PPP to Rescue the Transportation Sector

Concerned with paucity of fund, the Federal Government of Nigeria has identified and adopted the Public Private Partnership (PPP) framework to enable the private sector invest significantly in the transportation sector.
An official of the Ministry of Transport informed the Economic Confidential. According to him, PPP would put the country on the path of global competition, promote economic efficiency, gradually reduce Government investments and subsidies, encourage increased Private Sector Participation and enhance competition, value for money and quality service delivery.

Recently the Permanent Secretary of Federal Ministry of transport, Engineer Nebolisa Emodi told stakeholders at the 11th National Council of Transport in Uyo, Akwa Ibom state that to ensure the success of the PPP arrangement, the Ministry of Transport has been working closely with the relevant bodies, including the National Assembly (NASS) to ensure that the necessary Institutional and legal frameworks are put in place to support increased private sector investment in transportation in general, and Public Private Partnership (PPP) in particular.

Thus, while the Federal Government is exclusively responsible for the Railways, Sea Ports, Maritime, Inland Waterways, Federal Highways and Pipelines, the State Governments have jurisdiction over intra-state roads, inter-state waterways and intercity railway services in partnership with the National Inland Waterways Authority and Nigerian Railway Corporation (NRC), respectively.

Similarly, the infrastructure component of the Transportation Agenda of the present Administration 2011-2015 and the first National Implementation Plan 2010-2014 and its fore-runner, the Nigeria Vision 20:2020 are predicated on a private- sector driven, Competitive Market Economy; the transfer of responsibility of providing public Services to the private sector where appropriate, so that Government can concentrate on policy, supervision, regulation, co-ordination and integration of the Sector.

The cost of transportation in the country is high because the rail and inland waterway sectors have stagnated for a long time putting enormous pressure on the road sector. The need for synergy between the modes of transportation as encapsulate in the National Transportation Masterplan (NTM) is to guide subsequent Planning, Implementation and Monitoring of transportation infrastructure in a coordinated and effective collaborative manner. The Plan aims at upgrading and maintaining the existing infrastructure, resuscitating, modernizing and expanding the railway system, addressing the persistent problem of congestion at sea-ports, revitalizing inland water transportation and modal integration.

The huge investment that Government has put in the dredging of the Lower Niger culminating in the completion and the usage as well as the investments in the railways. Substantial private investments have been made by the private sector in the development of some facilities in the ports in Lagos and Onne and also the proposed establishment of green field sea ports in Lekki, Badagry, Snake Island (Lagos), Olokola (Ogun) and Ibaka(Akwa Ibom).

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