dr. Abimbola Odumosu, FCILT(Chairman, Zaria Branch,

CILT Nigeria)

Prof. Callistus Chukwudi Ibe, FCILT(Chairman, Owerri Branch)

Mrs. Fatima Diko-Kuton FCILTChairperson, Lagos Branch

Mr. Alban Igwe, FCILTVice President, West

Engr. (Prof.) Innocent Ezeala, FCILT(Chairman – Akwa Ibom Branch,

CILT Nigeria)

Prof. Adesoji Adesanya, FCILT(Chairman, Ibadan Branch)

Dr. Yusuf Pam Jack, CMILT(Chairman – Abuja Branch,

CILT Nigeria)

Dr. Adebambo Olayinka Somuyiwa, Ph.D, FCILTChairman, Professional Development Committee

CILT, Nigeria

Mrs. Ibanga Affiong, CMILT Chairperson, Public Relations & Business

Strategic Committee, CILT, Nigeria

Dr. Ndikom Obed, FCILT Chairman, Audit and Finance Committee

CILT, Nigeria

Mrs. Mary Hamman, CMILT(Female Representative)

MEMBERS OF NATIONAL COUNCIL, CILT NIGERIA

1. Dr. Ibrahim Vandu-Chikolo, FCILT, Former DG, NITT

2. Amb. Kema Chikwe, FCILT Former Hon. Minister of Transport

3. Mallam Bello Gwandu, FCILT Former MD, NPA

4. Dr. Ade Dosunmu, FCILT Former DG, NIMASA

5. Mrs. Dabney Shall-Holma, FCILT Director, NSC

6. Mrs. Lizzie Ovbude, FCILT MD, PTML

7. Mr. S. Adio Afolabi, FCILT Former AGM, NPA

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BOARD OF TRUSTEES

Table of Contents

Publisher: The Chartered Institute of Logistics & Transport, Nigeria 15B Awolowo Road, Ikoyi, Lagos. Tel: +234(01)4536689

Editor-In-Chief: Alban Igwe, FCILT

Features Editor: Chris C. Madza, MILT

Business Development: Remi Ajiboye, CMILT

Margaret Ogbonnah, CMILT

Administration & Circulation: Paul Ndibe, FCILT

Graphics: Owolabi Benjamin, MILT

Production Consultant: Image & Pix Ventures

Tel: 08181589894

Editorial Team

An integral feature of port development is the establishment of petroleum products’ tank

farms. Around the Apapa Port, the increasing size and dimensions of these tank farms give course for concern. The concern is not really with their locational problems and the spaces in between one another, but more with the outlets of the products they store. The major mode of distribution of these stored products is by road tankers, with the resultant road congestions they create. Ordinarily, road capacity in Lagos is an issue without the trucks. With the trucks, and an absence of an adequate public transportation system, the road condition is more of an issue, as they have suddenly turned to holding areas, as opposed to road access, they were designed to serve.

These trucks, as they lay siege on the roads, while awaiting turns to lift petroleum products, create untold road congestion and its accompanying hardships. In the past, and up to the early 1980’s, when the rail mode was used in the distribution of petroleum products, all the participating oil marketing companies have designated siding lines for receiving their loaded rail tankers. They decant the products into road trucks within their sidings. At that time, the economies of building tank farms around these sidings were not high. What stood out was a working arrangement for decanting from rail tankers to road tankers, without delays or disrupting the supply chain system. At that time too, due to the physical distribution system in place, coupled with the efficiency in the rail mode, a huge level of traffic pressures were taken off, from the roads.

Regrettably, as the fortunes and environment around the Nigerian Railway Corporation started to change with dwindling capacity, along-side the springing up of a set of smaller oil marketers, as opposed to the ‘Independent marketers’; with unplanned positioning of ‘tank/can farms’; the use of railway in petroleum products distribution reduced, and to a point where it is not being used at all. It is this state of affairs that resulted in the transfer of the burden, in the logistics support for the petroleum products distribution, to the already saturated road networks, especially at locations near these tank farms.

PUSHING BACK TO REGAIN OUR ROADS

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The Growth of e-Commerce and Its Impact on Logistics Industry in Nigeria

State of Transportation in Nigeria: Consolida-tion or Unbundling the Transport Ministries and Agencies in Nigeria

The Future of Ports Development in Nigeria and the Increasing Attraction to Free Trade Zones/Special Economic Zones

2015 Africa Forum in Arusha, Tanzania

Photo Spread

WiLAT, Nigeria -News

National Council of CILT Nigeria’s Courtesy Visit To The Corps Marshal/Chief Excecutive officer of Federal Road Safety Corps


Corporate Members



Editorial Desk

The economic costs of road congestion in Apapa, and as created by petrol tankers are enormous. As at now, there appears to be no solution to it. The idea of occasionally asking tanker drivers to stay off the roads, especially on the approaches to the Apapa port and their threats of strike action, to protest such measures, have not been healthy . The fact is that, the marketers are in business as well as the tanker owners and off course, the truck drivers. The products they are lifting are also in popular demand. In the circumstance, any breach in the flow process can stifle the economy. The new reports that trillions of Naira worth of petrol is consumed annually at the domestic end, for the fueling of generators, attests to the above fact.

A solution may have to come in the manner of a new approach to reclaim the road. In this new approach, the government must be the promoter and lead investor. Let us look at the various capacities, volume wise, of these tank farms. A distinction can be made between tank farms and can farms. Marketers with tank farms, i.e with huge capacity for the storage of products, should be assisted to be distributing their products through outlets, away from Apapa. Marketers having can farms i.e smaller capacity for their stock can be allowed to continue to dispense them through roads trucks provided a measure is taken to control further expansions in the erection of tank/can farms. The Thinking is that the marketers with can farms attract smaller fraction of the congestions. Those having tank farms, attract a higher volume of road trucks and as such, a heavier cause of road congestion.

The government should be encouraged to secure a way-leave for the owners of the tank farms to lay pipes for transporting these products from suitable points at their tank farms, to locations like Ifaw and/or Shagamu, which are far away from this focal point. What is principally required here is the ‘right of way’; the laying of pipes and their associated pumping machines, at various points (and being synchronized in such a manner that they behave as one), will assist in ensuring that huge quantity of products are not trapped in the pipeline.If we take the pressure, off the road approaches to Apapa and to locations like Shagamu and Ifaw, Apapa would then really wear a new look with improved economic life. Loading bays and reservoirs would be erected at these new locations and petroleum products can be lifted from there, instead of down here at Apapa. Additionally, the set of pipelines for delivering on this new idea will be a dedicated, heavily policed and protected, to ensure there are no pipeline vandalization stories.In a sense, it will open up a new business area. The government can either take it and develop it

initially or partner with a group or even concession or license it off. However, the initial step should be the enabling Law that will compel compliance of owners of Tank farmers, taking to distributing their products through these dedicated pipelines. The land areas for building these pumping stations, loading bays or stations are to be acquired and adequate reservoirs and loading gantries erected. The Government may settle for an equity ownership of the outfit, in terms of the costs of land acquisition and the costs for laying the pipelines. If this initiative is accepted, the first lifting of petroleum products through this process can come within 24 months. On the railway corridor, even though further construction works would be taking place there, it can still accommodate these pipes to Ifaw. The Link to Shagamu can explore either the shortest road network or through locations that are not heavily built up. The government can also license logistics firms and empower them to invest in this new area.Finally, the argument may be raised on the safety nests of the pipelines on the railway corridor. This can be subjected to an adequate risk assessment. However, when properly laid in the ground, with adequate protection, and suitable pipes, the risk can be mitigated. Another argument may be made with respect to how to account for the quantity of products pumped into the network. This can be checked and prudently accounted for. Each node or point should be metered. At the point of pumping into the network, the meter is automatically read with the aid of a computer, the reading is taken and the flow measured. At the point of loading into trucks, similar reading is taken and the account is balanced at the end of each process. Meter tickets can be used to batch the loading and clock out when the predetermined flow is achieved. In situations where loading is directly taken from the reservoir, the decanting process, which should be automated, should be metered and the meter electronically activated with code numbered meter tickets, that will have the quantity and product types already programmed with time or duration for the loading to achieve the expected volume.

