Federal Government of Nigeria

Draft National Transport Policy

August, 2010
1. INTRODUCTION

1.1 Transport in National Development

Transport plays a key role in the economic and social development
of any nation. A well functioning and integrated Transport System
amongst other things:
• stimulates national development and enhances the quality of
life for all;
• allows markets to operate by enabling the seamless movement
of goods and people;
• provides vital links between spatially separated facilities and
enables social contact and interaction;
• provides access to employment, health, education and services;

• alleviates regional inequality and fosters national integration;

• increases access to markets and links local, regional, national

and international markets; and
• promotes economic development by increasing access to
labour and physical resources thus facilitating the realisation
of a country’s, comparative advantages.
The different Transport modes (road, rail, maritime, air and
waterways) have specific features and advantages. The overall
efficiency and effectiveness of the Transport system depends on the
development of these modes and their interfacing/integration.
1.2 THE NIGERIAN TRANSPORT SYSTEM IN PERSPECTIVE:
The evolution of modern transport system in Nigeria can be
categorized into two distinct phases. These are:

a) The colonial period which marked the origin of modern

transport system. The networks of rail, water and road
developed then were geared essentially to meet the
exportation of cash crops, such as groundnuts, cocoa,
cotton and palm products and to the importation of cheap,
mass produced consumption goods. These early transport
systems were planned in the most economic way possible,
as typified in sub-standard road and rail alignments and a
sub base, which later proved inadequate to accommodate
heavy vehicles.

b) The post colonial period/attainment of independence. With

a re-orientation of goals, transport became one of the
instruments of unification of the country and an important
tool for social and economic development. The development

pg. 1
 of petroleum resources from the 1950’s had significant
impact on the nation’s social and economic growth, putting
increasing demands on the transport system.

Goods and passenger movements in Nigeria are performed

mainly by road, with the railway and inland waterways playing
significant, but less important roles. International freight movement
is principally by sea while air transportation is the main passenger
carrier.

Government’s investment in the country’s transport system is

substantial. The replacement value of road network at 2001 prices is
estimated at between N3,500 – N4,300 billion. The fixed assets of
Nigerian Ports Authority amounted to N36 billion in 1999, but this
represents an addition of unadjusted historical data. The replacement
value could therefore be much higher. Investments in the Nigeria
Railway Corporation are smaller, approximately N9.5 – N10 billion.1
All the transport sub-sectors suffer from the effects of past
shortages of resources, and this inadequacy has consistently been
reflected in inadequate maintenance. In the road transport sub-sector,
the lack of road maintenance often necessitates subsequent
reconstruction. The inadequate replacement and the poor
maintenance of vehicles, contribute to high social costs of
atmospheric pollution, and results in high operating costs. In the case
of the railways, the lack of necessary resources to keep tracks, rolling
stocks and maintenance facility in reasonable working condition
produced a serious deterioration of the railway system. Similar
problems affect the inland waterways, resulting in its inability to
perform useful functions.
The long-term shortages are growing, becoming seemingly
insoluble. For transport operators, these problems create a feeling of
despondency, decline in morale and exacerbate
management/ employee tension. Feeling of despondency and low
1

morale cause further deterioration and growing problems of the

system, creating a vicious circle. Breaking this circle is the overriding
immediate objective of the country’s national transport policy.

1.3 Challenges and Opportunities:

The Nigerian transport system faces great challenges and also
offers several opportunities. The predisposing factors include:

a) The size of the country: With area coverage of 923,768.64

km2, spanning longitude 30E-160E and latitude 40N-140N Nigeria is a
comparatively large country. It is inhabited by over 140 million

pg. 2
 people. Transportation is a crucial instrument for linking the
country economically, socially and politically.

b) Nigeria’s vast natural resources: Nigeria is endowed with

petroleum, gas and solid mineral resources. The country is also
blessed with abundant agricultural and forest resources, which
vary by the three ecological zones of the country. The country
is endowed with a highly productive open sea with abundant
and diverse marine resources within her coastline of 852km
bordering the Atlantic Ocean in the Gulf of Guinea and her
maritime area of 46,000 km. This variation is a factor in spatial
interdependence. Transport plays an important role in the
exploitation and distribution of these resources and in the
reduction of spatial inequality and in poverty alleviation.

c) The Growth of the Nigerian Economy: Until the current

decade, economic growth posed significant challenges to the
Nigerian economy, especially during the decades of the 1980s
and 1990s. However, between 1999–2008, the performance of
the Nigerian economy improved significantly. Real Gross
Domestic Product (GDP) grew at an annual average rate of 5.6%
and was the highest in three decades. The economic growth
rate of almost two times the estimated 3% growth rate of the
population ensured a real per capita output growth of 2.6%. The
oil sector tended to constitute a drag on growth. The
composition of national output for the 1999 – 2008 decade
shows that there is still the challenge of achieving broad-based
growth. Three large sectors – crop production, oil and gas, and
wholesale and retail trade contributed the most to GDP. The
role of Manufacturing was limited while wholesale and retail
trade, through a high contributor to GDP, had low linkage with
domestic production due to low domestic production output
and high importation. Overall, the Sectors of the economy are
still plagued by numerous problems notably, poor and decaying
infrastructure, epileptic power supply, institutions and
regulatory deficit, etc. The defective structure of the nation’s
economy make her heavily dependent on export earnings from
crude oil and on import of consumer and capital goods, thereby
increasing the country’s cargo throughput and boosting the
overall maritime trade. The huge volume of cargo generated by
Nigeria places her at an economic advantage in South-Saharan
Africa.

d) Strategic Location of Nigeria: by its location, Nigeria has

an extensive coast washed by the Atlantic Ocean and a
geographically conducive shore which provide the opportunity
of port services to landlocked countries in West Africa and

pg. 3
 particularly Chad and Niger Republic, as well as serve as a hub
for transhipment for the West and Central African sub-region.

Thus, the demand for transport is high and growing. This

National Transport Policy acknowledges the need to support
the country’s social and economic growth to enable her
compete favourably in international markets. This Policy above
all, acknowledges the need to develop a transport system that
ensures national security, opens up inaccessible areas and
serves the overall well being of the people.

1.4 The Need for a National Transport Policy:

The introduction to the National Transport Policy document of

1993 states that:
“At present, the Nigerian transport system functions in a crisis
situation”, and one of the principal causes, it identified was “a
major imbalance between the needs of Nigerian society and
economy for adequate transport facilities and the ability of the
transport sector to meet such demands”.
This statement remains valid today, in 2010, in respect of most
of the transport system. The imbalance in supply and demand for
transport capacity overall, and in the development of the different
modes of transport, has in fact increased over the period since 1993.

This does not mean that during these years no efforts were
made to improve and maintain the system and make it function. A
significant improvement exists, but overall the demand for transport
services in Nigeria seems to exceed the supply. The Nigerian transport
system is still in a very difficult situation that needs urgent remedies.
Changes and improvement are obviously needed. Therefore, the
present National Transport Policy strives to attain maximum realism
both in the identification of the problems and in the assessment of
the means to rectify them.

The responsibility for planning, developing and maintaining the

nation’s transport infrastructure is shared among the three tiers of
Government. To this end, intra-state roads are the responsibility of
State Governments, while the Local Governments are required to cater
for intra-urban and rural feeder roads, which account for over 60% of
the existing road network. The Federal Government is responsible for
the national highways which constitute only 17% of the existing road
network. In addition, the Federal Government through its Agencies is
also responsible for Inland Waterways/River Ports, Sea Ports, railways,
airports and pipelines.

pg. 4
 Furthermore, high-level policies of government in particular,
the NV 20:2020 economic transformation blueprint, 7-point Agenda,
NEEDS, Public Private Partnership (PPP) and International
Commitments such as the Millennium Development Goals (MDGs) all
require a functional, reliable and effective transport system to, among
other things, connect people, places, services, opportunities, etc.
This National Transport Policy therefore provides the
guidelines for planning, development, co-ordination, management,
supervision and regulation of the transport sector as well as:
• explaining Government’s decisions and actions in the sector by
espousing the goals and principles that guide it;
• identifying existing gaps and short-comings and how to address
them;

• showing how actions in the different modes are linked in

pursuit of common goals;
• providing the basis for a system of monitoring and
accountability; and

• Ensuring consistency in the application of policy principles

across all modes and in pursuit of different objectives.

pg. 5
2.0 POLICY GOALS AND OBJECTIVES

2.1 Policy Goals

The fundamental goal of this National Transport Policy is to

develop an adequate, safe, environmentally sound, efficient and
affordable integrated transport system within the framework of a
progressive and competitive market economy.
An “adequate transport system” means that available transport
infrastructure and services meet the needs of all Nigerians for access
to the market, place of employment and to basic social services. The
transport system will serve as an instrument for social, political and
economic unification; strengthening the operation of markets,
facilitating production and resource development, and promoting
relationships with the outside world.
A “Safe transport system” means that all reasonable standards
are set and actions taken to prevent accidents and minimise the
number of potential victims and the destruction of property. Effective
safety measures should protect transport operators and their
employees, users of transport services and the public at large.
An “environmentally sound transport system” means that
reasonable, effective actions will be taken to diminish atmospheric,
water and other pollution, through proper planning of infrastructure
and the establishment of appropriate regulatory standards.
An “efficient transport system” means that the transport
services are provided in a way that ensures resources are used
efficiently and the economic potential of appropriate technology is
used to achieve sustainable gains in productivity in order to reduce
costs and improve service quality. An efficient transport system also
implies the progressive reduction of social costs, the control of other
external costs of transport, and the expenditure of public funds in a
way that is properly justified and carefully managed.
An “affordable transport system” means that adequate
transport services can be enjoyed by all classes of Nigerians at
reasonable cost, and where market mechanism fails to provide this,
the Government will intervene to support the provision of essential
transport services.
An “integrated transport system” means the effective
connectivity between ports, rail, road, inland waterways and air,
thereby making use of the advantages of different modes to ensure
seamless movement of goods and people and better utilisation of
resources.

pg. 6
 2.2 Policy Objectives

Given the current condition of much of the transport sector,

the rate at which the goals can be achieved will be subject to the
realities of resource availability and practical implementation
constraints. It will take some considerable time to make the scale of
improvements needed across each of the transport modes to achieve
these policy goals. It is therefore essential that the implementation of
policy is based on a careful prioritisation of goals and objectives and
that plans in each of the transport modes are realistic and consistent.
All transport investment should be subject to careful analysis to
ensure that the benefits, net of the costs, meets appropriate
investments criteria and represent value for money; and that policies
and plans are practical and sustainable. The Government’s policy
objectives for the sector are:
• to promote economic development, expand trade, and improve
Nigeria’s competitiveness through an efficient and affordable
integrated transport system;
• to encourage and remove all barriers towards the private sector
participation in the development, provision, maintenance,
operation, and upgrading of transport infrastructure and
services;
• to promote the use of public transport over private cars.

