National Transport Commission (NTC): Catalyst for growth in Transport Sector

A well structured and coordinated transport sector often triggers a phenomenal growth in the economy.

Most developed economies of the world use transport sector as a vital pivot of their economic transformation.

That is why they have well-planned, efficient and robust inter-modal transport system which they use to drive their economies.

Conversely, the poor economies of the developing countries are often a sad reflection of their under-developed, poorly coordinated and abysmally inefficient transport sectors which are characterised by lack of regulations and huge infrastructural gaps.

Sadly, Nigeria falls into this category of developing countries which failed to take advantage of the huge potentials in the sector to trigger economic boom.

We are saddened by the inability of successive administrations in the country to tap into vast opportunities and potentials in the sector.

We note that this lack of foresight has robbed the country the benefits of well-coordinated and efficient inter-modal system of transportation.

The country does not lack the capacity to envision policies and programmes aimed at developing the sector, but the political will to execute them has been lacking.

That is why there is a yearning gap in infrastructure in the sector.

Our railways are in shambles, safe for the latest remedial efforts of the Buhari administration to salvage the sector.

Our road transport is in comatose due to infrastructural decay that has foisted on us network of non-motorable, pot-holed roads filled with junk, rickety vehicles.

We shudder at the state of our water transportation which has become a death trap due to poor regulation and lack of infrastructure.

The maritime sector is still struggling to grow due to weak regulation but for its shipping component which is regulated by the International standard set by the International Maritime Organisation ( IMO), the entire sector would have been consumed by inefficient administration.

The only exception to this malaise is the aviation sector which, like shipping, is regulated by international standard set by the International Civil Aviation Organisation (ICAO).

However, we are gladdened by the fact that Nigeria has decided to be proactive in arresting the decadence in its transport sector through deliberate efforts to do things differently.

We consider the National Transport Commission (NTC) bill which the National Assembly has passed into law as a veritable tool that will galvanise the otherwise sluggish sector into action.

It will remove all the encumbrances to harnessing the huge potentials in the sector for economic growth.

We commend the 7th National Assembly which initiated this revolutionary process while we laud the soon-to-be-wound-up 8th National Assembly which gave it concurrent legislative approval.

While the House of Representatives led the way in February 2017 by passing it into law, the Senate, one year later, March 2018, gave a concurrent nod.

We at nigeriamaritime360.com are elated by this development which we strongly believe will take our transport sector out of the wood.

The National Transport Commission (NTC)bill 2016 is an Act to provide for the establishment of the National Transport Commission as an independent multi-modal economic regulator for the transport industry.

The NTC Bill establishes the National Transport Commission (NTC) a single-sector regulator in line with global best practices to carry out economic regulation and safety oversight across the different transport sector.

The NTC will operate as an independent regulator to promote intermodalism (different modes of conveyance) in our transport sector.

It will further the linkage between the different modes of transportation (Ports, Aviation, Roads, Railway, Marine, etc.);

The NTC Bill creates an enabling environment for private sector participation in the provision of services in the transport sector;

The NTC Bill will ensure private sector participation in the provision of transport services. This will effectively close the infrastructural gap in the sector.

The NTC Bill will facilitate effective competition and promote a transparent and competitive market that is free of unfair business practices as well as ensure that the misuse of monopolies or dominant positions are prevented;

The NTC Bill will ensure that users of transport services are protected and that there is quality service in the provision of any transport service in the transport sector.

The NTC will monitor compliance of government agencies and transport operators in the transport sector with relevant legislation;

The NTC will monitor the quality of services rendered to users and the tariff rates and charges paid by transport service users;

The NTC bill will ensure that users have equitable access to transport facilities, services, channels and routes while having regard to the level of competition and efficiency within a regulated transport industry;

The NTC bill ensures that decisions made by transport sector regulators take into consideration relevant health, safety, environmental and social legislation and best practices applicable to a transport industry.

Most of the developed economies which used transport sector as the fulcrum of their economic growth usually saddle the regulation and oversight functions of the sector with independent bodies devoid of government interference.

That is why we believe this commission will open a floodgate of private investments that will bridge the infrastructural gaps in the sector.

However, we are saddened by the decision of President Muhammadu Buhari to withhold his assent to the bill one whole year after the Concurrent passage by the Senate in March 2018.

Mr President has said that some sections of the National Transport Commission Bill contained safety regulations that would duplicate the functions of existing transport agencies.

He also frowned at the percentage of the royalties accruable to the commission which he considered to be too high and duplication of similar royalties of the existing government agencies.

While he wanted the first observation expunged, he asked the percentage of the commission’s royalties be reduced before he could assent to the bill.

In as much as we concede to Mr President the power and authority to withhold his assent to this important bill based on his observations, we dare say that each day he refuses to sign the bill into law further elongates the captivity of the transport sector in the abyss of inefficiency and stunted growth.

The continued refusal of Mr President to give his assent to the bill will further exacerbate the uncertainty in the sector which will embolden the reluctance of private sector to commit its investments into the industry.

We want to remind the government that investors are waiting for the signing of this bill into law before they unleash their commitment to lifting the sector out of its present non-performance.

At present, no worthwhile investments could be attracted into the sector due to high level of uncertainty and unpredictability.

We believe that if an independent regulatory authority such as NTC takes charge with the attendant enabling environment created by the bill, there would be enough incentives for private participation in the sector.

We are convinced of the positive impact the commission will create on the sector as a result of the benefits of the bill.

We believe that if the sector is fully deregulated through this multi-sectoral commission, it has the capacity to contribute nothing less that 10 percent to the country’s Gross Domestic Product(GPD).

It is sad that presently, the sector is performing below its capacity as is merely contributes about one percent to the country’s GDP.

Sadly too, government has over the years showed lack of commitment to bridge the huge infrastructural gap in the sector through its dwindling funding.

Government allocations to the sector from 2013 to 2019 shows fluctuating fortunes.

In the years under review, funding to the sector decreased from N107.7 billion in 2013 to N72.3billion in 2014 and plummeted to N29.7billion in 2015 before it frog- jumped to N202.3billion in 2016.

In 2017, the allocation also increased to N262billion with marginal increase to N263billion before it crashed to N194.24billion in 2019.

In cold statistics, government has consistently displayed its lack of readiness to commit funds to stimulate the sector for economic growth.

Expectedly, modern economies are driven by private sector participation through provision of enabling environment that will encourage massive investment.

We believe that continued delay in giving presidential zeal to the creation of NTC would continue to shut out the much needed private investments that will revitalise our multi-modal transport sector for economic growth.

We therefore urge both the National Assembly and Mr President to smoothen the grey areas that are delaying the president’s assent so that the commission will quickly come on stream to salvage the sector.

Any stand-off between the President and the National Assembly on this bill should not be encouraged as it will be counter -productive to the vision of efficient and robust inter-modal transport system of transportation.

In as much as we want amicable resolution to the cause of the delay in president assent, we shall not however cringe at the possibility of the National Assembly overriding the President decision to withhold his assent to the bill.

It would be gratifying if the 8th National Assembly, which is at the twilight of its life, could complete this task to make Mr President assent to the bill by either acceding to his request or use other constitutional means to berth the commission.

In the alternative, the task of giving legal life to this commission should be among the first task of the 9th National Assembly so that our ailing transport sector would be rescued from the vice grip of gross inefficiency and under-utilisation of its huge potentials.