By Godwin Oritse
A transport and logistics expert Mr Alban Igwe has said that Nigeria loses over N430 billion annually to poor state of roads and other transport infrastructure saying that “the trend can drive changes in the entire economic structure unchecked”
Speaking at the 4th edition of the Trans-quest annual lecture and awards held in Lagos over the weekend, Igwe stated that economic growth and development are inherently tied to transportation adding that when transport systems are efficient, they provide economic and social opportunities that results in positive multiplier effects.
He explained that when transport systems are inefficient, they can have economic cost that lead to reduced or missed opportunities.
He further explained that Transport sector improvement can serve as a catalyst that can promote a transpirent circle of economic development .
He stated “A major characteristics of advanced economy is the shift from manufacturing to service economy which of course relies heavily on efficient transportation system.
“Even tourism dependent economies rely on efficient and transpirent system to thrive
“Over the last decades or so the globalisation of commerce and culture has made the transportation industry pivotal to most countries’ economic growth so much so that it has become respectable conversion in the mainstream of business and society.
“When viewed in conjunction with the value added services that are needed to transport people and goods, the transportation sector generates $3.5trillion of revenue per year.
“Countries are becoming much more sophisticated about the importance of transportation and logistics infrastructure to the industry productivity and international competitiveness.
“The estimated loss to the Nigerian economy as a result of poor state of the roads is about N430billion yearly”
He noted that high international transport cost put a double squeeze on the domestic economy which according to Igwe will always compel exporters to reduce the price of their products so as to offset the cost of transport.