Nigeria’s transportation matrix is one of the best in West Africa, highlighting acomprehensive system of paved highways, roads, rails, airports,seaports and inland waterways. The sector contributes about 3% to the Gross Domestic Product (GDP) annually.
Road transportation accounts for more than 80% of passenger and freight movement in the country; government is revitalising the railway network to service large proportion of this movement. The aviation sub-sector is also being transformed to a more user friendly and affordable mode of transport. Similarly, the capacity of the inland waterways is being built to effectively complement the other modes of transport.
To develop transport infrastructure and facilitate Private Sector Participationgovernment has established the Infrastructure Concession and Regulatory Commission (ICRC) to manage the selection, development, procurement, implementation and monitoring of Private Public Partnership (PPP) projects.
To accelerate investment in national infrastructure through Public Private Partnership arrangement and key expansion and refurbishment of existing assets
Investment Opportunities in the Transport Sector
Investment opportunities abound for investors who wish to engage in mass transportation business in any of the modes of transportation.
Seaports and Inland Waterways
- Port services management and operation;
- Liner services – foreign shipping companies can engage in the provision of Liner Services through joint sailing agreement with Nigerian shipping companies;
- Tramp services;
- Coastal and inland water transportation under cabotage law- government encourages joint venture in the ownership and operation of light vessels between ports, which must be fully registered in Nigeria;
- Terminal and jetty development;
- Ship acquisition and ship building fund/lifting of crude oil and gas;
- Towage and pilot services
- Construction and maintenance of standard gauge rail lines through concession or any of the PPP models;
- Provision of train transportation services - freight and passenger services.
- The aviation infrastructure – maintenance hangers, communications and safety infrastructures, airports and landing strips
- Air catering services
- Airline operations
- Establishment of modern aircraft training facilities
- construction and maintenance of paved roads through concessionary or any of the PPP models;
- building of tolls infrastructure and collection of tolls for the use of the service facilities provided to help sustain the system;
- provision of mass urban and rural transportation services – freight and passenger services;
- service facilities at the terminals on both the highways and destinations;
- central terminals in various urban and rural locations in the country with service facilities.
Incentives In The Transport Sector
- Infrastructure: 20% of the cost of providing basic infrastructures such as roads, water, electricity, where they do not exist, is tax deductible once and for all.
- In-plant training: 2% tax concession for five years, of the cost of the facilities for training
- Local value added: 10% tax concession for five years. This applies essentially to engineering industries, while some finished imported products serve as inputs. This is aimed at encouraging local fabrication rather than the mere assembly of completely knocked down parts.
- The Executive Secretary/CEO,
Nigerian Investment Promotion Commission (NIPC)
Plot 1181 Aguiyi Ironsi Street
Maitama District, Abuja, Nigeria
Telephone: +234 (09) 2904882
- Federal Ministry of Transport
2nd floor, Annex 3, New Federal Secretariat Complex
Shehu Shagari Way, central area
AbujaTelephone: +234 (09) 5237054