The Federal Government is taking steps to overhaul Nigeria’s road transport sector through a new reform initiative aimed at improving safety, efficiency, infrastructure and the overall management of the industry.
The move followed a high-level stakeholders’ meeting convened by the Office of the Vice President in Abuja, bringing together representatives of federal ministries, regulatory agencies, transport unions, financial institutions and development partners.
The meeting marked the launch of the Initiative on Road Transport Transformation, which seeks to address long-standing challenges across the sector.
Road transport accounts for more than 90 per cent of passenger and freight movement in Nigeria. However, the transport and storage sector currently contributes only about 1.56 per cent to the country’s Gross Domestic Product (GDP), a figure officials described as inadequate given the sector’s importance to the economy.
Representing Vice President Kashim Shettima at the meeting, the Special Adviser to the President on Economic Affairs, Dr Tope Fasua, outlined five key areas for the proposed transformation.
They include improving road safety and professionalising driver training, introducing digital systems for vehicles, drivers and road infrastructure, upgrading the national road network, strengthening private-sector participation in transport management and improving coordination among the federal, state and local governments.
Fasua said the administration of President Bola Tinubu intends to address the sector’s weaknesses by combining infrastructure development with regulatory reforms, digital technology and cleaner energy solutions.
The Technical Adviser on Transportation, Logistics and Innovation, Prince Segun Obayendo, said Nigeria’s road transport industry had yet to achieve the level of formalisation seen in several developed countries.
He cited Germany, France and the United Kingdom, which he said began formalising their transport systems in the 1930s, arguing that Nigeria’s sector remains significantly behind in terms of institutional development.
Obayendo explained that the National Road Safety Advisory Council, chaired by Vice President Shettima, would provide oversight for the initiative without the establishment of another government agency.
He added that existing personnel within state and local governments would be designated as desk officers to assist with implementation.
Financing the replacement of ageing commercial vehicles was also identified as a major concern. Obayendo advocated access to single-digit interest rates for fleet renewal, noting that commercial borrowing rates of between 30 and 33 per cent make it difficult for operators to replace old vehicles and improve safety standards.
He also called for improvements in driver licensing and national transport data systems, alongside greater adoption of compressed natural gas (CNG) as an alternative fuel for road transport.
Stakeholders at the meeting proposed the creation of a multi-sector technical committee that would develop an integrated framework for managing and coordinating reforms across the industry.
The initiative is expected to proceed to formal endorsement, after which the proposed technical committee will present recommendations for implementation.
Vice President Shettima has previously indicated that the success of the reform effort should ultimately be assessed through measurable improvements in road safety, transport efficiency, working conditions for transport operators and the wider contribution of the sector to Nigeria’s economic development.
