The federal government has on Friday said that the Nigerian transport industry is governed by archaic legislation and policies.
This was disclosed by the Secretary to the Government of the Federation (SGF), Boss Mustapha at the 2018 appreciation night organised by the Nigerian Shippers Council in Lagos.
The SGF who was represented by the Permanent Secretary, Political and Economic Office of the Secretary to the Federal Government, Mr Gabriel Aduda said that Nigeria was ranked behind South Africa, Kenya in scale and quality.
“We are aware that Nigeria’s transport industry is governed by legacy old polices and legislations, which to a large extent impede the development of our transportation industry especially, in the area of attracting private sector players to meet the growing needs of our economy.
He said, “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 thru 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 is no doubt very crucial to the growth and survival of any economy and can rightly be described as the life line of growth and development.
“No country can become economically buoyant without good transportation infrastructure, especially a good inter modal transportation network. Transportation is the cornerstone of civilization and development, it creates linkages between people and places, it opens up economic spaces, corridors and opportunities.”
“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 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 Multl-Sector Regulator for the Industry.”
The former Managing Director of the National Inland Waterways Authority (NIWA) who rued the benefits of Multi-Sector Regulation in a growing economy like Nigeria.
“The benefits of multi sector regulation include Economies of scale i.e. sharing of fixed costs, scarce talents and other resources, build expertise in cross-cutting regulatory issues e.g. tariff adjustment rules and competition, Smart inter modal regulation that will reduce over dependence on one sector, as is the case now, where 90% of passengers and freight are transported by road.”
“A robust intermodal regulation should cover rail, water and land transportation. It should promote effective competition and economic efficiency, as well as enhance safety standards, while at the same time preserving the environment.”
The SGF stated that the present administration had ensure completion of the Kaduna deport for shippers.
“Government has also started work on strengthening the inland roads to provide access to the Inland Dry ports. The Concepts of inland Dry ports is particularly commendable. The initiative will not only reduce cost of moving cargo, but would in fact enhance the revenue/income of host communities and boost
Regional and national economy at large.
” At the formal commissioning of the Kaduna inland Dry port In January 2018mr president did also commend bothering the minister and the Nigerian Shippers Council for initiating a project with high potential to create jobs, open up opportunities and reduce threatening of unemployment in the country the Kaduna Inland Dry port Container traffic statistics trend shows that the Federal Government policy on export diversification from oil to non-oil sector, especially in Agriculture and Mineral sector is gradually yielding positive result.
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