• To promote a culture of maintenance and continuous

upgrading of transport infrastructure and services;
• to promote competition and efficiency and cost reduction of
transport services in Nigeria.
• to improve the safety, security, reliability, quality, and speed of
movement of goods and people, at local, national, and
international levels;
• to develop transport infrastructure that ensures environmental
sustainability and internationally accepted standards; and
• to support States and the Federal Capital Territory in the
development and promotion of urban transport systems and
local governments in developing and promoting rural
accessibility.

2.3 Public Private Partnership (PPP) In Transport Sector Projects

2.3.1 Background
Globally, demand for basic infrastructure services has
outstripped the supply capacity of existing assets. Many years of
underinvestment and poor maintenance have left Nigeria with a
significant infrastructure deficit which is holding back the country’s
pg. 7
development and economic growth. Nigeria needs to make massive
investments, beyond the means available to government in order to
close its yawning infrastructure gap. The Federal Government has
adopted a Policy framework for the private sector to play an
important role in providing some of this new investment through
Public Private Partnerships (PPPs). The use of private investment
where appropriate to address the infrastructure deficit and improve
public services in a sustainable way is regulated by Federal
Government of Nigeria PPP Policy framework and the Infrastructure
Concession and Regulatory Commission (ICRC) Act (2005). In line
with the Government’s commitment to transparency and
accountability, the legal and institutional framework provided for PPP
is to ensure that the transfer of responsibility to the private sector
follows best international practice and is achieved through open
competition.
2.3.2 Objectives

Within the context of this National Transport Policy, the

objectives of PPP are as follows:
a) Economic
• To accelerate investment in new transport infrastructure
and ensure that existing infrastructure is upgraded to a
satisfactory standard that meets the needs and aspirations
of the public;
• To ensure that all investment projects provide value for
money and that the costs to government are affordable;
• To improve the availability, quality, and efficiency of
transport services in order to increase economic growth,
productivity, competitiveness, and access to markets; to
increase the Capacity and diversity of the private sector by
providing opportunities for Nigerian and international
investors and contractors in the provision of transport
infrastructure, encouraging efficiency, innovation, and
flexibility;
• To ensure that transport infrastructure projects are
planned, prioritised, and managed to maximise economic
returns and are delivered in a timely, efficient, and cost
effective manner;
• To manage the fiscal risks created under PPP contracts
within the Government’s overall financial and budgetary
framework;
• To utilise federal, state, and local government assets
efficiently for the benefit of all users of public services.
b) Social

pg. 8
 • To ensure balanced regional development;

• To increase access to quality public transport services for

all members of society;
• To ensure that user charges for new or improved public
transport services are affordable and provide value for
money;
• To respect the employment rights and opportunities of
existing employees and to ensure that any redundancy or
other social safety net issues are resolved before final
project approval;
• To enhance the health, safety, and wellbeing of the public;

• To encourage the direct or indirect participation of small

and medium sized enterprises in PPP projects.
c) Environmental
• To protect and enhance the natural environment;

• To minimise greenhouse gas emissions and other

pollutants.

pg. 9
3.0 WATER TRANSPORTATION

3.1 Ports

3.1.1 Background

Ports represent a complex structure in a country’s

transportation system in three main ways. First, it provides a number
of interrelated activities, which include:

(i) Ship-harbour interface (pilotage, dredging, provision of

berths, maintenance of navigational channels etc);

(ii) Ship-port interface (loading and unloading of cargoes);

and

(iii) Port-land interface (delivering cargo to and from the

hinterland).

These different functions require different organizations and

their relationship must be taken into account in Port planning and
policy.
Second, the Ports play a strategic role in the economy of a
country. In Nigeria, practically all imports and exports move through
the Seaports. Thus, the efficiency or inefficiency of the Ports affects
profoundly the costs of imports and the competitiveness of exports.
Third, Ports, directly and indirectly, are large employers of
labour especially, if indirect employment such as insurance, customs,
haulage, clearance, storage, free zone activities, sorting out the
incoming and outgoing cargo, industrial and other value added
activities are considered.
In view of the above, Nigeria has a great potential for a buoyant
maritime industry. To enjoy this inherent benefit, it is vital that
Nigerian Ports system operates efficiently.
3.1.2 The Existing Situation
a) Port Development
At independence, Nigeria had two major ports at
Lagos and Port Harcourt. The two Ports together with a
few minor ones at Warri and Calabar adequately serviced
the maritime needs of the country. By the second half of
the 1970s, Nigeria’s port facilities were severely
overtaxed due to the oil boom and the associated
improved standard of living which led to a sharp
increase in import traffic. This increase, imposed major

pg. 10
 strains on the system, leading to delays in ship handling
and resulting in high demurrage.

In response to this, a massive investment

programme was undertaken and Port capacity was
increased by about 300 percent between 1975 and 1980.
Today Nigerian Ports Authority (NPA) has 13 major
Ports, 11 oil terminals and 128 private jetties within the
port system. There are 102 hard quay berths 62 buoys
and over 650 different cargo handling plants and
equipment. All together, the country has a total cargo
handling capacity of over 35 million tonnes. The
installation of this capacity is a major national
achievement and the present capacity of the Nigeria
Ports can be considered adequate. However, some
additional investment may help to improve productivity.
In terms of traffic, the Ports are essentially import
dependent. In recent times, the changes in import of
ranged from between 31.6 percent and to 6.7% for
general cargo; 53.5% and 44.5% for bulk cargo, and 23.6%
and –22.6% in containerized traffic. Overall, cargo
throughput increased from 20 million in 1998 to 30
million in 2000. As the nation’s economy improves, the
cargo throughput of the Ports will increase, while high
fluctuations in cargo throughput may diminish.

b) Port Management:
The Nigerian Ports Authority (NPA) owns all the
Ports. By Decree No 38 of 1999 which sets up her
functions and power, NPA controls all public and private
tasks in the sector. It maintains and operates every
available asset (fixed and movable) while stevedoring,
warehousing, chandering and industrial activities are
executed by private operators under the supervision of
NPA. By Section 124 of the Decree, the government
exercises full control over Nigerian Ports Authority
(NPA), operations: Government appoints the Chairman
and the Board members, the Managing Director and
Executive Directors and sets their salaries and
remunerations. The Authority must seek approval from
government to spend and borrow money, and make
investments. The present Port organization makes NPA
a Public Money. The centralized system leaves little
room for competition and the Ports are characterized by
high tariffs, excessive manpower and gross inefficiency.
The Ports suffer from the problems of imprudent

pg. 11
 management of resources in the face of increasing
competition from Ports of neighbouring countries. The
performance of the Ports is generally sub-optimal and
there is a mounting pressure from the private Port sector
to improve efficiency.

c) Port Reforms:
To improve service delivery, enhance management
capability, modernized port development and; reduce
government involvement and spending, the Government
embarked on a Port Reform Programme by transferring
responsibility for cargo handling operations at the port
terminals from the Nigerian Ports Authority (NPA) to a
number of private sector operators with the former as
Landlord. However, the weaknesses in the interface
between the port terminals and the inland transport
system, particularly in Lagos, are still evident.
d) Port Management Options
Within the context of Port reform a number of
Port management options have been considered. These
are: Public Service Port; Tool Port; Landlord port;
Privatized Port and Master Concession. Two main
Management Models have been adopted namely: Service
Port and the Landlord Port. The Ports which are operated
as Landlord ports include:

Federal Lighter Terminal, Onne

Federal Ocean Terminal, Onne

Kirikiri Lighter Terminal Phase 1

Kirikiri Lighter Terminal Phase2 and

Ikorodu Lighter Terminal.

Ports that are operated as service Ports are:-

• Lagos Port (Apapa Port Complex)
• Tin Can Island Port
• Container Terminal, Apapa
• Roro Terminal
• Calabar Port Complex
• Port Harcourt Port Complex

The Warri Port combines in equal terms the two Port

management models. However, the Landlord model stands out
and offers greater promise in terms of efficiency Productivity,
going by the performance of Onne Port. Government will
therefore adopted the landlord port model – a port concession
approach which entails the separation of responsibilities of the

pg. 12
 major actors in the port activities and functions. Under this
arrangement:
• Existing Port terminals have been leased out to
Private Companies who are responsible for
operations, investment and maintenance of
superstructures.

• The Public sector will be concerned with Port

planning and development, regulation, nautical
management, safety, security and the environment.
Government remains Landlord and owns the land and
Port infrastructure.

• The NPA, as an agency of the Public sector, which

hitherto has been the operator will execute the public
sector functions.

• Pending the establishment of a suitable regulatory

agency, a Nigerian Port Commission will be created to
undertake Economic Regulation for the sub sector.

o The port reform policy introduces the market

principles through full private sector participation.
Government intends to pursue a reform along this
line believing that a liberalized Port sector will:

• free the government of enterprise burden and enable

her pursue more rigorously the task of governance;

• Place Nigeria in line with international norms in Port

efficiency and productivity; and

• Allow the private sector to play its role in the

development of the nations transport sector.

3.1.3 Policy Goals:

Emerging international market economy and the effects of

globalization in the maritime sector require fundamental changes in
the way ports are managed. The introduction of Port reform in Nigeria
is based on the recognition that the Ports are major points in the
distribution channel and, in line with global trends, the Nation’s Ports,
have to be efficiently managed. This policy document adopts
therefore, private sector participation, liberalization and competition,
in development, management and operations of Nigerian Ports for the
following reasons;
• competition from Ports in neighbouring countries, namely,
Kotonou Port in Benin Republic and Lome Port in Togo, which
are serious competitors for shipping companies and shippers
as preferred designations;

pg. 13
 • Pressure from the shipping and business communities for
improved procedures, shorter turn-around time, transparent
operations and reduction in costs and losses;

• bureaucratic process caused by the excessive intervention of

the public sector which are factors in ports inefficiency; and

• Government alone is therefore committed to major Port reform

that will ensure greater efficiency and productivity through
Concessioning of Port operations to Private Sector Companies,
on long-term lease, whilst safeguarding the public interest.

3.1.4 Policy Objectives

The policy implications of the aforementioned goals and
outlook are that there is an urgent need:-

a) To achieve the highest possible level of efficiency at the

major seaports of Nigeria, in the shortest time possible.

b) To monitor carefully, international maritime developments

in order to make the necessary adjustments to maintain and
improve the competitiveness of Nigerian Ports, in the quest
to a hub in the West and Central Africa Sub-region

To achieve these, government will pursue the following specific

objectives:
 enhance competition and raise performance standard of the
Ports;
 ensure greater investment in up to date cargo handling
equipment and information technology;

 Simplify tariffs and operational processes to enhance

transparency;
 Free Port system from political, bureaucratic interference
and make them responsive to customers’ needs;
 Reduce financial burden on government through increased
private sector participation; and
 Reform the institutional and structural set up in the Ports to
support desired efficiency level.
3.1.5 Policy Strategies
To pursue and achieve the aforementioned objectives,
Government will adopt a Port management model that will attract full
private sector involvement and promote market principles, are
prosecute a port reform programme that ensures improved efficiency,
productivity, and private sector participation, through the following
strategies:-
pg. 14
a) Private Sector Participation

• Encourage indigenous entrepreneurs in the port concession

in order to build national capacity in the maritime transport
sub sector;

b) Port Reform Model

• Regionalize the existing ports into functional but

independent port complexes and

• Concession each port complex to a suitable private sector

company.

c) Legal and Regulatory Framework

• Repeal the NPA Act of 1999 and enact a new Port Act based
on the Landlord Management Model.

