Government realizes that safe and efficient transportation systems are vital to the nation's continued economic development. It does not only play a key role in the nation’s capacity to participate in the global economy, but also crucial in ensuring the well being of its communities and people. Government Policy Thrust is therefore directed at a revitalized, modernized, dynamic and sustainable transport sector through Public-Private Sector partnership.
Economic factors and national political considerations over the years, has led to the dominance of the public sector in providing investible resources for development of the sector. Thus, Government assumed responsibilities for the provision of infrastructural facilities, allocation of financial resources, institution of regulatory framework and operation and provision of transport services.
Government intends to privatize the transportation sector in line with the Transportation Master Plan without abdicating its responsibility of retaining the core values of social goals, which are not amenable to market forces. Government will seek greater involvement of the private sector in management and financing of transportation infrastructure- air, railway, roads, ports, inland waterways.
The National Transport Policy, which gave rise to the Transport Master Plan, adopts an inter-modal, integrated, holistic, reinforcing and organic system of approach for the development of the sector. The approach took into consideration the needs of the people- considering that about 85% of Nigerians live in the rural areas, the relevant response to their needs would be a Mass Transit System for example rail- and government is not shying away from this. Opportunities therefore abound for investors who wish to engage in mass transportation business in any of the modes of transportation.
Nigeria's transportation network was potentially one of the best in Africa, featuring an extensive system of paved highways, railroads, airports, and ports
COASTAL, INLAND WATERWAYS & MARITIME TRANSPORT
Maritime Services
i. Self-run Terminal
ii. Ultra-modern Multipurpose Bulk terminal
iii. Specialized Trans-shipment
iv. Management and Maintenance of cargo handling plants equipment terminal on purely commercial basis
1. Ship acquisition/Procurement
2. Joint Venture with Nigerian indigenous shipping lines
3. Ship building and repairs.
Inland Water Ways Transport
i. Investment in he rehabilitation and modernization of the National Inland Waterways Authority (NIWA) dockyards in Warri and Lokoja.
ii. Operation of ferries along the NIWA networks connecting creeks and rivers
iii. Provision of navigational aids and communicational equipment
iv. Purchase/Ownership of various categories of operational vessels
Coastal and Inland Shipping
Nigeria is blessed with a coastline of about 870km and about 3,000 km of inland waterways. The country is equally blessed with enormous natural resources which economic value in terms of foreign earnings is directly related to the maritime component. Oil & Gas sector is presently the predominant sector in Nigeria short sea trade and is estimated to constitute about 95% of coastal and inland shipping while fishing trawlers and break bulk carriers make up the remaining 5%. This presents enormous coastal trade opportunities for shipping companies in Nigeria.
In order to develop this viable operation, the Coastal and Inland Shipping (Cabotage) Act 2003 was enacted. The Act is part of the deliberate drive by government to create opportunities for increased Nigerian participation in all sectors of the economy.
Port Services
The Nigerian Ports Authority (NPA) was established in 1984 to provide an integrated approach to national port administration. The major ports in Nigeria are: Apapa & Tin Can Island (Lagos State), Port Harcourt (Rivers State), Onne (specialized port for oil & gas, Rivers State), Warri (Delta State), Calabar (Cross River State), Roro (Rivers State).
The establishment of the rightful ownership of goods received at the ports brings into focus a number of procedures, documentation and the duty to safeguard the consignments until they are delivered to the owners. In consonance with its objectives, government has put in place, the following reforms to achieve high productivity and user-friendly environment to attract traffic to the seaports:
• Replacement and modernization of obsolete port handling equipment: new cargo handling have been acquired and installed at all ports;
• Review of port tariffs and charges: prevailing tariffs and charges have been simplified to allow for flexibility and competitiveness in the sub-region while its policy of no charge for services not rendered is seriously being pursued;
• Overcompensation of port operations: inline with the reform programme, all the ports are being computerized, with that of Apapa and Roro ports completed. In effect, the authority is sustaining its drive at ensuring clearance of cargo within 48hours of arrival.
Inland Container Deports
In an effort to decongest major ports in the country, 5 (five) inland container deports have been opened for operations. These are situated in Kaduna (Kaduna State), Kano (Kano State), Aba (Abia State), Jos (Plateau State) and Ifo (Ogun State).
