Strong Regulation, Investor Confidence Will Address Inadequate Transport Infrastructure – FG
*As Mustapha gives hope on president’s assent of NTC bill soon
• Stakeholders commend Bello for effective, efficient leadership
By Francis Ugwoke
The federal government weekend said strong regulation and investor confidence will be the key to the solution of inadequate transport infrastructure in the country.
The Secretary to the federal government, Mr Boss Mustapha said government was aware of the problems of infrastructure in the transport sector which have remained a major cost constraint to businesses.
Speaking on the occasion of Night of Appreciation organized by the Nigerian Shippers Council (NSC) to appreciate stakeholders in the industry, Mustapha said Nigeria lags behind its peers in terms of scale and quality with the World Economic Forum placing Nigeria behind South Africa, Kenya and others.
But the SFG who was represented on the occasion by the Permanent Secretary, Political and Economic Office of the Secretary to the Federal Government, Mr. Gabriel Aduda said to reverse this trend, the federal government is leveraging private sector infrastructure investments through Public Private Partnership ( PPP).
According to him, “we also recognize that appropriate regulatory framework is a key element to scaling up investors confidence, hence the need for reforms in the transport sector.
“The transport industry sector reform, should aim at unbundling the existing tripartite role of public agencies as investors, operators and regulators, as well as create a robust and well resourced Multl Sector
Regulator for the Industry”
Mustapha identified the benefits of Multi-Sector Regulation in a growing economy like Nigeria to include:
a) Economics of scale i.e. sharing of fixed costs, scarce talents and other resources.
b) Build expertise in cross-cutting regulatory issues e.g. tariff adjustment rules and competition.
c) Smart inter modal regulation that will reduce over dependence on one sector, as is the case now, where 90% of passengers and freight are transported by road”.
He was of the view that a robust intermodal regulation should cover rail, water and land transportation, adding that it should promote effective competition and economic efficiency, as well as enhance safety standards, while at the same time preserving the environment.
The SG described the Transport industry as very crucial to the growth and survival of any economy and can rightly be described as the life line of growth and development.
“No country can become economically buoyant without good transportation infrastructure, especially a good inter modal transportation network. Transportation is the cornerstone of civilization and development, it creates linkages between people and places, it opens up economic spaces, corridors and opportunities.
“We are aware that Nigeria’s transport industry is governed by legacy old polices and legislations, which to a large extent impede the development of our transportation industry especially, in the area of attracting private sector players to meet the growing needs of our economy.
“To address this issue, in 2010, the Federal Government drafted the National Transport Policy to proffer a new direction for the industry. The fundamental goal of Nigeria’s transport policy is to develop an adequate, safe, environmentally sound and efficient transport system, in the context of a progressive and competitive economy”.
Noting that Nigeria has about 195,000 kms of road network out of which about 32,000kms are federal roads and 31 ,000kms are state roads, he said only about 60,000 kms are paved.
He added that of the paved roads, a large proportion are in very poor condition due to insufficient and differed investments and lack of adequate maintenance, but assured that government is working hard to reduce this backlog.
On the rail, Mustapha said there is a network of about 3,500km of narrow gauge linking the north and the south which has largely remained unmaintained and out-modeled.
He added that the present administration has however ensured the completion of and use of the Kaduna to Abuja standard gauge railway.
Mustapha however described Nigerian ports as performing better due to the concession that led to the transfer of 26 ports terminal operations and investment obligations to the private sector between 2004 to 2006.
He also gave an insight on the National Transport Commission Bill which was passed this year by the National Assembly.
According to him, the federal government is sorting out some technicalities and use of language, that would bother on overlap of functions with other agencies and needs to be clearly delineated.
“As soon as that is sorted, we should have a befitting law for the good of the whole. I can assure you however that on its part, the Executive is committed to playing its role in the passage of the bill into law”, he said.
He said for Nigeria’s economy to be propelled at the desired speed, there is the need to establish or delineate a body, to regulate the sector and provide technical oversight for the provision of transport services, monitor compliance of government agencies and service providers, with relevant legislation for efficient operations through consolidation, removal of duplicity and regulatory functions of public agencies”.
The Night of Appreciation was one of commendation for the Executive Secretary of the NSC, Mr Hassan Bello for his good leadership qualities in the regulatory agency.
First, stakeholders pointed out the humble nature of Bello and his style of addressing industry issues to achieve desired result.
The former Minister of Industry and Chairman of NACCIMA Chief Bisi Akande while commending Bello for a dynamic leadership quality said her group will continue to partner with the NSC.
The Chairman of Seaports Association of Nigeria (SOAN) and Managing Director of ENL Consortium Limited, Chief Mrs Haastrop also commended Bello, describing him as one of the best things to happen to the maritime industry.
Haastrop said that even with the issue that the terminal operators has with the NSC on shipping charges, Bello was cooperative with the stakeholders to ensure that the sector moves forward.
In his vote of thanks on the occasion which was attended by a cream of the nation’s maritime industry, Bello said all that the Council has achieved was through synergy, including relevant stakeholders and staff.
He said he had always approached the past chief executives of NSC for robust advice, adding that they laid solid foundation for the Council.
Bello said each time the Council had any problem to address, it relied so much on referring to the files of past executives for direction.
About Post Author
