Transport Infrastructure in Nigeria

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    TRANSPORT INFRASTRUCTURE AND MOBILITY IN NIGERIA

    Innocent C. Ogwude

    Department of Transport Management Technology, Federal University of Technology,

    Owerri

    E-mail: [email protected]/[email protected]

    Abstract

    Transport can be viewed as a public utility which supplies essential goods and services, whereessential means they cannot be cut off without danger of total or partial collapse of an economy.

    In what follows, the transport situation in Nigeria is reviewed in order to provide a somewhat

    qualitative impression of the need to rebuild the infrastructure. Then follows a comment on thetransport policy to the extent to which it provides a guide to planning in the sector. A review of

    the current reform efforts is next provided along with proposed institutional frameworks. The

    paper concludes with a list of investment programmes proposed to support the implementation of

    the seven-point agenda on the transport sector.Keywords:Transport, infrastructure, mobility, essential

    Introduction

    Transport can be viewed as a public utilitywhich supplies essential goods and services,where essential means they cannot be cut offwithout danger of total or partial collapse of aneconomy (Dieter Bos, 2003). Along withpower and communication, transport is one ofthe social overhead capitals which must bedeveloped to a critical minimum level in orderto facilitate investments in the other sectors.From the allocative point of view transportcontributes to the infrastructure of theeconomy, while from the distributional pointof view it contributes to providing consumerswith necessities of life. There is a pressingneed to rebuild the infrastructure of thecountry as a whole, but rebuilding transportinfrastructure should drive this effort so as toprovide the basis for addressing the

    distributional aspects of transport in thecontext of economic development, especiallyat this time when the entire national transportsystem is in the process of transformation,following global trends.The key components of transport in focus areroads and road transport operators, railway andrail transport operations, airports and airlines,ports and shipping companies, inlandwaterways, and urban public transport.

    We can associate some public institutions withthe provision and operation of services in thesesectors, such as, for example, the FederalMinistry of Works, the Nigerian RailwayCorporation, the Federal Airports Authorityand the Nigerian Ports Authority. It is not somuch the ownership and control of thesemodes that are in question as far as transportreforms are concerned, but the nature ofcompetition needed to bring about bothallocative and distributional efficiency in thetransport sector.Much of the corporations that control thetransport modes listed were considered to benatural monopolies with a sub-additive costfunction, and the ability to operate cheaperthan when there are many firms. Therealization that the economies of scale orscope attributed to these public utilities can be

    transformed by unbundling the monopolies,and by separating the network from the usersof the network, has considerably improved ourunderstanding of the transport market, and theextent of restructuring that is possible, in termsof institutional framework and economicregulation.

    National transport policy

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    The NEEDS framework constitutes a transportdevelopment strategy that is private-sector-driven, providing an environment capable ofaddressing the issues of wealth creation,employment generation and poverty reduction.This overarching strategy formed the basis ofthe fundamental objective of the countrysNational Transport Policy which is to developan adequate, safe, environmentally sound andefficient transport system in the context of aprogressive and competitive market economy(The Draft National Transport Document,2010).According to the national transport policydocument, the transport sector would takeadvantage of the private sector initiative to dothe following:

    1. Improve efficiency of operatives andmanagement of transport parastatals.

    2. Achieve the desired reduction in thecost of providing transport services.

    3. Facilitate further development in thenations transport infrastructure.

    4. Eliminate congestion both in theintercity and intra-city traffic flows.

    5. Encourage the emergence of Nigeria asa transport hub for West and CentralAfrica Sub-region.

    The National Transport Policy was anattempt to document a transport policy ofgovernment in one publication whichcontains policy statements, objectives andpossible implementation strategies. Theexisting transport policy document waswritten in 1993; it has been revised twice

    since then, and the current version isawaiting legislation. The policy covers allmodes, but it is not clear whether it shouldsupersede all other existing transportrelated policy statements, for example, theones on aviation, and on a separateshipping policy associated with theNational Maritime Authority and SafetyAgency (NIMASA).However, significant progress hasbeen made in the transport reform

    efforts of the National Council onPrivatization and the Bureau of PublicEnterprises, based on the national transportpolicy. The most outstanding outcome ofthe reform which was the creation of thesingle Ministry of Transportation from themerger of the ministries of transport,aviation and works, was, unfortunately,overturned in 2007, resulting in a majorupset of the transport reform effort. Thereform process continues in other aspects,however slowly. The concessioning of theports is practically completed and muchprogress is awaited in the process ofairport concessioning. The reforms in theroad sector and the railway sector arecurrently being addressed as are theproblems of institutions, legal frameworks,and capacity building in the transportsector.

