Transport in Nigeria
The transport and storage sector was valued at N2.6trn ($6.9bn) in current basic prices in 2020, down from N3trn ($8bn) in 2019, according to the National Bureau of Statistics (NBS).
One of the most significant challenges facing the sector is meeting the needs of both large coastal cities and rural inland communities in order to fully unlock the country’s economic potential.
This is especially the case with mining and agriculture, both of which are expected to benefit from two large-scale projects: the Lekki Port in Lagos and the Kano-Maradi rail line in the north of the country.
[1] Although transport networks have historically been underfunded, the government is prioritising their development, as enhanced connectivity is key to supporting growth in non-oil sectors such as manufacturing and agriculture.
This will help the country diversify its sources of income away from oil, and connect rural and underserved communities to commercial centres.
Moreover, planned intra-city mass transit projects are expected to improve the quality of life for Nigeria’s 102.8m urban residents.
[1] Improving rail links is also central to the NIIMP, with the master plan noting at the time that the network “needs to be almost completely rehabilitated or rebuilt”.
The 387-km line will pass through Kazaure, Daura, Katsina and Jibiya, and a 93-km branch from Kano to Dutse will facilitate traffic from Jigawa State.
The second Lagos-Kano line is intended to connect with the new Kano-Maradi artery, eventually creating an uninterrupted network across Nigeria.
Nigeria’s roads and highways form the backbone of the country’s transport network, as these arteries handle 90% of all passenger and freight traffic, according to the NIIMP.
As it is the largest segment – contributing N2.4trn ($6.4bn) to GDP in 2020, down from N2.7trn ($7.2bn) the year before – the government is focused on both servicing existing roads – many of which are in poor condition or unpaved – and constructing new ones.
[1] One key project is the rehabilitation and expansion of the 35-km Apapa-Oshodi-Oworonshoki-Ojota Expressway in Lagos, linking the city’s largest port to the Ojata district.
In January 2021 Funso Adebiyi, director of highway construction and rehabilitation at the Ministry of Works and Housing, told local press that the first phase of the project was set to be completed in April of that year, with the entirety of the expansion delivered in December.
Slated to be Nigeria’s first deepsea port and the deepest such facility in sub-Saharan Africa, work on Lekki began in March 2018 and is targeted to be complete in 2022.
[1] Lekki Port LFTZ Enterprise is a joint venture between the Lagos State government, the NPA and Lekki Port Investment Holdings, a group of investors including China Harbour Engineering Company and Singapore-headquartered holding company Tolaram Group.
The air transport industry was particularly affected by the pandemic, as many countries closed their borders at various points throughout 2020 to reduce the spread of the virus.