With this process, which is semi-automated, the daytime active hours for loading may enlarge. With proper artificial lighting and the cool whether condition at night, a greater throughput time than are being attained now, can be achieved under the new system, with less pressure on the roads. It is an initiative that can be exploited in the face of the worsening situation in and around Apapa.



The logistics industry in Nigeria has witnessed a continued growth owing

to the emergence of new business opportunities. Nigeria now has more open access point for all forms of logistical needs than it did ten years ago.Of particular interest to this paper is the distribution of goods from ecommerceservice providers to their numerous customers across the nation.Hitherto, the industry was dominated by the multinational logistical company’s in the likes of DHL, UPS etc. However, these companies’service charges were exorbitant for the small scale companies to afford. In many ways it hampered the growth of SME’s and limited the opportunity which was available to it in the country. Unfortunately, NIPOST; which is government owned has not utilised its vast country –wide assets to effectively compete for business in the logistics sector in Nigeria.The bold foray into the industry by companies like ABC was a breath of fresh air to this sector of the economy. Originally a transportation company, ABC managers spotted an opportunity from within their complex transportation network across the country. And naturally, transformed into the business of not only transporting passengers from across the country, to include avalue added service of delivering packages of various sizes for customers to any destination of their choice.Today, ABC Transport is a major player in the logistics sector in Nigeria. It is serving as a competitor to the likes of DHL, UPS and others in Nigeria.

NEW OPPORTUNITIES EMERGES

In 2012, Nigeria began to experience a unique service as offered by the likes of Amazon, eBay, Alibaba etc. the establishment of e-Commerce business’ never before experienced by the likes of Jumia, Konga and Dealdey. These companies ventured into unchartered waters in Nigeria. The mere thought on logging on to a website putting in your card details and clicking to make payment on an item you so desired and have it delivered to you anywhere in the country was hard to believe. Lets bear in mind that internet fraud was (and still is) rampant in the country. Hence, the trust issue was the major challenge which they had to overcome. However, as more and more customers experienced the efficacy of this service others were convinced to give it a try. The growth in patronage since 2012 has simply been astronomical. The above e-commerce companies have had to acquire bigger warehouse facilities of up to 30,000 sq ft to accommodate their increasing customer base this trend is yet to abate.Since the pioneering entry of the Jumia, Konga and DealDey in the Nigeria e-Commerce business there have been others who have taken the leap of faith to follow suit. This includes OLX, Kaymu, JiJi, Kara, Heels to mention a few.Note that all this ecommerce businesses

have a unique selling point or business model that identifies them from all others in the industry. For instance Jumia and konga are similar in that they offer everything as you will find in a major brick and mortar super store such as ASDA, Debenhams, Marks and Spencer, Macy’s etc.While DealDey spotted a market for business owners who are striving towards making their business more widely known. Hence, these business owners are encouraged to offer a discount on their product or service as against the normal pricing they would offer from their local store or office. The category ranges from services such spa, hotel bookings, special delicacies, professional training sessions. It also includes the other such as the fashion, house hold appliances, home and décor. All of these categories are offered at a discounted price from the normal going rate. Basically DealDey offers discounted deals on product and services to customers.OLX service offering is similar to ebay in the sense that OLX does not have any warehousing need. It simply provides a platform for an individual who desires to sell an item to meet with a ready buyer who wants to purchase that item. The company provides advice to sellers and buyers on the best way to ensure their safety in the course of the transaction. It claims that its service is completely free!Kaymu on the other hand presents itself as a market place. This is a

THE GROWTH OF e-COMMERCE AND ITS IMPACT ON LOGISTICS INDUSTRY IN NIGERIAOBEMEATA ANETORAffiliate Member CILT



platform where a merchant registers on Kaymu website to sell a product-, kaymu advertises this on its website and customers approach the sellers based on the information presented on the site. It also does not necessarily have a warehouse of its own items. The core focus of their business model is to offer a platform to connect buyers and sellers through their medium.

IMPACT ON LOGISTICS

E commerce has had a wonderful impact on the logistics service in the country. There has been a lot more foray into the market by new entrants as was previously seen. The traditional leaders of the logistics industry have simply not been able to cope with the volume of the orders which they dispatch on one hand while the pricing system has necessitated the search for alternative means of logistics by ecommerce businesses. Note that most of these businesses are start-ups hence excessive distribution costs must be mitigated.In the year 2013 DealDey was dispatching a total of 3-4,000 orders a month. This figure increased phenomenally to 10-15000 orders every month by middle of 2014. The dominant players in the market ieJumia and Konga were dispatching 5,000 orders a day in 2013 the figure increased to 10000 – 15000 orders a day by close of 2014.In other to defray the costs of logistics to 3pl Konga for instance increased its logistics substantially in 2014 by acquiring over a hundred motorbikes and delivery vans leading up to the Christmas period of that year.DealDey likewise added to its fleet to dispatch orders.

A new phenomenon which has caught on in the industry is the launch of the ‘Black Friday deal’. This was traditionally an American experience but has since spread to other parts of the world and that includes Nigeria. Major retail storesin the west particularly America have witnessed a massive rush for deals by customers over the course of the single day’s offer period be it on the brick and mortar or web platform.In December of 2014, Jumia, Konga and DealDey adopted this strategy the result was a near collapse of the servers of the sites. To describe the transactional volume as phenomenal is to put it mildly. It instantly exposed the lack of capacity with the acquired fleet. And it threw up more questions with regards to the new strategy of increasing its fleet to defray logistical costs to 3pl’s.The positive side of the ‘Black Friday Deal’ is the increased percentage of unique buyers i.e. customers making first ever purchases on the website. The trend with this select group is that they are more than likely to make a return purchase hopefully sooner than later.An estimated range of orders dispatched by the 3 big online sites is estimated to be between 20,000 to 50,000 orders via the ‘Black Friday Deal’ alone. Hence, logistics has to involve more thanthe internal or 3pl dispatchers to deliver the orders to customers. In a desperate bid to achieve fulfilment one of the ecommerce businesses involved employees to deliver orders over the Christmas period to customers and be compensated for their effort.It is obvious that better preparations are in high gear towards the same event this year 2015 and the author is certain that lessons have been learnt from

the previous experience and logistical planning will be better implemented to achieve fulfilment or orders this time around.A BRIGHT FUTURE LIES AHEAD FOR LOGISTICS

Presently, the increasing volume has energised entrepreneurs to venture into logistics. From the venture funded start ups with a wide range of fleet to the small business owner with only a few dispatchers in their fleet.The current trend in logistics is the emergence of what I will refer to as the ‘4pl Support Services’. This owes to the fact that many of this new logistical business cannot acquire motorbikes and delivery vans all at once. Acquiring these assets is at an enormous cost to the business, hence, the strategy has been to welcome owners of motorbikes and vehicles to register with them and undertake the delivery on their behalf to the customers.What this strategy has done is enable any individual with such asset to earn an income based on the number they deliver for the 3pl. So the ecommerce business has inadvertently created another layer of indirect service which is flexible and is at a less cost to them. In the long run it is hoped that some of these 4pl Support service will grow with the 3pls to sufficiently acquire more fleet and be incorporated to run logistical services to other emerging sectors of the economy.In the words of Lagbaja ‘Many birds take to flight, wings never touch’. One thing is certain the number of ecommerce businesses will continue to grow in Nigeria. This will contribute enormously to the growth of the economy and reduce unemployment.



