Transport
From The Report: Nigeria 2012
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There is no single answer for bringing the transport sector up to speed to meet the needs of the economy and population, and any approach to overhauling it must be comprehensive. The government, through its National Transport Policy (NTP), recognises that lifting barriers to private enterprise is a vital element of any comprehensive plan for the sector. The NTP calls for initiatives to modernise roads, bridges, rails, ports, urban transport and other areas vital to commercial activity. Where the government has chosen not to undertake transport projects, it has entered into public-private partnerships (PPPs). For instance, the completion of a port at Lekki, in Lagos State, in 2015 is expected to take some pressure off Lagos Port Complex and Tin Can Island Port.

This chapter contains an interview with Martin Wittig, CEO, Roland Berger Strategy Consultants.

Articles from this Chapter

Overview

A full agenda: Bringing the system up to scratch will be a huge challenge
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With impressive economic growth rates in recent years, Nigeria is in need of transport infrastructure befitting an emerging powerhouse. Despite heavy congestion in its urban areas and seaports, the GDP of West Africa’s largest economy – and the continent’s most populous country – grew by an annual average of 7.6% from 2003 to 2011. That this was done with such a heavily used system and limited infrastructure is no small feat. The completion of a port at Lekki, in Lagos State, in 2015…

Interview

OBG talks to Martin Wittig, CEO, Roland Berger Strategy Consultants
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Interview: Martin Wittig To whatextent has the public-private partnership (PPP) model been successfully used to develop infrastructure in Nigeria and West Africa? MARTIN WITTIG: The PPP model has shown mixed results in the region. Although there are examples of success such as transportation projects in Lagos, the model is largely under-utilised. Major impediments include insufficient sector reforms to allow private participation, limited long-term policy visibility and stability, and low…

Analysis

All aboard: Liberalisation of the rail sector is gathering steam
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The resumption of traffic on initial lines in the southwest of Nigeria from 2011 was a sign of the efforts by an administration intent on liberalising the rail sector. After decades of false starts, the country is finally making progress on upgrading its narrow-gauge rail network and laying new standard-gauge lines. A necessary step on the way to concessioning to private sector operators, much of the modernisation work has been awarded to Chinese contractors. Just as urban light-rail projects…

Analysis

All’s well that ends dwell: Reducing bureaucracy is one of the targets for ports
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In 2011 Nigerian ports imported 660,000 containers, for a 10% increase year-on-year (y-o-y), and the country’s port capacity is set for a boost with the opening of a new $1.7bn facility. The port, in Lekki, in the Lagos Free Trade Zone (LFTZ), is expected to have an annual capacity of 2.5m twenty-foot equivalent units (TEUs) on completion of the first phase in 2015. In addition to three container berths, the port will also feature one dry bulk berth and three liquid berths, which the ports…

Analysis

Opening the door: Bringing more international carriers in will require a careful approach
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Aerial passenger traffic has risen dramatically since 2007, when 8.5m people took to the Nigerian skies. In 2011 the figure was 14.6m — a 72% increase in four years. Of those, 12m flew on domestic flights, underscoring the key role of the country’s carriers. The largest of these is Aero, which has a domestic market share of around 35%. Aero’s occupancy rate on its flights in 2011 was 84%, reflecting a sector trend as demand for air travel has increased rapidly. Due to a national strike…

Analysis

New beginnings: The latest long-term strategy could transform the sector
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As the economy expanded rapidly over the past decade, Nigeria’s national transport system became increasingly strained. The country’s road network, which moves 90% of goods and people, according to the Ministry of Transport (MoT), is largely in a state of disrepair and heavily congested. The rail network, meanwhile, is only partially operable due to decades of underinvestment. The nation’s ports and waterways have been operating well above capacity for years, while its air carriers and…

Analysis

Coming and going: Border and regional infrastructure set for upgrades
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Reliable road connections will prove crucial to a regional ambition to further integrate the free movement of people and goods. Already accounting for some 90% of domestic trade, road transport also facilitates significant trade along Nigeria’s 4047 km of land borders. Ranked 146th of 189 by the World Bank’s Ease of Doing Business index in terms of cross-border trade and 100th of 155 countries in logistics performance in 2010, there is significant room for improvement. With support from multilateral…

Analysis

Going upstream: Taking to the waterways to alleviate pressure on the roads
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Having reaffirmed its intention to liberalise its inland waterways system as a means of easing overwhelming pressure, particularly from freight, on Nigeria’s creaking road infrastructure, the Ministry of Transport (MoT) will need to demonstrate more commitment than past administrations for private investors to respond in force. Though it has the 14th-largest waterway network in the world, Nigeria has not optimised its use. Despite enormous economic growth since independence, the total amount…

Analysis

Never again?: Aircraft safety has become a top priority
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Four years after the last deadly crash, Nigeria’s aviation is still reeling from twin disasters in June 2012 that have served as a wake-up call for the industry. Although Africa was the continent with the highest number of crashes (yet the lowest level of traffic) in 2010, the absence of fatal air crashes in Nigeria since 2008 seemed to indicate stricter controls and enforcement by the industry regulator, the Nigerian Civil Aviation Authority (NCAA) and the airspace manager, the National Airspace…