    Existing transport situation and

    challenges

    Road transport

    Road transport is the dominant mode oftransportation in Nigeria. It also presentsthe most complex situation in that the bodythat is responsible for the provision of thesupporting infrastructure theroads/highways- is not responsible for roadtransport operations, or the regulation ofroad transport. We should thereforedistinguish between the road network andtransport operators who use the network.Road transport operation is largely in theprivate sector. Its growth has, however,

    been encouraged through what is relativelya massive investment program on roadscompared to investment in railways andinland waterways. It can therefore beargued that the road sector has takenadvantage of the governments relativeneglect of the other modes of transport togain a competitive edge in the market.

    As a result of the predominance ofroad transport, Nigerias transport457

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    system is clearly imbalanced. Over 90 percent of internal goods and passengers aremoved by road. Current transportoperations are characterized by large-scalemovements of goods and passengers thatcould have been moved more cost-effectively by other modes, such asrailways and inland waterways. Thepredominance of truck transportationaccounts for the excessive damage of theroad infrastructure and the attendant costimposition on the economy, estimatedrecently in the order of 21 billion Naira orUSD 156 million at 2008 prices, by BPEReport on Axle Load Study of Nigeria(BPE, 2008).Some transport corridors are very heavilytravelled, showing patterns of linkages thatare strategic to planning and investmentswithin the sector. Such corridors include:1. Lagos Ibadan/Lagos-Shagamu2. Lagos - Ibadan-Kaduna-Kano3. Port Harcourt Aba-Abuja-Kaduna-

    Kano4. Lagos-Shagamu-Benin city5. Lagos Onitsha6. Port Harcourt Aba-Enugu7. Kano Maiduguri Ngala.

    According to Botha and Filani (2005), one ofthe major problems associated with theoverreliance on road transport in Nigeria isillustrated by the dominant role played by theLagos ports in Nigerias foreign trade. Most ofNigerias traffic still originates in Lagos asLagos accounts for almost 90 per cent of

    containerized cargo through put (441,040

    TEU). Also about 60 per cent of general dryand liquid cargoes are handled in Lagos. Thisaccounts for the current congestion costswhich are a significant burden on the economyof the nation. Average port calls are stilllonger for Lagos compared to other WestAfrican ports. The response of shipping linesis to impose steep congestion charges on allcargoes destined for Lagos (about $660/TEUat 2005 prices). Additional charges areimposed on cargoes destined for Apapa (about$ 108 at 2005 prices); with the result that portcharges are over 35 per cent higher in theLagos port complex than those of other WestAfrican states.Other problems associated with the over-concentration on road transport include:

    1. Misallocation of bulk traffic whichcould have been carried by rail andinland waterways.

    2. Low safety levels and poor servicequality provision.

    3. Lack of regulation of the industry4. A proliferation of enforcement

    agencies.

    In particular, the lack of axle loadregulation seriously affects the ability ofthe railways to compete with roadtransport. It also contributes to roadpavement damage in the country. Indeed,the BPE Axle Load Study showed that51.9% of the vehicles studied wereoverloaded and the average percentageoverload per axle was 48.8 for the 5,563km of the Federal Roads included in the

    study (Table 1).

    Table 1: Summary of results of independent axle load survey

    Heavy Vehicle class % vehicles O/L Average% O/L per axle

    2 Axle 30.7 36.1

    3 Axle 61.7 57.4

    4 Axle 58.9 51.1

    5 Axle 53.6 46.8

    6 & more Axle 46.7 35.4

    Totals 51.9 48.8

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    Source: BPE Axle load study, 2008In view of the cost to the economy due totruck transportation and excessive axleloads, efforts must be made to actualize theroad sector reforms, which will regulatethe sector, revitalize rail links, andimprove rail performance and logistics inthe transport sector.Railways

    The current imbalance in modal sharebetween rail and road transportationemerged after the 1960s. Up until then, therailway carried over 60% of the freighttonnage compared to its current share of

    less than 5%. The length of the network is3,505km running from North-South. Thebasic characteristic is narrow gauge(1.067m) and single track. In the lasttwenty years until the recent initiatives forwhich data are not yet confirmed, thehighest number of passengers carried was15.5million in 1984 and the highestvolume of freight was 2.4 million tonnes in1977. By 2000/2001, traffic had fallen to 2million passengers and less than 300,000tonnes of freight.