The benefits and importance of transportation infrastructure to

economic growth have been recognized for a long time. There is little doubt that investments in transportation systems (roads, railways, and canals) stimulated economic development in North America in the 19th century. No one living in contemporary world can overlook the profound changes brought about by the Interstate Highway System in the U.S.A. and the Trans-Canada highway in Canada. Transportation infrastructure has expanded the range over which goods can be marketed. It has made production and distribution process more efficient, created opportunities for economies of scale and increased specialization, changed logistic systems and reduced costs. These all benefit economic productivity.

A large number of researchers have re-examined or further explored the relationship between public infrastructure capital and economic growth. However, as many studies point out, these estimates are likely to have overstated the magnitude of the impact of public

infrastructure investment on private sector output and productivity growth. It also does not make sense for public capital investment to have a substantially greater impact on private sector output than private capital investment. In order to mitigate some problems that have arisen from the time series studies, subsequent studies are based on pooled time series and cross-section data. The results indicate a smaller and weaker contribution of public infrastructure investments and that the composition of infrastructure capital matters; some type of infrastructure (e.g. core infrastructure including highway, water and sewer system etc) may have greater effect than others. In the light of the importance of transport to economic growth, governments all over the world are involved in transport by providing, or regulating the provision of, infrastructure and services. Particular interventions into a transport market are determined by the policies developed and adopted to suit prevailing circumstances. Black (2003: 200) defined transport policy as ‘the position that some

level of government takes on a particular transport issue’, and the process of regulating and controlling the provision of transport. Rodrigue et al. (2006) suggested that, in fact, transport policy can be both a public and a private sector endeavour-private companies will themselves have policies to govern their operations- but that governments are frequently the most involved in making and administering policies because many components of the transport system are owned and managed by the state. Managing this complex pattern of mobility and the infrastructure and services that it requires has long been at the heart of why governments seek to involve themselves in transport. A better understanding has also been gained of the need to manage transport’s ‘negative externalities’, or the ‘events (such as pollution) that result in significant dis-benefits for persons who had little or no role in the decision making that led to those events (Oyesiku, 2002; Black, 2003).

A key goal of transport governance has been to intervene in the provision of transport infrastructure and services so

STATE OF TRANSPORTATION IN NIGERIA: CONSOLIDATION OR UNBUNDLING THE TRANSPORT MINISTRIES AND AGENCIES IN NIGERIA- Kayode Oyesiku PhD FCILT, MNITP, RTP.



that a range of social policy goals can be achieved. Controls and systems of subsidy disbursement built up from the nineteenth century in order to promote customer, employee and vehicle safety, and to prevent the emergence of significant social and financial disparities between areas and groups (Foster, 1992; Leyshon, 1992). Example of regulatory interventions are those designed to: ensure affordable rather than monopoly fares; guarantee concessionary fares for the young, old and disabled; promote a high quality of service provision; and stipulate the quantity of services provided to ensure a comprehensive transport network, especially in thinly populated areas where market failure was likely to occur.

Going by the Vision 20:20–20 transport thematic section report submission, ”because of the significant social, political, and environmental impacts of transport, and the high cost of providing a national transport infrastructure, government has an important role in providing, managing, and regulating the national transport network ... to deliver improvements and meet the needs and aspirations of Nigerians”.

This paper reviews the role of Transport in overall development of country, highlighting intermodal relevance. The paper then examines the transport systems situation in Nigeria, elucidating on the state and implications of the current structure of the systems by modes. Specifically, this presentation looks at the importance and implications of consolidation and unbundling of the transport regulatory agencies of government. It is important to note at this point that transport ministry, that is the significant government agency on policy and direction has been in a state of flux. Sometimes it is left alone as an autonomous ministry, while at another times it is merged with Ministry of Works or some other ministries. This pertinent situation is not discussed in this presentation. The paper suffers greatly from inadequate data on both the recurrent and capital expenditure of the state of the ministries and the agencies at a period when consolidation takes place and when unbundling takes place. Nevertheless, the critical issues relating to the relative advantages are highlighted.

ISSUES AND CHALLENGES OF NIGERIAN TRANSPORT SECTOR

A comprehensive due diligence revealed that Nigerian transport sector is characterized by the following: > Inadequate funding of the various modes > Poor maintenance of available infrastructure > Obsolete plants and equipment

> Absence of modernization and technology in some mode> Absence of intermodalism in planning, design and implementation> No Nigeria seaport or airport is connected to functional rail system > Absence of scientific methodology in tariff determination > Inadequate participation by the private sector > Improper definition of roles of stakeholders - government, public enterprises, operators, regulators, etc. ➢ Over-bearing government influence ➢ Over centralization in public enterprises ➢ Public monopoly in infrastructure provision and management ➢ Public monopoly in service provision in some modes ➢ Over staffing and poor management in some of the public enterprises in the sector.

Without doubt, the country faces monumental challenges in the transport sector as the long-term shortages are growing because the demand for transport is high and growing rapidly to meet the needs of expanding population and economy. In response to all these, government has embarked on a radical reform of the sector which includes the following: > Improvement of service delivery > Enhancement of management capability in the enterprises in the sector > Creation of a conducive institutional, legal and regulatory framework for the sector.> Development of private sector participation in financing, management and operations in the sector i.e., Public-

Private Professional Partnership (PPPP) in all the modes in the sector.

Despite all these, there has been imperceptible overall improvement of the transport sector development in response to national development drive and needs of the people. Taking the road sub-system of land transport as an example of state of regulatory crisis in the country, despite the importance of the road transport sector and giving the background information sufficient though not enough to plan effectively for regulatory purposes, the current structure of that sector is continuously afflicted by: Lack of effective regulating and control measures with numerous ministries involved as supervisory agencies, causing unprecedented confusion; No clear definition of responsibilities among the three ties of government, particularly in terms of policy formulation and coordination; No meaningful long term strategic planning, leading to ad-hoc and fire brigade type of responses to challenges; and Poor regulation and enforcement.

This scenario calls for effective coordination by a central regulatory agency for each mode of transport under the auspices of Federal Ministry of Transport that could ensure a “fast, safe, efficient, accessible and convenient transport system that would meet the vital national interests and enhances the quality of life of the Nigerian people today and in the future (adapted from the US Department of Transportation mission statement) (FMT, 2008). What is the implication of the consolidation or unbundling of the transport agencies perhaps the hull mark of this presentation.