RAIL TRANSPORT
The Nigerian rail network spans through a total 3,798km from Lagos in the south-west to Port Harcourt in the south-south, up to Kano in the north central zones of the country. This network service over 2.5million passengers and 1million metric tonnes of fright annually. This network also covers the Itakpe – Ajaokuta – Warri axis primarily servicing the iron ore and steel plants. The existing rail network is being proposed to be extended to Abuja and other industrial corridors – Lagos – Abuja, Abuja – Kaduna, Minna – Abuja, Aba – Uyo – Calabar East – West. Presently, the rail system has 3362 wagons, 600 coaches and 170 locomotives.
The facilities available have proven to be inadequate. With a view to enhancing its market value for eventual privatization, government is executing rehabilitation and upgrading of old rail tracks, installation of modern electrical and semi-automatic block signalling. Acquisition of modern locomotive, coaches and wagon are also being pursued.
AVIATION
The Nigerian aviation industry enjoyed growth from the oil boom period of the 1970s. During the period, the industry metamorphosized into a multi-faceted, profit driven sector of the national economy. There was tremendous growth in number of operators, airports and passenger traffic. However the industry witnessed serious decline due mainly to growing cost, poor management, bad policies and unfriendly investment environment.
The Nigerian Civil Aviation Policy was developed in 1999. The policy was designed to promote the establishment of a safe, efficient, reliable, dynamic, customer-focused, market-driven, self-sustaining, high-tech industry, which would grow at an average minimum rate of 7% per annum, thereby making significant contribution to Nigeria’s GDP.
Nigeria is dotted with over 70 airports, five of which are international and the others in the domestic category. The five international airports are: Murtala Mohammed Airport (Lagos), Nnamdi Azikiwe Airport (Abuja), Port Harcourt Airport (Port Harcourt), Mallam Aminu Kano Airport (Kano) and Enugu International Airport (Enugu).
With the deregulation of the domestic airline industry, private sector initiative has intensified in the Nigerian civil aviation industry. The stage is now set for a vibrant and profitable aviation sector. Presently, there are over 29 airlines plying the domestic route in different service categories ranging from charter cargo service, oil-support service, charter passenger service and scheduled passenger service. Some of these airlines are: Easy Link Aviation; Chanchangi Airlines; Dormier Aviation Nigeria AIEP (DANA); Pan African Airlines; Aero Contractors Nig. Ltd.; Overland; Bristow Helicopters; Bellview Airlines; Sky power Express Airways; Afrijet; Savannah Airlines; Premium Air Shuttle; Associated Airlines; Chrome Air Service; Nigeria Airways; Fresh Air Ltd.; and Kabo Air. Others include King Air and Travels Ltd.; ADC Airlines Plc.; Wings Aviation; IRS Airlines; DASAB Airlines, Earth Airlines; Sosoliso Airlines and EAS Airlines. Others are Sky Executive Airlines, Falcon Airlines, Freedom Air Services, Nexus Aviation and Virgin Nigeria.
This has resulted in intense competition among the key airline operators in the industry, especially in the area of value-added services, customer care and safety facilities available.
Today, the Nigerian aviation industry needs improved funding, and more investment in technology to give the sector the capacity to profitably meet the needs of a fast growing market and fit into the global aviation industry of the 21st century. The new vista of democratic experience in Nigeria has created an investors haven.
National Carrier
In line with government desires to make private sector participation as the pivot of Nigerian’s economy re-engineering, a fully private sector carrier had been named as the official national carrier - Virgin Nigeria. Its inaugural flight was to London via the Heathrow Airport on June 28, 2005.
Regulatory Agency
The Nigerian Civil Aviation Authority (NCAA), is responsible for regulating the methods of entry and conduct of air transport business, ensure the safety of aircraft operations, monitor aircraft operating environment and play advisory roles to the Aviation Ministry.
Airspace Management
The Nigerian Airspace Management Agency (NAMA), was created vide Act No.48 of 1999 of the Federal Republic of Nigeria, to develop the Nigerian Airspace to a level consistent with the requirements of the ICAO Standards And Recommended Practices (SARPS). The Agency therefore is saddled with the provision of Air Traffic Management to ensure a safe, efficient, expeditious and economic flight operations.
In compliance with this mandate, the NAMA has set a vision on making the Nigerian Airspace rank among the safest airspace in the Africa-Indian Ocean Region and indeed, the world over.
Nigerian Airspace Management Agency’s implementation of the roles contained in the Act (decree) establishing it is guided by the following principles:
• Aircraft operating agencies and the flying public are our primary customers and must be given the highest quality service.