    Table 2: Table of density of country railway networks (2003)

    Data SouthAfrica

    China U.S.A Canada

    Russia

    India Germany

    JapanKorea

    Korea

    Nigeria

    Population(10000person)

    2100 125146

    28532 3108 14475

    103236

    8233 12703

    4734 14000

    Area(10000km2)

    122 960 962.9 997.1 1707.5

    328.7 35.7 37.7 9.9 92.38

    Operating route ofrailway(km)

    22477

    77000 160000

    39400 86075

    62759 36652 20165

    3123 3505

    Km/10000 person

    10.7 0.61 5.6 12.7 5.9 0.6 4.5 1.6 0.7 0.25

    Density(km/10000 km2)

    184.2 80.2 166.2 39.5 50.4 190.9 1026.7 534.9 315.5

    37.94

    GDP(US$billions)

    1,200 7,576 585 300 500 2,353 4,600 400 212

    Source: Cited in a Draft Report by the Technical Committee on Transport for VISION 2020.

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    The deterioration in the railways has beenpartly a result of insufficient budgetprovision by the Federal Governmentcoupled with poor management by themonopoly operator, namely, the NigerianRailway Corporation. In terms ofinfrastructure, locomotives and rollingstock are in very poor condition. In 2004,for example, 57.5 % of the wagonavailable were defective and could not beused, leaving only 36.6% in good workingcondition. The conditions of coachingstock and locomotive were also very poorresulting in reduced number of reliable

    service provided because of locomotivefailures. In addition to lack of funding,uncoordinated purchases of equipmentfrom different suppliers, andinconsistencies in human capacitydevelopment and use of managementconsultants, made interchange of partsimpossible.Yet the future of rail transportation inNigeria is potentially bright. Nigeria is alarge country and railway transport

    operation has a potentially good market interms of both passenger and freight. TheNigerian railway network is the mostappropriate mode of transport for thehaulage of bulk load over long distances. Itis also suitable for transporting goods toand from ports in response to the problemsearlier discussed concerning road transportand ports in the Lagos port complex. Thereis under-investment in the rail sector. Thisis clearly illustrated when compared to the

    density of rail systems of other countries(Table 2).A standard gauge line is being built tosupply the Ajaokuta steel company inAjaokuta. The section between Itakpe andAjaokuta has been completed and servesthe purpose of supplying Ajaokuta withiron ore while the Delta Steel Company inWarri will be supplied with iron ore superconcentrate when the Ajaokuta Warri

    line is completed. Various bulk goods willbe traded between the two companies atAjaokuta and Warri.The Nigerian Railway Corporation hasbeen unable to maintain the existing track,locomotives and rolling stock, and thepermanent way is old and worn-out inmany parts. Attempts to revive therailways as a monopoly in the last twodecades have failed, thereby emphasizingthe need for reforms in the rail sectorfollowing global best practices.Inland waterways

    In the past, inland waterways were used for

    the movement of both passenger andfreight traffic, although its total tonnagehad been modest when compared to roadand rail.Filani (2006) reported that a study on theMaster Plan for Integrated TransportationInfrastructure (MITI) in Nigeria estimatedthat in 1960 to 2002, river bargestransported between 100,000 to 200,000tonnes of cargo annually. In the 1990s, upto 125,000 tonnes of construction materials

    were carried annually between 100,000 to200,000 tonnes of cargo annually. In the1990s up to 125,000 tonnes ofconstruction material were carried annuallybetween Warri and Ajaokuta. Although noreliable statistics are available, MITIestimates show that up to 100,000 tonnesof cargo are still being transported alongthe Bight of Benin where inland waterwaysare the only available mode oftransportation. This represents less than 1.0

    per cent of the total cargo throughoutNigerias port system.In terms of passengers, inland waterwayshave mainly offered low cost passengerferry services at low key crossings in about26 locations nationwide. However,statistics of passengers carried areavailable for only 2 or 3 locations. Theseindicate that 146,000 passengers wereconveyed between Calabar and Oron and

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    50,000 between Lokoja and Shintaku in2001.Air transport

