By Oluwakemi Dauda
The transport and logistics sector of the economy is in huge deficit of over N3trillion infrastructure based on neglect and poor government policies, it was learnt
It was gathered that the huge infrastructure deficit, bad government policies, poor road network, unstable electricity, multiple taxation have not allowed the sector to achieve its goal.
A maritime lawyer and university don, Dr Dipo Alaka said as result of the neglect, “the nation’s economy lost an estimated annual revenue of N3.46trillion due to poor infrastructure, poor implementation and corruption at the ports between 2018 and 2020’’.
“In 2018, the United States Census Bureau (USCB) estimated that the value of Nigeria’s logistics sector was N334.08billion ($696 million), noting that the local stakeholders had not been able to meet financial obligations, transferring costs and charges to end-users, creating room for foreign owned operators with the financial capabilities to absorb higher levels of business risk to enter into the transport and logistics sectors,” he said
The Bureau added that a country without good modern transportation systems and the infrastructure that supports it would remain underdeveloped.
Also, a survey by the Organised Private Sector (OPS) and Lagos Chamber of Commerce and Industry (LCCI) between 2018 and 2020 revealed that the economy lost an estimated yearly revenue of N3.46trillion due to poor infrastructure, poor implementation and corruption at the ports, of which N2.5trillion were corporate earnings losses across the various sectors of the economy.
According to the report, profit margins of corporate entities using some of the country’s key infrastructure at the Apapa port, had gradually dwindled as logistics cost has increased significantly.
It added further that the country required a national logistics strategy focused on the following areas: transportation and distribution industry, transport and distribution workforce, road infrastructure, road congestion, road conditions, interstate highway access, vehicle taxes and fees, rail-road access, water-port access and air cargo access to ensure innovation within the infrastructure development cycle of logistics and supply chain.
A Consultant to United Nations Population Fund and World Bank, Prof. Kayode Oyesiku, also told reporters that the transport and logistics sectors were the fastest-growing industries in Nigeria but was facing infrastructural challenge.
Oyesiku, a professor of Transport Systems Planning, Urban and Regional Planning & Quantitative Techniques at Olabisi Onabanjo University (OOU), however, noted that because of the Federal Government’s investment in rail transportation and the upgrade of the existing ones.
our logistics right is one of the things we should concentrate on. If we get our logistics right, I think it will be pertinent to know that we are already on the part of development. Our economy will be galvanised, our economy will be diversified, and we will have clusters of industries and employment for our people.
“A robust logistics sector will generate jobs and grow the economy and inclusiveness, and that’s why it is important that apart from the issues of access to finance and market. I think to get our logistics right is one of the things we should concentrate,” he said
According to Bello, the inland dry port is a logistics centre that must be properly harnessed and turned into export centre
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