One of the sectors the Federal Government is paying more attention to in 2017 is the transportation sector and the reason is obvious.
Allocating about N262 billion to the ailing sector is an indication that the government is ready to address the shortfalls in the sector and that also means there will be investment opportunities lying fallow for discerning investors to tap into.
Some of the areas calling for the attention of investors are across the aviation, maritime, railway, road and national inland waterways sub-sectors.
In the aviation sub-sector, lack of maintaining hangar, aircraft engine workshop, modern aircraft training facility and international standard catering infrastructure have been a clog in the wheel of development of the sub-sector.
In the maritime sub-sector, pollution control in the oil producing coastal regions, lack of search and rescue equipment and maritime consultancy centre, absence of tanker trade joint venture with Nigerians in the exportation of Nigerian crude oil have thrown investment opportunities open for investors who are ready to take the risks.
EXPERTS’ ADVICE
The Nigeria’s transport sector is facing an extensive overhaul, ranging from rails and roads to ports and airports; the country has long suffered as a result of inadequate investment in infrastructure, constraining the movement of people and goods, and prompting the government to push for the rehabilitation and expansion of the entire transport network.
Despite government’s increased budget allocations, potential issues connected to investment, funding and coordination could limit their implementation.
The anticipated overhaul of the industry will only happen, if private investment can be fully engaged. The success of future transport projects also depends on the coordination and integration of the networks to provide inter-modal connections and seamless travel for people and goods on these ambitious new routes.
A technical engineer with Megasonic Transport Limited, Lagos, Mr. Francis Osolease, advised that investing in transportation brings high returns compared to other sectors. He said that as an investor, you can fund and operate the country’s public transport networks, adding that a state like Lagos for instance, which is Nigeria’s commercial nervecentre, can be chosen for a transport overhaul in order to address the chronic traffic problems of the city, by offering ample opportunities for private sector involvement in extensive bus rapid transit network, rail lines, buses, water transport boats and cable car lines.
“Looking at the BRT network as an operator, all that is required is for you to pay a fixed franchise fee for procuring and maintenance of the bus fleet every year, while the government will be responsible for maintaining the infrastructure. If you are looking into investing privately without any partnership, you can get buses, then put them in care of professional drivers, who have a fixed sum of money to be paid maybe on a weekly or monthly basis, depending on the agreed sum of money to be paid back,”he said.
The Executive Secretary of Nigerian Shippers’ Council, Mr. Hassan Bello, disclosed that the transportation industry can contribute about 10 per cent to Nigeria’s gross domestic products, if the right policies are in place to drive the sector. To achieve this, he said there must be massive investment in infrastructure and training for operators and regulators on new global trends in transportation services.
“As Nigeria looks to export to diversify its economy, transportation and shipping are the key, and there must be processes put in place to achieve this. So many mistakes have been made in the industry as a result of the huge knowledge gap. We cannot afford to make any mistakes this time that we have limited opportunity in the sector. Transportation is a significant aspect of the Nigerian economy. The time has come for the sector to mean something and contributes a huge portion of the nation’s GDP,” he said.
The NSC boss added that there is need for investment to get the sector to be properly linked to the Nigerian economy.
Specifically, Osolease attributed the opportunities to the move made by some investors in the United Kingdom to invest over $1 billion in the sector within 12 months.
“The importance of more involvement of the private sector, increased public-private partnership opportunities, ranging from establishment of ship building yards, flatbottom boats for waterways, ports fencing, modernisation of transportation systems, ship breaking yards, railway infrastructure and logistics, power sourcing as well as the various channels of business to access financing from the UK, cannot be over-emphasised,” he added.