• Prepare a land use master plan for the Ports including the
definition of appropriate traffic corridor within the Port.
Such a land use master plan will serve as a guide for the
establishment of concessions for subsequent construction
in the Port areas.

d) Institutional Reform

• Restructure the NPA and properly designate its functions as

a landlord;

• Establish Economic and Safety Regulator for the sector;

• Create a Port Advisory Council for all the Ports. Such a

Council will be a purely consultative body, composed of the
Port interests, users’ representatives and state or local
government representatives. Its main function is to identify
problems of common interest and to search for common
solutions.

e) Implementation

• Appoint an Implementation Committee, which will prepare

an implementation time table, organize and supervise the
implementation. The Bureau of Public Enterprises charged
with the responsibility of privatizing some government
establishment is in the best position to coordinate this
implementation.

pg. 15
 • The Implementation Committee will prepare concession
agreement for each type of concession. The agreement will
specify the length of the concession, which will assure the
concessionaire adequate time for planning and effecting the
investments needed for the efficient and effective provision
of services and/or conducting activities specified in the
concession contract, as well as clearly stating his right and
obligations.

f) Labour

• Put in place appropriate programmes for dealing with

redundancies and employees compensations.

• Organise a Consultative/Educational programmes for the

staff.

g) Policy Monitoring and Review

• Put in place a policy monitoring and review team which

main task will be that of monitoring the effectiveness of this
reform policy. It will identify the problems and proffer
solutions, the execution of which it will again follow up. The
monitoring and review committee should consist of Port
management experts and the academia.

3.2 Inland Waterways

3.2.1 Background

An efficient coastal and inland waterway system will relieve

pressure on the country’s rail and road transport infrastructure as
bulk goods can be transported over long distances at very low rates.
The energy demand of the Waterways is low and the negative effect on
the environment is minimal. The use of the waterways for
transportation should therefore be encouraged as a matter of
principle.

3.2.2 Existing Situation

Despite its advantages, the use of this transport mode has

diminished particularly over the past three decades due to physical,
investment and operational constraints, notably:
• High rate of sediment build up along the channel.

• Physical obstruction (wrecks, rock outcrop etc.).

• Poor government investment in infrastructure development

pg. 16
 • inadequate river Port infrastructure

• poor landward connection to River Ports

• poor communication and navigational aids

The Nigerian inland waterways are a major natural resource,

traversing 20 out of the 36 states. The areas adjacent to the major
rivers represent the nation’s important agricultural wetlands.
Agricultural products from the middle belt and particularly from
Makurdi, and Lafia areas can be transported to Onitsha and Port
Harcourt through the waterways. The Ajaokuta Steel Complex which is
fed with coal and scrap metal imported through Warri, and Onitsha, a
major industrial/trade center on the Niger, will both benefit from a
waterways, for movement of bulk cargo.

3.2.3 Policy Objectives

Government recognizes the great potentials and benefits of the

inland waterways and is resolve to address the outlined constraints to
enable the country fully exploit and enjoy this mode of transport. It is
therefore the objective of government to develop the inland and
coastal waterways with private sector participation.

3.2.4. Policy Strategies

In order to achieve this objective government will:

• Eliminate the physical constraints to navigation in the

country’s waterways;

• Promote pricing policies that will shift traffic to the inland

waterways;

• Restructure the National Inland Waterways Authority (NIWA)

(which is charged with the responsibility of managing the
waterways) to give ample opportunity for private sector
participation in the management and operation of the
waterways;

• Encourage indigenous involvement in the development of

the inland waterway as a mode of transportation; and

• Establish an Inland Waterways Safety Inspectorate to curtail

the high incidents of major and minor accidents. The
potential dangers posed by poorly maintained vessels and
incompetent operators will also be checked in addition to
stricter endorsement of existing navigational and safety
rules. Proper licensing and inspection procedure will be
pg. 17
 adopted and appropriate sanctions imposed on those who
infringe safety rules and procedure. Commercial river crafts
will be properly inspected and licensed to promote safety in
inland water navigation.

3.3 SHIPPING
3.3.1 Background

The Nigerian economy is heavily dependent on

international trade. The total cargo throughput of Nigeria Ports
was 14.2 million tonnes in 2000. The projected throughput is
17 million for 2005; 20 million for 2010 and 24 million for
2015. Such heavy dependence on international trade implies a
virile maritime industry in the country. Many benefits await a
country with such a maritime industry. Among these are:-

• Promotion of export trade, and accelerated national

economic growth;

• Acquisition of shipping technology, thereby enhancing

the nation’s ability to engage in ship building and
repairs;

• Backward linkages and creation and diversification of

employment opportunities;

• Boost in government revenue and improvement in the

country’s balance of payment.

Unfortunately, these benefits have not been fully

realized in Nigeria. Between 1971 and 1981, Nigeria accounted
for 68% of the total trade of West and Central African sub-
region but earned only 14.4% of the accruing revenue. In 1990,
Nigeria was responsible for freighting only 3% of the country’s
total cargo, even though it had the mandate to carry as much as
60%. The relative share of indigenous carriers in the country’s
maritime trade has declined from its very low level of 7% in
1987 to an even lower level of 4% in 1990. To date, the
shipment of cargoes depends almost entirely on foreign
shipping lines. Government has made several efforts to arrest
this situation notably

• Establishment of the Nigerian Shippers Council to

improve the bargaining position of Nigerian shippers;

• Establishment of the National Maritime Authority to

regulate freight sharing between shipping Conferences,
thereby promoting national merchant marine;

pg. 18
 • Venturing into shipping through the direct presence of
the defunct National Shipping Line and later the Unity
Line;

• Establishment the Maritime Academy of Nigeria, Oron,

to promote technical manpower development in the sub-
sector; and
• Enactment, in recent time, the Cabotage Act to encourage
indigenous carriers.

In spite of the aforementioned promotional and

regulatory measures, only modest progress has been made and
Nigeria continues to lose significant revenue to foreign
shipping companies. With the present trend, Nigeria may not be
involved in the carriage of her own cargo in the nearest future
except adequate measures are taken.

3.3.2 Policy Objectives

Government’s policy objective is to consolidate on the
achievement of the existing promotional and regulatory
measures and encourage indigenous participation in the
carriage of the country’s wet and dry cargoes.

3.3.3 Policy Strategies

In order to correct the anomaly existing and ensure that
Nigerians are fully in control of the contrary’s wet and dry
cargo business, government will:

• facilitate full indigenous participation in the carriage

of cargoes including the lifting of crude petroleum;

• promote human capacity development for the

manning of maritime vessels by Nigerians;

• Put in place monetary and fiscal policies that

adequately favour the shipping companies. In this
regard, government will:

Create an enabling environment for indigenous

private shipping companies to acquire vessels;

Make a special provision for the shipping

industry in the context of domestic credits and
foreign exchange;

Allow substantial tax relief and tax
concessions for indigenous shipping
companies;

pg. 19

Explore the possibility of international funding
assistance and cooperation for the indigenous
shipping companies; and

Encourage and promote a culture of financial

discipline for the shipping companies to
enable them build up fleet capacity.

pg. 20
4.0 LAND TRANSPORTATION

4.1 Introduction
Land Transport involves movement of people and goods on
land, from one location to another. It is the dominant form of
transportation in the World and includes rail, road and pipeline. In
this National Transport Policy, Land Transportation includes; rail,
road, Pipeline, Rural accessibility, Urban Transportation and Pipeline.

4.1.1 Rail Transport

4.1.2 Current Situation
The Nigerian railways network includes approximately 3,500km
of narrow gauge lines. The network has been extended by a narrow
gauge line between Onne and the Enugu-Port Harcourt line and a yet
to be completed 320km standard gauge line from Ajaokuta to Warri.

The Nigerian Railway system has the potential to provide an

efficient and cost effective means of transport, particularly on long
distance routes serving high density traffic flows. Railways can
provide the most cost-effective, affordable, energy saving and
environmentally friendly form of transport, when traffic densities are
high. When properly integrated with other modes of transport,
economic levels of traffic can be consolidated to enable the railway to
provide efficient services for high density flows of homogenous traffic
carried over relatively long distances on a regular basis. The railways
are also well suited for the movement by large numbers of inter-city
passengers and high volumes of containerized cargo or bulk freight
such as oil, coal, steel or agricultural produce.

Unfortunately, due to past neglect, the Nigerian railway system

has not been able to meet this need. It has deteriorated in all areas,
and caught up in a vicious circle of declining traffic, endemic deficits,
decreasing capacity to serve its customers resulting in further loss of
revenue. In short the railways have ceased to be economically viable. If
the present imbalance of the transport sector is to be corrected and
the goals arising from increasing industrialization be actualized, the
Nigerian railway must be resuscitated.

However, the Nigerian railway system has suffered long term

decline as a result of competition from road transport which, due to
its flexibility, has eroded the rail traffic base. Traffic volumes have
been declining due to the disappearance of intermodal nodes
aggravated by the declining quality of railway assets and train
services. The deterioration of the system has increased to such an
extent that the railways are now barely operational, despite a number
of rehabilitation attempts. The state of the railway has been worsened
pg. 21
by management weaknesses and the institutional arrangements in the
railway system. The railways are therefore a serious drain on
government resources, while currently failing to provide a useful
economic function. There is an urgent need to address this situation
by establishing a functional, efficient and viable railway system in the
country.

The government has carried out a detailed analysis of the best

means of transferring responsibility for the management and
operations of the existing railway system to the private sector.
Vertically integrated concessions have been identified as the first
phase of PPP in the railways sector. The substantial commitment of
investment that the government has made to rehabilitate the railway
will give confidence to the private sector in the Government’s resolve
to re-establish the railway as an important component in Nigeria’s
transport system.
The draft 25 Year Strategic Vision for the Nigerian Railway
System will be reviewed and updated to develop a comprehensive plan
for the rehabilitation and expansion of the railway. This investment
programme needs to be subjected to economic analysis to ensure that
each of its components is justified before commitments are made and
duplication of railway infrastructure avoided. Government is
currently rehabilitating the existing rail network and is committed to
the development of rail links to the ports and the Inland Container
Depots (ICD) when completed. The network is to be expanded and
modernized in segments as resources permit, and partnership with
the Private Sector. Government is committed to concessioning the
existing rail line to enhance efficiency and improved service delivery.

