PAVED WITH GOOD INTENTIONS
New PPPs should generate savings and safer operations in the transport sector, laying the foundation for increased economic efficiencies.
Arobust and efficient transportation system will be central to Nigeria's continued development. Its road, rail, and air infrastructure is both inadequate and overcrowded, issues common to the developing world but compounded by the sheer size of the Nigerian population. The potential is tremendous, but developing the needed infrastructure is an expensive proposition that has been made more uncertain by the economic slowdown resulting form falling oil prices. Still, there are several major projects underway across the country, positive steps on the path to progress.
ROAD
Nigeria's road network, the primary means of transportation within the country, is in better shape than many comparable networks in West Africa. The network is the second largest in Sub-Saharan Africa, with an estimated 200,000km of paved roads interlacing the nation. The road system is divided between Federal roads that make up the primary thoroughfares, state roads that link state capitals, and major cities and smaller feeder roads funded by local government authorities. Federal roads represent less than one-fifth of all roads but host up more than 80% of all automotive traffic, and the Ministry of Works has estimated that only 30% of these federal roads are in good condition.
As the number of cars registered cars has grown from just over 1 million in 2000 to over 9 million as of 2012, the demands on the system have increased. Historically, road infrastructure has been managed through government-awarded contracts, but as Nigeria's fiscal position has worsened in recent years, this has led to deficits. A 2013 government report estimated the required annual funding needed at NGN500 billion, but only NGN120 billion was allocated in the budget, and only NGN110 billion of that was disbursed. In an effort to improve the situation, the government has begun working on a PPP scheme that will help create more efficient management.
AIR
Nigeria's Federal Airports Authority operates five international airports and 18 domestic ones. The National Bureau of Statistics reported that more than 15.2 million passengers traveled through Nigerian airports in 2016, with 72% of these domestic flights, an increase of 6.3% over the previous year. The sector has seen operation issues in recent years due to aging infrastructure that has generated safety and efficiency issues; international observers have stressed the need for new surveillance and guidance systems to bring Nigeria's airports up to international standards. To bring the nation's airports up to par, Nigeria's government is embarking on a new concessionaire system that will see them hand control over to experienced operators in the short-to-medium term, eventually to be returned to the government. In September 2017, the Nigerian government took the first step toward this process, approving plans to grant concessions for the nation's two largest airports in Lagos and Abuja.
RAIL
Once the primary mode of inland transportation, Nigeria's railroad system collapsed shortly after independence and has now largely fallen into disrepair. The country has almost 4,000km of rail though the majority of this is largely unusable, and passenger and freight traffic is less than a tenth of what it was 50 years ago. The government has initiated efforts to revitalize the system, launching several major rail projects in recent years.
PAVED WITH GOOD INTENTIONS
TABLE OF CONTENTS
Interview
Yewande Sadiku, Executive Secretary, Nigerian Investment Promotion Commission (NIPC)
TBY talks to Yewande Sadiku, Executive Secretary of Nigerian Investment Promotion Commission (NIPC), on combining the benefits of the private and public sectors, creating a broad range of skill sets, and improving the ease of doing business.
read articleInterview
Muda Yusuf, Director General, Lagos Chamber of Commerce and Industry (LCCI)
TBY talks to Muda Yusuf, Director General of Lagos Chamber of Commerce and Industry (LCCI), on the importance of public policy advocacy, creating an enabling environment for investors, and supporting capacity building for small businesses.
read articleInterview
Mohamad Darwish, Co-Founder & CEO, IHS Nigeria
TBY talks to Mohamad Darwish, Co-Founder & IHS Nigeria CEO, on switching to innovative green hybrid energy solutions, protecting consumers without deterring investors, and getting the private sector to help tackle the biggest challenges.
read articleReview
The Delta Skelter
A recent uptick in the price of Brent crude to more than USD60 for the first time in two years was a widely welcome development, but threats of renewed attacks on the country's oil infrastructure by the Niger Delta Avengers threaten to undermine these gains before they can be enjoyed.
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Chief Tunde J. Afolabi, Chairman & CEO, Amni International Petroleum Development Company,
TBY talks to Chief Tunde J. Afolabi, Chairman & CEO of Amni International Petroleum Development Company, on its current efforts to attract investment, the importance of monetizing gas, and partnerships within the sector.
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Tayo-Adiatu Adeyemi, Managing Director, Tulcan Energy Resources Limited
TBY talks to Tayo-Adiatu Adeyemi, Managing Director of Tulcan Energy Resources Limited, on the evolution of the company's operations, the need to develop a robust downstream sector, and the opportunities in the sector.
read articleInterview
Ado Oseragbaje, Vice President Sub Saharan Africa, Baker Hughes
TBY talks to Ado Oseragbaje, Vice President Sub Saharan Africa of Baker Hughes, a GE company, on the problems with inefficiencies across supply chains, using technology to minimize inconveniences, and making offshore profitable again.
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Amy Jadesimi, Managing Director, Lagos Deep Offshore Logistics Base (LADOL)
TBY talks to Amy Jadesimi, Managing Director of Lagos Deep Offshore Logistics Base (LADOL), on the key sectors based in the free zone, using sustainable options for power, and the company's fully integrated support model.
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Babatunde Raji Fashola, Minister , Power, Works, and Housing
TBY talks to Babatunde Raji Fashola, Minister of Power, Works, and Housing, on the ongoing initiatives to increase power generation and distribution across the country and the need for distribution companies to provide reliable power.
read articleFocus: Diaspora Cities
No Place Like Home
With one of the largest diasporas in the world, Nigeria is trying to charm its citizens overseas to invest into the country's property market through the Nigerians in Diaspora Housing Programme, through which “diaspora cities” will be created across the country.
read articleFocus: Outbound Medical Tourism
The Business of (Health) Caring
Nigeria's healthcare sector is suffering from significant brain drain due to workers' unfavorable conditions, while failure to invest in medical facilities is encouraging patients to seek treatments abroad with significant economic consequences.
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