The Federal Government has called for the creation of a robust and well-resourced multi-sector regulator for the transport industry in Nigeria.
The Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha who made this observation in a keynote address he delivered at the Stakeholders’ Appreciation Night organized by the Nigerian Shippers’ Council recently in Lagos listed the benefit of multi-sector regulation in a growing economy like Nigeria among others to include economics of scale, building expertise in cross-cutting regulatory issues and smart inter-modal regulation that would reduce over dependence on one sector, as was the case now, where 90% of passengers and freight were transported by road.
Represented by the Permanent Secretary, Political and Economic Office of the Secretary to the Federal Government, Mr. Gabriel Aduda, Mustapha posited that a robust intermodal regulation should cover rail, water and land transportation even as he said that it should promote effective competition and economic efficiency, as well as enhance safety standards, while at the same time preserving the environment.
He however regretted that Nigeria’s transport industry was governed by legacy old polices and legislations, which he said to a large extent, impede the development of her transportation industry especially, in the area of attracting private sector players to meet the growing needs of the economy.
“To address this issue, in 2010, the Federal Government drafted the National Transport Policy to proffer a new direction for the industry. The fundamental goal of Nigeria’s transport policy is to develop an adequate, safe, environmentally sound and efficient transport system, in the context of a progressive and competitive economy.
“The ERGP (2017-2020) recognizes that Nigeria’s transport infrastructure stock is inadequate and constitutes a major cost constraint to businesses. It lags behind its peers in terms of scale and quality. The World Economic Forum places Nigeria behind South Africa, Kenya and others. To reverse this trend the FGN is leveraging private sector infrastructure investments through PPP. We also recognize that appropriate regulatory framework is a key element to scaling up investors’ confidence, hence the need for reforms in the transport sector.
“The transport industry sector reform, should aim at unbundling the existing tripartite role of public agencies as investors, operators and regulators, as well as create a robust and well-resourced multi-sector regulator for the industry”, he said.
The SGF recalled out that Nigeria had about 195,000 kilometers of road network out of which about 32,000 kilometers were federal roads and 31, 000 kilometers were state roads adding that out of this, only about 60,000 kilometers were paved and that of the paved roads, a large proportion were in very poor condition due to insufficient and differed investments and lack of adequate maintenance to which he said the government was working hard to reduce this backlog.
He continued, “The Nigerian railway network of about 3,500km of narrow gauge linking the north and the south, has largely remained unmaintained and out-modeled. This administration however ensured the completion of and use of the Kaduna to Abuja standard gauge railway as you all are aware.
“Nigerian ports are performing better, due to the concession that led to the transfer of 26 ports terminal operations and investment obligations to the private sector between 2004 and 2006. The reform of the port sub-sector was aimed at reducing congestion surcharges, reduction in ship dwell time and improved productivity. Some of these have been achieved, but sadly, access to ports still remain a huge challenge which we are seriously seeking ways to deal with between the federal, state and relevant local governments and stakeholders, through public private partnerships. Hopefully there should be respite sometime soon.
“For Nigeria’s economy to be propelled at the desired speed there is the need to establish or delineate a body, to regulate the sector and provide technical oversight for the provision of transport services, monitor compliance of government agencies and service providers, with relevant legislation for efficient operations through consolidation, removal of duplicity and regulatory functions of public agencies”.
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