CONSOLIDATION OR UNBUNDLING OF TRANSPORT SECTOR AGENCIES

The purpose of transport regulatory ministry or agency is specifically to formulate and guides policies in respect of ensuring that goods and services are moved timely, safely, conveniently and at available cost to all stakeholders. With respect to transport sector, regulatory agency must also ensure that mobility and logistic services are comparable and meet international standard in such a way that neighbouring and surrounding countries do not have incomparable advantage to that of Nigeria services.This section of the paper presents the perceived economic implications of either the consolidation or the unbundling of transport ministries and agencies.

CONCEPT OF CONSOLIDATION AND UNBUNDLED

The concept of consolidation with specific references to ministries and agencies relate to combining several units or departments that are related to transports including parastatals and agencies in to one large unit such as a ministry. In other words, consolidation simply implies bringing together all transport related agencies including parastatals into one large unit. The point of interest here is that consolidation refers to combining transport and related agencies into one big ministry rather than merging transport agencies with other unrelated agencies such as bringing together ministry of work and transport or ministry of housing with transport or ministry of urban development with transport. A note of caution here transports particularly transport systems are significant land use in urban and regional development. Similarly the transport system such as terminal, road, highway, port, rail line etc are not only important land use at both urban and regional levels, they are also significant projects when it comes to construction and therefore often consider as part of works and therefore sometime misconstrued as major focus of Works Ministry.In this instance, ministry of works and transport rather than independent ministry of works and ministry of transport should be a consolidation because transport is considered as one of several small parts of works and therefore works and transport are consolidated. This is far from the norm particularly in the contemporary world.Unbundle refer to having related transport agencies and transport rendering services separately, rather than as one unit or ministry. In other words, unbundling refers to the process

of separating those relating agencies offering specific transport services separately to be an entity of their own. Therefore unbundling of transport sector ministries and agencies refer to a situation where each of the related transport servicing agencies or unit are separately on their own and somehow become autonomous. The example of unbundled transport sector is to have ministry of Aviation, ministry of land transportation, ministry of sea transportation etc.A consolidated scenario is to have all these ministries under just one ministry of transport. It is important to note that when making comparison across the world particularly with references to the developed and rapidly developing countries of the world, over 90% of them or almost all have a structure of consolidated transport sector for effective administration. In other words, these countries being referred to have a single large transport ministry with all agencies consolidated under several modes of transport as divisions. However in limited few developing countries, the transport regulatory agencies are many and not necessarily under one ministry or agency. This implies that each mode of transport such as land, air, sea and intermodal actually has its own ministry. Obviously there are several agencies on modal basis that are accommodated under each of these modal ministries.

WHAT ARE THE IMPLICATION OF THE CONSOLIDATION AND UNBUNDLED REGULATORY AGENCIES?

Consolidated large ministry of transport refer to situation where all modes of transport are under one ministry and each of the modes has its agencies under the division of that mode for the purpose of coordination particularly at intermodal level where civil aviation and air transport, maritime transport and port, land transportation including roads and rails are perfectly coordinated. This makes the focus of the transport ministry to formulate policies effectively and also facilitate outcome in the transport sector, thereby contributing to national competitiveness and raise the quality of services of transport.In other words, consolidated ministry of transport easily and effectively performs very well the so responsibility for setting the policy, the implementation of the policies as well as coordination of the various mode, for higher quality of service delivery. Therefore more monitoring of day-to-day operations being handled by the statutory bound are easily and effectively monitored. Therefore the consolidated transport sector ministry will be capable to be responsive to the need of the sector both domestically and internationally under one umbrella. Perhaps more importantly planning for changes occasions by unanticipated

circumstances is easily achieved, while inter-modal transportation connectivity is easily achieved. The development of transportation sector is quicker particularly to achieve economical development of a nation, while competitiveness among the various modes of transport is virtually eliminated and complementarily of the modes are achieved particularly under consolidation, the transport sector becomes pro-active, teamwork greatly achieved, knowledge easily shared and innovation appreciated and developed for a better service delivery.A particular drawback of consolidated transport sector under one ministry is that of limited expansion and distinction of various expertise and specialization. In other words, at the higher levels such as deputy director and director level it breeds jack of all trade and master of none. In some instances there is a tendency for resource rationalization particularly as one ministry takes a huge chunk of the national budget without considering the role of various division of transport as well as enormous responsibilities of each mode under one ministry. With specific references to unbundle scenario of having each mode of transport being an autonomous, there is a tendency of proliferation of agencies leading to waste. More importantly effective coordination become very difficult to achieve as the policy strategies of each of the ministry become scanty and intermodal coordination that can enhance effective transport connectivity becomes difficult. It also provides a platform for uncoordinated integrated transport and in some cases limiting the system to achieve financial sustainability. Ideas for integrated innovation are virtually eliminated, while emperor building at the expenses of coordinated transportation system becomes the order of the day.However, under an unbundled transport sector professionalism and knowledge specialization are advanced. In addition job opportunities are often created and expansions of position are achieved. However, where opportunity potential is available and competent man power along with trained personnel are available. Mediocrities are created and these often make nuisance of the establishment. The quality of service is compromise and overall goal of transport system is achieve.

ECONOMIC IMPLICATION

There are three major stakeholders involved in transport regulation and administration: the government transport expert and administrators and the public. With the respect to the government it is fiscally more prudent and cost effective to the government under



consolidation scenario. Particularly a presidential system of government that has tendency for large government, consolidated transport is cheaper to run and prompt value for money realized. For the transport expert, particularly in consultancy status it is not usually economical friendly since those consultants will not have the opportunity to get job in several ministries. In other words they are restricted to rendered service for just one ministry but limiting their ability to run across as many agencies as possible. To the public and service beneficiaries there are of economic benefit under consolidated transport regulation agency. This is usually demonstrated at metropolitan level where for example transport fares are regulated and intermodal coordination of service user is easily appreciated. For instance, one joint ticket can be used for rail, road and ferry services transport. Where there is proliferation of agencies, coordination becomes ineffective and service users are usually at the receiving end. Generally, unbundled transport sector is very expensive to the government as well as to the service user.

CONCLUSION

Government intervention by regulation through well coordinated large body of related units and agencies is necessary in many ways. One Ministry of Transport with highly functional intermodal coordination department may serve this country better, going by the experience of several other developed countries. It must be recalled that just the Aviation Round Table called for the scrapping of the Ministry of Aviation in line with the decision reached by

the Economic Community of West African States Parliament in 2000 that recognises a Ministry of Transport to be in charge with specialist in various segments of transportation, aviation inclusive. Unbundled transport agencies, particularly at this stage of our national development may not be of good service to the operators. Perhaps, the critical kernel in this instance is to ensure that each and every parastatal is made to function very well as this is where operations are carried out and implementation of federated policies are monitored. At the parastatal level is also where professionalism is displayed and needs of the end users of transport services are met. Need to train and retrain personnel to ensure adequate delivery of service is often achieved under consolidated scenario. Proper domestication of various recognised professional institutes and bodies that are related to transport are also achieved for efficiency of the sector. BIBLIOGRAPHY/REFERENCES

Black, W. (2001) An unpopular essay on transportation. Journal of Transport Geography. 9, 1-11.

Black, W. (2003) Transportation: a Geographical Analysis, New York: The Guilford Press.

Docherty, I. (2003) Policy, politics and sustainable transport: the nature of Labour’s dilemma. In Docherty, I. and Shaw, J. (eds.) (2003) A New Deal for Transport? The UK’s Struggle with the Sustainable Transport Agenda. Oxford Blackwell.Federal Government of Nigeria, (2009):

Unpublished Transport Thematic Area Report: Vision 20:20- 20. Abuja: National Planning Commission.