    By international standards, the size ofNigerias aviation sector is modest. Atpresent there are 19 airports under theFederal Airports Authority of Nigeria(FAAN), but approximately 78 airfieldsexist in Nigeria out of which 30 areprivately owned and operated. Four ofthese airports namely, Lagos, Abuja, Kanoand Port Harcourt are of internationalstandards and serve intercontinental,international and domestic destinations.Taken together, Lagos, Abuja and Kanoaccount for between 77 90 per cent ofpassenger movements and 64 89 per centof aircraft movements in Nigeria, whileLagos alone accounts for slightly over halfof the international and domesticpassengers carried. From an intermodalperspective, the major airports are well-integrated with road infrastructure, and allaccess roads to airport have federal status.Land transport connections are, however,poor. Trips to airports are by cars, taxis orhotel shuttle transport. There is no accessto the airport by the conventional mode ofpublic transport, namely, bus or rail.The air transport sector is largelyderegulated with domestic airlinescompeting in the market, but it is not clearhow much economic regulation of thesector is provided by the National CivilAviation Authority whose main focusappears to be primarily on aviation safety.

    The reform in the sector should include aswell the unbundling of the Federal AirportAuthority of Nigeria to reflect thecountervailing structure needed toguarantee autonomy or financialindependence and to promote competitionand fair trading among domestic airports.

    Water transport

    The main ports in Nigeria are Lagos, PortHarcourt, Warri and Calabar. In the mid 1970sthese ports were overstretched as a result of oilboom and sharp increase in imports, resultingin ship handling and demurrage. Governmenthad made a massive investment that increasedport capacity by 300% between 1975 and1980. At present, the Nigerian Ports Authority(NPA) has 13 major ports under eight portmanagements, 11 oil terminals and 128 privatejetties within the port system. There are 102hard quay berths, 62 buoys and over 650different cargo types of handling plants andequipment. Put together, the port facilitieshave a total cargo handling capacity of over 35million tonnes.The ports mainly handle imports, rangingbetween 31.6% and 6.7% for general cargo,and 53.5% and 44.5% for bulk cargo, and23.6% and 22.6% for containerized traffic.Overall cargo throughput increased from 20million tonnes in 1998 to 30million tonnes in2000.The government has practically completed aprogram of concessioning the operation of theports along with reforms in structure,institutional arrangements and operationalmodalities. The Nigerian Ports Authority hasbecome a landlord of the port system and BOTcontracts have been granted for portimprovements. Six inland container depots arealso being constructed as BOOT projects.These inland ports are:

    Isiala NGWA

    Bauchi

    Jos

    Ibadan

    Maiduguri

    Urban transport

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    Urban transportation in Nigeria is largely anunregulated market and small scaled. Thetechnology used is of a combination of para-transit modes, consisting of shared taxis,mini-buses, motor-cycles and convertedmotor-cycles, locally known as keke napep.Only in the cities of Lagos and Abuja areconventional buses in use similar to whatobtains in most cities worldwide; but even inboth cities the use of para-transit modes oftransport is clearly dominant. For this reason,Nigeria remains the only country in theworld where densely populated cities withover 6 million people do not have anorganized urban transport system based on acombination of conventional buses and rail.The Federal Government had made anattempt to establish a technology of urbantransportation based on bus transit throughthe failed urban Mass Transit Program of1988 -94.In view of government efforts to reform thetransport sector, urban transportation inNigeria should be modernized in keepingwith best global practice, which is based onthe use of conventional buses with theintroduction, as well, of urban rail services inthe cities of Abuja, Lagos, Ibadan and Kano.

    The following strategies will be useful toadopt for implementing a modern urbantransport system in Nigeria:

    - An Initiative of government to encouragecorporatization of urban bus services inNigeria, that is, a scheme forpersuading/directing bus operators to form

    viable bus companies for the purpose ofproviding urban transport service based onconventional buses.

    - Establishing Urban Mass Transit Agencies(UMTA) in Each State of the Federation asproposed in the Vision 2020 Document.

    - Legislation on UMTA to give it effect.- Establishing a continuing education program

    on the operation of Urban Bus Transit forservice providers.

    - A government program to encourage effectiveUMTA in Nigeria, for example (1)government to subsidize bus service providers(2) government to act as guarantor when busoperators obtain approved loans and (3) theuse of Public-Private sector partnershiparrangements.

