Experts in the Transportation sector in Nigeria have identified high cost of transportation as a major factor driving inflation in the country upward.
They noted that, so long as it is difficult and expensive to convey goods, services and human beings from one marketplace to an other, the prices of commodities will continue to rise.
Speaking at a Seminar organized by the Abuja Transport and Aviation Correspondents Association (ATACA), Dr. Emeka Okengwu, the keynote speaker said while resources remain the foundation of economic activities, the commodification of the economy has been linked with higher levels of material flows.
“An efficient transport system offering cost, time, and reliability advantages enables goods to be transported over longer distances. This facilitates mass production through economies of scale because larger markets can be accessed.
“The concept of just in time in supply chain management has further expanded the productivity of production and distribution with benefits such as lower inventory levels and better responses to shifting market conditions.
“Thus, the more efficient transportation becomes, the larger the markets that can be serviced, and the larger the scale of production. This results in lower unit costs” he stated.
Okengwu explained that “when transport is efficient, the potential market for a given product (or service) increases, and so does competition. A wider array of goods and services becomes available to consumers through competition, reducing costs and promoting quality and innovation.
“Transport also contributes to economic development through job creation and derived economic activities. Accordingly, many direct (freighters, managers, shippers) and indirect (insurance, finance, packaging, handling, travel agencies, transit operators) employment are associated with transport.
“Producers and consumers make economic decisions on products, markets, costs, location, and prices, which are based on transport services, availability, costs, capacity, and reliability”.
Also speaking at the Seminar, the President of Nigeria -Bangladesh Business Technology Forum, Bob Achanya said transportation policies in the country needs to be reviewed.
He lamented that Nigeria with inland waterways connecting over 28 states is still experiencing congestion on the roads with influx of trucks.
Achanya stated that with an effective means of transportation in the country, the cost of products would drastically be reduced, taming inflation.
On his part, the Minister of Transportation, Sen. Sa’id Alkali stated that there is a need for stakeholders in the sector to support the Federal government’s efforts in harnessing the gains of the industry for the development of the nation.
Represented by the Special Assistant (Technical), Dr. Shuaibu Danwaka, Alkali expressed concern that Nigerian farmers are losing billions of naira due to lack of modern storage facilities for consumables.
He said the challenges confronting the transport sector can be ameliorated if all transport systems are harnessed and made easy for the farmers and other Nigerians to navigate easily with choice.
The Minister also cautioned the media to be ethical in the dissemination of information regarding the progress being achieved in the transportation sector by the current administration.
In his address, the Chairman of ATACA, Mr. Leopard Oru said in harnessing the Aviation, Railway, Marine and Blue Economy sectors for Sustainable Transportation in Nigeria, Land Transportation and the Railway sub-sectors should be guarded and funded properly while seeking collaborations around the globe.
“For our transportation system and businesses, whether Air, Land or Sea to thrive, Security and Safety is key. Therefore, we implore Security agents, regulators and enforcers of the relevant laws to step up their game” he stated.
Many economic Experts are of the opinion that rising cost of transportation is a major contributor of the rising inflation in Nigeria.
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