Federal Ministry of Transport (FMT) (2008). Development of a Framework for the Establishment of Nigeria Roads Regulatory Agency. A Final Report Submitted by Human Environment Organisation, Lagos. Abuja: Federal Ministry of Transport.

Foster, C. (1992) Privatization, Public Ownership and the Regulation of National Monopoly. Oxford: Blackwell.

Ogunsanya, A. A. (2000) : “National Transport Policy for Nigeria : Highlight of issues.” Report of the 5th Meeting of the National Council on Transport. 29th – 31st August, 2000, pp 23-33.

Oyesiku, K., (2009). “Transport and Logistics Regulation in Nigeria”. Lead Paper presented at the 2009The Chartered Institute of Logistics and Transport, Nigeria National Conference on Regulation in Logistics and Transport Sector in Nigeria, held at the Lagos airport Hotel, Ikeja, Lagos , 15th – 17th December 2009. Oyesiku, O.O, and Gbadamosi, K. T.(eds.) (2008): Port Administration and Development in Nigeria. Ibadan: Heinemann Books Publishers (Nig.) Ltd.

Rodrigue, J.P, Comtois, C. and Slack, B. (2006) The Geography of Transport Systems. London: Routledge.



A Free Trade Zone, FTZ or a Special Economic Zone, SEZ, is a term referred to as geographical area in the nature of a

seaport, an International airport or a national frontier having advantages for trade. It is of the nature or arrangement where goods are landed, handled, manufactured, processed, re-configured, and processed or value added, with great prospects of re-exporting the goods, in their new forms,and without the intervention of the customs authority for purposes of Custom duty payments.This concept, as it relates to import and export of goods, is gradually being integrated in the development equation of countries seeking advantage of locations, facilities, infrastructural growth and accesses to special forms of financial reliefs to boost their economic horizon around the handling of goods, where they have special advantage of place, services, facilities, tariffs and labour.Most times, the urge to sign into FTZ/SEZs is justifiable as countries that signed into it, hope to leverage on the above advantages and much more. They target export expansion potentials, increase in productive investments in the local economy, enhancement in the volume of technological transfer that come with improved facilities and the accompanying know-how, among others. Interestingly, majority of the countries/economies signing into FTZ/SEZs are essentially developing, emerging and agriculturally based economies with huge populations. This can be evidenced in the lead some of the

countries have had in this direction and in the inclusion of some other countries like China, India, Turkey, Kenya, UAE (Dubai) etc.In the case of Nigeria, our huge population could be a factor, but we do not have any supporting agricultural produce or the technological base, neither do we have the expanded ports facilities or the institutional/legal structures to nurture the establishment of these zones, in order to create the expected real advantages. Our real sector output level, standing at 6.23%, as at Quarter three, Q3 of 2014 of our Gross Domestic Product is not sufficient to support the needs of a FTZ that targets food and beverages processing, as in the case of FTZ that handle condensate and grains processing; or in the case of a FTZ that targets agricultural and allied sector, as with a chemical fertilizer plant. It is not strange to note that the agricultural and mineral sub sectors of our economy are not fully developed and are essentially in their primary levels, where a lot of processing are required, necessitating their being exported in near their raw nature to other countries for processing. In the sections of our economy where some sort of meaningful progress may have been recorded, like some sections of our manufacturing, and petroleum derivatives, the output level from them are still not sufficient to constitute substantial resource input to support full benefits of FTZ/SEZs. On account of the above, one may be tempted to feel that the major benefits of FTZs may be eluding us, in addition to the compelling situation where we have to

THE FUTURE OF PORTS DEVELOPMENT IN NIGERIA AND THE INCREASING ATTRACTION TO FREE TRADE ZONES/SPECIAL ECONOMIC ZONESPaul Ndibe, M.Inform, Sc; FCILT



trade off financial and fiscal costs in terms of custom duty liberation, import duty and tax suspension like corporation tax holidays, investment incentives, import duty waivers and the benefits of capital and profit repatriations. Additionally, while we look towards leveraging our economic growth on the advantages of the FTZs, we should note that the Government should not surrender its complete interests in ports development. This is because, the need to provide for ports infrastructure like dedicated facilities for coal, mineral ore, and other exports through/with the aid of bunkers and conveyor belt facilities may not be in the ordinary consideration of privately owned ports/terminals, except for purposes of their own dedicated business, which may not be suitable for other firms or they may not share with other business concerns.

THE STATE OF THE CURRENT FTZS IN THE COUNTRY

We currently have the Border Free Trade, Calabar Free Trade Zone, Kano Free Trade Zone, Lekki Free Trade Zone, Maigatori Border Free Trade Zone and the Onne Oil and Gas Free Trade Zone. Regrettably, majority of these FTZs can really, at their current state, boost of huge contributions to our economy. This can be evaluated in terms of the level of demand by them, of our local resources, as inputs for their expected product diversification, re-configuring or in the expansion of exports over imports to them, that can really grow the economy. The near exception here may possibly be the Onne Oil and Gas Free Trade Zone, and only because Oil and Gas transactions constitute the major export flow and foreign exchange earner to the country. Consequently, transactions in that free Trade Zone would reflect high transaction figures, although they may not have significant effect on the economy generally, as activities outside the oil and gas would remain unchanged. The Lekki Free Trade Zone is yet to come on stream, and the area of the economy it will focus on, and its activity level may not be fully contemplated now, although aspects of the oil and gas are known to be part of it. With the above scenario, we need to evaluate other options in ports development as it relates to how Nigeria can meaningfully key into the economies of scale that FTZETZs offer. Regrettably, the current nature and structure of our formal ports,cannot present themselves as being amenable to functioning as FTZs. STRUCTURE DESIGNS OF THE FORMAL PORTSWe recognized that the ports are increasingly getting specialized as the Terminal Operators are concentrating

more on their individual core competencies. The resulting comparative advantage regrettably, would not be able to equate to the gains of FTZs. We may have the location advantage, sufficient drought and quay way, for receiving and attending to bigger ships with higher TEUS, but the lack of good inter-connecting road network, the poor road condition and absence of suitable railway infrastructure would negate prospects in this direction. We would not be expected to become a shipping hub, without good inter connection of modes that could take off volumes coming to these ports. One of the main focuses on FTZ is export promotion. Therefore,the expectation generally is that the size of exports from the FTZ would be sustained through an increased activity from the host country. This is essentially correct,if it is an export based economy. In our own case however, our domestic market is import based with huge millions of Dollars’ strain on our foreign reserve for in rice importation alone. The second expectation is that the manufacturing sector of the given economy often supports the activities at the FTZs. In our situation, too the level of the contributions of this sector to our local economy is still very low and may not fully support the demands of the FTZs. The possible gains that might result from the FTZs, as a result, are unlikely to reflect in our real sector, but may be evident with the improvements in the supply chain of the line of products tied to other economies. We would then be left with the amount of money in that value chain that impacts on our local economy, and on which custom duties are imposed.

