11 July 2018

Nigeria: Failed Roads Scaring Investors Away, Says Sifax Boss

The Federal Government has been urged to fix all the major dilapidated roads scattered all round the country in a bid to boost the fortunes of the haulage sector.

Adewale Adetayo, General Manager, SIFAX Haulage & Logistics Limited, who made this appeal, recently, said many potential investors in the business are scared away because of the potential risks their investment will be exposed to as a result of the deplorable conditions of the major highways in the country.

He said: "The haulage business has a very huge potential but not much attention is paid to it. The sector currently accounts for over N200 billion turnover, with an estimated growth rate of about 10 per cent per annum.

A statement signed by Corporate Affairs Manager, Sifax Group, Muyiwa Akande, quoted him as saying: "If you look at the assessment of the Logistics Performance Index, Nigeria ranks 90th out of 160 countries, which is very poor. One of the major challenges confronting the sector is that of bad road. If you also consider the road landscape in Nigeria, the Federal Government has about 18 per cent of the road network, state government about 16 per cent and the local governments about 68 per cent. The sad thing is that more than 70 per cent of the traffic on the road is basically on the Federal roads which represent just 18 per cent of the country's total landscape,"

Adetayo noted that the sector would experience a quantum leap in growth and investment if all the federal roads and other necessary infrastructure could be fixed.

He debunked the insinuation that there are more than enough trucks on the roads, adding that the continuous expansion of the country's economy necessitates frequent movement of goods from and into the country. He noted that the proper implementation of the Ease of Doing Business would encourage more investment, both local and foreign, in the sector.

The Sifax Haulage boss also demanded government's stern action on regulation. He said a good number of the trucks plying the country's roads are rickety in nature, thereby putting the lives of other road users and the goods they convey at risk. While commending government's relevant agencies for their efforts in this regards, he urged them to be more stringent in order to rid our roads of all rickety and badly-maintained trucks.

Speaking further on the company's recent acquisition of 20 new trucks, Adetayo said increase demand by the customers, as well as creation of more jobs opportunities account for the purchase that takes its fleet strength to 75. He said this has now positioned the company to undertake good delivery in any part of the country and beyond.

Nigeria

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