THE IMPACT OF TRANSPORTATION ON THE NIGERIAN ECONOMY (1980 – 2010)

CHAPTER ONE

1. INTRODUCTION

1. BACKGROUND OF THE STUDY

The transportation system in Nigeria is being seen as the means towards attainment of growth and development of the Nigeria economy. To attain such growth, an efficient function forms has to be laid.

In every aspect of man’s activities, transportation has come to play a vital role, which ranks it among the most important determinants of any success in such human activities. The transportation of goods and services has become vital to the economy due to foreign exchange earning to the sector of the economy. As such there is need for this study. A good and well backbone for a vibrant and growing nation.

Therefore, transportation is defined as the movement of people and material from one point to the other for one reason or the other. This movement could be on sea, land or air. Transport is hardly in demand for its own sake; rather it is linked

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organically to the survival of other sector namely social, political and economic sector. Hence the need for transportation services in any economy is it socialist or capitalist cannot be under estimated. The interaction between the level and pattern of transportation resources and the standard of living of the population of any country is or critical factor affecting social, economic, political military, religion, recreational or educational progress and must therefore be taken into account at all levels of planning. Therefore, activities in aspect of transportation system while their subsequent operations and development would generate increase demands for transportation of goods, services and people.

The development and efficiency of transportation system is a pre-requisite goal of all developing countries.

Money and funds have been selectively applied to this particular field of development and the principle is now generally accepted that the improvement of transport forms perhaps the most valuable single contribution towards economic, social and

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political development. In diverse ways of man’s daily activities transport system have served and will be serving and shall still serve. For example transportation system has been employed to serve in various economies’ criteria rather conveying raw materials to the manufacturing plants or finished goods, to the consuming areas. Certainly in the early stages of economic in communities where subsistence agriculture is still important transport is probably the key to development “Fertilizer improve strains of seeds, education and other subject are all of the greatest importance. But the needs for transport is prior of these”

(Clark 1968).

Nigeria like any other developing country recognizes the importance of and need to develop an efficient transport system evidently stated in the third National Development Plan of 1975 to 1980. The transportation system has to support the growth and development of agriculture, commerce and industry with efficient movement or people and goods throughout the country. As a matter of public policy the government supports the continued development of efficient dynamic and flexible transport

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service as being vital to economic growth, expanding productivity and general process of the nation. The efficient and effectiveness of transportation system influence the cost of every commodity consumed or exported, thereby affecting business economic and industrial opportunities of every citizen the basic objective of the government in this field is to develop and assure the continued expanding availability if fast, save and economic transport service needed in a growing and changing economy in order to move people and goods in response to public and private demand the lowest consistent with health safely, convenience, and their broad public objectives (Ahmans 1990)

In the light of this, government has lead emphasis on efficiency, flexibility, safely and lowest cost in the development of transportation services especially the Federal Urban Mass Transit Programme in 1988 (Daily Champion, 1988) that led to the emergency of transport outfit such as Borno Express Corporation in Borno State, Kaduna transport Authority in Kaduna, Kwara Express in Kwara State, Plateau Express Limited in Plateau State. Like most government establishment they were making

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parastatals and their services are to be subsidized in relation to the private transport sub sector. All these development are effort towards a reflection of national growth, which had generated the information of various outfits to cope with this general pace in a natural building. These factors ensure a free low factor of production commodities with regards to cost of production and job opportunities. And from the welfare view point, it enhances higher standard of living of the populace.

Therefore, this essay is aimed at studying an economic analysis Nigeria economy with particular reference to Borno express corporation and the length at which public demands transport service (Bello, 2000).

1.2  STATEMENT OF THE PROBLEM

In the transportation sector of Nigeria economy, there are numerous problems which the transportation sector faces. These problems are great source of concern to economic and the government at large. The transport sector virtually serve as

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source of foreign earning and equally means of conveying goods and services to the nooks and crannies of the country.

Transportation economics encompasses, air, sea and land transportation system with specification reference to Nigeria, the road transportation system is the most widely used of all forms of transportation system.

Hence, the federal state and local government have ensured that road transport infrastructure develop in all federation. However, inadequate of credit facilities has been identified as a major obstacle for improving transport in Nigeria. The federal government in its desire to encourage the development of transport sector has put in place certain facilities to the transport sector through various schemes and policy guide lines.