FUTURE DIRECTION

In consideration of the above challenges, it appears suiting to conclude that, private sector driven ports developments would possibly address the concerns within and around the ports, but not with the external factors, like transportation infrastructure. Therefore, on our future plans for the developments of our ports, which of course would tend towards FTZ, we should evaluate the need for transport mode integration and availability. We should address the concerns relating to trailer issues, individual terminal operators’ short comings, paucity of common use facilities, unbundling of shipping documentations, costs of energy supply among others.Attention should be given to the transport needs for the deliverables to such ports or FTZs and similar outflows to the domestic economy. Outside the requirements for good transport link for the cargo, there should be adequate planning for the increased mobility needs of the work force in the FTZs, as well as those who have businesses to transact in those ports. There should be commitment to the local transport infrastructure base. If it is not available, it distorts the arrangement of the FTZ because there will be an increasing need for trade and business as well as job creation. All of the above would rely on good transportation modes and in their efficient interconnectivity, to sustain the resultant multiplier effect in the economy, as a cardinal feature in ports establishment and growth.



•L-R: International Sec. Gen. CILT, Mr. Keith New-ton; (3rd L) Mrs. Phidelia Mwaba; (5th L) Interna-tional President, Mr. Paul Brooks; (3rd R) President, CILT Nigeria and newly elected (IVP, Africa and Chairman Africa Forum) Maj Gen UT Usman (Rtd); (2nd R) President, CILT Ghana, Mr. Godwin Mensah; President , (1st R) CILT Tanzania, Mr. George Makuke at the 2015 Africa Forum held in Aru-sha, Tanzania… on Thursday, 5th March, 2015.

•President, CILT Nigeria, Maj Gen UT Usman (Rtd), making his acceptance speech after his election as the International Vice President (Africa) & Chairman, Africa Forum of the Chartered Institute of Logistics and Transport (CILT) at the 2015 Africa Forum held in Arusha, Tanzania… on Thursday, 5th March, 2015.

The 2015 CILT Africa Forum was held between 4th and 6th March in Arusha,Tanzania. At the Forum, the National President of CILT Nigeria, Maj Gen UT Usman (Rtd), FCILT was elected the Int’l Vice President, Africa and Chair, Africa Forum. The program was well attended by CILT Africa InternationalBranches. Present also were the CILT Int’l President, Mr. Paul Brook, Int’l Sec. Gen., Mr. Keith Newton, Education and Professional Development Coordinator, CILT Int’l, Mr. John Harris, dignitaries from Tanzania and CILT Tanzania members. There was the inauguration of WiLAT Tanzania and Valedictory Session for Dr. Emurwon Olupot, the immediate past IVP, Africa and Chair, Africa Forum.

2015 AFRICA FORUM IN ARUSHA, TANZANIAA Publication of CILT-Nigeria. www.ciltnigeria.org


Photo SpreadA Publication of CILT-Nigeria. www.ciltnigeria.org


Photo Spread A Publication of CILT-Nigeria. www.ciltnigeria.org


Photo SpreadA Publication of CILT-Nigeria. www.ciltnigeria.org


WiLAT’S VISIT TO OLD PEOPLE’S HOME AT YABA, LAGOS

This is one of WiLAT’s activities which is done at the end of each year, by paying charity visit in order to reach out to the less privileged.

This is a visit to Old People’s Home at Yaba, Lagos. It is our own way ofthanking God for a fruitful year and to put smile on the faces of the Aged people in the society.



WiLAT, Nigeria

Inauguration of WiLAT-Tanzania during the 2015 Africa Forum held in March, 2015 in Arusha, Tanzania.

President CILT Int’l, Mr. Paul Brooks, FCILT (6th front row), Sec. Gen. CILT Int’l, Mr. Keith Newton, FCILT (5th L, front row), Global Convener/Founder, WiLAT, Hajia Aisha Ali-Ibrahim, FCILT (5th L, front row) flanked by other WiLAT members after the inauguration of WiLAT-Tanzania at the Africa Forum held in Arusha, Tanzania.

Hajia Aisha Ali-Ibrahim, FCILT (Global Convener, WiLAT) making a speech after the inauguration of WiLAT-Tanzania at the Africa Forum held in Arush a, Tanzania



NATIONAL COUNCIL OF CILT NIGERIA’S COURTESY VISIT TO THE CORPS MARSHAL/CHIEF EXCECUTIVE OFFICER OF FEDERAL ROAD SAFETY CORPSThe National Council of the Institute led by the National President, Maj Gen UT Usman (Rtd), FCILT paid a courtesy visit to the Corps Marshal & Chief Executive of Federal Road Safety Commission, Mr. Boboye Oyeyemi, MFR at the FRSC headquarters in Abuja. The visit is aimed at strengthening the tie between the Institute and the Commission in the area of Human Capital Development.

L-R- Corps Marshal & Chief Executive of Federal Road Safety Commission, Mr. Boboye Oyeyemi, MFR & the National President, CILT Nigeria, Maj Gen UT Usman (Rtd), FCILT during the courtesy visit.

L-R- Corps Marshal & Chief Executive of Federal Road Safety Commission, Mr. Boboye Oyeyemi, MFR, FCILT, the National President, CILT Nigeria, Maj Gen UT Usman (Rtd), FCILT & Deputy National President, Prof. Kayode Oyesiku, FCILT during the courtesy visit.



Attaining an ideal logistics and transport system is a major challenge

of all tiers of government within nations or states, regional blocks, continents and indeed the world at large. It is also the concern of the private sector whose ultimate aim is to reap the fruit of their investment. An efficient and effective transportation system seeks to minimize cost and maximize speed without risking the lives of passengers and original status of the freight. Thus, cost minimization and speed maximization must be in absolute safety. While road transport is vital to countries’ development, maximizing the efficiency of road transport systems without adequate attention to safety leads to loss of life, health and wealth. Road traffic crashes are one of the world’s largest public health and injury prevention problems killing at list 1.3million people and injuring 50million persons the world over. This rising numbers of fatalities on the roads in low and middle-income countries like Nigeria are linked to development and motorization but occur in large part because road safety concerns are not being adequately addressed as the transport systems develop.Road safety refers to methods and measures for reducing the risk of using the road network. It also involves providing an environment which ensures vehicle speeds will be within the human tolerance wherever conflict points exist.In the past few decades, important lessons have been learnt from the experience of high-income countries; these lessons should be used to mitigate the impact of increased motorization on human life in our country. We will therefore consider issues on road safety the World over, in Nigeria and conclude with the best options

that guarantees countries’ investing adequately in road safety, since there is no simple correlation between the number of vehicles and the number of fatalities. In fact, many high-income countries continue to motorize but, with adequate attention to road safety, due to expanded management policies that keeps reducing the number of road traffic fatalities and making the roads safer.

