‘Inadequate Funds, Bane Of Transportation Sector’

Lagos State Commissioner for Transportation, Kayode Opeifa has lamented the inadequate funding of the transportation sector by federal and state governments.

Opeifa spoke while delivering a lecture at the 11th Lagos State University MBA Alumni Annual Business Lecture in Lagos, southwest Nigeria on the topic: Effect of Transportation in Nigeria’s Economy.

According to Opeifa, “when transportation’s contribution to GDP is above 10%, transportation is definitely efficient and making much more positive contribution to economic growth. For Nigeria, it is below 3%, an indication of inefficiency and definitely contributing to economic growth but not optimally.

“Why is it that transportation contributes below 3% to the nation’s GDP? This is as a result of inadequate funding or misplaced priority, inadequate capacity, human capacity and institutional capacity, inadequate infrastructure, lack of relevant multi-modality or modality mix and  lack of definite and clear planning and political direction.

“Currently, there is no operating national policy on transportation, no clear transportation mission and vision, in passionate political leadership, no national forward looking transportation plan,” he said.

Opeifa opined that if adequate attention is paid at the national and state levels, it could be the turning point before and after the power sector reform, asking; “Of what value is factor of production if not mobile, does not transform in state, utility or functionality. Without power, transport holds the key, after the power sector, transport will be more critical to economic transformation, for jobs and improvement in the quality of life.”

On the way forward, the commissioner said transportation and transport system focus should be to support sustainable economic growth, protect national interest, ensure quality of life of the citizens and promote national integration.

“The Minister of Transportation should ensure the presence of the representation of the Ministers of Finance, Trade and Investment, Works, Urban Planning/National Planning and Secretary to the Federation at all National Council on Transportation, NCT’s meetings. The Federal Government must engage state governments in national transportation planning by extension. The Minister of Transportation must also engage state Commissioners for Transportation in transportation planning.

“The draft National Transportation policy before the National Assembly should be withdrawn, thoroughly reviewed and represented. As a matter of priority and urgency, at the next NCT’s meeting scheduled for Makurdi, Benue State, the implementation plan of the resolutions of the last three NCT’s meeting should be the first agenda.

“There should be a review of all the resolutions and representation to the Minister of Transportation for the Federal Executive Council deliberations. State governments should strive for the economic growth of their state and the country, create separate Ministry of Transportation to manage matters affecting transportation, infrastructure, operations planning and execution,” he proffered.

According to him, “the NCT should set in motion the development of a national strategic transportation master plan tailored towards socio-economic integration and economic growth of the nation, taking a cue from South Africa, USA, UK and Germany.

“There should be immediate repeal and unbundling of the 1955 NRC Act, NIWA Act and all national laws that do not permit active private sector participation or restrict state government participation in the transport system except where national security is an issue. There should be restructuring of the current Federal Ministry of Works, Ministry of Transportation and Ministry of Aviation following global best practices by bringing all responsibility for road, rail, water, aviation under the Ministry of Transportation for better coordination.”

“There should be increased funding for the transportation sector, especially investing in the redevelopment of a new rail master plan, taking into consideration passenger rail and goods only rail network systems. The NCT should develop as a matter of urgency a comprehensive National Plan for the needed human capacity in the transport sector.