Transportation infrastructures (roads, rail, airports and seaports) are the arteries for the free flow of people, goods and information, three things necessary in a manufacturing and export economy. If eyes are the light to human soul, then the airports and seaports are the eyes that international business

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travelers see a country with. How important there transportation infrastructures are to the manufacturing economy is as good as anybody can gives. But that will not stop me from talking about it.

The domestic need for transportation infrastructure brings with the possibility to become an important link in the regional transportation system in the movement of goods manufactured in the rural areas (where most manufacturing facilities should be located anyway). There is a need of there transportation infrastructures it cannot continue, the age – living neglect of these transport systems. Also there is a need to revive water way and railway transportation. The age – long neglect of these transportation if Nigeria wants to become a manufacturing economy. A country cannot become a manufacturing giant without well – connected inner perimeter roads xxxx airports, seaports and railroad stations.

Government cannot display possibly all these without the involvement of private entrepreneurs in the building of

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transportation infrastructures, such as the management of airports, railroads, seaports, and state collection of tolls of the maintenance of perimeter roads and highways. For Nigeria to reach the goal of becoming a manufacturing economy in 2020 (what we at Nigerian Entrepreneurial Leadership call 24 hours economy) the country must attend to the glaring and urgent needs of using water and rail means of transport to reduce pressure on the road system and boost productive activities and employment country wide, especially in the rural areas.

The neglect of rail and waterways for decades has contributed to the nation’s dependence on food importation, as agricultural produce from one part of the country cannot be transported cheaply to other parts. Lack of cheap means of transportation has discouraged many farmers whose harvests perished because they could not access the market. Also, the nation has continued to reduce the same socio-economic loss from the future to expand railway network to all the states, so that agricultural produce could be moved cheaply to urban markets. Rural development proclamation will just be that,

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proclamation, unless transportation infrastructure network is build to encourage free flow of people and goods.

More disappointing is the inability to maintain the existing north-south colonial rail truck for the movement of goods. This is major reason for the amalgamation of the north and the south by the colonial masters for their easy management of movement of goods. Nigerian’s should debate more on the economic manufacturing necessity of the north and south areas, as well as the east-west areas; rather than the political undertone. Consequently the decline in rural economic activities is largely responsible for high rates of joblessness, crime and declining quality of life, as the urban areas become overpopulated resulting in environment problems, such as over-flow of garbage, lack of proper drainage system.

The Nigerian Railways Corporation (NRC) monopoly law should be abrogated and a regulatory framework set up to guide private instruments in the rail transportation infrastructure. The lack of interest, and failure to provide incentives, might have

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discouraged the private sector from investing in rail and water transportation. Because of the importance of this sector in a manufacturing economy, a form of enterprise fund should be created with the purpose of promoting private sector development in the rail and water transportation.

International business travelers must agree that Airport security and foreign investment go hand in hand. Travel is a basic necessity for business to be conducted between countries, while symbolizing a deeper connection that is fundamental to a country’s economic fixture. Aviation is the travel mode of the world; the first and last impression is your airport. Foreign investment is going to come from people who fly. It is vital if Nigeria is going to become a manufacturing export economy that encourages business people will doubt whether Nigerian’s airport and airspace can attain international standards. These recent misshape give a bad impression not only of Nigeria airport, but also of Nigeria as a whole, and the lack of structural management system. The bottom line is that if you can’t get there, you can’t trade. Improving airport security is so critical for international

trade. The attract travelers and commercial shippers, air travel to Nigeria must be safe and secure.

This project is not meant to provide solution to the ailing transportation infrastructure, as to modernization of equipment types, and types of industry management training, but to raise awareness of the importance of the transportation industry problems in equipment and training is left to the consultants, who often a critical study, diagnosis, and analysis of the sector’s current situations. Any seemly solutions to the problems presented in this project are peripheral as I do not give free in-depth solution in my project. Lecletus Olebune (2010).

The research questions for this study are:

1. What is the impact of transportation on the Nigerian economy?

1. What are the domestic needs for transportation infrastructure?

1. How does inadequate of credit facilities affect improvement of transport in Nigeria.