By Desire Uzochukwu
The Federal Government has commenced moves to transform Nigeria’s road transport sector, saying the country is nearly a century behind developed nations in formalising and modernising the industry.
The reform initiative, which targets safer roads, modern vehicle fleets, digital systems and stronger regulation, is also aimed at unlocking the economic potential of a sector that handles more than 90 per cent of the country’s passenger and freight movement.
Despite its critical role in the economy, transport and storage contributes only 1.56 per cent to Nigeria’s Gross Domestic Product, GDP, a situation officials described as unsustainable.
Representing Vice President Kashim Shettima at a stakeholder meeting in Abuja on Monday, the Special Adviser to the President on Economic Affairs, Dr Tope Fasua, said the Initiative on Road Transport Transformation would focus on road safety, professional driver development, digital systems for vehicles, drivers and infrastructure, modernisation of the national road network and improved private-sector management.
Fasua said the initiative would also strengthen coordination among the federal, state and local governments in tackling challenges confronting the sector.
According to him, President Bola Tinubu’s administration intends to turn the sector’s challenges into opportunities through infrastructure development, regulatory reforms, digital innovation and cleaner energy.
Technical Adviser on Transportation, Logistics and Innovation, Prince Segun Obayendo, however, highlighted the extent of the sector’s challenges.
“Germany, France and the United Kingdom formalised their transport sectors in the 1930s. Nigeria is nearly a century behind,” Obayendo said.
He said the National Road Safety Advisory Council, chaired by Shettima, would coordinate the transformation without establishing another government agency.
According to him, desk officers from existing state and local government structures would support the implementation of the reforms.
On fleet renewal, Obayendo called for single-digit interest rates to enable transport operators to replace ageing vehicles.
“Commercial loans of 30–33 per cent keep vehicles ageing and unsafe,” he said.
He also advocated stronger driver licensing systems, improved transport data and wider adoption of compressed natural gas, CNG, as part of measures to enhance safety and efficiency.
The stakeholder meeting, convened by the Office of the Vice President, brought together representatives of federal ministries, regulators, transport unions, financial institutions and development partners.
The stakeholders proposed a multi-sector technical committee to develop an integrated governance framework for the road transport sector.
Implementation, according to the proposal, would rely on existing government structures rather than the creation of new agencies.
Shettima has said the success of the reforms would ultimately be measured by lives saved, improved efficiency, better working conditions and dignity for transport workers, as well as increased national prosperity.
The initiative is expected to proceed with formal endorsement and consideration of recommendations from the proposed technical committee.
