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Efficiency in Nigeria transportation sector and its economic factors

Published: 19/11/2018

 Efficiency in Nigeria transportation sector and its economic factors

Nigeria is undoubtedly a highly populated country with an estimated population of above 170million people. The population is also highly diverse and this gives our nation the advantage of a highly diversified economy.

The glorious days of oil boom of 1973 is part of the factors that pushed the economy of our nation to the roof, which also affected our transport system a great deal. This was responsible for infrastructural demand and improvement in the transportation sector.

However the Journey so far has indicated clearly that there has not been a balance in our nation’s transportation system especially because of the various economic leakages within our transportation system and the inadequate investment in modern technology and human resources to drive our transportation system to its full potential.

The focus of this article is to highlight some benefits of using Customized Enterprise Resources Planning software to block some of the financial leakages in our nations transport system, review of its existing policies, agreements and attracting more investors to this sector. The new strategy of improving on the railway sector across the nation by this current government calls for commendation.

Some of the points highlighted in this article are as follows: 

  1. Deploying a customized Enterprise Resource Planning Solution to integrate all the various agencies in the maritime sector (e.g. NPA, Shippers Council, NIMASA, NIWA etc) to share strategic data that relates to cargo throughput, vessel traffic, berth occupancy, container traffic, truck traffic, cargo shed occupancy, fees & dues collections, staffing, license registrations, license issuance and redundancies in the system.A well organised, co-ordinated and efficient deployment of this enterprise platform will enhance data integrity, identify all revenue generating points,leakages,monitor the performance of the respective revenue lines, optimize revenue collection and most importantly assist government and its agencies in planning for sustainable growth and development.
    There will be a single data entry point and strict processes for data adjustments and control to avoid possible manipulation of inputted information/data. The ERP will also ensure a uniform data in circulation. There will be plugging of leakages through direct access of information from the shipping companies, terminal operators, clearing agents and other operators, given that sometimes the data shippers supply to the regulators are usually different from the figures availed to other operators for the purpose of avoiding charges. When the ERP program is well implemented, all losses and leakages will be blocked.
    Review of the various concessions and leases entered into by the government with the organized private sector to ensure that the full benefits of those transactions are accrued to the government. Also to be reviewed are the obligations and responsibilities expected from the contracting parties with a viewing of identifying breaches and ways to remedy same, thereby, enhancing efficiency and operational excellence.
  2. Designing and implementing a blueprint programme that will ensure that all car rental/leasing companies, commercial vehicle operators and various land transport terminals/parks are duly registered and granted license to operate by the Federal Ministry of Transportation at a fee that should be renewed annually. Centralizing the registration would promote improved security, monitoring of the safety standard of the vehicle and entrench good behavior by the drivers. All these will also be captured by the ERP.
    4. Improving railway terminal infrastructures to make it attractive for organized private sector investments and enhanced appeal to the commuters. This will generate ancillary revenue to the government through concession fees, license fees and taxes.

For our national railway system to be improved upon, the need for maintaining the metropolitan, intrastate and interstate infrastructure should be contracted through private companies and leasing arrangements. The Federal Ministry of Transportation, Nigeria Railway Corporation should be responsible on behalf of the federal government and its consultants for managing these arrangements.

The following are transport economic factors that need consideration for us to upgrade the system and increase efficiency:

What are the acceptable levels of transport infrastructure in a country like Nigeria in the 21st century? What is the current contribution of transport to the Gross Domestic Product (GDP)? What are the strategies to improve the current level of development in the transport sector? How will socio-economic incentives drive new investments in transport infrastructure? How does the enhancement and additional investment in the sector translate to improved quality of life, additional jobs and other economic multipliers? Where are the critical points that need immediate intervention railway, road, water-ways, airports, inland terminals and seaports? Does the regulator need to be regulated or is the supervision inadequate?

Overall, the present administration is doing its best but needs to accelerate its approach. By improving the transport system it will bring about a more coordinated, efficient and productive system which can only add value to and improve our economy.


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