CHAPTER 1: INTRODUCTION 1.1:Background to the Study

A well-developed transport and communication network is a pre-requisite to competitiveness and economic development. Effective modes of transport, including quality roads, ports and air transport enable entrepreneurs to get their goods and services to the market in a secure and timely manner and facilitate the movement of workers to the most suitable jobs. However, out of the 139 countries assessed by the

Global competitiveness report in the 2010-11 year, Nigeria declined in the rankings to 127th from 99th position. Nigeria also receives poor assessment for its infrastructure, ranked 135th and placing 128th for quality of its roads. Railroad transport infrastructure maintenance placed 104th, quality of port infrastructure and air infrastructure placed 121th and 101th respectively (The Global Competitiveness Report, 2010-11).

The Nigerian transport system consists of the following modes: road, rail, maritime

(water), pipelines and air. From available statistics, the bulk of cargo transported round Nigeria makes use of the road system. The pipeline system (crude oil 2,042 km; petroleum products 3,000 km; natural gas 500 km) basically is used to transport oil, gasoline, diesel, natural gas and others, the air system are probably the less used in comparison with the rest (Madu, 2011).

An “efficient transport system” means that the transport services are provided in a way that ensures resources are used efficiently and the economic potential of appropriate technology is used to achieve sustainable gains in productivity in order to reduce costs and improve service quality. An efficient transport system also implies the progressive reduction of social costs, the control of other external costs of transport, and the expenditure of public funds in a way that is properly justified and carefully managed (Engel et. al, 2009).

Nevertheless, the imbalance in the supply and demand for transport capacity and the development of the different modes of transport has increased since the first comprehensive draft transport policy of 1993 for Nigeria. Though efforts have been made to provide adequate transport of all modes, notwithstanding, the demand for transport services in Nigeria seems to exceed the supply (Draft National Transport Policy, 2010).

Filani (2002) found that over 90% of the country‟s goods and freight movement is accounted for by the road transport.  Only 50% of federal roads and 20% of state roads are in good condition while a meager 5% of rural roads are freely motorable despite several reforms in the transport sector (Oni, 2009).

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