    Institutional reforms

    Much of the reforms in the sector have beenpursued through the efforts of the NationalCouncil on Privatization and the Bureau ofPublic Enterprises. Expectedly, the program issometimes stalled by politics until it is againinvigorated. For now, many of the institutionalreforms that could bring about significantchanges in responsibilities across the sector, inorder to make it more modern, integrated andefficient, have already been planned. In manycases the enabling legislation has been drafted,but has yet to be presented to the NationalAssembly and enacted. The creation of theNational Transport Commission as economicregulator in the transport sector and thecreation of the Federal Roads Authority arevery crucial reforms which will be critical inthe implementation of the improvementsneeded to achieve the transport component ofVision 2020. It is important to ensure that thenew institutions have the skills and resourcesto manage the planning, financing, regulationand operation of services across the sectors

    Objectives of reforms

    The reforms in the transport sector areintended to achieve the following objectives:

    1. Improve service delivery in the sector2. Create institutional structures3. As far as possible, separate functions

    of policy, management, operations,regulations and implementation ofworks.

    4. Involve private sector in financing andmanagement of the sector.

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    regulatory framework for private sectorparticipation in the sector. The role of theprivate sector in partnership with the publicsector is critical for re-building infrastructurein the country, both in terms of improvedcompetition and efficiency and in injection offunds to the system.Capacity building in the transport sector

    Transportation is vital to the growth of theeconomy. As the economy grows so does theneed increase for the transport infrastructure tosustain it. Given the reforms in the sector, therange of institutions in the sector, and thebusiness opportunities that will becomeavailable due to private sector participation,there is a great need to professionalize thesector and to initiate a capacity buildingprogram to provide the manpower needed inthe sector. To address this need, thegovernment should do the following:

    1. Conduct a manpower survey of thetransport sector to determinemanpower gaps as well as trainingneeds.

    2. Encourage the establishment oftransport engineering and technologyprograms; naval architecture/marineengineering and railway engineeringprograms in a selection of Nigerianuniversities.

    3. Establish institutes/centers of transportstudies in each of the six zones of thecountry. They should have thecapacities to participate in the researchprograms of the Federal Ministry ofTransport through the coordinated

    research activities of an invigoratedNigerian Institute of TransportTechnology.

    4. Encourage the establishment ofaeronautical engineering studies in twoNigerian universities where there arestrong traditions of excellence inassociated fields.

    Transport technology programme

    Government should initiate a program ofindigenous transport technology towardstransport infrastructural needs. Withoutparticipation in transport technology, it will bedifficult to realize fully the objectives of amodern transport industry.

    Urban transport investments

    Traditionally, urban transportation in Nigeriahas been in private hands, with serviceprovision by a system of para-transit modes. In1988, Nigeria intended to initiate an organizedurban public transportation system based onconventional buses. There is yet anotheropportunity to kick start an urbantransportation program with businessorientation. For this purpose, the followingstrategies should be adopted:

    1. Use of a combination of conventionalbus and light rail transportation in thefour major cities of Abuja, Lagos,Kano and Ibadan.

    2. Use of conventional bus transportationin all state capital cities

    3. Encourage bus and rail serviceproviders to form companies so as tolimit the number of operators in thesystem.

    4. Create Urban Mass Transit Agencies ineach State.

    Rail transport investments

    The following strategies should be adopted:1. Conclude reforms in the railway sector

    which include deregulation andintroduction of private sectorparticipation

    2. Conclude rehabilitation andmodernization of the rail network

    3. Enlarge the rail network to cover themajor industrial areas of Nigeria andtake advantage of rail freighttransportation as an alternative to roadtransportation

    4. Extend the rail network to link the Eastand the West and to link up the ironand steel industrial areas of Ajaokuta,

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    Itakpe, Warri and Osogbo.5. Extend the rail network to link up with

    the airports and seaports in the country6. Commission a major study of the

    economics of rail network expansionand commence the exploration of theopportunity of rail network expansionto other West African countriesincluding those that are land locked.

    7. Encourage the establishment of railwaycompanies and market to themopportunities in rail transportation as abusiness. Small and large railwaycompanies should be defined on thebasis of capitalization and /or expectedgross annual revenue, and on the basisof market segments or regions covered.

    8. Railway companies to have railnetworks concessioned to them andrequired to maintain the rail lines ,provide locomotives and rolling stockto offer freight as well as passengerservices.