MAJOR SAFETY ISSUES

The Global status report on road safety 2010 presents information on road safety from 182 countries, accounting for almost 99% of the world’s population. The report indicates that worldwide the total number of road traffic deaths remains unacceptably high at 1.3 million and 50million injuries per year. Only 28 countries, covering 7% of the world’s population, have comprehensive road safety laws on five key risk factors: drinking and driving, speeding, and failing to use motorcycle helmets, seat-belts, and child restraints.This report serves as a baseline for the Decade of Action for Road Safety 2011-2020, declared by the UN General Assembly. Made possible through funding from Bloomberg Philanthropies, this is the second in a series of Global status reports.Not necessarily for comparisons between countries, use of the total number of road traffic deaths alone may be misleading because it can result in comparisons of populations of unequal size. Apart from countries with small populations, death rates per 100 000 population more

accurately reflect the risk for dying in a crash than absolute numbers. That said a country’s total number of deaths in road traffic crashes can be useful for conveying the magnitude of the problem in a country, to calculate the investment and services needed or to make comparisons over time.The world over the major affecting Road Safety in world today is a follows:A. Enacting Road Safety lawsB. Formulating strategy for implementationC. Lack of fundingD. Lack of political will on the part of governmentsAny lopsided transportation system certainly places a very high demand on the largely unregulated road transport sub-sector. In that vein, it is not out of place to presume that when low- and middle income countries motorize quickly, a lag in the introduction of safety measures can result in more road traffic deaths, including deaths of pedestrians and other vulnerable road users. In Nigeria, lack of policy direction and implementation spells chaos, complexity, unpredictability, poor planning and lack of implementation, further compounds transportation problems leading to stagnation or even retrogression or unprecedented crises experienced during the 1970’s and 1980’s. The obsolete 1993 Transport Policy identified major issues bedeviling road transportation and safety in few words: “The existing imbalance between resource allocations to mode, the inadequacy of existing infrastructural facility and the misalignment between

EVALUATING TRAFFIC CONGESTION IN DEVELOPING COUNTRIES: CASE STUDY OF NIGERIA

- ACM, Kayode Olagunju, Ph.D



the objectives of the transport parastatals, operators and the material and organizational resources for them. They have led to the existing transportation problems, which include poor accessibility, high transportation cost, urban traffic congestion, accidents and environmental pollution.” Of course the 1993 Policy has never been implemented therefore, significant change cannot be said to have occurred. Moreover, the population of the country has been increasing creating more demand for transport infrastructure

and facilities This development ultimately affect other sectors of the economy since they depend on transport for efficiency and effectiveness.Recently in the year 2010, the Nigerian transportation system has not been anything different. The Honorable Minister of Transport, Honorable Yusuf Suleiman lamented, “In spite of all Government efforts, the transport industry is still confronted with a myriad of problems. Such problems include the over-dependence on road transport which today accounts for more than 90 percent

of passenger and freight movements in the country. This dependence on a uni modal transport is not healthy for the country’s economic development.

ROAD SAFETY PERSPECTIVES AND CHALLENGES OF ROAD TRANSPORTATION IN NIGERIA

• Over reliance on road mode of transport while other modes were not effectively utilized. • Inefficient transport operations use of rickety vehicles, lack of weigh bridges, overloading/speed, logistics• Inadequate and poor road networks quality of infrastructure is a major problem as most roads are dilapidated due to lack of proper maintenance• Inadequate transport infrastructure and services• Minimal use of technology in traffic management in Nigeria• Multiple traffic Agencies and inter agency rivalry.• Lack of adequate funding.

PRIOR TO ESTABLISHMENT OF FRSC

In Nigeria, the traffic situation before the establishment of the Federal Road Safety Commission could best be described

ROAD TRAFFIC CRASHES TREND: 1960 – 1987 YEAR

FATAL SERIOUS MINOR TOTAL CASES

NO. KILLED

NO.INJURED TOTAL CASAULTY

1960 826 9065 4239 14130 1083 10216 11299 1961 193 9982 5788 15963 1313 10614 11927 1962 1263 9159 5895 16317 1578 10341 11919 1963 967 6918 11950 19835 1532 7771 9303 1964 911 7371 7645 15927 1769 12581 14350 1965 1029 7762 8113 16904 1918 12024 13942 1966 1680 5600 6270 14000 2000 13000 15000 1967 1560 5200 6240 13000 2400 10000 12400 1968 459 5865 5839 12163 2808 9474 12282 1969 1559 5199 6230 12998 2347 8804 11151 1970 1999 6666 7991 16666 2893 13154 16047 1971 129 8098 8518 17745 3206 14592 17798 1972 2782 9275 11130 23187 3921 16161 20082 1973 2981 9275 11925 24844 4537 18154 22691 1974 3467 11557 13869 28893 4992 18660 23652 1975 2834 9446 11331 23651 5552 20132 25684 1976 905 17352 19624 40881 6761 28155 34916 1977 4242 14140 17334 35351 8000 30023 38023 1978 4333 14444 17334 36111 9252 28854 38106 1979 3513 11708 14050 29271 8022 21203 29225 1980 1856 14855 15427 32138 8736 25484 34220 1981 4053 13510 16214 33777 10202 26337 36539 1982 4451 14838 17805 37094 11382 28539 39921 1983 3853 12844 15412 32109 10462 26866 37328 1984 4467 10557 13868 28892 8830 23861 32691 1985 3597 11991 14380 29978 9221 23853 33074 1986 3022 10075 12091 25188 8154 22176 30330 1987 3385 11286 13544 28215 7912 22747 30659

as chaotic, unpredictable and indeed dangerous as it was characterized by unprecedented wave of road traffic accidents with attendant colossal human and material losses. Within this era, public awareness and interest in Road Safety was minimal. There was uncoordinated and haphazard licensing of drivers and vehicles as well as absence of good driving culture. The early 70’s brought economic boom in Nigeria which resulted in increase in vehicular importation creating unplanned and uncoordinated usage of our roads. CIVIL WAR, UDOJI, DEMOCRACY. There was clear commotion and wanton loss of lives through unabated crashes placing Nigeria high as most accident prone/dangerous country in the world as at 1988.

EFFORTS MADE TO REDUCE THE MENACE

• Safety campaign by Shell Petroleum Development Company of Nigeria (SPDC) between 1960 – 1965.• Nigerian Army started Safety awareness campaign week in 1972.• Establishment of Motor Traffic Division (MTD) by the Nigerian Police.• National Road Safety Corps by Federal Ministry of Works in 1974.

• Oyo State Road Safety Corps established in 1977.These efforts listed above lacks policy trust and enforcement strategies to address the menace of road traffic crashes in Nigeria. Quantitatively, road traffic accidents fatality index as at 1987 was 302 at 16 deaths per 1000 vehicles.

ESTABLISHMENT OF FRSC AND ITS MANDATE

The Federal Road Safety Commission (FRSC) in Nigeria is a child of necessity born out of the need to arrest the rising increase in road traffic crashes in the 70’s which was as a result of the upsurge in vehicular traffic resulting from the economic boom during the period.In the search for a credible and effective response to the challenges posed by these road traffic crashes, the Federal Military Government on 18 February, 1988 established the Federal Road Safety Commission as the lead government agency on road safety matters, vide Decree Number 45 of 1988 as amended by Decree Number 35 of 1992 referred to in the statute books as the FRSC Act cap 141 Laws of the Federation of Nigeria (LFN). The FRSC (Establishment) Act as passed by the National Assembly is known as Federal Road Safety Commission (establishment) Act, 2007.The Commission was saddled with the responsibility of organizing, administering and making policies with regards to road safety administration in Nigeria and is statutorily placed under the Presidency. The functions of the Commission generally relates to:• Making the highway safe for motorists and other road users.• Recommending works and devices designed to eliminate or minimize accidents on the highways and advising the Federal and State Governments including the Federal Capital Territory Administration and relevant governmental agencies on the localities where such works and devices are required, and• Educating motorists and members of the public on the importance of discipline on the highway. Federal Road Safety Corps in attaining its key goals of:a. Making Nigeria attain the goals of the Accra Declaration of 2015, which requires African countries to reduce by 50% the rate of road crashes fatality.b. Make Nigeria realise the goals of the UN Decade of Action which wants UN member countries to reduce fatality in each country by 50% by year 2020.c. Place Nigerian roads within the league of the 20 global safest roads in year 2020 in line with the Vision 20:2020d. Transform the Federal Road Safety

ROAD TRAFFIC CRASHES RECORD BEFORE THE ESTABLISMENT OF FRSC IN NIGERIA



Corps into a world class organisation.

