Transport
From The Report: Nigeria 2015
View in Online Reader

Upgrading and developing new transport infrastructure is essential to unlocking Nigeria’s undeniable growth potential. Given that state coffers are strained, and multiple sectors are competing for funding, the government is looking to reduce public control of its transport network and hand over development, management and maintenance responsibilities to the private sector. The port concessions show the PPP model can work and demonstrate the possible efficiency and performance gains from privatisation. Across all modes of transport, a mismatch between demand projections and current capacity is evident, making a strong case for interested bidders, given the right regulatory framework and operating conditions. Prospective investors will be eagerly waiting to see how the transition impacts the passage of key bills – like the NTP – and the confirmation of the revised roles and remits of the various regulatory bodies and state institutions operating in the sector.

This chapter contains interviews with Uche Orji, Managing Director and CEO, Nigerian Sovereign Investment Authority (NSIA), and Charles Brewer, Managing Director for Sub-Saharan Africa, DHL Express.

Articles from this Chapter

Overview

Liberalisation of Nigeria’s transport sector set to enhance connectivity
OBG
plus

Upgrading and developing new transport infrastructure is essential to unlocking Nigeria’s undeniable growth potential. Without adequate infrastructure to move people and goods into and around the country, many of the attributes that make Nigeria a production and consumption base primed for sustained expansion could be negated. Given that state coffers are strained, and multiple sectors are competing for funding, the government is looking to reduce public control of its transport network and hand…

Interview

Uche Orji, Managing Director and CEO, Nigerian Sovereign Investment Authority (NSIA): Interview
OBG
plus

Interview: Uche Orji What lessons can be drawn from the success of sovereign wealth funds (SWFs) internationally? UCHE ORJI: There are three main lessons that I think we can draw from studying the success of sovereign wealth funds internationally. The first is the need to build institutional capacity and strong governance principles in order to deploy the federation’s assets wisely. To that extent the investment processes, asset allocation policies and manager selection process are designed…

Analysis

Projects to boost port capacity and address bureaucratic bottlenecks in Nigeria’s transport sector
OBG
plus

The country is facing a substantial capacity deficit when it comes to meeting the current and predicted demand for cargo volumes. This is set to change with the construction of two new greenfield ports in and around Lagos, in combination with a selection of both ambitious and smaller-scale projects serving the south-east part of the country. As competition to establish regional leadership for port capacity ramps up, mainly from expansive projects taking place in nearby Ghana, Togo and Côte d’Ivoire,…

Interview

Charles Brewer, Managing Director for Sub-Saharan Africa, DHL Express: Interview
OBG
plus

Interview: Charles Brewer Where do transport bottlenecks increase delays? CHARLES BREWER: Transport bottlenecks occur most frequently at border posts, where freight-carrying vehicles are forced to wait in long queues. We are an express business, and so aviation is our primary form of transport. However, traffic gridlocks and congestion can also cause delays for the local collection and delivery of shipments. An example where we have managed to successfully counteract this is in Lagos. After considerable…

Analysis

Air transport in Nigeria has significant potential for expansion
OBG
plus

Despite having the continent’s largest economy and population, and a location at the crossroads of West and Central Africa, Nigeria has yet to capture what some would argue is its rightful position as an aviation hub. As existing airports are overhauled and new terminals constructed, this will change. However, demand-side inhibitors, such as the lack of a national carrier, high airline fees and limited open-skies access must be addressed if the country is to fulfil its potential. Continental Gap Nigeria…

Analysis

Reviving Nigeria’s rail network through public-private partnerships
OBG
plus

Rail transportation, much neglected for the past half decade, is in the midst of a revival as old lines and assets undergo modernisation and are put up for privatisation, and new infrastructure is concessioned through public-private partnerships (PPPs). Traffic volumes are set to increase with rail looking to secure a position as a key mover of goods and people, as dormant services start up again and new lines are constructed. Rehabilitaion Rail contracts in excess of $3bn have been awarded since…