2022 Transport Infrastructure Industry Report

Overview of the Report

Nigeria covers a geographical area of 923,768 sq. km , with a population estimate of circa 216 million , which is projected to rise by an annual average of 2.7% in the coming years. We reckon that the projected increase in population would require significant investment in transport infrastructure to cater for the seamless movement of passengers and goods. According to Industry operators, only 37% of Nigeria’s 195,000 kilometres of roads are currently in good condition, with the remaining 63% in disrepair. Road infrastructure activities include – road maintenance, which is split into routine, recurrent & emergency maintenance and road rehabilitation, which are essential for enhancing and extending the usable life of road infrastructure. Road infrastructure in Nigeria is classified into three broad categories across the three tiers of government – Trunk ‘A’ roads, which transcend regional boundaries and are financed, constructed, and maintained by the Federal Government of Nigeria; Trunk ‘B’ highways which connect the major cities within a state and are under the supervision and ownership of the component states; and the Trunk ‘C’ roads which fall under the purview of the local governments. Most roads in Nigeria are constructed using either concrete (cement) or asphalt (bitumen).

Nigeria’s railway system is largely underdeveloped and this has escalated the pace and severity of road deterioration, thus resulting in the need for huge investments to build and maintain roads. According to data published by the National Bureau of Statistics (NBS), rail infrastructure accounted for less than 1% of the transportation sector’s contribution to Nigeria’s gross domestic product (GDP) at the end of 2021. This is in spite of rail infrastructure being the most cost-effective mode of transport with the capacity to move freight over longer distances more efficiently. Nigeria’s spending on rail infrastructure has largely been financed by Chinese borrowings due to the dire financial position of the Federal Government of Nigeria. While we recognise the potential benefits of a functional rail system to the Nigerian economy, concerns are rife about the increased reliance on Chinese funding and the heightened level of insecurity in the country.

Air transportation has experienced marked growth in recent years, particularly due to the spate of kidnappings and banditry in Nigerian highways. Nonetheless, the industry still contributes a negligible amount to Nigeria’s GDP owing to the lack of expansion of terminal facilities, which has stifled operational efficiency. The Federal Government of Nigeria (FGN) introduced the Nigerian Aviation Development Roadmap (“NADP” or “the Roadmap”) in 2015 to spur growth in the aviation sector. Despite the ambitious framework contained in the Roadmap, we reckon that implementation has been slow, occasioned by inadequate funding and various challenges associated with policy implementation in Nigeria. With the expected change in government in 2023, we are concerned that the Roadmap may be abandoned as the new regime may want to pursue alternative policies.

Inland waterways are made up of navigable rivers, lakes, coastal creeks, lagoons and canals. The movement of goods and services along inland waterways is one of the oldest means of transporting goods and services in Nigeria. Nigeria’s waterways span 10,000 kilometres, although only circa 3,800 kilometres are navigable . 28 of the 36 states in Nigeria can be accessed through the waterways . In the same vein, it is also possible to navigate five neighbouring countries – Benin Republic (Port Novo), Equatorial Guinea, Cameroon, Chad and the Niger Republic – through the waterways. The Niger and Benue rivers constitute the major channels for inland navigation which include but are not limited to the Cross River, Port Novo- Badagry-Lagos waterways, as well as the Lekki and Lagos lagoons, amongst others.

This report provides useful insights into various aspects of Nigeria’s Transport Infrastructure Industry. Key benefits of the report include:

  • An understanding of the Industry’s size and structure
  • Provides insights on recent developments and Industry trends
  • Provides an overview of the key regulators and regulations guiding the Industry.
  • Analyses the Industry’s SWOT and provides insights into the economics of the Industry
  • The provision of an Agusto & Co rating for the Industry based on in-depth research findings

$1,300.00