• Aviation equipment manufacturers and other related agencies are those we rely on for our operational equipment/services.
Bilateral Air Service Agreement (BASA)
Nigeria has signed Bilateral Air Services s Agreement (BASA) with some friendly countries, while negotiation continues with some others. The Agreement is to regulate the operation of scheduled air services between and beyond their respective terminals. Some of the countries that the Agreement have been signed with are: United Arab Emirate, Niger Republic, Kenya, Yemen, United Kingdom, the Netherlands, and United States of America, among others.
The negotiation with the UK had led to the entrenchment of the dual designation clause, which subsequently designated Virgin International Airlines as the second UK carrier on the London-Lagos route.
ENERGY
The overwhelming objective of the Electric Power Policy is to ensure that Nigeria has an Electricity Power Supply Industry (EPSI) that can meet the needs of its citizens in the 21st Century. This will require a fundamental reform at all levels of the industry. A technically and commercially efficient EPSI is critical for achieving Nigeria 's growth and development goals.
The priority is to create an efficient market structure with a clear regulatory framework, that encourages more competitive markets for electricity generation and sales (marketing), which at the same time, is able to attract private investors and ensure economically sound development of the system. The Private Sector Participation (PSP) is being encouraged through the following legal framework:
• Build-own-operate (BOO): The private agent retains the ownership of the facility and the right to operate it for an indefinite period of time.
• A similar arrangement is the Independent Power Producer (IPP), under which the private sector sells power to the government grid, without formal previous obligation to limit its profit or eventually surrender ownership of the facility.
• Build-operate-transfer (BOT): The private agent builds the facility and retains ownership and the right to exploit for a specified period of time, thus recovering construction, operating, and financial expenditure. At the end of the period, ownership reverts to the state at a symbolic cost.
• Build-transfer-operate (BTO): The private agent transfers ownership of the facility to the State after completing the construction stage, and operates it thereafter.
• Rehabilitate-operate transfer (ROT): Under this arrangement, government has also gone into negotiation with a number of private companies for the repairs and expansion of dilapidated power infrastructure.
This structural reform has resulted in the execution of Power Purchase Agreements (PPA) with some power producing and energy companies such as:
i. Agip Nigeria Plc
ii. America Energy Services (AES) for 270MW
iii. Aggreko for 35MW Emergency Power
iv. Geometric Renatech LLC for 15MW Emergency power.
This will ensure that the Nigerian electricity sector meets current and future electricity demands in an efficient and economically viable manner. The involvement of the private sector thus entails the need for adequate regulatory framework for the industry. To achieve this, the erstwhile National Electric Power Authority had been unbundled, giving rise to a new enterprise named Power Holding Company of Nigeria Plc (PHCN). The new structure has 11 (eleven) Distribution Business Units, 1 (one) Transmission Company (TransysCo) and 6 (six) Generating Companies. All these business units are semi-autonomous. The industry regulatory body is also being formed.
Electricity Generating & Supply Capacity
Generation
The generating plants include hydroelectricity and thermal: steam plant and open cycle gas turbines. Of about 6,000MW installed capacity, the nation achieved and has sustained a 3,000MW generation since June 2002.
The installed capacity is as follows:
PHCN Facilities
5 Thermal Power Stations 3,672MW
3 Hydroelectric Power Stations 1,938 MW
Total Installed capacity 5,610MW (From 8 generating stations)
IPPA Facilities 896MW (2004)
Transmission & Dispatch
Transmission Voltage levels Twenty-five sub-stations of 330Kv
Eighty-nine sub-stations of 132Kv
Length of Transmission Lines 5,000Km of 330Kv lines, 6,000Km of 132Kv lines
Total Transformer Capacity 7,000 MVA
Frequency Control Policy 50Hz +/- 0.4%
Voltage Control policy 330Kv +5% and –15%, 132Kv +10% and –15%
National Control Centre Oshogbo, Osun State
Supplementary National Control Centre Shiroro, Niger State
Distribution
The network facilitates the distribution of power to the industrial, commercial and residential consumers in Nigeria and in neighboring Niger Republic.