4.1.2 FUTURE EXPANSION

The foregoing considerations relate to the concessioning of the

existing railway facilities and services. The Nigerian Railway systems
run North East-South East and North West – South West. The system is
essentially outward looking, having been built to meet the colonial
needs for the export of resources out of the country. The need for
East-West connections is now manifest considering the volume of
freight and passenger traffic interchange between these regions. The
“25 Year Strategic Vision for Nigerian Railway System” has indicated
details of the East-West and other linkages to be added. These new
lines can be funded on a Build, Operate and Transfer concession.

Nigeria is also prepared to take its place as a regional

transportation hub and develop a railway with trans-national
connections between Nigeria and neighbouring countries. The National
Transport Policy recognizes this need, and in the spirit of NEPAD
Nigeria will extend its railway network to:
pg. 22
 • Republic of Benin through Ilaro
• Republic of Niger through Kaura-Namoda
• Chad Republic through Maiduguri
• Cameroon through Yola

4.1.3 Policy Goal

The primary Goal for the rail sector is to transform the system
from its present condition to an efficient, flexible and competitive
mode. Government is determined to reverse the decline of the
Nigerian railways system, to enable it play its full part in the country’s
transport system.

4.1.4 Policy Objectives

In order to achieve its goal, government will:

• Rehabilitation/existing the railway infrastructure;
• concession the existing rail lines;
Moderate and Expand the network to link all Sea Ports, International
Airports, Major Industrial and Economic Centres etc.

The objectives of the rail concessioning are as follows:

• Transforming the Nigerian Railway system from a non-
performing and debt- ridden transport mode to a dynamic and
more functional transportation system.
• Reducing the burden of the railway sector on the Federal
budget through private sector investment.
• Encouraging the use of the rail to reduce road traffic
congestion problems and other negative externalities.

• Strengthening the railway capacity and developing national

capacity through local sourcing of maintenance and
construction materials

• preparing a medium term plan for expansion of the rail system

for inclusion in MITI, with short term priority given to:
- extension of the network to ports;
- link Abuja to the rail network and to the ports;
• developing a complementary inter-modal policy to support the
operations of the railway, including the development of inter-
modal terminals at key locations;

pg. 23
 • facilitating plans for further investment to increase the
capacity of the railway and to expand the network to meet
growing demand; and
• establishing a National Railway Authority with responsibilities
for the maintenance, rehabilitation and expansion of the
railways,
4.2 Road and Road Transportation

4.2.1 Background

Nigeria has become increasingly dependent on the road system

to meet virtually all its inland transport needs as the rail, pipeline and
inland waterway systems have deteriorated. At the same time, the
road network itself has suffered from continuing lack of maintenance
and investment by the three levels of government, Federal, State and
Local.
Nigeria has a total of 193,200 km of roads, made up of
34,123km of Federal roads, 30,500km of state roads and 129,577km
of local government roads. As provided for in the Constitution, the
different tiers of government have independent responsibilities for
the planning, financing and maintenance of their roads. Three major
issues affect the road network:
• misuse particularly as a result of axle overloading causing
damage to roads;
• neglect of periodic and routine maintenance and an absence of
emergency maintenance; and
• inadequate design and construction.

The above diagnosis reveals that:

• There is an urgent need to ensure an adequate and efficient
maintenance of the existing road network. Failure to do so
imposes high costs on road users and raises the cost of
rehabilitation works.

• Past failures to ensure adequate and effective maintenance, due

largely to the inadequacy of resources, are the major cause of
the current massive need for road rehabilitation.

• In addition to rehabilitation needs, there is the need to check

the misuse of road infrastructure due to excessive axle load.
• The costs of rehabilitation and improvement programmes are
very high and government is finding it increasingly difficult to
meet them.
• Lack of transit parks for trucks along the Federal roads;

pg. 24
 • To find the funding to meet the high cost of rehabilitation and
improvement programmes;

- additional sources of revenue need to be considered to fund

the roads, including user charges in the form of road tolls;
and
- better control and more efficient use of available funds is
also needed;

4.2.2 Existing Situation

In 1985, about 23 percent of national roads were in a bad
state. This rose to 30 percent in 1991 and 50 percent in 2001. The
current dependence of Nigeria on its road system increases the
urgency of addressing this issue. Unless roads and bridges are kept in
good conditions they cannot support the desired socio-economic
development of the country.

The Government will therefore introduce user charges on

Federal Roads, as the primary means of augmenting as the primary
means of augmenting the budgetary allocation for road maintenance
and rehabilitation. The Ministry of Works is responsible for the
construction of new roads and the major upgrade of existing roads
whilst Federal Roads Maintenance Agency (FERMA) created in 2002
has the mandate for the routine maintenance of Federal Roads. The
Government will continue to contribute to the funding of road
construction and maintenance, and attract additional funding by
promoting private sector investment in the upgrade and maintenance
of roads and management of tolls through PPPs. In this way,
performance risk will be passed to the private sector and there will be
a strong discipline for efficient delivery of services.

A road study undertaken in 1998 indicates that N300 billion

will be required over the next 10 years to bring national road network
into a fairly good condition. After the recovery, an average of N24
billion will be required each year for subsequent maintenance and N32
billion per year for road rehabilitation. Further neglect of these roads
implies a loss of network value of N80 billion per year and additional
operating cost of N53 billion per year. Except roads and bridges are
kept in good conditions they cannot support the desired socio-
economic development of the country.5
4.2.3 Policy Goals

i. Govt. hopes to achieve adequate and efficient maintenance

of existing road network

ii. Promotion of Private Sector investment in the upgrade and

maintenance of roads through PPP.

pg. 25
4.2.4 Policy Objectives

Government policy objectives in the road sub-sector are as follows:

• New sources of revenue to close the resource gap;
• Measure efficient road maintenance and rehabilitation and
• protect the roads from premature deterioration.

a) sources of funding – These include

• Budget allocation from general government revenues
• User charges or taxation, and
• Private sector funding through investment

i) Government Allocation.
Due to competing needs, government allocation to the
road network sub-sector over the years which has been
dwindling is now grossly inadequate. Because of the
social service functions of roads, government will
continue to contribute to the funding.

ii) Road User Charges

Road user charges including fuel tax, vehicle registration
tax, vehicle import taxes, driver licenses, road tolls and
taxes on tyres, lubricants and consumable spare parts are
gaining world-wide acceptance as a source of revenue for
augmenting government allocation for road maintenance
and construction. This is based on the argument that
those who incur costs should be responsible for paying for
them. User taxes when properly designed could lead to a
more rational use of road capacity and even become a
technique of capacity rationing through price mechanism.
Government will henceforth emphasis user charges as a
means of augmenting the budgetary allocation for road
maintenance and rehabilitation.

iii) Private Sector Investment

Innovative approaches to the management and financing
of the road network are emerging through private sector
participants. Governments across the world are now
working with the private sector not only to provide service,
but to build new roads and maintain existing ones.

A major way of involving the private sector in road

construction and maintenance is through road toll
concession. Under this arrangement the private
entrepreneur is giving the right to construct, overhaul,
maintain and operate a road over an agreed length of time.
The entrepreneur recovers his money from toll charges.
pg. 26
 Toll concession may either be through government Toll
Road Authority or by private investors. Government is
resolved to involve the private sector in the maintenance of
the road network and will:

• Develop detailed criteria for roads to qualify as

toll roads
• Prepare a list of such roads and the potential ones
that will go on toll concession
• Prepare construction and maintenance standard
for roads to be placed on toll.
• Invite the private sector to participate in the
maintenance of these roads on toll concession and
the construction of new ones on a Build-Operate-
Transfer basis.

Given the scale of the task to restore the road network to

good order, a study is being commissioned to prepare an
investment plan for road maintenance for the next decade.
The plan will establish priorities and a programme of
maintenance. The government will take measures to
improve the management of the road network assets by
ensuring that responsibilities are allocated to new roads
authority with the capacity to carry out the role of the
construction of new roads and the upgrade and the routine
maintenance of existing roads.

iv) The Toll Road Issue

Government considers the introduction of the toll roads
in Nigeria a necessity, given the heavy resources needed
for maintaining the roads. To this end, government will:

• Grant toll roads concessions to qualified private

sector investors, who would either take over, for a
certain period of time, the existing expressways,
high volume highways, or, who under the Build-
Operate-Transfer system would either construct a
new road, or upgrade an existing one.

• Establish government owned autonomous Toll

Roads Authority in the case of roads for which
there are no private sector concessionaires.

For the concessionaires, government will:

• provide a list of the immediate, long term and
periodic improvements required for each of these
roads
pg. 27
 • provide a projection of probable costs and
revenues for each road, under different scenarios.

• Prepare necessary contract with the

concessionaires, including proposed draft tariffs
and methods of tariff revision.

In the case of public owned concessionaire, a public

limited company would be established to take over and
administer the roads that are suitable for toll road
concession but are not taken over by the private sector.
The Authority would have a similar status to a private
concessionaire, but with the following differences:

• It would be bound by a government approved plan

for upgrading the road (or, roads) to be taken over.
This implies preparation of a suitable realistic
program of improvements, with well specified
targets and target dates.

• As in the case of private concessionaire, the

Authority would derive its revenues from
commercial concessions, but, in order to avoid
improper behaviour, the Authority would have to
adhere strictly to the rules regarding the granting of
such concessions.

• After covering the cost of current maintenance, it

will establish "periodic maintenance" or "road
reconstruction" funds. Revenues over and above
what is required for this would be transferred to the
Road Fund. This would imply the establishment of
an appropriate accounting and audit system.

Under the two arrangements, the concessionaire will contract

out road complementary facilities such as service stations,
fuel providers, restaurant and rest houses.
v) User charges and Road Fund Issue.
Because of the critical shortage of funds, falling far short of
the minimum amount necessary for maintaining and
improving the country’s road network, government will
put in place a system of user charges based on the following
taxes:
• An annual vehicle registration fee, uniform for all
the states and strictly enforced. Such a fee would
be established according to the vehicle type, and
weight, etc

pg. 28
 • Fuel tax, vehicle import tax, etc.
The user charges revenues will be augmented by:
• Revenues from toll roads' concessions, or, if toll
roads remain in the government administration,
net revenues of the Toll Roads Authority,
less maintenance and reconstruction ("periodic
maintenance") reserve;

• Grants from the government to reflect the non-user,

or indirect benefits of the roads; and

• Special government grants to meet emergency

situations (especially natural disasters).

Government will establish a Road Fund into which the income

from the above stated sources will be lodged. The Fund will be
administered by the National Road Commission (see section
4.2.5 b iii) which will:

• Prepare a set of road revenue allocation criteria

for Government approval;

• Administer, monitor and supervise the allocation

of funds for well specified road maintenance
programmes.

