Abstract
What if the transportation section, stagnant, almost every section
of any given economy will not perform well as expected. Te
importance of transportation in developing or advanced
economics cannot be over emphasized. Transport is one of the
main sector that remains as the cornerstone of every nation for
achieving growth and development as well as gaining political and
economic independence. The study shows the relationship
between transportation and economic development and also the
level of the manufacturing output contributed in the economy due
to transportation. The research employed regression analysis
using OLS in verifying the relationship that exist in computing
transportation, manufacturing output and inflation.
1.1 BACKGROUND OF THE STUDY
The transportation system in Nigeria is being seen as the
means towards attainment of growth and development of the
Nigeria economy. To attain such growth, an efficient function
forms has to be laid.
In every aspect of man’s activities, transportation has come
to play a vital role, which ranks it among the most important
determinants of any success in such human activities. The
transportation of goods and services has become vital to the
economy due to foreign exchange earning to the sector of the
economy. As such there is need for this study. A good and well
backbone for a vibrant and growing nation.
Therefore, transportation is defined as the movement of
people and material from one point to the other for one reason or
the other. This movement could be on sea, land or air. Transport
is hardly in demand for its own sake; rather it is linked
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organically to the survival of other sector namely social, political
and economic sector. Hence the need for transportation services
in any economy is it socialist or capitalist cannot be under
estimated. The interaction between the level and pattern of
transportation resources and the standard of living of the
population of any country is or critical factor affecting social,
economic, political military, religion, recreational or educational
progress and must therefore be taken into account at all levels of
planning. Therefore, activities in aspect of transportation system
while their subsequent operations and development would
generate increase demands for transportation of goods, services
and people.
The development and efficiency of transportation system is a
pre-requisite goal of all developing countries.
Money and funds have been selectively applied to this
particular field of development and the principle is now generally
accepted that the improvement of transport forms perhaps the
most valuable single contribution towards economic, social and
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political development. In diverse ways of man’s daily activities
transport system have served and will be serving and shall still
serve. For example transportation system has been employed to
serve in various economies’ criteria rather conveying raw
materials to the manufacturing plants or finished goods, to the
consuming areas. Certainly in the early stages of economic in
communities where subsistence agriculture is still important
transport is probably the key to development “Fertilizer improve
strains of seeds, education and other subject are all of the
greatest importance. But the needs for transport is prior of these”
(Clark 1968).
Nigeria like any other developing country recognizes the
importance of and need to develop an efficient transport system
evidently stated in the third National Development Plan of 1975
to 1980. The transportation system has to support the growth
and development of agriculture, commerce and industry with
efficient movement or people and goods throughout the country.
As a matter of public policy the government supports the
continued development of efficient dynamic and flexible transport
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service as being vital to economic growth, expanding productivity
and general process of the nation. The efficient and effectiveness
of transportation system influence the cost of every commodity
consumed or exported, thereby affecting business economic and
industrial opportunities of every citizen the basic objective of the
government in this field is to develop and assure the continued
expanding availability if fast, save and economic transport service
needed in a growing and changing economy in order to move
people and goods in response to public and private demand the
lowest consistent with health safely, convenience, and their broad
public objectives (Ahmans 1990)
In the light of this, government has lead emphasis on
efficiency, flexibility, safely and lowest cost in the development of
transportation services especially the Federal Urban Mass Transit
Programme in 1988 (Daily Champion, 1988) that led to the
emergency of transport outfit such as Borno Express Corporation
in Borno State, Kaduna transport Authority in Kaduna, Kwara
Express in Kwara State, Plateau Express Limited in Plateau State.
Like most government establishment they were making
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parastatals and their services are to be subsidized in relation to
the private transport sub sector. All these development are effort
towards a reflection of national growth, which had generated the
information of various outfits to cope with this general pace in a
natural building. These factors ensure a free low factor of
production commodities with regards to cost of production and
job opportunities. And from the welfare view point, it enhances
higher standard of living of the populace.
Therefore, this essay is aimed at studying an economic
analysis Nigeria economy with particular reference to Borno
express corporation and the length at which public demands
transport service (Bello, 2000).
1.2 STATEMENT OF THE PROBLEM
In the transportation sector of Nigeria economy, there are
numerous problems which the transportation sector faces. These
problems are great source of concern to economic and the
government at large. The transport sector virtually serve as
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source of foreign earning and equally means of conveying goods
and services to the nooks and crannies of the country.
Transportation economics encompasses, air, sea and land
transportation system with specification reference to Nigeria, the
road transportation system is the most widely used of all forms of
transportation system.
Hence, the federal state and local government have ensured
that road transport infrastructure develop in all federation.
However, inadequate of credit facilities has been identified as a
major obstacle for improving transport in Nigeria. The federal
government in its desire to encourage the development of
transport sector has put in place certain facilities to the transport
sector through various schemes and policy guide lines.
Transportation infrastructures (roads, rail, airports and
seaports) are the arteries for the free flow of people, goods and
information, three things necessary in a manufacturing and
export economy. If eyes are the light to human soul, then the
airports and seaports are the eyes that international business
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travelers see a country with. How important there transportation
infrastructures are to the manufacturing economy is as good as
anybody can gives. But that will not stop me from talking about
it.