FRSC OPERATIONAL STRATEGIES

The Corps at its inception adopted a 4Es Operational Strategies to combat the menace. • Education • Enlightenment • Engineering• Enforcement. Also defined the following paths which were in tandem with Accra declaration 2010 and UN Decade of Action which involved;• Development of a well-defined vision and mission• Set clear targets and assessment mechanism• Instituted a quarterly strategic sessions for evaluation and continual improvement.• Engaged in transformational initiatives through Quality Management System, Performance Management System and Project Implementation.In achieving the aforementioned, the Corps adopted the PPT approach as its transformational initiatives which were focused on People, Processes and Technology. The Corps strategic path is also premised on Consultation, Rewards and punishment of motorists towards making road safe for all road users.

FRSC INITIATED PROGRAMMES:

Despite the successes recorded the lead Agency in Traffic Management has issues that it has tackle to maintain its position not only in NIGERIA but in AFRICA, namely;➢ To improve its Strategic Roadmap➢ Enhance Operational inadequacy and leakages➢ Galvanize the weak regulatory environment➢ Create incentive structures➢ Boost its response capability to situations that needed immediate actions.The following initiatives were therefore brought to the fore for firmer grip of the situation:• Road Transport Safety Standardization Scheme (RTSSS) • Emergency Response Initiative • Road safety infusion in school curricula • Standardization of school buses • National Uniform Licensing Scheme (ie. National Driver Licenses NDL and National Vehicle Identification NVIS) • Driving School Standardization Programme (DSSP).• Collaboration with other Agencies.• Encouraging volunteerism through Special Marshals. With the above initiatives FRSC is serving as the lead Agency in traffic management with the Nigerian Police, Vehicle Inspection Officers, FERMA and

ROAD TRAFFIC CRASHES TREND: 1988 – 2014 YEAR

FATAL SERIOUS MINOR TOTAL CASES

NO. KILLED NO.INJURED TOTAL CASAULTY

1988 4127 11091 10574 25792 9077 24413 33490 1989 3838 10314 9835 23987 8714 23687 32401 1990 6140 8796 6998 21934 8154 22786 30940 1991 6719 8982 6845 22546 9525 24508 34033 1992 6986 9324 6554 22864 9620 25759 35379 1993 6735 8443 6281 21459 9454 24146 33600 1994 5407 7522 5275 18204 7440 17938 25378 1995 4701 7276 5053 17030 6647 14561 21208 1996 4790 6964 4688 16442 6364 15290 21654 1997 4800 7701 4987 17488 6500 10786 17286 1998 4757 7081 4300 16138 6538 17341 23879 1999 4621 6888 4356 15865 6795 17728 24523 2000 5287 6820 4499 16606 8473 20677 29150 2001 6966 8185 5379 20530 9946 23249 33195 2002 4029 7190 3325 14544 7407 22112 29519 2003 3910 7882 2572 14364 6452 18116 24568 2004 3275 6948 4051 14274 5351 16897 22248 2005 2299 4143 2620 9062 4519 15779 20298 2006 2600 5550 964 9114 4944 17390 22334 2007 2162 4812 1503 8477 4673 17794 22467 2008 3024 5671 2646 11341 6661 27980 34641 2009 2460 6024 2370 10854 5693 27270 32963 2010 2388 6815 2182 11385 6052 35691 41743 2011 2840 8357 1999 13196 6054 41165 47219 2012 2935 8277 2050 13262 6092 39348 45440 2013 3294 8589 1700 13583 6544 40057 46601 2014 3117 6356 907 10380 5996 32063 38059

COMPARATIVE ANALYSIS OF YEAR 2013 AND 2014 ROAD TRAFFIC CRASHES YEAR

2013 2014 % CHANGE

TOTAL RTC CASES 13583 10380 -24% PERSONS KILLED 6544 5996 -8% PERSONS INJURED 40057 32063 -20% TOTAL CASUALTY 46601 38059 -18%

ROAD TRAFFIC CRASHES RECORD BEFORE THE ESTABLISMENT OF FRSC IN NIGERIA



State traffic Agencies as members.

WAY FORWARD

In its effort to achieve greater success in accident reduction, the commission has charted the way forward as follows;• Improve financing • Nigeria Road Safety Strategy (NRSS).• Strengthening of the FRSC activities through initiatives • Introduction of Speed Limiters in all commercial vehicles.• Promoting the use of Non-Motorize transport inform of cycling culture.• Introduction of National Accident Community Rescue Initiative Scheme (NACRIS).• Capacity building and sustenance of World Bank assisted programmes.

CONCLUSION

In conclusion where there is change in government perception toward road safety by strengthening it, there should be corresponding attitudinal change from the road users. Road safety strategies focus upon the prevention of serious injury and death crashes in spite of human fallibility. This is because transport is intricately linked to agriculture, education, commerce and industry, defense, health, settlement, city expansion and rural development, tourism, youth and sports development, social and political unification and interaction. Transport is the engine room for growth and development.

The Federal Road Safety Corps has over the years contributed immensely to the development of road safety management in Nigeria. While the realities of the past have guided our activities to the present, there is still a need to sustain/consolidate on the projects and programmes while looking into the future with steady focus on playing roles in an ever changing world. FRSC‘s commitment to leaving a legacy of safer roads for the future generations shall require individual contributions and the support of all stakeholders for successful implementation.Collectively, we can all reduce global fatality and achieve the United Nations Decade of Action. Let us make this vision a reality with these few words of wisdom from WHO Director-General, Dr Margaret Chan, 2013“Political will is needed at the highest level of government to ensure appropriate road safety legislation and stringent enforcement of laws by which we all need to abide. If this cannot be ensured, families and communities will continue to grieve, and health systems will continue to bear the brunt of injury and disability due to road traffic crashes.”The basic strategy of a Road Safe System approach is to ensure that in the event of a crash, the impact energies remain below the threshold likely to cause either death or serious injury. This threshold will vary from crash scenario to crash scenario, depending upon the level of protection offered to the road users involved.

REFERENCES

1. University of British Columbia (2014) Road Safety: A New Neighborhood Road Pattern that saves VRU Lives, 2. OECD. (2014). ^ “Road Safety Annual Report 2014” (PDF) (report). Paris, France: International Traffic Safety Data and Analysis Group irtad, International Transport Forum, Retrieved 2014-10-11. data from 20123. World Health Organization (2013). “Global status report on road safety 2013”. Retrieved 15 March 2013 4. Davis R (1993). Death on the Streets: Cars and the mythology of road safety. Leading Edge Press. ISBN 0-948135-46-8.5. Adams J (1995). Risk. UCL Press. ISBN 1-85728-068-7.6. Evans L (2004). Traffic Safety. Science Serving Society. ISBN - Making Road Safer7. www.frsc.gov.ng8. International Transport Forum, Towards Zero, Ambitious Road Safety Targets and the Safe System Approach, wExecutive Summary page 199. Wikipedia the free encyclopedia



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Nigerian Institute of Transport Technology {NITT}

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Maritime Academy of Nigeria, Oron

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Skyway Aviation Handling Company Ltd

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