• Develop and finance (fully, or in part)

programmes aimed at the strengthening of road
maintenance capacities;

• Administer any special funds which the Federal

Government may allocate to the states and local
governments for road development, road
improvement and road maintenance.

• Perform other, related duties, which the Federal

Government may entrust to it.

a) On Road Maintenance and Construction

(i) Reassignment of Responsibilities

The national road network is shared by the three tiers of

government in the proportion of 17% for Federal
Government, 16% for State government, and 67% for Local
government. An essential principle of sound governance is
that responsibilities should be focused at the level that has
the knowledge and understanding of the problem and the
capability to address them. Although intimate knowledge of
the country’s transport problems is principally concentrated
pg. 29
 at the local and state government levels, the Federal
government has superior professional, technical and
financial capacity, which may justify extending its
jurisdiction over some state, or even local roads. In the
nearest future, government will consider a fair distribution
of the roads to reflect the capability of the different tiers of
government.

Previous criteria for the takeover of roads by federal

government include:
• road connecting major industrial towns
• roads connecting state capitals
• roads connecting major seaports with the hinterland
• roads linking other road network of neighbouring
countries.

The Federal government will consider, for the purpose of

taking over additional roads, other criteria as:

• roads in physically constrained areas (hilly or riverine

areas) where the cost of construction creates a
problem to both state and local government;
• the development needs of disadvantaged areas;
• connection to major towns;
• connection between local government headquarters;
• any other criteria that may be found appropriate.

The Federal government will similarly cause the State

government to increase its stock of roads. A benchmark of
an Average Daily Traffic of 100 vehicles or any other
appropriate criterion may be instituted for the transfer of
roads from local to state government.

A network and need approach adopted in this way may

result in the sharing of the network to be in the order of 50-
30-20 for Federal State and Local governments respectively.

ii) Road maintenance/New Road construction

The purpose of maintenance is to preserve the value of an

existing asset. In this regard, maintenance in the road sector
is a necessity. A Road Maintenance Agency was established
in 2002 by the Federal Ministry of Works and Housing. It has
recently commenced road maintenance by direct labour and
it is making an appreciable progress.

pg. 30
 Clearly roads already built are considered priority projects
essential for the functioning of the country’s economy. At
the same time it is clear that in order to meet present and
future needs, government must anticipate and plan for
expansion of the current system. This implies that road
maintenance and reconstruction should be given a high
priority.

Earlier, the sources of funds for road maintenance and

construction were outlined. For a judicious utilization of
this fund, government will put in place a coordinating body
to be called National Road Commission. The responsibilities
and duties of the Commission would be to:
• monitor the development and the condition of
the Nigerian roads system.

• establish general road development and road

maintenance strategies, based on the perceived needs
of road users and the existing road conditions.

• bring together all the main stakeholders to

assure a common approach and co-ordination
between different programs affecting the needs
for road development and improvement

• approve and develop uniform standards and

regulations for road maintenance

• advise the Government on issues arising out of

toll roads concession and toll roads' pricing,

• advise the government on all matters concerning

road development, improvement and
maintenance, and

• administer, monitor and supervise the allocation

of funds for road maintenance

4.2.5 Road Transportation

Road transport accounts for about 90% of the internal
movement of goods and people in Nigeria. Except the railway is
revived and the inland waterways are developed, this proportion is
likely to rise even higher in the nearest future. The predominance of
the road over the other modes is not only because of its inherent
advantages but because government has paid greater attention to this
mode. At present the road transport in Nigeria is characterized by:

pg. 31
 • Large number of small-scale operators of goods and
passenger vehicles, many with a limited professional and
business capacity, resulting in inefficient services.

• Uncoordinated activities and services leading to

inefficient services.

• Non compliance with traffic regulations and poor

enforcement.

4.2.6 Policy Objectives

Nigerian road network was produced at a great effort and
represents a huge national asset. The usefulness of this huge
investment depends on how efficiently the roads are used. It is
government objective to:

• Enhance road productivity through efficient utilization

• Enhance private sector operation

4.2.7 Policy Strategies

Road transportation is one mode of transport in Nigeria where
the private sector participation is almost total. Government intends to
promote stronger private sector involvement to enhance the
productivity of the operators and will evolve a government-private
sector partnership in the search for solution to the road transport
problems. To do this, government will through the National Road
Commission:
• Group small vehicle owners into cooperatives
which can operate bigger capacity vehicles, have
access to loans and credit facilities and effect
organized operation.
• Promote training of operators and the
dissemination of road transport information
• Promote compliance to road traffic regulation with
specific reference to vehicle weight limitations.
Promote government road pricing

4.3 Rural Accessibility

4.3.1 Backgound

The nature of rural Roads within the context of regional

development is to:
• provide the means for the evacuation of raw materials to
industries and food products to urban markets.
• facilitate service delivery in the areas of education, health,
social development, agriculture, etc.

pg. 32
 • allow rural-rural and rural-urban interaction for the exchange
of goods and services.
Inadequate and inefficient rural roads therefore intersect with
these functions and act as constraints to the achievement of socio-
economic development. For these reasons, the Federal Government
emphasizes the development of rural roads and apply the measures to
facilitate rural accessibility. To a large extent, rural transport
problems are inadequately addressed. There are also considerable
difficulties in the development and maintenance of rural roads. For
example, rural road development and maintenance could not take
place without the collateral programmes of other bodies, as the
defunct Directorate of Food, Road and Rural Infrastructure (DFRRI)
the Petroleum Trust Fund (PTF), and Local Communities, the National
Planning Commission; the Federal Ministry of Finance; Federal
Ministry of Agriculture and Rural Development, State Ministries of
Works and Rural Development and the Local Governments.

4.3. 2 Policy Objectives

Government is resolved to address these anomalies to open up
the rural areas and make them contribute optimally to the social and
economic development of the country.
The objective of government in rural transport policy is to:

• Open up the rural areas for local and regional markets

• Improve the institutional framework for rural road
construction, maintenance and operation, for a more
focused development
• Ensure sustainable funding for rural road construction
and maintenance.

4.3.3 Policy Strategies

Given the number of institutions involved in management of
rural roads, with a wide diversity of responsibilities, interests, capacity
for planning and programme execution, coordination of rural roads
development is a formidable task. To address these issues,
Government will, as much as possible, focus on indigenous
knowledge, initiative and effort in developing the rural roads network.
However, the majority of Local Governments need capacity building to
improve their technical know-how and improved resources in order to
discharge this responsibility. Therefore, Government will pursue the
following strategies:

• Create and strengthen the Transport Unit in the Local

governments to handle rural roads management matters
including construction and maintenance.

pg. 33
 • Give top priority to effective routine, periodic and emergency
maintenance of rural roads in all local governments and
communities through the use of Rural Road Maintenance
Team that will be created by the local government.

• Promote labour intensive technologies in the construction

and maintenance of rural roads through focused training
and to build human capacity in planning, design,
construction, maintenance and supervision of road projects.

• Make deliberate effort to encourage communities to continue

with self-help schemes by assisting them technically, and in
the provision of materials not locally available in the rural
areas.

Funds constitute a major constraint to rural road development

and maintenance. A more focused and reliable source of road network
funding has been outlined earlier. Rural roads will benefit from the
Road Fund allocations. To actualize this, the State government will set
up Rural Roads Development Boards at the state level, with the
members appointed by the states' governments, representing not only
transport, but also other interests (especially, agriculture).

The responsibilities of such boards would be to:

• Allocate funds to local authorities for rural road construction

and maintenance. Such funds would be supplemental to the
resources generated by local governments.

• Set well defined criteria and strict conditions for the

utilization of these funds,

• Organize, fund and possibly directly conduct appropriate

training courses and workshops for members of local
authorities and/or designated persons responsible for road
maintenance employed by local authorities

• Provide technical assistance to local authorities.

4.4 Urban Transportation

4.4.1 Background

Nigeria is urbanizing at a very rapid rate. The total urban

population in Nigeria in 1963 was about 11 million. This rate rose to
32.2 million in 1991 and by 2000 the urban population was estimated
at 45 million. On the average Nigerian cities have been growing at the
rate of 8% per year, far in excess of the country’s population growth of
3.2%. Today the country has 11 cities with population above one
million and there are 23 cities with population of over 200,000.6

pg. 34
4.4.2 Existing Situation
The urban transport problem today manifests in the form of:
• Poorly maintained urban road network and road
complementary facilities
• Inefficient public transport system
• Poor institutional framework leading to poor coordination
of urban transit services.
• Poor landuse-transport planning
• Poor and ineffective transport management.

4.4.3 Policy Goals

The major objective of government in the urban transport

policy is to develop an efficient, self sustaining and reliable public
transport system that meets the needs of the growing population of
the cities of Nigeria, and to improve the infrastructure and
institutional framework for public transport service delivery.
4.4.4 Policy Strategies

(a) Urban Public Transport Government will introduce a well

organized high capacity bus mass transit system which
the existing infrastructure can accommodate.

In order to achieve this objective, government will:

create dedicated routes for bus mass transit in the

urban areas;

Promote cooperatives or associations of numerous
small transport operators in order to:

• assure organized and coordinated services;

• improve operators’ managerial, technical and
economic capacity; and
• facilitate the access of mass transit operators to
the capital market for resources to acquire
vehicles;
• promote full private sector participation and
competition in urban transit service delivery.

On the long run government will introduce the Rapid Rail

System into the major cities of the country.

(b) Road Infrastructure

Urban roads are the primary right-of-way which accommodate

and ensure the safety of all modes – bus transit, automobile,
walking and cycling. Priority must be given to the maintenance

pg. 35
 and improvement of these roads and the construction of
pedestrian walkways.

Government will:
• enhance the capacity of the existing infrastructure
through proper maintenance of roadways and efficient
traffic management.
• Ensure efficient traffic management through proper
intersection control, better passenger.
• Pick-up and disembarking spaces, priority lanes,
congestion control etc.
• Strict enforcement of traffic regulations.

Government will also:

• expand substantially, urban road infrastructure, with
proper concern for the needs of public transport
infrastructure (railway, dedicated bus routes etc.)
• promote road widening and extension in new areas as
part of landuse planning and development.
• Provide facilities for alternative modes – walking and
bicycling.
• Develop a multimodal 10 year transport network plan
for major cities. The plan will include strategies for the
development of pedestrian, cycling, public transit
facilities and services along the roadway network.
• improve the efficacy of urban planning, which should
take cognizance of transport implications of different
land use patterns and prevent congestion inducing
developments.
• improve roadway aesthetics and encourage traffic
calming.