The domestic need for transportation infrastructure brings
with the possibility to become an important link in the regional
transportation system in the movement of goods manufactured in
the rural areas (where most manufacturing facilities should be
located anyway). There is a need of there transportation
infrastructures it cannot continue, the age – living neglect of
these transport systems. Also there is a need to revive water way
and railway transportation. The age – long neglect of these
transportation if Nigeria wants to become a manufacturing
economy. A country cannot become a manufacturing giant
without well – connected inner perimeter roads xxxx airports,
seaports and railroad stations.
Government cannot display possibly all these without the
involvement of private entrepreneurs in the building of
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transportation infrastructures, such as the management of
airports, railroads, seaports, and state collection of tolls of the
maintenance of perimeter roads and highways. For Nigeria to
reach the goal of becoming a manufacturing economy in 2020
(what we at Nigerian Entrepreneurial Leadership call 24 hours
economy) the country must attend to the glaring and urgent
needs of using water and rail means of transport to reduce
pressure on the road system and boost productive activities and
employment country wide, especially in the rural areas.
The neglect of rail and waterways for decades has
contributed to the nation’s dependence on food importation, as
agricultural produce from one part of the country cannot be
transported cheaply to other parts. Lack of cheap means of
transportation has discouraged many farmers whose harvests
perished because they could not access the market. Also, the
nation has continued to reduce the same socio-economic loss
from the future to expand railway network to all the states, so
that agricultural produce could be moved cheaply to urban
markets. Rural development proclamation will just be that,
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proclamation, unless transportation infrastructure network is
build to encourage free flow of people and goods.
More disappointing is the inability to maintain the existing
north-south colonial rail truck for the movement of goods. This is
major reason for the amalgamation of the north and the south by
the colonial masters for their easy management of movement of
goods. Nigerian’s should debate more on the economic
manufacturing necessity of the north and south areas, as well as
the east-west areas; rather than the political undertone.
Consequently the decline in rural economic activities is largely
responsible for high rates of joblessness, crime and declining
quality of life, as the urban areas become overpopulated resulting
in environment problems, such as over-flow of garbage, lack of
proper drainage system.
The Nigerian Railways Corporation (NRC) monopoly law
should be abrogated and a regulatory framework set up to guide
private instruments in the rail transportation infrastructure. The
lack of interest, and failure to provide incentives, might have
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discouraged the private sector from investing in rail and water
transportation. Because of the importance of this sector in a
manufacturing economy, a form of enterprise fund should be
created with the purpose of promoting private sector
development in the rail and water transportation.
International business travelers must agree that Airport
security and foreign investment go hand in hand. Travel is a basic
necessity for business to be conducted between countries, while
symbolizing a deeper connection that is fundamental to a
country’s economic fixture. Aviation is the travel mode of the
world; the first and last impression is your airport. Foreign
investment is going to come from people who fly. It is vital if
Nigeria is going to become a manufacturing export economy that
encourages business people will doubt whether Nigerian’s airport
and airspace can attain international standards. These recent
misshape give a bad impression not only of Nigeria airport, but
also of Nigeria as a whole, and the lack of structural management
system. The bottom line is that if you can’t get there, you can’t
trade. Improving airport security is so critical for international
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trade. The attract travelers and commercial shippers, air travel to
Nigeria must be safe and secure.
This project is not meant to provide solution to the ailing
transportation infrastructure, as to modernization of equipment
types, and types of industry management training, but to raise
awareness of the importance of the transportation industry
problems in equipment and training is left to the consultants, who
often a critical study, diagnosis, and analysis of the sector’s
current situations. Any seemly solutions to the problems
presented in this project are peripheral as I do not give free indepth solution in my project. Lecletus Olebune (2010).
The research questions for this study are:
1. What is the impact of transportation on the Nigerian
economy?
2. What are the domestic needs for transportation
infrastructure?
3. How does inadequate of credit facilities affect improvement
of transport in Nigeria.
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1.3 OBJECTIVE OF THE STUDY
1. To determine the impact of the economic growth.
2. To get to know the influences of transportation in developing
countries.
3. To get the aggregate level of the waste caused by poor
transportation system in the Nigerian economy.
1.4 STATEMENT OF HYPOTHESIS
Transportation has no significant impact on the Nigeria
economic growth.
1.5 SIGNIFICANTS OF THE STUDY
The study of the transportation system in the Nigerian
economy is of great importance as the study will create an insight
to the study will create an insight to the causes of those
transportation problems and also suggest solutions through
policies that helps in reducing these problems. This essay
therefore is expected to shed more light on the appraisal of
revenue role as regards to product management and efficient
services to the transport sector.
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Efficiency in the transportation sectors of the Nigeria
economy through a reduction of elimination of some vital
problems will have a positive effect on the national economy. The
constitution of new roads proper, check on vehicle worthiness will
to a large extent revive the transportation sector and in torn
boost activities in the economy as the transport sector is
invaluably the backbone of all other sector in every economy.
This work also tends to check whether or not revenue from the
government has contributed significantly to the development of
transportation system in the Nigeria economy.
1.6 SCOPE AND LIMITATION OF THE STUDY
This research will be conducted within and outside the
caritas community. This research covers the entire economy so as
to obtain enough data they will avoid research is the difficulty
together information and data needed for the study. This
research also consumed a lot of time, and other resources
constraint cost consideration also posed a serious problem.