Transportation Business plan

 Introduction

With Africa’s largest economy and its biggest population, Nigeria’s growth potential has been widely reported; however, long-term bottlenecks have prevented the country from realizing that potential.

The transport sector has been identified over the years as one of those bottlenecks. As a result of decades of poor maintenance and underinvestment in new capacity, the sector is marked by congestion, inefficiency and high overheads.

Therefore, transport infrastructure and the logistics sector were identified as key elements of the March 2017 Economic Growth and Recovery Plan (EGRP) – President Muhammadu Buhari’s strategy for the country’s post-recession development. Indeed, there have been ongoing calls for significant capital spending in Nigeria.

A 2014 study by consultancy firm McKinsey estimated that Nigeria would need to invest $839bn into infrastructure by 2030 to allow the economy to realise its full potential, with the bulk of this investment required in transport and power systems. The study, which based its analysis on the expectation that a series of ambitious and efficient projects would be rolled out in the coming decades, noted that the nation’s infrastructure requirements were heavily dependent on economic growth and the ability to successfully execute planned projects.

Officials have stated that public sector spending alone cannot address all of the challenges facing the sector, however, leading to a shift towards improving the business environment in order to attract new private investment in rolling stock, infrastructure and facility management.

The proposed reforms include an end to state monopolies, the privatization or concession of assets to operators, and the establishment of independent technical and economic regulators. While these proposed legal reforms have long been on the table, 2017 could see progress on the matter.

The need for improved transport infrastructure and processes in Nigeria has been well documented, with roads in the main commercial hub, Lagos, often suffering from significant traffic delays. Congestion issues on the city’s roads are in part a reflection of the lack of alternative passenger and freight transport options, particularly in terms of rail transport. Nigeria’s road network accounts for 90% of the transport sector’s contribution to GDP, with the network itself in need of improvement.

With the influx of new firms springing up in Lagos every day, the need to move their workers efficiently and in a classic way is prevalent. Firms are already using this means to move their firm saving the need to provide transportation services themselves yet meeting the need to move their staff in an efficient and classic way.