(c) Institutional Issues

Urban transport activities in Nigeria are characterized by

the proliferation of management bodies, creating overlaps and
conflicts in the provision and management of urban transport
infrastructure and services and in the enforcement of traffic
laws and regulations. There is therefore the need for an
institutional reform which will advance the efficiency of urban
transport system operations and management. To this end, the
government will:

• Establish an Municipal Transportation Agency (UTA) in

each major city, as an autonomous body which will be
responsible for:

pg. 36

maintenance of urban road network.

planning, designing, and maintenance of urban
transport infrastructure facilities.

Regulation, registration, licensing, permit of
private operators.

Determining and implementing appropriate traffic
management and control measures.

Liaison with the different government as the need
arises.

Pricing issues to ensure social equity.

Formulating parking needs in line with local
needs.

Ensuring intermodal coordination.

Undertaking research and development,
identifying problems and proffering solutions.

• Create an Urban Transport Fund. Money collected from

license fees, parking fees and other appropriate user
charges within the city should go into this Fund for the
maintenance of urban infrastructure. The fund will be
administered by the Urban Transportation Agency.

• For cities with special Federal interests, the Federal

Government will aid the State and Municipal governments in
the construction of new urban roads. For the other
categories of cities, the provision of urban transport
infrastructure will be the responsibility of the State and
Municipal governments in which the city is located.

4.5 Pipeline Transport

4.5.1 Background

Pipeline is the newest mode of land transport. It is now widely

used for the transportation of bulk liquid and gaseous consignments
over long distances. The overriding advantages of this mode over
others include:

• Flow continuity.
• Ability to traverse any terrain (hilly or marshy).
• Ability to withstand any weather.
• Low operating cost.
• Easy and routine operation.
• Limited periodic maintenance and inspection.
• Very low transit losses.

Pipeline transport as a mode of overland transport dates back

to 1955 following the discovery and exploitation of petroleum in
pg. 37
Nigeria. The initial lines were limited to the oil producing regions of
the Southern Nigeria and were owned by the oil exploring companies.
The increasing demand for fuel in the Northern Nigeria and the need
to ensure safe transportation of this hazardous good over long
distances led to the construction of pipelines. Today, the country has
a total of over 4,000 km of pipelines owned by both the public and the
private sectors. The pipeline has become a very important mode of
transporting petroleum products from refineries to NNPC pump
stations and depots across Nigeria.

4.5.2 Existing Situation

Pipeline transport system in Nigeria is faced with the problems of:

• frequent vandalization of pipelines;
• illegal tapping of pipeline products;
• encroachment of pipeline right – of – way;
• poor safety measures manifested in frequent devastating
fire outbreaks;
• poor handling of pipeline accidents and poor policing of
pipeline route;
• old and corroded pipelines requiring replacement.

4.5.3 Policy Goals

Government policy objective is to provide an adequate and safe

pipeline transport as a complementary mode to the road and rail
transport system.

4.5.4 Policy Strategy

In pursuit of this objective, government will:
• Extend the lines to other areas of need within the country;
• Provide adequate regulatory measures for ensuring the
security of infrastructure and the safety of persons and
the environment in which the pipelines pass;
• Integrate pipeline into the total transport system;
• Provide terminal and interchange facilities at depot.

pg. 38
5.0 AIR TRANSPORT

5.1 Background

Air transport is an important component of Nigeria’s transport

system. From a functional perspective, it provides complementary
services to other modes; for passengers and freight; on both
domestic and international routes. The air transport sub-sector
comprises of airports and air transport services. The significance of
this mode derives from its ability to satisfy human needs by making
goods and people available not only where they are needed but also
when they are needed. Of all the different modes of transport, air
transport performs the “place and time utility” functions best.

5.2 Airports

Airports and air navigational facilities constitute major

infrastructure for the country’s air transport sub-sector. From its
three landing sites of Lagos, Kano, and Maiduguri in the 1920s,
Nigeria today has a total of 19 airports and 62 airstrips distributed
all over the country. Based on their design, characteristics and
level of service, the airports may be categorized into three groups
namely:
• International airports
• Domestic airports
• Local private airstrips

The international and domestic airports were built by

governments and they belong to government. The operation and
management are done by government through the Federal Airports
Authority of Nigeria (FAAN) while the National Airspace Management
Agency (NAMA), is responsible for regulation, traffic control and
navigational aids for aircrafts. The airports navigational aids and air
traffic control facilities are inadequate and in some cases, obsolete.

Because of the high fixed cost in the running of the airports

and the relatively low income, only three of the airports operate at a
commercial self sufficiency, while the others operate at a substantial
loss.
Government’s Civil Aviation Policy of 2001 has put in place
appropriate machinery for development, improved, profitable
management of the airports as well as improved traffic control and
navigational facilities in compliance with International Civil Aviation
Organization (ICAO) regulations, and international best practices.

pg. 39
5.3 Air Transport Services

Following the deregulation of the sector air transport services

are currently provided by privately owned and operated airlines which
operate mainly on domestic routes. Some of the airlines also provide
services to the West African sub region and on international routes.
The Government is committed to Safety Related Standards and
Recommendations (SRSR) and associated procedures contained in the
annexes to the Convention on International Civil Aviation and related
documents. Nigeria, as a signatory to these conventions, is guided by
international norms and conventions in the civil aviation industry.
The safety regulation system provides for the regulation of standards
for individuals, organizations and aircraft by means of rules, licenses
and certificates embracing airworthiness the operation of aircraft and
aerodrome standards.
The Nigerian Airspace Management Agencies (NAMA) is the
country’s sole Air Navigation Service Provider (ANSP), created by 1999
to manage the Nigerian Airspace to a level consistent with the
requirement of the ICAO Standard and Recommended Practices
(SARPs). NAMA ensures the safety of all airplanes and forestalls the
intrusion by unauthorised planes (civil or military) into the country.

5.4 Policy Goal

To create an enabling environment for the private provision of
air transport services and to ensure air transport safety in line with
global best practices and ICAO (industry) standards.

5.5 Policy Objectives

• To continue to improve safety in the provision of air transport
services.
• To make Nigeria a hub for such services in the West African
sub-region.
• To improve the utilisation of the take-off and landing slots for
safety.
• To ensure further investment in infrastructure and equipment
for safety and security the Nigerian airspace.

5.6 Policy Strategies

The government will:
• improve safety in the provision of aviation services by
strengthening the capacity of NAMA and other safety
authorities and investing in modern airspace management
technologies;

pg. 40
• encourage competition in the provision of domestic aviation
services;
• protect the national interest and promote indigenous
operations; and
• promote education and training of staff in the aviation industry
and enhance staff welfare.

pg. 41
6.0 POLICY REGULATORY FRAMEWORK

6. 1. Introduction

In a deregulated transport system, the private sector has the

freedom to provide transport services as may be demanded
government sets service quality, standards, controls tariff, enforces
competition, especially in areas where access rights are required, sets
safety standard and ensure that the goals and objectives of the
nation’s transport policy are realized.

6. 2. The Need for a Regulatory Body in Nigeria

Government’s commitment to the use of PPP for the private

sector to invest, operate and manage public transport requires clear
definition of roles for the private sector and the government. While
the private sector will invest in, operate and manage the transport
system, the government will play the role of an enabler, planning and
facilitating the private sector driven transport system, making it grow
and sustain its productivity.

However, the government and the private sector cannot be the

players, and at the same time the referee. There is therefore the need
for an effective regulatory body, which will be independent of both
government and the private sector, to regulate the activities in the
transport sector.

6.3 Structure of the Transport Regulatory Commission

The Transport Regulatory Commission (TRC) will be the

Independent Regulatory Body for the Sector; and will be structured as
follows:
• Coordinate Economic and Safety Regulation activities in the
transport sector;
• Have two Departments – Department of Economic Regulation
and Department of Safety Regulation;
• The various modes will be units under each of the two
Departments.

6. 4 Functions of the Regulatory Body

a) Transport Regulatory Commission

Coordinate the activities of the Economic and Safety
Regulatory Departments and liaise with government as the
need arises. It will have decision making powers on all
aspects of economic, research, safety and technical
pg. 42
 regulations and will resolve conflicts arising from economic
and safety regulation issues.

b) Economic regulation
In a market driven transport sector, the force of
competition will either eliminate inefficient operators or
cause them to reform their practices. It is also possible that
in the process, natural monopolies may emerge, which may
undermine the safety and social service components of the
transport system. In this and other related circumstances,
there is the need for some checks and balances. This will be
provided by the Economic Regulator that will:
• Protect the right and obligations of competing
operators.
• Provide improved competitive environment for modes
• Protect the consumers by enforcing a minimum level
of service quality
• Regulate fares and tariffs, etc.
• Enforce competition especially in the area where
access rights are required
• Enforce legal rights of consumers.

c) Technical and Safety regulation

Transport safety has for long been an issue of great
concern to the Federal government. Unfortunately, the
institutions for enforcing safety are diffused and ineffective.
Under the present arrangement, these safety institutions will
come under the same Safety Regulator for effective co-
ordination. The Safety Regulator will:

• Promote safe transport operation.

• Set mandatory operation standard.
• Approve and issue permits and licenses.
• Set technical standard and regulate the designs,
construction, maintenance of transport infrastructure
and vehicles.
• Domesticate international conventions and protocols
in respect of the aviation and the maritime industries.
• Produce and disseminate safety information.
• Encourage collaboration with and participation of all
stakeholders in improving safety.
• Regulate the conveyance of dangerous goods.

pg. 43
7.0. Integrated and Intermodal Coordination
7.1 Integrated Transport

7.1.1 Background

The Nigerian land transport system is almost unimodal

with over 90% of domestic freight and passengers transported by
road. The over-reliance on road transport means that bulk cargoes
are contributing disproportionately to damaging the road network
and significantly increasing overall road maintenance costs. At
present, road transport is insufficiently regulated and there is
insufficient enforcement of existing commercial vehicle overloading
control contributing to the exponential deterioration of Nigeria’s
roads.
Goods arriving by sea are best transported from the port by
rail or inland waterways. However, Nigerian ports, except Port
Harcourt and Apapa are not connected by rail and the
waterways. The road is therefore the only option. The predominant
use of the road is principally because transport development has
favoured road over all other modes. This National Transport policy
recognizes the need for the seamless movement of people and goods
and for each mode to fulfil its distinct roles.

To optimally utilize the transport system and derive the full

benefits of the different modes, there must be connections between
ports, rail, inland waterways, air and road. This will ensure better
utilization of available transport resources held to reduce transport
costs.

7.1.2 Policy Objective

Government’s policy objectives in this regard are as follows:

• take necessary action to ensure fuller integration of the available

transport modes.

• Improve the connectivity of transport infrastructure and ensure,

particularly, that the:

All major Ports are well-connected by rail.

River ports, rail stations and airports are connected by good
roads.

Proposed Six Dry Ports are connected by road and rail.