    Road transport investments

    There are two concerns in this sector, namelythe aspect of road infrastructure and the roadtransport operations aspect. The followingstrategies should be adopted:

    1. Conclude reforms in the sector,incorporating deregulation andintroduction of private sectorparticipation. Establish the FederalRoads Authority, the Roads Fund and aRoad Transport Safety Authority,

    which will be responsible for thetechnical and safety regulation of roadtransport operations in the country.

    2. Regulate road transport operations bysetting operational and safety standardsthrough the National Road TransportSafety Authority.

    3. Conclude rehabilitation of existingfederal road network

    4. Introduce the principle of service for

    fee on federal roads.5. Introduce concessionaires and

    concession sections of federalhighways for maintenance and runningas a business venture.

    6. Encourage BOT arrangements forroads and bridges

    7. .

    Inland waterways investments

    A major objective of the reform program in thesector is to cede the operations, managementand investment to the private sector.Accordingly, the following strategies shouldbe adopted:

    1. Conclude the deregulation of the inlandwaterways sector by the enactment of anew legal framework, making theNational Inland Waterways Authority alandlord authority as in the seaportmodel. Encourage private sectorparticipation.

    2. Commission a study to confirm thecost of extending the network of inlandwaterways transportation alongriverbanks between (I) Baro andWarri/Port Harcourt and (ii) Lokojaand Markurdi. The study would alsoadvise on a marketing strategy toencourage private investors topatronize the sector.

    3. Concession jetties located at Lagos,Port Harcourt, Onitsha and Warri, and,subsequently, concession as well, allthe river ports to private investors asinvestments in the sector begin to

    grow.4. Encourage the establishment of inland

    waterways companies to participate ina specialized shipping venture and tocombine their operations with coastalshipping within West Africa.

    5. Concession a shipping company to runcoastal services between Port Harcourt,Warri, and Lagos as practicedpreviously in Nigeria, and between

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    Nigeria and Sierra Leone.

    Airports and seaport investments

    The most viable option for re-building andmaintenance of ports infrastructure in Nigeriais through private sector participation,including concessioning, BOT and so on.Accordingly,

    1. 26 seaport terminals have beenconcessioned to private investors whohave commenced operations

    2. West African Container Terminal(WACT), a consortium that includesMaersk Lones, has developed acontainer terminal at Onne throughBOT and Grimade Group hasdeveloped a modern RORO port inNigeria through BOT.

    3. With a national transport policy inplace, a landlord port model has beenintroduced. The draft bills for Ports andHarbour Authority and for anindependent economic regulator are inplace. The legislation of theseinstitutions should be completed so asto formally conclude the deregulationof the seaport sector.

    4. The concessioning of Airports toprivate investors should be completed,especially Lagos, Port Harcourt andKano, which are the mostcommercially viable. The rest could beconcessioned through some bundlingarrangements, and others returned tothe states that originally built them.

    5. Efforts should be made to market the

    opportunity available to investors inthe airport sector in order to attractinvestments on the less viable airports.

    Conclusion

    The major argument of this paper hasfocused on the need to rebuild the transportinfrastructure of Nigeria in order to expandand modernize it so as to meet the needs of

    the economy, the Gross Domestic Productof which is envisaged to grow between 10-13 percent up to the year 2020, implying acorresponding growth rate of transportdemand of about 12-16 percent within thesame period. Transport infrastructure inNigeria is currently inadequate and a lot offunding is required to increase its capacityto cope with an enormous transportdemand made possible by an expandingeconomy. The cost of rebuilding the roadsis estimated at USD 14 billion within thenext five years, while the rehabilitation andupgrading of the railway tracks would costabout USD 14 billion, at 2007 prices,according to government estimates. Whilstgovernment would provide the funds tobridge the existing transport infrastructuregap in the country, much of the fundingneeded to drive the development of thetransport sector in the years ahead isexpected from the private sector under thepublic-private partnership program. Thetask of government is therefore toencourage the private sector to meet thisexpectation by completing the key reformsdescribed in this paper and by growing thefinancial sector, including the capitalmarket.

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    Acknowledgement

    This paper is a slightly revised version of thepaper presented as a guest lecturer at the2010 Annual Conference of the Nigerianbranch of the Chartered Institute of Logisticsand Transport, held in Lagos, January, 2011.I thank the Institute for inviting me to givethe lecture. I wish to acknowledge also theopportunity to work in government as SeniorAdviser at the Bureau of Public Enterprisesfrom where some insights on economicreforms were gained as partly reflected inthis paper.

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