The Nigerian transport and logistics sector is experiencing a critical data deficit, hindering its ability to accurately measure its economic contribution and inform effective development policies. Stakeholders across the industry, from government officials to private sector leaders, are advocating for the creation of a comprehensive Nigerian Transport Index, alongside complementary Freight and Maritime Indices. This call stems from the recognition that reliable data is fundamental to understanding the sector’s performance, identifying areas for improvement, and ultimately, contributing to poverty reduction efforts. The current lack of a unified data system obscures the true economic impact of the sector, leading to misallocation of revenue attribution and hindering strategic planning.
Dr. Kayode Opeifa, Managing Director of the Nigerian Railway Corporation, champions the establishment of these indices as essential tools for economic progress. He argues that the fragmented nature of existing data, scattered across various ministries and agencies, prevents a holistic understanding of the sector’s performance. He highlights “mobility poverty” and “transportation poverty” as overlooked dimensions directly linked to the transport sector, requiring inter-ministerial collaboration to address. Opeifa criticizes the current GDP reporting methodology, which inaccurately attributes logistics-generated revenue to the Nigeria Customs Service rather than the transport sector where it originates, further emphasizing the need for a dedicated transport index.
This misattribution of revenue distorts the perceived contribution of the transport and logistics sector to the national economy. The revenue generated by freight forwarders, a key component of the transport sector, is mistakenly credited to Customs in GDP calculations. This misrepresentation not only underestimates the transport sector’s actual economic impact but also potentially misdirects resources and policy decisions. A comprehensive transport index would correct this anomaly, accurately reflecting the sector’s true economic value and enabling more targeted interventions to maximize its potential.
Private sector leaders echo the call for improved data management within the transport and logistics industry. Las Alli-Shobande, Chairman of the LCCI Freight Forwarders Group, stresses the importance of harmonized data systems. He places significant hope in the government-led national single window project, an initiative aiming to integrate 21 relevant agencies onto a single digital platform for streamlined cargo clearance. The success of this project, according to Alli-Shobande, is paramount for effective data collection and analysis, enabling real-time tracking and documentation approval, thereby enhancing efficiency and transparency within the sector.
Funmi Folorunso, Chairperson of the LCCI Maritime Trade Group, emphasizes the crucial role of data as incontrovertible evidence, distinguishing it from mere opinion. She advocates for a private sector-led initiative in developing a national transport data system, while recognizing the necessity of collaboration with public institutions. Folorunso points out that government agencies hold crucial port information and data, necessitating a synergistic approach between the public and private sectors to ensure a complete and accurate data ecosystem. This collaboration is vital for building a robust transport index that accurately reflects the sector’s contribution and informs effective policy decisions.
The establishment of a comprehensive Nigerian Transport Index, complemented by Freight and Maritime Indices, is deemed crucial for the advancement of the nation’s transport and logistics sector. This index would not only provide a more accurate representation of the sector’s economic contribution but also serve as a powerful tool for evidence-based policymaking, strategic investment decisions, and targeted poverty reduction strategies. By consolidating fragmented data sources, the index would offer a comprehensive overview of the sector’s performance, facilitating informed decision-making and promoting sustainable growth. Furthermore, it would highlight the interconnectedness of transport and logistics with other economic sectors, emphasizing its role in national development and poverty alleviation.
