Private Sector Expectations and Priorities

Expectations of the private sector include:

  • Addressing the state of undercapitalisation, especially within the aviation sub-sector, and the sector’s weak corporate governance;
  • Reducing the high operational charges and tariffs needed to operate in the transport sub-sectors;
  • Developing connectivity to address the limited intermodal connectivity between ports, airports and roads, and limited connectivity with other African and regional hubs;
  • Establishing coherent policies such as road standards, axle load policies and ease of securing right of way, to facilitate infrastructure development;
  • Improving public contracting, tendering and quality control;
  • Revising laws that place the construction and management of road, rail, aviation and maritime infrastructure under the exclusive purview of the federal government;
  • Establishing fiscal incentives (e.g., pioneer status), particularly for ancillary and rolling stock in all sub-sectors;
  • Increasing the concession management of infrastructure, aligning with bilateral service agreements, reducing agency fees and improving infrastructure maintenance capabilities.

 

Enablers

  • A low interest rate regime, especially for aircraft leasing and purchase;
  • Ancillary infrastructure: power, airport hotels, scanners, radars, lighting on runways, etc., that allow for more efficient operations;
  • Rail connections between key intra-city airports to aid transfers;
  • Investments to improve aviation security, acquisition of newer planes and  local aviation maintenance capability;
  • Federal government commitment to adopting a PPP framework for road construction, maintenance and management;
  • Access to concessionary (cheap) financing and long-term capital, right of way and tax exemption and duty waivers;
  • Adequate and efficient maintenance of the existing road network;
  • Government support in terms of guarantees required to enhance the viability of projects in the sector;
  • Reforms similar to the 2005 port reforms to encourage private sector participation in developing rail infrastructure;
  • Reconnecting the railways to the ports and ensuring provision of serviceable rolling stock;
  • Policy stability;
  • Reducing the number of government agencies at the ports;
  • Improving port infrastructure so as to accommodate current and emerging traffic at the seaports.

The priority public and private sector transport projects for the short and long-term include:

  • Continue with remodelling of airports, focusing on maintaining the highest operating standards;
  • Connect all 3 airports in Lagos with a monorail to allow for ease of access;
  • Improve lighting on airport runways;
  • Build transit parks for trucks along federal roads;
  • Complete key projects in the roads sub-sector including – Lagos-Ibadan road; Second Niger bridge; Benin-Shagamu; East West Road, Costal Highway: Lagos, Warri, Port Harcourt, Calabar; Abuja Ilorin; and 4th Mainland bridge;
  • Complete key projects in the rail sub-sector including: heavy duty rail projects for cargo traffic; Lagos blue and red line projects; East west rail line (Lagos-Calabar); Abuja light rail; Lagos Kano rail line (Lagos-Jebba and Jebba-Kano); Lagos-Ibadan rail line: Abuja-Kaduna rail line; Ajaokuta-Warri rail line;
  • For the maritime sector, the priority would be to improve customs performance; tax exemption and duty waivers on equipment; ports infrastructure including greenfield development; deep seaports development; shipyards for shipbuilding and repairs; and inland waterways development to allow for an intermodal transportation system.