Distribution Voltage Levels: 33KV, 11KV & 0.415KV
Length of Distribution Lines 37,173 Km of 33Kv lines
29,055 Km of 11KV lines
70,799 Km of 415V lines
Total Transformer Capacity 14,400 MVA
Frequency Control 50Hz +/- 10%
Profile of Power Stations
Name of Station |
Commissioned Date
|
Installed Capacity (MW)
|
Number of Generating Units
|
Type
|
|
Kainji
Power Station
|
1968
|
760
|
8
|
Hydro
station
|
|
Jebba
Power Station
|
1985
|
587
|
6
x 95MW
|
Hydro
station
|
|
Shiroro
Power Station
|
1989
|
600
|
4
x 150MW
|
Hydro
station
|
|
Afam
Power Station
|
1963
|
972
|
20
|
Thermal
Station (gas fired)
|
|
Egbin
Power Station
|
1984
|
1,320
|
6
x 220MW
|
Thermal
Station (Steam turbine)
|
|
Delta
Power Station
|
1966
|
600
|
20
|
Thermal
Station (gas fired)
|
|
Sapele
Power Station
|
1978
|
600
|
20
|
Thermal
Station (gas fired)
|
|
Ijora
Power Station
|
1920s
|
60
|
-
|
Thermal
Station (gas fired)
|
Source: PHCN
INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) SECTOR
Government intends to create incentives to expand access to information and communication technology, which will facilitate accelerated development of the sector in order to short-circuit the longer span of development.
Government is encouraging local production of ICT equipment and materials (computers, telephones, televisions etc). Government also intends to encourage the development of payment systems, which will facilitate the growth of electronic commerce.
The Act setting up the Nigerian Communication Commission (NCC) and the National Telecommunication Policy approved in October 1999 set the strategies and guidelines for the modernization, expansion and improvement of telecommunication network and services so that the industry's impact and the contribution to national development would be enhanced. This has to do with designing and implementing network development projects that would yield a minimum of 2 million lines by the year 2005.
With the deregulation of the industry, NITEL PLC and M-TEL which are Government-owned, are being privatized to create a level- playing ground for the services providers and thereby ensuring the attainment of Government policy objectives.
With the liberalization of the sector, comes the need for adequate regulation. The NCC was therefore established to promote and regulate operations within the sector. Since the auctioning of license for Global Mobile Communications System in 2001, the sector had witnessed tremendous growth both in number of service providers and subscribers. The table below detailed the progressive growth the sector had achieved.
SERVICE CATEGORY
|
NUMBER OF OPERATIONS & SERVICE PROVIDERS |
||||||
|
|
1999
|
2000
|
2001
|
2002
|
2003
|
2004
|
Mar. 2005
|
National Carriers |
1
|
1
|
1
|
2
|
2
|
2
|
2
|
|
Mobile
(GSM) Telephony
|
1
|
1
|
3
|
3
|
4
|
4
|
4
|
|
Fixed
Telephone
|
9
|
16
|
16
|
17
|
20**
|
24**
|
24**
|
|
Vsat
Network
|
N/A
|
N/A
|
N/A
|
N/A
|
51
|
52*
|
52*
|
|
Internet
Services
|
18
|
30
|
30
|
35
|
35
|
35*
|
35*
|
|
|
GROWTH IN FIXED AND MOBILE TELEPHONE LINES AND TELEDENSITY
|
||||||
|
Fixed:
|
|
|
|
|
|
|
|
|
NITEL
|
450,172
|
497,019
|
540,662
|
555,466
|
555,466
|
524,596
|
525,000***
|
|
PTOs
|
23,144
|
56,355
|
59,659
|
146,534
|
333,068
|
515,173
|
568,925****
|
|
Sub-Total
|
473,316
|
553,374
|
600,321
|
702,000
|
888,534
|
1,039,769
|
1,093,925
|
|
Mobile
|
35,000
|
35,000
|
266,461
|
1,569,050
|
3,149,472
|
8,500,000
|
9,950,000
|
|
Total
|
508,316
|
588,374
|
866,782
|
2,271,050
|
4,038,006
|
9,539,769
|
11,043,925
|
|
Teledensity
|
0.42
|
0.49
|
0.72
|
1.89
|
3.36
|
7.77
|
9.2
|
|
|
GROWTH OF TELECOM INVESTMENTS IN NIGERIA
|
||||||
|
|
1999
|
2000
|
2001
|
2002
|
Jun 2003
|
Dec 2003
|
Sept.
2004
|
|
Amount
In US$’Million
|
50
|
150
|
1200
|
2100
|
2550
|
4000
|
6080
|
* Confirmed, Include 3 fixed wireless access (FWA) operators,
*** Estimates,Includes estimates for some companies
PTOs: Private Telephone Operators
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