• Develop standard interchange points for passengers and freight

traffic

pg. 44
• Promote intermodal transport and facilitate shift from road to
other transport modes in order to achieve greater efficiencies and
to lower overall transport costs.
• Revive the role of the rail, inland waterway and pipeline networks,
in order to provide the heavy dependence on the road system by
providing efficient and cost-effective alternatives.
• Encourage intermodal coordination and cooperation between the
modes to optimise service delivery, minimise total costs and
maximise the economic return on investment. the government will
create a level playing field by introducing effective regulation and
eliminating constraints or disincentives that result in inefficiencies.
The customer will be given a choice of modes for which the
determining factor will usually be based on cost, timeliness and
reliability.
• Review and update the Master Plan for Integrated Transport
Infrastructure (MITI) and develop a five year plan with annual
targets;
• Undertake regular measurement and monitoring of the demand,
output, capacity, efficiency and other performance criteria in the
transport sector than has taken place in the past;
• Ensure the right priorities in policy, planning, and efficient
utilization of resources, in order to achieve the desired policy
goals.
Set up coordination amongst stakeholders including
government at all levels to allow for:
• develop and operate the required terminals;
• develop the supporting systems; and
• provide an appropriate legislative framework and incentives for
intermodal transport to develop.
• update MITI that will plan and prioritise the development of the
required intermodal infrastructure linking the ports, major
airports and ICDs to rail and road;
• improve the regulation of transport operations, including the
enforcement of existing road transport regulations and review the
regulatory framework to ensure that it provides appropriate
incentives for efficient intermodal operations; and
• develop the institutional framework for policy coordination within
government and between transport operators to facilitate
intermodal transport.

pg. 45
7.2 INTERMODAL TRANSPORT

7.2.1 Background

In Nigeria, inter-modal operations are constrained by a number of

factors namely:

(a) Inadequate physical facilities (rail system, hinterland freight

terminals Information Technology etc);
(b) Poorly organized freight forwarders; and
(c) Ineffective system of documentation and custom clearance.

7.2.2 Policy Objectives

The Policy objective in intermodal operation is to combine, in the

most efficient way, the operating advantages of different modes and
to ensure that transport users enjoy a reliable service of movement
from origin to destination.

7.2.3 Policy Strategies

Given the importance of inter-modal transportation and inter-

modal services, the Federal Government, will
• conduct a study into the problems of intermodal coordination in
Nigeria and profer solutions; and
• implement the Master Plan for Integrated Transport Infrastructure
(MITI) recommendations on integrated transport infrastructure in
Nigeria to ensure adequate connections of the different segments
of the transport system.

pg. 46
8.0 CROSS-CUTTING ISSUES

8.1 Safety in Transport

8.1.1 Introduction

Transportation safety implies the prevention of accidents and

the minimization of accident losses. As Nigeria becomes more mobile,
the possibility of accidents resulting in the death of people and the
destruction of property becomes more of a reality.

The consequences of accidents to a nation are immense.

Accidents cause significant losses to present and future productive
manpower of the country, as well as, in many cases, profound social
problems, deaths or serious injury often results in loss of bread
winners, pushing the affected family into poverty, and jeopardizing
educational upbringing of children. Accidents impose heavy costs on
the health services, and constitute drain on foreign exchange through
importation of vehicles and vehicle spare parts.

Safety promotion requires the development, implementation

and the evaluation of policy programmes that will ensure the safety of
goods and people in transit.

8.1.2 Road Safety

8.1.2.1 Background

Nigeria has a bad record of road traffic accident. In 1976, there

were 53,897 road traffic accidents resulting in 7,717 deaths. In 1981,
the number of accident reduced to 35,114 accident, but the fatality
increased to 10,236. On the average there were 96 accidents and 28
deaths every day of that year. The situation in subsequent years is not
significantly different, although fatality rate reduced to 9,707 in 1993
and 6,521 in 2000. International comparisons indicate that the
chances of a vehicle killing someone in Nigeria are 47 times higher
than in Britain.

Nigeria cannot afford this high accident rates and the

associated consequences. Thus, government will ensure that the road
transport system supports high level of safety and restores the
people’s confidence in the road transport mode.

8.1.2.2 Road Safety Policy Goals

Government policy efforts will focus on:

• A detailed understanding of the factors that account for the
high road accident rate in the country.
• Strengthening the institutional capacity for ensuring traffic
safety in Nigeria.
pg. 47
 These calls for a more coordinated holistic approach to the
question of safety within the road transport sub-sector.

8.1.2.3 Policy Strategies

To achieve the recommended safety measures, government

policy will focus on:
• Modification of the behaviour of road users
• Raising of public awareness on road safety
• Crash prevention measures
• Enforcement of safety regulation; and
• Post injury management

a) Behaviour Modification
The vehicle operator is the key factor in road traffic
accidents and by implications, the key factor in ensuring safety.
The principal instruments in improving driver behaviour
modification are education, training and law enforcement.

The first step in the education of road users is the

development of a safety culture. Inculcating a fresh culture
into an adult may be difficult. The most effective step on the
long run is that which begins with the education of primary and
secondary school children. Basic training in the understanding
of traffic signs, road user attitudes, causes of accidents and
methods of prevention are important in building a safety
consciousness in the youth.

Proper training of drivers is also an important step in

reducing accidents. Although driving is a profession that should be
learnt, there are few adequate driving schools in the country to
create the right avenue for learning. In view of the foregoing,
government will:
• Introduce safety courses into the curricula of primary and
secondary schools.
• Create an enabling environment for the private sector to
establish driving schools in each major city of the country with
government assuring uniformity and adequacy of training.
• Set and enforce minimum age.
• Establish minimum training period and driving experience for
drivers of different vehicles.

b) Raising Road Users’ Awareness

The Federal Road Safety has initiated and sustained some
road safety awareness programme in the country. Enlightenment
is necessary and government will continue to encourage the road
Safety Corp to specifically :

pg. 48
 • conduct rallies at bus interchange points with film shows of
road traffic accidents and talks on accident prevention.
• use national and private radio and television stations to
educate drivers and road users on the safe use of the roads.

c) Crash Prevention
The design, construction and maintenance of roads impact on
road safety. Certain road segments tend to have more accidents
than others. Such “black spots” will be identified and
investigated with the objective of introducing appropriate
corrections.

The design and operating characteristics of vehicles are largely

determined by international standards, but vehicles may be ill-
maintained, poorly repaired, and/or used inappropriately.
Over the past five years, there have been large-scale importations
of used vehicles, especially from Western Europe. Appropriate
legislation and regulations will be put in place to regulate the
type and quality of vehicles imported into the country. To this
end government will:
• Set quality standard for imported vehicles.
• Set minimum standard for break system, tyre threading,
lights and vehicle exhaust system.
• Identify “black spots” and “unsafe” conditions to guide the
use of the roads

d) Enforcement
Traffic regulations are poorly enforced in Nigeria. To ensure
safety, there is need for better laws, strict and tougher
enforcement. In order to deal with this government will:
• Examine, restructure, empower and equip the existing
institutional bodies for traffic safety delivery (i.e. the Road
Safety Corps, the Police and the Vehicle Inspection Officers
(VIO) to enforce road safety regulations.
• Prepare and introduce a strict vehicle inspection regulation
to enforce safety regulations.
e) Post Injury Management
There is no absolute solution to road traffic accidents. Thus
government policy strategy will aim at improving post-injury
management through:
• Creation of first aid centers along major highways for
accident victims.
• Acquisition and use of patrol ambulances on major
highways.
• Encouragement of the private sector to establish road safety
associations to help in the accident injury management.

pg. 49
 • Improvement of communication system along major roads
to facilitate contact with first aid centers in case of
accidents.

8.1.3 Railway Safety

8.1.3.1 Background

The Nigerian Railways has been far safer than any of the other
modes of land transport.

8.1.3.2 Policy Goal

In the resuscitated Nigerian railway, government will:

• Set up a Railway Regulator in the Transport Safety
Regulatory Department to:
• set firm duties and responsibilities regarding safety for
the different categories of stakeholders;
• Set minimum standard for rail components (track, rolling
stock, signalling and equipment etc).

8.1.4 Water Safety

8.1.4.1 Background

At the international level, there have been very few accidents

involving ocean liners because they are operated strictly in line with
international safety regulations. Although Nigeria Inland waterways is
expected to domesticate these regulations and make them applicable
to its national waterways, not much progress has been made.

8.1.4.2 Existing Situation

Water transport related accidents within Nigeria are therefore

high. They are caused by:
• Use of un-seaworthy crafts
• Lack of standard berthing facilities
• Use of hazardous routes
• Overloading
• Excessive speeding
• Incompetent operators

8.1.4.3 Policy Objectives

To ensure safety in water transport, government will:

• Enforce water safety regulations through the Transport
Safety Regulator.
• Provide formal and informal training opportunities for craft
operators.
pg. 50
8.1.5 Civil Aviation Safety

8.1.5.1 Background

Aviation safety oversight is a means by which states ensure

effective implementation of Safety Related Standards and
Recommendations (SRSR) and associated procedures contained in the
annexes to the Convention on International Civil Aviation and related
document. Nigeria being a signatory to these conventions is guided by
international norms and conventions in the civil aviation industry.

The safety regulation system provides for the regulation of

standard for individuals, organizations and aircraft by means of rules,
licenses and certificates embracing airworthiness and operation of
aircrafts and aerodrome standard.

8.1.5.2 Policy Goal

Government will ensure a high level of safety in aircraft
through compliance with ICAO and SARPs

8.1.5.3 Policy Objectives

Government, through the Civil Aviation Policy for Nigeria has

put in place, appropriate safety strategy that:
• Aims at securing a high standard of aviation safety in Nigeria
through the enforcement of maintenance and operation standard
for aircrafts and in the use of aerodromes.
• Effects the safety requirements derived from international
agreements and particularly the Chicago Convention and its
annexes
• Takes from time to time, through the appropriate agency,
preventive and remedial measures for enhancing air safety.

8.1.5 Transportation of Dangerous Goods

8.1.5.1 Introduction

With the growth in the nation’s economy, the volume of

dangerous goods transported has also increased. Correspondingly, the
potential hazards to the public have also increased as exemplified by
the numerous petrol tanker accidents and the associated destructions.

8.1.5.2 Policy Objective

Current safety regulations in this regard reflect the conditions

of the past which are not fully appropriate under the present
situation. There is the urgent need for regulation, which clearly states
the conditions under which petrol, gas, explosives and other
potentially poisonous and polluting substances can be carried.

pg. 51
 8.1.5.3 Policy Strategy

The Federal Environmental Protection Agency (FEPA) is the

appropriate government organ to develop such regulations. The
Ministry of Transport will cooperate with FEPA to evolve new
regulations to combat the hazards of the transportation of dangerous
goods in Nigeria.

8.2 Energy and the Environment

8.2.1 Background
Transport constitutes a major source of environmental
pollution, particularly the emission of greenhouse gases through
pollutants as a consequence of the heavy consumption of fuel
energy. This is particularly evident in urban areas where road vehicles
and motorcycles are a major source of air pollution. Discharge of
water polluting substances from ships is also a major cause of the
destruction of marine ecosystem. Substances such as oil and fuel
additives, batteries, old tyres and tyre patching equipment are now
important sources of water contamination. Protecting the environment
is the responsibility of the Federal Ministry of Environment but the
transport authorities also have an important role to play, by helping to
identify the sources of pollution and by carrying out environmental
impact assessments as part of the project appraisal, and by initiating
new renewable energy sources and regulatory reforms aimed at
curbing the sources of pollution.
8.2.2 Current Situation
The Nigerian transport system is characterised by:
• Growing demand for transport services as a result of increasing
socio-economic activity;
• Urban congestion in the major cities which has led to severe
environmental damage;
• Low fuel price structures which has encouraged over-dependence
on private cars and environmentally damaging fossil fuels;
• Poor quality of the road network which has contributed towards
high fuel consumption.
8.2.3 Policy Goal/Objectives
• To develop transport infrastructure which environmentally
sustainable and line with global best practice with internationally
accepted standards. Government through the Federal Ministries
of Transport and Environment, and the Energy Commission of
Nigeria, would jointly measures to reduce the negative effects of
transport on the environment;

pg. 52
 • Adopt/promote measures to reduce the negative effects transport
on the environment;
• Strengthen the Federal Ministries of Transport and Environment,
and Nigeria Energy Commission of Nigeria to safeguard Nigeria
environmental quality against transport related pollutants.
.2.4 Strategies
• To limit the consumption of fossil fuels using appropriate policy
measures.
• To promote rail and inland waterway mass transit services will
provide the public with alternative transport choices to reduce the
consumption of fossil fuels.
• To introduce differential pricing for diesel, leaded and un-leaded
fuel petroleum modified spirit (PMS) to encourage more efficient
and more environmentally-friendly fuels.
• To promote the use of renewable sources as fuel.
• To promote environmentally sustainable investment decisions.

8.3 Research, Training and Capacity Building

8.3.1 Background
The basic data needed for effective planning and appraisal of
transport projects is not available. Transport demand data is not
collected consistently or accurately enough and the operation of the
transport system is not monitored sufficiently to identify key problem
areas and to establish priorities for action. Greater emphasis is
needed on the collection and analysis of data and information relating
to the demand, supply, performance and future requirements of the
transport system to enable effective policymaking and for the
planning of projects and other initiatives to develop the country’s
transport system. This can only be achieved if the skills are available
to carry out the work and to utilise the results effectively in decision
making.
Furthermore, there is a shortage of skills and a lack of
institutional and organisational focus for carrying out the analysis,
forecasting demand, project planning and appraisal to determine the
appropriate actions and project priorities. These skills and capability
need to be built within the relevant ministries, operating organisations
and the associated research and training institutions in Nigeria. The
situation is compounded by the civil service structure that transfers
civil servants with general administration skills to the Ministry of
Transport and continuously redeploys staff between Ministries. This
result in the absence of professionals permanently assigned to the

pg. 53
Ministry of Transport and the loss of institutional knowledge.
Transport professionals such as economists, engineers and planners
should therefore be assigned permanent roles in the Ministry of
Transport and the Parastatals. Unless this is done it will not be
possible to implement the policies set out in this document
successfully. Human resources are critical to the performance of the
transport sector. An adequate and efficient pool of manpower is
required to conduct research, plan, construct, maintain and operate
the transport infrastructure and services. The success of any
Transport Policy in itself depends on the quality and quantity of the
human resources available to develop and implement the policy.
Professional training for the acquisition of skills and competence in
transport is provided by:
• the Nigerian Institute of Transport Technology, Zaria, charged
with training middle level management staff;
• the Maritime Academy of Nigeria Oron, charged with the
training of seafarers;
• the Nigeria College of Civil Aviation Technology, Zaria which
trains pilots and air crew workers; and
• Professional bodies such as the Chartered Institute of Logistics
and Transport (CILT) and the Institute of Transport
Administration (IOTA).
The paucity of training equipment and inadequate funding
constrain manpower development by these institutions. For skilled
manpower in the transport sector, the country is still dependent on
overseas training and experts. In a deregulated transport system, skill
is as important an issue as funding. Indeed improved transport
efficiencies depend on training and research, which create the climate
for new ideas and management methods. There is an urgent need to
improve skills in planning, analysis and research in the transport
sector to improve the quality of decision taking in the sector.

8.3.3 Policy Goal

To develop the pool of human resources required to plan and
develop the transport system, to maintain infrastructure and
equipment; operate transport facilities and services and conduct
appropriate basic and applied research in order to improve
productivity and ensure better use of transport facilities.

8.3.4 Existing Situation

There are serious knowledge and capacity challenges in the
Nigerian Transport Sector. The key institution in the sector, namely
Federal Ministry of Transport suffers from lack of permanent
professionals; data and statistics to determine future demand and
capacity requirements of the sector are generally lacking and
unreliable; and the existing training facilities for the sector are
pg. 54
inadequate and unable to retain qualified and experienced
professional due to poor remuneration/conditions of service.

8.3.4 Policy Objectives

Government recognises the importance of research, training
and institutional capacity building and will address the issues by:
• carrying out a periodic appraisal of manpower needs in the
transport sector;
• promote and coordinate research in transport;
• professionalise the Ministry of Transport by creating
professional and permanent positions with experts skilled in
transport economics, policy and planning;
• develop human resource policies making it possible to place
the professionals appropriately in the civil service structure;
• creating Centres of Transport Studies in three Federal
Universities with a mandate to develop transport
specialisations in major transport sub-sectors and undertake
an agreed programme of research and training in these areas of
specialisation;
• strengthening the Nigerian Institute of Transport Technology,
Zaria; the Maritime Academy of Nigeria, Oron and the Nigerian
College of Aviation Technology, Zaria as the apex institutions
for developing manpower in the management and technical
areas of the transport industry;
• liaising with such transport professional organizations in
Nigeria as the Chartered Institute of Logistics and Transport
(CILT) and Institute of Transport Administration (IOTA) to
professionalize the transport industry; and
• strengthening the Planning, Research and Statistics Department
of the Ministry of Transport to collate and disseminate
transport statistics and research reports and to develop the use
of appropriate planning and analysis techniques to improve the
basis for government decision taking for the transport sector.

pg. 55
9.0 Policy Implementation

The achievement of the goals and objectives of this policy depends on

its effective implementation by all relevant stakeholders notably, Federal,
State and Local governments, private sector investors, transport service
providers, relevant transport agencies, etc. The National Assembly plays a
key role in legislating for the structural changes and appropriating funds for
projects and programes within the sector.
The FMOT as coordinator and primary adviser on transport as well as
the other federal ministries, departments and agencies (MDAs) responsible
for aviation, roads, rural roads, energy, environment, petroleum and
regulation all have critical roles to play. Implementation of this policy will
therefore require coordination not only across federal (MDAs) but between
the different tiers of government as well as between the public and private
sectors. The policy will be implemented in three phases as follows:
• An Immediate Action Plan;
• A Short Term Action Plan; and
• A Medium Term Action Plan.

9.1 Immediate Action Plan

As a basic condition for ensuring the success of this policy,

Government will establish an inter-ministerial Transport Policy
Implementation Unit consisting of the Ministries of National Planning,
Transport, Works, Housing and Urban Development, Aviation and
Agriculture and Water Resources to:
• prepare a comprehensive plan focussing on the immediate
priorities and allocating responsibility for tasks and projects;
• prepare for a longer term programme of investment projects and
policy implementation as the specific requirements in each sector
are identified;
• specify annual targets/milestones to be achieved for the next five
years and reporting arrangements by the task leaders; and
• set up a Policy Implementation Unit that will set the guidelines for
monitoring transport policy and report progress on its
implementation.

9.1.1 The Legal and Regulatory Framework

Government will:
• review existing transport laws and regulations in respect of
road, rail, air and water transport to accommodate the new
policy directions;
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 • repeal all laws that may impede private sector participation;
and
• promote the enactment of new legislation to enhance the policy
of reform and establish the transport authorities and multi-
sector regulator.
9.1.2 Institutional Framework

Transport Policy Implementation Unit will:

• redefine the functions, objectives and the interrelationship
among the three tiers of government, the Ministry of Transport,
other Ministries and other transport institutions and
organisations;
• prepare a comprehensive implementation agenda for the PPP
programme with specific activities attached to it; and
• examine the current institutional structure of its own
machinery to improve greater integration by creating a single
Ministry of Transport which will be responsible mainly for
policy issues in all modes of transport.
9.2 Short Term Action Plan

A Short Term Action Plan for the next three years will be drawn
up to implement recommendations from the reviews of policy
initiated by the Immediate Action Plan. Implementation of this plan
will be monitored and working groups may be established to authorise
actions. The Policy Implementation Unit will review actions taken
since commencement of the policy to:
• establish what progress has been made and whether targets
have been met;
• ask why targets have not been met;
• identify what implications of a failure to meet targets has on
the subsequent; implementation of the programme; and
• whether the programmes should be modified in the light of
experience and/or the availability of resources.
The Policy Implementation Unit will set up an Evaluation and
Monitoring Unit to:
• set detailed criteria and guidelines for transport policy
monitoring
• evaluate and monitor policy programmes
• produce periodic reports on the progress of the policy
implementation

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9.3 Medium Term Action Plan

The Policy Implementation Unit will review the Short Term Plan
and any changes to the policy to:
• evaluate the overall achievements over the period under review
against expectations;
• review the ongoing programmes to determine which have to be
extended, modified or abandoned;
• determine the impact of the programmes or policy actions
completed and assess their benefits and costs;
• identify any undesirable effects, and corrective actions
necessary,
• identify the lessons learned from past achievements, failures
and partial failures; and
• consider what changes may be needed in policy direction and
the implications for the programme
9.4 Continuous Review of Policy

Economic development will lead to changes in transport

demand and supply and unforeseen events can change priorities. The
Transport Policy will therefore need to be continuously reviewed to
take into account the new economic conditions and social pressures.
The policy review must be objective and to bring about changes where
necessary learning from past experience in order to improve future
performance. The review will be carried out by knowledgeable
transport specialists and researchers from the Universities and other
related institutions.

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10. CONCLUSION
Like other policy documents, the National Transport Policy (NTP)
contains a set of ideas, aspirations, goals and visions; in this case for a
better, responsive, integrated and affordable transport system capable of
meeting the country’s mobility needs. However, overtime, the ideals,
attitudes, aspirations, visions, etc. contained herein may change and/or new
problems and opportunities may emerge. The policy document is therefore
intended to be a process rather than a blue print. As its implementation
proceeds fresh issues may arise. While this will be addressed through
appropriate policy directive, a policy review will be undertaken where the
need arises.

pg. 59